Dealer commissions

[moptisam2]

I have been told that dealers make about 9% on new cars. Does anyone know how much they make on the extras?

I have spec'd up my new A4. It includes just over £4000 of extras. In view of the rather ridiculous prices for some extras I feel dealers must be making more than the 9%.

Does anyone have any reliable information?

I want to place my order by the end of the month.

Thanks.

[Bloater]

I've no idea about exact figures, but when I ordered my new A4 2 weeks ago, the salesamn was haapy to give 10% off the car. He didn't need to speak to anyone more senior for that.

He did let on as well, that as a private buyer, he would still get his commission, and I also understand that the dealership as a whole gets quarterly bonuses from Audi based on numbers of cars sold. Therefore it is probably worth it to a dealer to make very little on a car, knowing that thousands are coming from Audi.

This is only my understanding, I have nothing to do with car dealerships, so am willing to be corrected is its wrong.

Bloater

[MalcQV]

I have been lead to believe the money is in used cars and servicing. This is not 1st hand info though.

[dansansome]

yep. similar to the aircraft industry. very little profit in the actual aircraft sale. all the money is made by servicing, upgrading and parts.

i wouldnt be at all surprised to find out if this is true of the car insustry.

[the_gasman]

I've no idea about exact figures, but when I ordered my new A4 2 weeks ago, the salesamn was haapy to give 10% off the car. He didn't need to speak to anyone more senior for that.

Bloater

Was this 10% of the RRP or the OTR price? 10% of options as well? Just to help me with bargaining if I decide to buy one.

Thanks,

Martin

[Bloater]

It was 10% off the on the road price, complete with options.

Hope this helps.

Bloater

[moptisam2]

Thanks Bloater. That's very useful to know. All the talk seems to be that 'discounts will be difficult to get', as the car seems to be building a good name for itself, even now.

It means I'll be negotiating a bit 'harder'.

Thanks again.

[Moodshadow]

Have a look at the brokers, motorlogix, drive the deal etc, they are offering various discounts and if you do your homework they know you aren't going to be fobbed off - I'm waiting for the 170 engine to be released before I order but this is the route I am likely to take - it worked well three years ago when I bought the A3 for the wife

[moptisam2]

Thanks Moodshadow, I will.

I've already had one dealer in S. Yorkshire who offered me a low part-ex and full price on a £ 27 530 spec. I told him 'no way'.

One down.....

[John140]

I guess dealres are heavily discounting (by Audi standards) new old-shape A4's right now, so 10% off the OTR price doesn't surprise me at all. I got 9% off my new A4 AVant a year
ago. I think it is pretty true that in some dealerships they are willng to do new car sales at 'break even' as long as the servicing and 'Audi approved used' business is strong.
Personally I bought new as there seemed to be so little saving in buying the same car 8 months old with say 8K on the clock.