rscultho

I own an 2016 RS7 which I bought new. It was loaded with just about every option available. I work remotely (have for the past few years) and don't drive a lot anymore, except on the weekends.

We just bought my wife a 2023 S8 with 5390 miles...it stickered for $143K...it is also loaded, but we woundup paying $86K. It's a really nice car, and again is loaded with just about every option. In fact, I don't know of anything that could have been added.

But what perplexes me is the depreciation of Audi cars. I love my RS7, even more than the new ones. It has been meticulously maintained, and still looks new inside and out with only 58K miles. I alsohave a 2023 Corvette Stingray, which I paid $88k. I could trade it right now and get over $90K in trade.

But check this out...it is eye opening

10 Audi models that depreciate the most

Why do Audis depreciate so much???

Torque450

I don't think they depreciate much differently to the other volume premium brands. Buy at 12 months old or dealer demos ?

As an example, in the UK there are some great A8 deals at the moment on the diesel mild hybrid (which I have and is a great all rounder) - list price £85k GBP, several dealers have pre-registered cars with delivery mileage for £50k, which is a 40% discount.

pcc125

I do not think they are any different in depreciation from the likes of BMW or Mercedes. You should not compare the depreciation of the Corvette or 911 Carreras with that on luxury cars.

DallasDave

I LOVE the depreciation as I always purchase my German cars pre-owned. I just purchased my second S8 a few months ago. It's a 2020 unit will less than 19,000miles and still has a little factory warranty left.

MSRP when new = $158k (July 2020)
What I paid three months ago = $68k (May 2024)

If my calculations are correct, that's a 57% depreciation, lol. In four more years, it will probably be worth ~$25k...that's another 63% decline, YIKES!

kelisko

The first reason is that most original owners realize it would cost them too much to fix their over-engineered cars over the years and ditch them after warranty expires and first expensive issues to repair occur.

The second reason is that smart people lease and don't buy after warranty which makes inventory level high.

The third reason is that the brand has over the years built the reputation of making difficult to repair money-pit vehicles.

The fourth reason is that the majority of people in the used car market cannot afford these vehicles.

The result is excess inventory that does not sell which leads to massive depreciation.

aeggroup

I love depreciation. My A8's MSRP is $115K. I bought it CPO when it was just 17 months old for $67K with 2 years of extended warranty. So my warranty is actually better than when it was new. Love it.

angrypengu

Rolls Royce has entered the chat. *hold my beer*.

Depreciation is just a number. It's meaningless depending on the context for what the car was bought for. I've said it many times I'll own my A8 until I'm dead. Depreciation or not, it's totally irrelevant.

I would never buy a 2nd hand car for so many reasons that I won't bore people with. That said, I respect people who do and take advantage of depreciation. To each their own!

A8bil

Lol...so many loaded statements in this post. (1) repairs are cheaper than buying new, almost always. (2) Smart people buy quality used cars...which are usually engineered last well past 100k miles without major issues. (3) All brands cost money to repair at some point...again, less than buying new. (4) and (5) Many people in the used car markets can afford these cars, but there is a small fraction of them who want a luxury limo.

The simple facts are these: All new cars are relatively expensive to maintain out of warranty, but the cost of new cars is equally ridiculous. $20k down payments will cover multiple major repairs. Once you're in the realm of $100k plus, however, the buyer is more interested in convenience than anything. Dealing with repairs is an inconvenience not desired. The enthusiast market -- those looking for high performance vehicles -- will tolerate those repairs for the image of driving a performance car. They won't for a plush A8l fully loaded. Nor for a 6 cyl Mercedes S or a Seven series. It's the old supply demand equation that results in luxury, non performance vehicles dropping precipitously in value.

kelisko

(1) repairs are cheaper than buying new, almost always.
It depends on how you weigh stress related to uncertainty, regular repairs because of wear and tear, days, weeks or months without your car which is in the shop to fix this or that, the difficulty sometimes finding parts, the obvious use of cheaper OEM or aftermarket parts with higher rates of failure because of incompatibility. Considering all that and probably other factors, a brand new car with brand new parts would cost you way less to own over years of guaranteed warranty. I recently purchased my first brand new vehicle after owning 5 used cars in the past 17 years and with the great experience and peace of mind I am having with it, I regret not doing so sooner.

(2) Smart people buy quality used cars...which are usually engineered to last well past 100k miles without major issues.
I would agree to that if we were in the non-premium market. We are talking about Audis here. The cost of maintenance after warranty is ridiculous and most experienced owners would agree to that.

(3) All brands cost money to repair at some point...again, less than buying new.
Not as much as an Audi, sorry. Buying new has his upsides as I explained in section (1).

(4) and (5) Many people in the used car markets can afford these cars, but there is a small fraction of them who want a luxury limo.
I think this is wrong. I believe most people would pick a luxury limo if it came cheap and reliable. Like they say in French, "Qui n'aime pas les bonnes choses ?" which means "Who doesn't like nice things?". However, my statement was to explain why these cars in the end, end up being a bargain. They are initially too expensive for the average used car buyer so they don't sell which leads to excess inventory and depreciation.

angrypengu

There are also the tangible and non tangible side of things. A car is more than a utility to me, it's also has huge emotional and sentimental value. I do not want a car that someone else has used, and I maintain my cars to near perfection. I know of no other human being who washes their car by hand, rinses it clean of salt after every drive (body work and underside) in the winter, does no more than 5000km/yr, and maintains the exterior/interior to the same fastidious level as I do.

As I want my car to be as perfect as possible for as long as possible, buying new is the only option for me. Again, to each their own.