Worst Depreciation Ever!
05-09-2018, 04:07 PM
#12
AudiWorld Super User
Just priced my 2014 A8 4.0T with 65K miles. Trade-in value is $22K. Resale $29K.
Folks, this car had a sticker price of $98K.
If you want to take a 75% hit in 4 years, go buy a new A8.
For the rest of us, just buy used and enjoy it.
Audi must have the worst depreciation among luxury brands.
Folks, this car had a sticker price of $98K.
If you want to take a 75% hit in 4 years, go buy a new A8.
For the rest of us, just buy used and enjoy it.
Audi must have the worst depreciation among luxury brands.
05-10-2018, 06:50 PM
#13
Audi's have terrible resale as the majority are leased. The article I read about this showed Audi having the highest lease rates. The author was stating that is not good to buy an Audi new, yes any Audi. Other lux makes have the same issue.
For all the flagships, the drop in values is terrible over the first 3 years. I shopped Jag, MB, Maserati, and Porsche. All but the Porsche seemed to lose 20 to 25% a year. Mine was a 2013, 90k sticker got it for $42k in early 2016, which is 23% per year. Car was on a 2 year lease. The main issue why this looks so bad is the cost starts much higher than a Camry at $35k is $7k a year at 20% loss. A 100k car at 20% is $20k a year. Seems that we are soft to losing $7k but freak out at $20k a year.
For all the flagships, the drop in values is terrible over the first 3 years. I shopped Jag, MB, Maserati, and Porsche. All but the Porsche seemed to lose 20 to 25% a year. Mine was a 2013, 90k sticker got it for $42k in early 2016, which is 23% per year. Car was on a 2 year lease. The main issue why this looks so bad is the cost starts much higher than a Camry at $35k is $7k a year at 20% loss. A 100k car at 20% is $20k a year. Seems that we are soft to losing $7k but freak out at $20k a year.
05-12-2018, 03:50 AM
#14
AudiWorld Senior Member
I got a 2012 S63 AMG 2.5 years ago. 24,000 miles on it. Original sticker $170,000. I paid $67,900.
The car lost $100,000 in value in 24,000 miles. THAT is some serious depreciation. Their loss was my gain.
The car lost $100,000 in value in 24,000 miles. THAT is some serious depreciation. Their loss was my gain.
05-14-2018, 01:43 PM
#15
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Just priced my 2014 A8 4.0T with 65K miles. Trade-in value is $22K. Resale $29K.
Folks, this car had a sticker price of $98K.
If you want to take a 75% hit in 4 years, go buy a new A8.
For the rest of us, just buy used and enjoy it.
Audi must have the worst depreciation among luxury brands.
Folks, this car had a sticker price of $98K.
If you want to take a 75% hit in 4 years, go buy a new A8.
For the rest of us, just buy used and enjoy it.
Audi must have the worst depreciation among luxury brands.
05-14-2018, 07:02 PM
#16
like everyone else said... My sticker was $108k. Bought 2 years old and 38k miles for less than 50% and almost the same as my Golf R new. But my R8 was worse. NEVER buy new unless you have money to burn.
05-15-2018, 02:38 PM
#18
I'd say, but NEW!
05-15-2018, 06:50 PM
#19
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I don't see anyone who doesn't understand depreciation on this thread, the discussion is the amount. Luxury cars, especially flagship models seem to depreciate faster than most other cars. For this reason I will happily buy a used one and save substantial money, if you feel someone owning a car before you is too high a price, feel free to spend the extra money. I recently bought a HR-V for my daughter and was surprised by how little they depreciated and felt it was worth it to buy a new one instead of saving a few dollars.
The last car I purchased I made a 250K profit after owning it for over 10 years, so not all "used equipment" depreciates.
05-15-2018, 07:03 PM
#20
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Pretty close. 20% per year on declining balance, AND another 20% in the year or so around when a new model announce happens. This has been the Audi situation for the bigger ones as long as I have owned them--40 years now. The small models (A4, or now Q5), typically hold value as a percentage much better, and are the classic market for Audi's bought by "kids" where there is more demand than for the "old fart" big ones.
Math proof:
A = big Audi new car price
.8 x A = .8A
.8 x .8A = .64A
.8 x .64A = .512A
.8 x .512A = .4096A
AND, the model change over announce (D4-->D5) usual further one time hit:
.8 x .4096 = .32768 a
22/98 = .22449A 29/98 = .29592A
Thus as usual, bad buy as a new car unless you plan to hold it 7-10 years and the value would be largely gone on most any car anyway. Much better buy used as you ride down the depreciation curve. If I had to tweak my traditional simpler formula--and from my own buying experience--I would make it either 25 or 30% for (just) the year one step. Thus, both my then year old D3 A8 W12 and year old D4 S8 came with 30%+ haircuts at 5,000 miles or less CPO. The same with my then year old 1996 C4 A6 also bought very slightly used. With that math tweak, it would get to just about the values cited here.
Math proof:
A = big Audi new car price
.8 x A = .8A
.8 x .8A = .64A
.8 x .64A = .512A
.8 x .512A = .4096A
AND, the model change over announce (D4-->D5) usual further one time hit:
.8 x .4096 = .32768 a
22/98 = .22449A 29/98 = .29592A
Thus as usual, bad buy as a new car unless you plan to hold it 7-10 years and the value would be largely gone on most any car anyway. Much better buy used as you ride down the depreciation curve. If I had to tweak my traditional simpler formula--and from my own buying experience--I would make it either 25 or 30% for (just) the year one step. Thus, both my then year old D3 A8 W12 and year old D4 S8 came with 30%+ haircuts at 5,000 miles or less CPO. The same with my then year old 1996 C4 A6 also bought very slightly used. With that math tweak, it would get to just about the values cited here.
Teslas keep their value very well. That is where I am headed next. The future is electric.