Is this a good deal for a 2013 A5?

[rx7boi]

Hey guys,

Just wanted to run a financing scenario by you and see if the numbers are reasonable or if there's wiggle room.

I'm looking at an 2013 Audi S-line A5 with 69,000km's and comes with a set of 17" winters. I am also open to getting an S4 as well.

The breakdown is as follows:

Car - $31400
New summer tires - $1800
2 yr CPO until Feb 2018 or 160k km's - $1700
-------------------------
Total - $34900

I told them to take the summers off and they said they would knock off $1800. I can source a set of 19's with tires for less than that.

The 2 yr CPO for $1700 seems like a very reasonable price. I'll be financing this vehicle for 5 years as well @ 2.9% for $2710 in interest which can change if I decide to pay it off earlier.

Other charges include:

Finance Acquisition Fee - $595
Vehicle Preparation - $395

I asked the rep why the vehicle preparation cost was being passed on to the consumer. I would imagine that prepping the vehicle comes at the cost of doing business.

In the end, I'm looking at

A5 - $33100 with 2yr CPO
Fees - $990
Tax - $1704.50
-----------------------------
Total - $35794.50 OTD

What do you guys think? What would be a fair offer on this A5 with a 2yr CPO?

By comparison, there is a 2011 A5 (66,000km) for $28,988 in Vernon VW, a 2011 S4 (74,000km) for $29,889, and a 2012 S4 (56,000km) for $31,995.

I feel like I can get them to toss the fees, but $31400 for the car seems quite high. I never found out what they bought it back for and it isn't a number I would expect them to tell me.

Any help would be appreciated!

[italianstylez]

Seems reasonable too me, being s line with CPO,
You found one couple years older and couple grand less probably no warranty, those are all things to consider.

[speedog]

Why $595 for the finance acquisition fee? It's been a long time since I financed a vehicle but I do not remember such a high fee or even such a fee for financing - do banks charge fees this high for financing a vehicle?

[Xtrema]

Unless you have an hard on for A5, 2012 S4 for $32k is far superior.

[rx7boi]

Originally posted by italianstylez
Seems reasonable too me, being s line with CPO,
You found one couple years older and couple grand less probably no warranty, those are all things to consider.

I agree. The 2011 A5 in Vernon is not CPO and the warranty will have long run out.

That said, $28, 889 is their asking price and the profit margin they want to be operating at. Likewise, $31, 400 is what they want for the 2013 with no negotiating.

Used cars have more margin than new, so I am trying to determine, if possible, what their profit margins on this sale will be and how much negotiating room I have.

The rep mentioned something about the dealership purchasing the car back at a residual rate (he wasn't very clear), so I took a look online and I believe the residual rate for a 2013 A5 is roughly 51% of the MSRP. Since the MSRP for this car was $49500, I imagine they would have purchased it for around 25000 to 26000, minus their cost to recondition and prep it for a sale.

Assuming my math is accurate (if I missed something please mention it), they would be looking at

1700 CPO warranty profit
~5000 profit on the car itself
~2700 financing interest for 5 years

All of which goes into their pockets.

Originally posted by speedog
Why $595 for the finance acquisition fee? It's been a long time since I financed a vehicle but I do not remember such a high fee or even such a fee for financing - do banks charge fees this high for financing a vehicle?

That's what I thought as well. I asked him which bank he is doing the 2.9% financing through and he said that financing is through Audi Canada.

If anyone here does financing that could provide insight, that'd be helpful.

Originally posted by Xtrema
Unless you have an hard on for A5, 2012 S4 for $32k is far superior.

I do like the A5 coupe styling but the S4 is alot more car for the money. If I get a 4-door it'd have to be an S4 for sure.

I'll call today and find out some more info about this car.

What do you guys think about the 2yr CPO for $1700? If I go with the S4 from an independent dealership, it won't be CPO and I'm sure a 2yr warranty from a 3rd party would be more than $1700.

[Mitsu3000gt]

$990 in moneygrab fees? No way would I pay that, especially the "vehicle prep" which is what you do before you sell a vehicle...for free. I've also never seen anyone pay a "finance acquisition" fee in my life - you're already paying them over $2700 in interest and have to pay GST on the vehicle for the second (or third or fourth) time in its life.

MB has a 2012 A5 S-Line Premium for $24,900 with 85Km. This car doesn't seem like it's worth ~10K more unless there are some huge model changes between 2012 - 2013.

$35,000 buys you a lot of nice cars...this seems like a pretty average deal IMHO, just after a quick look.

S4 would be much more fun and much more practical if that's also on your radar for similar price. If you are also looking at an S4 I wouldn't even be considering A5's but that's just me.

$1700 isn't bad for 2-years warranty, then again I have never had a single problem with either one of my Audi's over approximately a decade of combined ownership. On a simple car like the A5 with the 2.0T which is quite reliable I probably wouldn't buy it on a relatively new car, but it's a gamble no matter what you do.

