Insane S8 Lease Deals!!

[PenelopaPitstop]

Someone gave me the link to this review of S8 Plus and I thought it was absolutely useless comparing to more professional reviews which are available on You Tube.

[ashleyman]

Dr G said:

I don't like his videos either (unless they've changed drastically from the few I have seen). It's important to remember that 'Shmee150' is a brand and a fairly successful one. He runs his business around attracting views online and the way he has developed doing this clearly works. I say fair play to him.

As someone who also has a large following on social media, it's all an act. Most people who have audiences have that because of their online personalities. I'm sure he's a great guy, but I also reckon if you saw him in a non-filmed setting he'd be totally different. I know I and many of my peers are!

[Blown2CV]

Dr G said:

Blown2CV said:

O/T i've got to admit i am not sure about his films. I think the last part few mins after he's got back from Germany are irrelevant and make him look a bit show-offy. He manages to fit into about 60 seconds the fact that he has a ferrari in the airport car park, that he lives in monaco, that he has loads of cars outside his house etc. That plus him apparently being about 25 means he's going to annoy about as many people as he has fans. Could just miss all that crap off, and he'd have a bigger following.... maybe.

I don't like his videos either (unless they've changed drastically from the few I have seen). It's important to remember that 'Shmee150' is a brand and a fairly successful one. He runs his business around attracting views online and the way he has developed doing this clearly works. I say fair play to him.

yea fair enough. To me, the whole YouTube video maker subculture in general is pretty annoying. The successful ones seem to have this air of not quite being able to believe they are making millions from the st they churn out either, and have to somehow validate and demonstrate their success in the content itself - like some kind of weird pyramid scheme marketing or something. Maybe there is a "meta" thing that is lost on me. Just seems like poorly shot drivel, mostly.

Anyway back on topic. There is a guy at work with a B7 RS4 who asks me daily about the S8!

[Blown2CV]

ashleyman said:

Dr G said:

I don't like his videos either (unless they've changed drastically from the few I have seen). It's important to remember that 'Shmee150' is a brand and a fairly successful one. He runs his business around attracting views online and the way he has developed doing this clearly works. I say fair play to him.

As someone who also has a large following on social media, it's all an act. Most people who have audiences have that because of their online personalities. I'm sure he's a great guy, but I also reckon if you saw him in a non-filmed setting he'd be totally different. I know I and many of my peers are!

weird act... he just comes across as a bit of a nerdy car geek, and whilst enthusiastic, if you gave most people expensive DVR equipment and 25 supercars to drive they'd make something that was likely no worse. It's not like he's putting on a character, he's just a posh kid. Anyway my intention was not a Shmee bashing rant.

[Burwood]

Brown cv, you yourself looked at his video to appraise the S8. He is good at what he does. Good luck to him I say. He doesn't force anyone to watch. This sort of 'complaint' is no different to the viewers who complain to CH4 because they were offended at some big brother content.

[Blown2CV]

Burwood said:

Brown cv, you yourself looked at his video to appraise the S8. He is good at what he does. Good luck to him I say. He doesn't force anyone to watch. This sort of 'complaint' is no different to the viewers who complain to CH4 because they were offended at some big brother content.

it's a fair point i suppose, but then i looked at a few videos and they were all really bad!

[Cheib]

whoami said:

PenelopaPitstop said:

After discount of £20,938, it's only £60,443 car, so 17K is paying for most of depreciation.

"Our Discount Price includes the £7,000 Finance Deposit Contribution from AUDI UK when taking AUDI finance.
If buying cash please add £7,000 back onto the Discount Price above. "

That's my problem with the current deal.

At c£18K including fees, the current price just represents what the car would lose over the term anyway.

I'll wait.

So the logic is that the car will be worth £60,443 minus £18k in two years? I.e. Worth £42,443 as a 24 month old car?

[Blown2CV]

Cheib said:

whoami said:

PenelopaPitstop said:

After discount of £20,938, it's only £60,443 car, so 17K is paying for most of depreciation.

"Our Discount Price includes the £7,000 Finance Deposit Contribution from AUDI UK when taking AUDI finance.
If buying cash please add £7,000 back onto the Discount Price above. "

That's my problem with the current deal.

At c£18K including fees, the current price just represents what the car would lose over the term anyway.

I'll wait.

So the logic is that the car will be worth £60,443 minus £18k in two years? I.e. Worth £42,443 as a 24 month old car?

looking at autotrader this appears to be about the size of it

[whoami]

Cheib said:

whoami said:

PenelopaPitstop said:

After discount of £20,938, it's only £60,443 car, so 17K is paying for most of depreciation.

"Our Discount Price includes the £7,000 Finance Deposit Contribution from AUDI UK when taking AUDI finance.
If buying cash please add £7,000 back onto the Discount Price above. "

That's my problem with the current deal.

At c£18K including fees, the current price just represents what the car would lose over the term anyway.

I'll wait.

So the logic is that the car will be worth £60,443 minus £18k in two years? I.e. Worth £42,443 as a 24 month old car?

Exactly.

You'd be offered less than £40K if you traded one after two years.

Edited by whoami on Wednesday 27th January 21:31

[Blown2CV]

whoami said:

Cheib said:

whoami said:

PenelopaPitstop said:

After discount of £20,938, it's only £60,443 car, so 17K is paying for most of depreciation.

"Our Discount Price includes the £7,000 Finance Deposit Contribution from AUDI UK when taking AUDI finance.
If buying cash please add £7,000 back onto the Discount Price above. "

That's my problem with the current deal.

At c£18K including fees, the current price just represents what the car would lose over the term anyway.

I'll wait.

