Audi has a plan to manage R8 sales, quell speculators

[ekool]

Judging by the recent proliferation of spy shots, the ongoing success of sites like Autoblog and other developments in our little slice of the mediaverse, it's no secret that we live in a society obsessed with "the new." This idée fixe among automotive connoisseurs has given rise to hundreds of "speculators" that purchase the newest hotness, then sell said vehicle for an inflated premium. It's capitalism at work, but Audi doesn't like it.

With only 300 R8s bound for the States (100 more than originally allocated), Audi is taking a page from Ferrari's playbook and instituting a policy that asks R8 buyers to sign an affidavit saying that if they decided to sell their new four-ringed supercar, Audi gets first dibs. The only sticking point: it's not mandatory.

Audi doesn't expect this to be an issue, hoping that dealers can "manage the situation," according Joel Weinberger, the owner of Naperville, Ill. based Continental Audi.

The Automotive News article in which Mr. Weinberger was quoted also provided some hard facts about Audi's dealer plans for the R8. Specifically that only 300 units will be available, 109 of 267 dealers in the U.S. will actually be able to sell the R8 and that 167 dealers will have staff on hand to service the new uber-coupe.

[Source: Automotive News – Sub. Req.]

[mngolfer]

I had to sign such an agreement. If I sell, trade or transfer ownership in less than 12 months I must offer the dealer first right of refusal or pay $75K to the dealer. The dealer is offered to repurchase the vehicle back for the original price, less taxes or other fees or the Mainheim Auction report for similar vehicles.

The dealer places a lien on the title of the vehicle, even though I paid cash for the vehicle. The lien expires automatically after 12 months from the date of purchase. If the value of the R8 goes down as a result of the V10 being introduced...tough, you must offer to sell the vehicle back to the dealer at Mainheim Auction report value.

[09R8]

strange, I don't believe it was even mentioned to me when I was signing the papers

[mngolfer]

This agreement is new in MN. I know of two other people with R8's from MN that did NOT have to sign this agreement. I told them I them I would not sign and they said "then you are off of the list. We have six other people that will sign the agreement." I had to sign or watch the car go to someone else.

[R84ME]

For the record - I just took delivery in AZ and was not asked to sign a first right of refusal. Here is my sales person's reply to my query from a couple months ago.

"I will double check with our General Manager about "first right of refusal". We have been asking buyers to sign this document because auto brokers were buying/making offers to owners of the R8 and then re-selling the vehicle for margins in excess of $30K. This practice only hurts the R8 market in the long run and to protect the integrity of the brand and the vehicle - the factory placed this requirement to detour the practice. I am sure if you tell me you are keeping the vehicle for a couple years or more - this will not be an issue, but I will check on it and get info to you."

I think it's all in how you present yourself to the dealer.

[Dan1]

I was never asked, it never even came up.

[B-Fin]

I was asked to sign it at my Orlando dealer. I didn't fight the dealership on it b/c I plan to keep it for a while. The dealership may have thought I was too young to be buying the car/afford payments, and that I would try to flip it quickly... who knows. The dealership also required me to put a $15k deposit once I spec'ed the R8. I have spoke to other R8 owners who purchased from the same dealership who said they were told to put down less.

Overall I tend to agree with R84ME that dealers may decide on a case by case basis depending on how they perceive the buyer.

[mngolfer]

Update: I tested the Audi repurchase/no flipping agreement in MN. I offered to let them take the car back at MSRP or Manheim after 150 miles. The car has been in storage. They had five days to decide whether to repurchase the car. They declined the repurchase. I no longer have any restrictions on the sale of my car.

This worked out great for me because I really want to keep the car, but I hated them making me offer them the car at MSRP or Manheim Auction. The lien against my title is now clear.

[R84ME]

mngolfer1 - that's great, thanks for being the Guinea Pig! It speaks VOLUMES about current availability & inventory.

We know what MSRP is but I'm wondering about the Manheim value?

[mngolfer]

I have had two sources check the Manheim Auction for me. There has not been ANY R8s show up at the auction as of 12/30/2008.