Discounts on R8

[z356]

There is only approx. $8,000 margin between dealer Invoice and listed MSRP on a base '10 manual v8 R8. There is around a $10,000 margin for base '10 manual v10 coupe. Each option selected adds a profit margin of around 7%/8% to the dealer. Until recently, demand exceeded supply so discounts were extremely rare in the US market. In recent weeks/months, I have read in this forum of buyers getting from $3,500 to $5,000 discounts on a MY2010 R8 - including one $5K for the v10 model in Mass. Today a member posted that he is getting anywhere from $4k to $8k off on his '10 v8 R8. So if he got $8,000 off a '10 v8 R8, he did extremely well. If he split the commissions and got $4,000 off, that is still very fair. I understand that Audi dealers also benefit from a holdback amount which will be paid to each dealer by the manufacturer at fiscal year end for each R8 his/her dealership sold. Normally, this assumes dealer meets customer satisfaction goals set by Audi and is confirmed by positive feedback from customer surveys. But I know of no dealer that counts that as his 'mark-up' and is willing to share any of that amount with his customer. The latter is rarely talked about and considered a dealer secret. The exact amount is unknown to most, if not all, of the sales staff. In theory, a dealer could sell an R8 at his invoice and still make a nice profit at year end with his holdback from Audi. But for practical purposes re: this discussion, an R8 discount will be based on published dealer margins (found in Edmunds, etc). I hope other Forum members will offer their recent experiences with discounts (with either v8s or v10s) in this current uncertain economic climate since I am considering a purchase later this summer or fall. There are similar pressure on dealer margins at Porsche and others right now. Audi has temporarily reduced supply of R8 v8s by allocating almost all leftover MY2010 production to the v10 models (which seem to be still in strong demand or so Audi thinks). But v8's are scheduled to begin production again this fall as MY2011 models, along with v10s and spyders. It will be interesting to see if the R8 is reaching a saturation point (demand =or< supply) in our US market, which will make discounts more common place and in line with many other luxury vehicles of this type in the present economy. z356 (Northern California and Colorado)

[medtner]

I've been shopping for R8 V8 for a while, I can still find brand new 2009 in the market , from my experience , having MT, more options on the car can get me better discount.
I also have access to whole sale Manheim auction prices, 08-09 models are selling between 70-90 k depending on model year and miles.
I've owned many exotics in the past including MB-AMG, Porsche , Maserati and Lamborghini, at the end of the day, I think about the resale of the car before buying it . It seems that the introduction of the V10 has significantly affected the value of the V8 ion resale. If I can't get a big discount on the V8 I'll get the V10 for extra 20-40k
Audi never had experience in selling their own exotics so there are still few new 2009 R8 that Audi will have to give dealers $ back to move them.

[tcoop1]

What are the Manheim auction prices? How does one get them? I am looking @ used R8's........

[medtner]

it's an auction for used cars, many exotics are sold there so the selling prices are kind of a guideline for used car prices

[z356]

Without question the intro of the v10 model is affecting used v8 prices big time. The few Forum members that have talked about their trade-ins have admitted Audi dealers are only offering mid/low nineties for their '08/'09 R8s when traded for v10 models. And that is a moving target - probably lower today. Dealers will offer less without trade and right at Manheim numbers. Asking prices at Autotrader, Cars.com & Ebay are also trending lower, with some already below the magic $100K. We have to assume that the negotiated price is below the asking prices.

I totally agree that if one can't get a significant discount on a new v8, it makes sense to go with a v10. Apples to apples, an equivalent optioned manual v8 is less than $16K from the standard v10 manual ($130K vs $146). This is because the v10 comes with $15,200 worth of options as standard. Interestingly enough, Audi seems to agree. The value pricing is in the new v10 and the market is confirming that via the reported sales of v10s. That is why they have ramped up v10 production and discontinued v8 production for the balance of MY2010! The new v10 (given it's first year of life and less production numbers out there) will have a lower depreciation versus the '10 v8, which will still have to compete in resale against every other used '08 and '09 sold in our market - a significant number of vehicles. So thinking rationally, if you really examine it from all angles, a normal discount (say $4K/$5k) could NOT possibly justify purchasing a new v8 at the present time! Some would argue that no amount of discount could justify the purchase of a new v8, given what you get with the v10 besides the standard 'options' (e.g. extra performance and panache). Besides the v10, the other great deal in R8's today is a well optioned, low mileage used one at well below $100K!

Re: the leftover '09s. Dealers already received trunk money from Audi to help move those leftover cars. The figure been mentioned in the forum but I don't remember the exact figure (perhaps someone can recall). And soon, should there be any MY2010 v8's left in showroom floors by summer's end, Audi will have to start helping move those along. As you know, these will be announced just before the MY2011 arrive at the port. As a point of reference, I bought a leftover brand new 2003 RS6 in June of 2004. Invoice PLUS 90% of the Audi trunk money. So below invoice pricing. A smoking deal. Shipped it over from dealer in NJ to the West Coast. It was still a hell of a bargain. z356 (Northern California and Colorado)

[OEMplus.com]

z356 and medtener, could you add your locations? would be helpful for conversions like this that involve regional fluctuations in pricing and availability...

[R84ME]

It will be interesting to see if the R8 is reaching a saturation point (demand =or< supply) in our US market, which will make discounts more common place and in line with many other luxury vehicles of this type in the present economy. z356 (Northern California and Colorado)

Unfortunately (for current owners & Audi) or fortunately (for buyers), this happened about 6 months ago coinciding with the introduction of the V10.

[tcoop1]

it's an auction for used cars, many exotics are sold there so the selling prices are kind of a guideline for used car prices

PM sent.....thnx

[shawnek]

Was offered 2010 V8 today at invoice. So, concerned value of these either will drop or dealer is looking to make a sale to increase their Audi #s.

[fiat124]

just my two cents, but i think that the v10s will depreciate more on a $ basis once the newness factor wears off. my theory is that buyers of that version move on to something else fairly quickly (i.e. trading in their r8 v8 for the v10)