So the logic is that the car will be worth £60,443 minus £18k in two years? I.e. Worth £42,443 as a 24 month old car?

Exactly.

You'd be offered less than £40K if you traded one after two years.

Edited by whoami on Wednesday 27th January 21:31

i'm struggling to understand how it could possibly be a good business move for audi to charge a customer £13-15k over a 2 year period for an £80k car, and then when they receive it back, retail it for £45k... and do this numerous times over.

[silentbrown]

Blown2CV said:

i'm struggling to understand how it could possibly be a good business move for audi to charge a customer £13-15k over a 2 year period for an £80k car, and then when they receive it back, retail it for £45k... and do this numerous times over.

If they could seel them now for £80K, they would. If they could sell them in two years for £65K, they would. But for whatever reason, they can't, and the manufacturer won't want the production line idle, or cars sitting in storage. This way they keep the whole pipeline moving, and each car they 'sell' is still making them money. Just less than they'd like.

[PenelopaPitstop]

You have to remember, that finance company is making money on other customers, not taking these cheap deals. Dealer may be losing on first sale but still getting bonus for achieving targets, which must be big enough. I was told, that dealer lost 7K on my car, yet they sold it to me. Then they can make money on re-sale. Next customer will probably finance the car again and APR for used car is quite high, so VWFS will get back, whatever was lost during the first sale.

Let say they "sold" 50 cars last year as part of these cheap deals. I read about 100 this year so far. But that's nothing comparing to total financed and sold vehicles. Deals on A4 are part of the promotion of new model. Just get the cars on the street. Then they will cut support and next customers will pay more. If it wasn't financially viable, they wouldn't do it.

Edited by PenelopaPitstop on Thursday 28th January 07:25

[Burwood]

It's not ideal but the production line can't be shut down. Plus there are some nice tax advantages for the owner, whether than be audi or other third party. I'm not an accountant but the tax allowance will be something like 25%. Say that car is booked at net 65k. That's 16.25k in deductions plus 13k odd in yr 2. That's nearly 40k in depreciation against 15k in income. A loss of 25k. On sale book value is 25k? Perhaps a modest gain is made on this when sold. Either way audi just created a 20k accounting for tax loss to offset against other income. It's not great business but the reality is they still make money.

Put another say, audi uk would buy them for a good price from Germany. Germany break even, uk make a profit. Nothing is free.

[k20erham]

Hi I think that if you look at what it costs Audi to make them £45/£50K ish then the Stealer gets his margin and Audi UK theirs suddenly a 2 year residual at £45K doesn't seam that bad, supply and demand and all that ETC, all we are doing by the looks of it is funding the margin.

[Burwood]

They don't cost anything like 45 to 50k to make. I would think direct costs of closer to 30k but we digress

[W8PMC]

Blown2CV said:

i'm struggling to understand how it could possibly be a good business move for audi to charge a customer £13-15k over a 2 year period for an £80k car, and then when they receive it back, retail it for £45k... and do this numerous times over.

Because Audi HAVE to build the cars so have the choice to keep them gathering dust at airfields, cluttering up dealers (dealers won't want many of these as they could get 4 A4's for the same money) or get them out on the road with massive subsidies. Looks like the car's popular as they're being driven.

Same happens all over the car market, look at the F10 M5 a couple of years ago on the crazy lease deals (which i decided i'd jump on) same applied to the E63 & C63, now the M6 & M6GC has some amazing deals, the Golf R was almost given away about 18mths ago & even the Audi RS's are being offered with 16%+ off list & finance subsidies.

Let's not forget that an £80k S8 doesn't cost Audi anywhere near that to manufacture when they've tooled up the production line to produce them. Better to cover their costs & make a small profit on the car even at these prices than to have them sat around earning no money.

[Cheib]

silentbrown said:

Blown2CV said:

i'm struggling to understand how it could possibly be a good business move for audi to charge a customer £13-15k over a 2 year period for an £80k car, and then when they receive it back, retail it for £45k... and do this numerous times over.

If they could seel them now for £80K, they would. If they could sell them in two years for £65K, they would. But for whatever reason, they can't, and the manufacturer won't want the production line idle, or cars sitting in storage. This way they keep the whole pipeline moving, and each car they 'sell' is still making them money. Just less than they'd like.

This is what it's all about, keeping the pipeline moving. Idling production lines is hugely expensive as is using up working capital in unsold stock.

It's really a way of disguising the discount they need to give you to shift them. I hadn't realised there was a £20k discount on a new car. I don't think a two year old S8 will be worth £40 trade....there are six month old cars that are at main dealers for £55k area already. I doubt the trade bid is £50k.

[PenelopaPitstop]

Trade in price will go down when all these leasing cars will be back at forecourt. Unless VWFS will be controlling the market.

[silentbrown]

PenelopaPitstop said:

Trade in price will go down when all these leasing cars will be back at forecourt. Unless VWFS will be controlling the market.

At two years old they'll go straight into main dealers used stock. And VAG like to keep their secondhand prices high to imply good residuals and upsell buyers into new cars. I bought a new S4 because used ones were almost the same price. And scarce.

[Cheib]

silentbrown said:

PenelopaPitstop said:

Trade in price will go down when all these leasing cars will be back at forecourt. Unless VWFS will be controlling the market.

At two years old they'll go straight into main dealers used stock. And VAG like to keep their secondhand prices high to imply good residuals and upsell buyers into new cars. I bought a new S4 because used ones were almost the same price. And scarce.

Not sure dealers will do that with a car like the S8....most dealers have a three month holding period and have to trade it on if not sold.

I'd imagine most dealers will look to sell a two year old S8 pronto given the depreciation. Very hard to upsell someone with £40k to spend to a new car.