[delco21]

Agreed negotiate the fees and price as a 2013 S4 with lower then that KM's can be had for 34-35 so that a lot for an A5 with higher KM

[Tenkara Way]

Five year old Audi + CPO = Worry free.

Have you looked on LeaseBusters for a better deal? Plenty of desperate owners needing to dump their lease.

S4 for the win IMO, more car for the money and the ever practical four doors.

You gotta get what you gotta get.

[italianstylez]

I'd negotiate at least 1000$ off, and drop the prep fee it's ridiculous, everyone financing pays the finance fee, lots of them just word it or break it down differently. But 95% of the consumers pay it.

I can tell you first hand used cars almost always have more profit in them, based on what I see at work, makes me wanna switch to used sales vs new.

[sexualbanana]

CPO is a warranty?

[Twin_Cam_Turbo]

Originally posted by sexualbanana
CPO is a warranty?

Yes when a car is Certified Pre Owned it's basically qualified for a extension of most of its factory warranty so to say if sold from a registered dealer.

[rx7boi]

Yeah, so I'd get warranty until Feb 2019 or 160,000km whichever comes first.

[SkiBum5.0]

Then it's a one year CPO if it expires in 2018 - you are paying $1700 for a one year warranty. Do you mean 2019?

[rx7boi]

Ah sorry, my bad. I meant Feb 2019

Will go back and edit my post.

[bh87]

Banks (the big 5 anyways) don't charge a fee to set up financing. However the rate is not always as favorable as the dealership depending on the year of the vehicle, the price and the persons's credit score and beacon score. Like others have said, the prep fee is total BS, you should not pay for that.

Based on a rough calculation, looks like the monthly cost for the 5 year financing would be right around $620.00 (based on 2.9% interest) on a price of $35,400. Have you considered leasing or financing a new one?
Looks like their current lease rates and financing rates are 0.90%-1.90% depending on time frame and "Audi Select". For around $100-$150 more per month (depending on trim and options) with $0.00 down, on the 5 year Audi Select scenario you could have a new vehicle. Audi Payment Calculator

[rx7boi]

Thanks for all the replies everyone, it's been very helpful.

A new finance/lease wouldn't be an option for me as I can't justify the cost of a new A5 or S4.

The plan was to trade in my current car (2012 Genesis Coupe), put an additional $4000 down and finance the remaining 16-18g's.

Assuming that they're going to make ~$9000 (I could be overestimating as I don't know their costs) between the CPO, car, and financing back end, I'd be tempted to offer them $29700 with the 2yr CPO and if they took off the dealer prep and finance fee.

The car just came in 2 days ago. I could sign for it tomorrow and it'd be a quick profit for them or they can take their chances and wait for the next buyer.

[riander5]

Not sure how you can consider an a5 when an s4 is similar in price... twice the car, plus i think s4's look just as nice as their two door brethren

[Mitsu3000gt]

You have nothing to lose by trying. It's amazing what can happen to things like the 100% money-grab fees when they think they have a sale and you walk out. You'll probably get a call the next day with an acceptance or before you even get to the door, so long as you guess right and they are still making money. They probably gave the previous owner around $23K for that trade in.

I wouldn't pull the trigger unless you think you're getting an outstanding deal, not just a normal price. Especially when you have to pay GST and possibly more on top.

[rx7boi]

Originally posted by Mitsu3000gt
You have nothing to lose by trying. It's amazing what can happen to things like the 100% money-grab fees when they think they have a sale and you walk out. You'll probably get a call the next day with an acceptance or before you even get to the door, so long as you guess right and they are still making money. They probably gave the previous owner around $23K for that trade in.

I wouldn't pull the trigger unless you think you're getting an outstanding deal, not just a normal price. Especially when you have to pay GST and possibly more on top.

It was a lease-back that they purchased from Audi Canada.

If I'm correct with my numbers, the residual for this car is ~50% of its MSRP ($49,500) so they would have paid roughly $25k for it. It could have been more or less, but I have no way of verifying haha.

[Xtrema]

Originally posted by riander5
Not sure how you can consider an a5 when an s4 is similar in price... twice the car, plus i think s4's look just as nice as their two door brethren

A5 is one of the better looking coupe out there. And S4 with DSG may have higher potential repair bills.

Originally posted by rx7boi


It was a lease-back that they purchased from Audi Canada.

If I'm correct with my numbers, the residual for this car is ~50% of its MSRP ($49,500) so they would have paid roughly $25k for it. It could have been more or less, but I have no way of verifying haha.

4 year residual is around 40% for Audi. That said, CBB say it is still worth $23-$28K depends on condition. So probably retail for $25-$30 which make the asking price on par on the 2013 A5.