Hi,
I am planning on getting an A3 this or the next weekend... am on a tight budget and so I'll be getting the very basic automatic in lava-grey - no premium, cold weather, open sky, nothing! This DC area dealer offered to sell at $1,500 below invoice - it works out to be $1,200 below KBB/Edmunds invoice. It all comes to slightly over $26,500 with taxes and all, but no additional warranty.

1. Does the deal sound OK - 1,500 below invoice? Shall I try to bargain further?
2. What kind of default warranty does Audi provide? Shall I get the $550 one I was reading about here?
3. I plan to lease it for 3-4 years @ 10,000 miles/year. Does Audi have any offers for leasing terms? And anyways, what is the residual value and money factor for this car?
4. If I lease it, should I go for premium/cw/open sky? Seems that everyone has some options on their A3s.
5. And finally, should I be aware of any other "unexpected costs" that I might encounter at the dealership?

This is going to be my first car purchase in the US (or anywhere for that matter), and I've only been to a dealership once, for the A3 testdrive.

Any insights are very much appreciated.

Allbest.

 

Do the A3 you are looking at have S-Line package? Most A3 purchasers buy one with leather (a reasonable expectation for cars in this price range), so if you get one without, resale may be hard in a couple years' time.

 

I am not to keen on the S-Line given the poor roads in the area.

But the dealer has the same car with premium/cw/os packages, for $4,000 more. From what you are saying, however, it seems that a cheaper version today = lower residual/resale value, wherease a more expensive version = a higher residual/resale value. I guess that means that the monthly payments should be close if I lease it. Is my reasoning correct?

 

^^^yes, mostly

$4k in additional upgrades won't equate to $4k more in resale value, but it will definitely be higher than the base, and will probably sell faster. Leasing a car will have lower monthly payment than buying a car, but the difference you'll have to calculate with the dealer based on residual value and terms.

Cheers!

 

Thanks for the info,

I just spoke with a few other dealers, and apparently some can g $2,000 below invoice. Evidently, there is a catch: you cannot get the $2,000 below invoice, if you plan on using Audi Finance for leasing or buying (in case they have any special rates). So essentially, I would need to buy it, and finance it at 7%.

Does it stil make a good deal?

And also, I just discovered that one dealer has a $300 ad fee, and a $195 pre-dlivery inspection fee. Can these be waived.

Thank you again.

 

Sorry for the dumb question, but by "invoice" do you mean MSRP? If not, what's the difference between the (real?) invoice and the KBB/Edmunds invoice?

 

Easy. Take a best guess as to how long you plan to have the car. Then figure payments using the 7% and discounts. How much will you spend over time? Then compare that to the money spent using their better rate financing at the higher price.

 

Also, never pay their ad fee: invoice minus dealer cash + govt fees only. Keep in mind Audi, like BMW, has no dealer holdback.

 

Hi zlg,
KBB invoice price is about $350 less than the dealer's invoice price, and he says that his invoice is higher because of the ad fee and pre-delivery inspection fee. So that's about it. I am not sure if I can ask him to waive these fees.

 

Those fees are bogus, don't pay for them. Go in with that attitude, and not the, "are you sure you can't waive them?" attitude. It's just a sales gimmick.

Cheers!