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Archive for May, 2012

Southern California Audi Incentives and Lease Deals

Audi is all about sporty performance and progressive luxury. The German car brand is also known for their upscale design themes and beautiful LED lighting, setting the trend for new vehicles of the future.

It is no secret that Audi (and other German-made cars, for that matter) commands a higher price tag compared to normal cars, but you get what you pay for. Each Audi comes standard with pristine build quality, a sumptuous and immaculately-built interior, and improved engine performance with lower emissions.

Here are the latest Audi incentives and Audi lease deals offered by Audi dealers in southern California:

Audi A3

The Audi A3 is a premium small car. The Audi A3 2.0T quattro starts with a lease price of $449 per month for 36 months with $2,593 due at signing.

The Audi A3 2.0T FWD starts at a lease price of $399 per month for 36 months with $2,500 due at lease signing.

Audi A4

The Audi A4 is one of the best sport compact sedans that money can buy. The Audi A4 2.0T FWD starts at a lease price of $399 per month for 36 months with $2,400 due at signing.

The Audi A4 2.0T quattro starts at a lease price of $429 per month for 36 months with $2,400 due at signing.

Audi A6

The Audi A6 offers premium refinement and an affordable price compared to similar midsize sedans. Lease prices for the Audi A6 2.0T FWD starts at $599 per month for 36 months with around $4,300 due at signing.

The Audi A6 3.0T quatrro starts with a lease price of $699 per month for 36 months with $4,400 due at lease signing.

Audi Q5

The Audi Q5 is not your ordinary compact SUV. It is a luxury crossover that also happens to be sporty as well. Lease prices for the Audi Q5 starts at $549 per month for 36 months with $3,800 due at signing.

Audi A8

If you want a German luxury car, the Audi A8 should be your top pick. Lease prices for the Audi A8 starts at just $1,199 per month for 36 months with less than $5,000 due at signing.

All offers are valid until 7/5/2012. Get access to Audi dealers in Southern California by asking for a free price quote and view all the latest offers while staying in the comforts of home.

Dealer Pricing Strategies Explained

We will now talk about dealer pricing strategies. It goes without saying that car dealers operate on the same principles of running a business: they are in it to earn money. How else can they continue to provide their services if they earn nothing out of it all?

Not all car dealers are dishonest, especially in this day and age of technology where one simple blog from a disgusted customer can spell the difference between failure and success. But it always helps to know what you are dealing it when you are buying or leasing a new vehicle.

Here are the important pricing strategies that you need to know before approaching the car dealer:

1. Invoice price – this is the amount that the dealer paid for the vehicle. Have you ever heard of the wholesale price? This is the same. The factory will naturally charge the car dealer with a lower price, because they are buying new vehicles in bulk. Ever heard of the myth on how you can pay at or below the invoice price? More on that topic later.

2. Destination charge – this is the otherwise known as the shipping fee, or the amount the manufacturer charges for shipping the car from the factory to the dealership. The destination charge is constant. The dealer will charge you the same amount whether you live in Alabama or Wyoming. The amount will vary according to the make and model of the vehicle.

3. Dealer holdback – simply put, the holdback is an amount that the dealer will get back from the factory after selling the car. The dealer holdback is a bonus incentive given by the factory to help the car dealer cope with selling, administrative, and selling expenses. Buying or leasing a new car using the invoice price will not reveal the holdback. Instead, the holdback will be pocketed by the dealer. Since the factory will give back the holdback after a couple of months, the dealer is essentially earning twice the amount of the holdback.

How much? It depends on the price of the car. Experts say that the holdback is usually around 2% to 3% of the vehicle MSRP or dealer invoice, depending on the type of car. So if you are planning to buy a car with an MSRP of $18,000 then the holdback will be around $540. If you buy the car at invoice price, the dealer will pocket $1,080 in total, since the factory will pay the dealer $540 as well.

4. Vehicle incentives – incentives can either be bonus cash rebates, special discount offers, low monthly or 0% financing, and low monthly leasing deals with little or $0 down payment. If you know the available incentives for the car that you want, then you are qualified to get more savings.

5. True dealer cost – before you head out buying your new car, you should figure out the true dealer cost, or simply the dealer cost. Simply deduct the dealer holdback from the invoice price, and add the destination charge. After taking into account titling fees and the sales tax, you can then deduct the incentives to arrive at the true dealer cost.

Ready to buy or lease your new car? Let your new knowledge about dealer pricing strategies guide you in getting the best deals and the lowest prices for any type of new vehicle in your neighborhood.


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