Is it expected for customers to be paying Freight and PDI for demo models in the dealership? I thought I'd ask because that's an extra 2k I could be saving when negotiating with the Audi Dealership.

 

Demo is a used vehicle with a certain mileage on it. As with any used car, there is a right price for it. As long as the total price does not exceed a fair market value, it does not matter what fees and charges are applied to it. Shop around, find out what the fair price is to have the knowledge when you are going to negotiate the price.
Dealership I went to to get a 2011 demo did not charge freight on it but they did not come down to what was the price I was ready to pay.