Cpo audi pricing

[widgeon13]

I am interested in an Audi at a dealer three hours from my home so trying to get a "best price" before I travel the distance to see and drive the car. Contacted the Internet mgr and asked for the best price and he quoted me the listed "advertised price". Didn't offer any concession. Is this the way these guys play the game? I thought there would be some room for negotiating a final price. I've never bought a CPO car before so really don't know how these guys deal.

Any advice? Thanks

[kaisen]

CPO just means "price of warranty built-in", and nothing more

Plus, you're buying it from a relatively expensive retailer -- an Audi dealership, with a beautiful facility you get to fund

Some negotiate, others do not. If they are a non-negotiating store they will typically make you aware of that up front. Otherwise, you're in for the game. Make an offer and see what happens.

If you'd like to have an idea of what they may have paid for the car, let me know and I'll give you some of the latest data. Tell us, very specifically, what you're looking at. A link would be even better.

[widgeon13]

Thanks for the insight, here is some info on the car. The dealer has not said it's take it or leave it, I just thought they would all negotiate some on the price.

[kaisen]

Here's what they've been doing at auction:

[kaisen]

Weird that it was for sale last July at New Country Audi in Greenwich, CT with just under 45K miles and was never sold or registered since, and is now for sale at another Audi dealership with 4000 more miles, 5 months later.

Ask them what's up with that, and ask for proof. That's not how it normally goes.

[widgeon13]

Yes, I did see that. I am familiar with New Country in Greenwich, a well known and very productive dealer so thought the relocation was also puzzling.

Heck of a mark up if they got it around 25K.

[kaisen]

Here's what I'm referring to:



If Carfax is currently listing almost 49K miles last month, and if that's incorrect (they don't just make it up, it came from somewhere) then when you buy it and go register it with 45K miles, the next potential buyer will run a Carfax that shows an odometer descrepancy and a huge red flag. Best to figure it out before you buy it. And ask them why it has been at dealerships for more than five months.

[kaisen]

Originally Posted by widgeon13

Heck of a mark up if they got it around 25K.

They may have purchased it last July for $29K and it's been depreciating ever since

In their eyes, they want to hold on for every last penny to lessen the bloodbath

The reality is, if they took it to auction to liquidate, they'd get $24-25K

Most well-run dealerships have written policies that anything over 60 days is liqudated, period.

[kaisen]

And remember, the dealer is paying almost $2000 for the Audi CPO warranty you're buying in the price

[widgeon13]

So in your eyes, is $27K a fair price? Since I don't know what they paid I'm just trying to get the best deal for myself.

[kaisen]

Originally Posted by widgeon13

So in your eyes, is $27K a fair price? Since I don't know what they paid I'm just trying to get the best deal for myself.

If everything is explained to your satisfaction, condition is good, and no odometer statement errors, then paying $27K CPO is certainly a good deal

[widgeon13]

I'll talk to them and see what they say, may go down next week and look at the car if they offer some concession to get my attention. Thanks very much for your time and info.

[aigel]

Doesn't this history indicate possible mechanical gremlins and / or being driven daily with dealer plates? I sure wouldn't plunk down 27k on a car that hasn't been privately owned for 9 months.

Of course the reward is a lower price. Is it worth the risk?

G

[Steve Carlton]

The market value for the car will be more than $2K over what they could wholesale it for (which they won't, since they've certified it) unless there's something wrong with the car. There's more to CPO than a warranty- it has to pass an extensive inspection, including having both remotes, a minimum amount of brakes left, tire tread, being current on maintenance, etc.. It's probably had money spent on it getting it up to snuff by either/both dealers vs cars sent to auction, so I wouldn't think $30K is unreasonable depending on the condition of the car (the auction cars show average condition).

[aigel]

Money spent on it? Like replacing a single tire?

I know, there could be just a single flat tire - but ...

G

[Steve Carlton]

I'd expect a 48,000 A6 could use a few things to make it pass CPO requirements.

[widgeon13]

Good point.

Doesn't this history indicate possible mechanical gremlins and / or being driven daily with dealer plates? I sure wouldn't plunk down 27k on a car that hasn't been privately owned for 9 months.



Of course the reward is a lower price. Is it worth the risk?



G

[widgeon13]

Here is an interesting one, 3500 miles put on in a week or so?



That's going to be an interesting explanation.

[trader220]

Originally Posted by Steve Carlton

The market value for the car will be more than $2K over what they could wholesale it for (which they won't, since they've certified it) unless there's something wrong with the car. There's more to CPO than a warranty- it has to pass an extensive inspection, including having both remotes, a minimum amount of brakes left, tire tread, being current on maintenance, etc.. It's probably had money spent on it getting it up to snuff by either/both dealers vs cars sent to auction, so I wouldn't think $30K is unreasonable depending on the condition of the car (the auction cars show average condition).

The shop charges to CPO an A6 with those miles are at minimum going to run a grand and that’s if the car needs next to nothing to be brought up to CPO specs. As Steve mentioned. Things like if the pads are not up to CPO spec or the tires it’s very expensive to CPO an A6.

If cheap wholesale is $24k (and I think that’s a touch low) by the time they pay the auction fees, its trucked, shopped and CPO Warranty paid for what’s the dealer got into the car?

It’s harder and harder to find a 2009 CPO A6 since the all new 2012's can be found as CPO now and the 10's and 11's have moved into a price that’s pretty reasonable for that much car.

I think 28k for that car is a good deal, if you can get it. It’s a CPO if you drive it and it’s a dog, just about everything is covered and they should make anything that bothers you right.

No one is getting 4 or 5 grand in markup on a CPO 2009 A6.

As far as whether they will discount different dealers work different ways. If you think the price is out of line offer what you think is fair and if they don’t move on their price then say "thanks very much but I am not interested at that price".

Discounting for people who drive a long distance or fly in can be a double edged sword for the consumer. If you are calling from a long way away they know you are not getting what you want nearby and they may be less inclined to discount. They won’t be seeing you for service either. If they are not getting any action on the car they will discount it no matter where you are from.

Let us know how you make out!

[widgeon13]

Thanks for all the guidance. Unfortunately I have been distracted for the last couple of day, put a ladder through a storm and interior window yesterday as I was clearing ice off the roof, ladder slipped. Fortunately, I was only three feet off the ground when it let go. Skiing today and bad weather expected tomorrow. I'm not doing anything until I can possibly get down to look at the car.

I do appreciate the input from all sources. Just checked the weather and we are forecast to get 8" to 14" in the Adirondacks so I'm not going anywhere to look at cars for a few day it would seem.

I will report on my progress in a few days.