Hohokush

I've found a low milage (<25k) CPO 2004 A6 Avant for $24k and need forum advice in two different areas.

The $24k price is right at the excellent level for a retail price on Kbb but again I realize that I'd be getting 2 years of warranty. The private party price is around $21k.
- What has been the experience of the board in regards to negotiation movement with Audi CPO pricing? Do the dealers typically maitain the patience to get close to the price that they're asking for or is there a decent amount of movement (~10%)?
- I've been looking on the Audi CPO search engine for a few months now and have not seen much movement of these cars. Is this an indication that the cars are sloow to move or a misinterpretation of the data?
- What does it cost a dealer to make the car CPO?
- If it's CPO it is necessary to take the car to a third party mechanic for pre-purchase inspection?


We don't drive much more then 10k miles per year. I figure that we'll keep the car for either a 3 years and sell it before it passes 60k or keep it for 7-8 years when it crosses 100k.
- The dealer has rough quoted $1k per year to extend the CPO warranty. Does it make sense to extend the warranty or save to $3-4k and use it for maintenance over the next 3 years?
- Is the $1k per year a fair price? What does it cost the dealer?
- Is there any difficulty in acquiring a 3rd party warrenty with higher mileage....say 50k or does it make no difference?
- At what mileage do the the major catasrophic issues typically occur?


Thanks for all of your input in advance.

boostbuddy

But this time I do. Every question you osed is relevant and has been discussed (most in detail) before.

I assume it's 2.7T engine.

My 2 cents - I think you are overpaying for the car even with CPO unless it's chock full of all options.

My guess is you could get this car (or another) for around $22 - $23k with CPO.

My final advice is that unless you DIY do NOT own the car at any point unless it's got CPO/extended service coverage on it.

P.S. - I paid $3200 for third party exclusionary extended service coverage at 35k miles. It covers 6 extra years or 100k total miles.

Good luck...

schnellmb

it's a gamble, really.

my 02 Avant has 21K miles on it. I have a 3 year extended and I've racked up so far a 25 dollar part and 100 worth of labor covered under Audi's Platinum plan (which doesn't even have towing).

the car could be good, or it could be a problem child.

really in my experience problems start popping in the 30K range (i had an 03 A6 that i drove often for 3 years).

i'd get the warranty.

SNAFU 4

see what they are actually selling for for the same mileage and options, and figure on working price from there.
Also...business is bad right now, so deals are more available. There is usually a good amount of room in the prices, and the car is not a highly sought after model.
On top of that, you might be able to get some good financing too.

Muhammad

To answer your questions in order:

1. Negotiation Room: Lots. If you really want that car, run a carfax and see when it entered dealer inventory. Most dealers keep cars for 60 days and then start to get really aggressive with moving them. Some dealers will take losses (i.e. Roger Penske dealerships) in order to move cars rather than take them to the auction. If a car has been on the lot for 45 days or longer you will get an even better deal.

At $24k asking price I wouldn't start anywhere over $20k.

2. Yes, used Audis are slow to move. Try selling one on your own... could take months.

3. On a 6-cylinder A6 the CPO warranty costs the dealer about $1350 plus whatever they had to spend to make it meet the inspection (tires, brakes, etc). On a 2004, brakes were covered by factory maintenance and if it was a lease return (probably) the extent of the investment in the car would have been tires.

4. No, it's not entirely necessary to have a CPO car inspected by a mechanic, but since a 2004 will probably be out of original factory warranty, there may be some items not covered by the CPO warranty. Make sure you look the car over carefully for any paint damage, missing items, etc. Also things like the radio and nav systems aren't covered by the CPO warranty... make sure everything works.

5. You can't extend a CPO warranty. You can buy what is called Audi Pure Protection, which is a different warranty from CPO. Pure Protection Gold offers similar coverage to the CPO warranty and costs about $800/year on an A6. Pure Protection Platinum offers nearly new car coverage for about $1,000/year. Last I checked it was $2,700 for a 3 year, 36k warranty, or $4,200 for a 4 year, 48k Pure Protection Platinum.

The important thing to remember is that you cannot buy a Pure Protection Platinum when you are out of factory warranty. And the covers starts when you buy the warranty, not when CPO ends. If you were to buy a warranty now it would in effect give you double coverage.

If you are financing the car, buying as a CPO will give you promotional financing rates that wouldn't be available if the car weren't CPO. You might pay 1-2% more for a non-CPO loan.

Two ways to handle this situation:

1. Buy the car with CPO and deal with getting an extended warranty in two years. You should have some attractive options since you'll only have 45k miles on the car (but will be out of warranty).

2. Buy the car non-CPO buy get a Pure Protection Platinum warranty at the time of purchase. This gives you a better warranty with the option of either 3 or 4 years of coverage from Audi as opposed to 2.

If you buy it non-CPO, you can take the CPO warranty cost ($1350 or so) off of the price of the car, which would mean for a 3-year Pure Protection Platinum you'd be looking at a net added cost of $1350, and for the 4-year Pure Protection Platinum, around $2,850 extra.

The Audi warranties are sold through the finance department AFTER the purchase negotiation has completed. You can negotiate a little bit on the warranty... maybe $100.

6. Age and mileage of a vehicle makes all the difference in the world when looking for an extended warranty. To explain it simply, there are two types of extended warranties:

Parts Excluded Coverage - Most similar to a new car warranty. A plan that covers all components on the car EXCEPT what is specifically listed in the contract (wear and tear, brakes, trim are the usual items). Audi Pure Protection Platinum is a parts excluded plan and as such, the most desirable warranty Audi offers on used cars.

Parts Included Coverage - A plan that covers only the parts specifically listed in the warranty. If a part isn't listed, it isn't covered. AudiAssured CPO and Pure Protection Gold/Silver are parts included plans. They cover a lot, yes, but some things might come up that aren't covered.

As you start to look outside of Audi for warranties you will find that a lot of the parts included warranties have huge holes in the coverage, and often times list lots of parts under specific names that may not even exist on your car.

If you go with a warranty outside of Audi, make sure it is from a reputable company. Do your homework to avoid headache and financial loss.

7. Audis don't usually have major catastrophic breakdowns. Not on a 3.0 engine, anyway. There have been a few transmission replacements and torque converts are a problem spot on the tiptronic transmission... one forum member had his TC fail at 44,000 miles... mine failed at 107,000... about $2k to fix. Also ABS control modules are notorious for failing and the instrument cluster may lose pixels if you live in a warm climate and leave your car outside a lot.

There is a lot of maintenance, which amounts to an average of about $1,500 a year. At 60-90k you'll need a $1,200 timing belt service, and depending on whether you live in a rainy/snowy climate, suspension control arms and bushings will need to be replaced at around $350 a pop (four of them).

If you're a first time Audi buyer, take some time to search the forum and read previous threads on similar topics before taking the plunge.