Audi Prices: MSRP vs Factory Invoice vs True Dealer Cost
The Dealer Invoice Price has hidden mark up such as holdback and other fees built into the price.
The following Audi price guides strip these hidden dealer profits out and illustrate the MSRP, the invoice price, Holdback and the true dealer cost. (See Audi price definitions below.)
Why You Should Know the True Dealer Cost...
Knowing the dealer cost gives you needed leverage when it comes time to negotiate a great price. Negotiating from the cost up and not the MSRP down can save you thousands on your next purchase.
Audi Price Terms & Definitions
Figuring out all the pricing details on a new car can be very confusing because there are so many little details to the price of a car. These are things the average person does not understand. For example, what is the difference between the Dealer Invoice Price and a Dealer Holdback? For those in the market to purchase a new car these are things that need to be understood.
MSRP stand for manufacturer suggested retail price, basically it is the price that Audi thinks the automobile should be sold for. This amount takes into account how much money was put into making the car, shipping the car and whatever else was necessary. The MSRP is set so that every person involved with making or selling vehicles will make a profit.
Dealer Invoice Price
This is the price that the dealership pays to the manufacturer, and it includes factory charges and the cost of optional accessories.
This is money that a dealership is paid by the manufacturer that covers the interest on the loans that the dealership has to take out in order to buy a fleet of cars from the manufacturer. The Holdback is often charged to the consumer but it allows the dealer to sell the car below Invoice Price and still make a profit.
Manufacturer Incentives and Rebates
These are incentives the manufacturer gives the dealership so the dealer can offer either a rebate or incentive the customer. There are basically three types: special leases, low-interest financing and cash Rebates.
The Destination Fee is what the manufacturer charges the dealership to deliver the vehicle. The actual distance does not matter, and it is just a set price the dealership must pay.
These are incentive that the factory gives the dealership in order to lower the price the dealership pays to purchase the car. They are offered in order to make more sales on a specific model and encourage dealers to move cars that are not selling well.
Regional Ad Fees
These are the fees the dealership charges the customer to cover the cost for any promotions or advertising that the manufacturer decides to run in the area where the dealership is located.
True Deal Cost - The actual price Audi dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Audi:
- Base Audi Invoice Price + the dealer Invoice price of Options + Destination - Holdback = Total Dealer Cost.
- What is Dealer Holdback? A hidden amount that manufacturers give back to a dealer. It is a percentage of the MSRP or the Invoice price. Audi has No holdback. (See the New Car Dealer Cost Example.)
Total Dealer Cost (calculated above) + Taxes / Licensing Fees - Rebate / Incentive = True Cost (See New Car Rebates and Incentives.)