RS4 Depreciation

Author
Discussion

rob hamilton

Original Poster:

29 posts

283 months

Thursday 26th October 2006
quotequote all
I am looking at buying a new RS4 but am interested to know your views on likely depreciation. "What Car" is estimating that it will lose 60% of it's value over 3 years which to me seems excessive given the limited numbers and desirability of the car. I am looking at a Saloon version.

5/6 year old B5 RS4's for sale on here seem to be around the £25k mark. What was the list price when it was released?

Your thoughts please.

Thanks

mat205125

17,790 posts

214 months

Thursday 26th October 2006
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I'd think you would be unfortunate to lose that amount over 3 years, especially given the current demand meaning nearly new cars are more expensive than list.

Specced well (sensibly) I would hope to not lose that kind of percentage.

An unknown quantity that will influence the market, and therefore the value of the RS4, will be the forthcoming V8 BMW M3 .... especially if the rumours of a 4 dr and estate model come true.

I'm not in the fortunate position to be able to consider a new RS4, but would think about today rather than tomorrow and order away if I were in your shoes.

Buying with your heart, or your head, or a mixture of the 2? If a mixture, what weighting are you giving to each?

rob hamilton

Original Poster:

29 posts

283 months

Thursday 26th October 2006
quotequote all
My heart says buy one and my head says that the value has got to hold up ok. I have been lucky to date with cars as I have had a 2nd hand TVR that I only lost £5k over 6 years on, a Mini Cooper S and a Mark 5 Golf GTI which is holding up well.

My local BMW dealer told me that they wouldn't see a new M3 until October 2007?

I am test driving one on Saturday so I reckon there is a strong chance that they will see my money then.

4WD

2,289 posts

232 months

Thursday 26th October 2006
quotequote all
RS6 prices are pretty good value now as a lot have jumped into the latest RS4. When the next best thing comes out (new M3 or next RS6) those RS4 prices will take a dip imo. I reckon the original estimate will be true. Particuarly as 500bhp cars are getting more common (M5, holden, mustang 500 etc).

Robbo66

3,834 posts

234 months

Thursday 26th October 2006
quotequote all
I was seriously looking into an RS4, but the numbers for sale WILL mean that the above figures will be accurate. Way too many about, way too many cancelled orders. Pick up the phone...they are everywhere.

I've a 6 March 06 2.0T FSI S-Line Multitronic Cab with 3000 miles (wife) at £32,500...best offer from dealer...£24,000 !!!

That's worse than the depreciation on my V8 Vantage......how !!!

I understand the live for today attitude, having 'lived for today' many times with cars over the years, but the RS4 is seriously going to take a massive hit....supply and demand....always comes back to that.

hobo

5,768 posts

247 months

Thursday 26th October 2006
quotequote all
I don't think the new RS4 will hold its value anywhere near as well as the old model.

The old model was sold in smaller numbers & also offered huge potential to those wanting to tune them.

Every man & his dog nowadays can afford these cars nowadays what with the new fandangled methods of financing available.

rob hamilton

Original Poster:

29 posts

283 months

Thursday 26th October 2006
quotequote all
If there is going to be a crash in the market for the RS4 when is it going to happen? 2nd hand ones are still going for list. If I could hold out for 9 months and get one for a steal I would, but I am not sure it is going to happen.

mikeyboy

5,018 posts

236 months

Thursday 26th October 2006
quotequote all
I keep seeing the depreciation figures for the RS4 and as a non professional can't comment on the truth of them what I can say is plain odd is that they seem to think that it will lose more value than a 1.8T over the same period. Just seems unlikely?
in addition M3's are far more common and yet they don't lose those sort of figures, do they?

Mikeyboy

Phil Hopkins

17,110 posts

218 months

Thursday 26th October 2006
quotequote all
I'm suprised at the What Car figures I must say. Cap Monitor is suggesting the car will have a RV circa 58% of its original value after 3 year & 30000 miles.

Most finance companies use cap monitor to work out baloons and guaranteed future values, capital bank for example will guarantee 90% of cap monitors predicted value. This means the RS4 will have a guaranteed future value of £26,212.50. or approximately 51% of it's original value.

A maximum of 49% depreciation over 3 years ain't too bad at all in my book.

mikeyboy

5,018 posts

236 months

Thursday 26th October 2006
quotequote all
And I Phil for one am almost banking on it.
To be honest i don't really care as i'm hoping to pay it off or sell it before the end of the term but its nice to think that their is a slightly more informed valuation out there.

4WD

2,289 posts

232 months

Thursday 26th October 2006
quotequote all
Best thing to do is pay cash for a three year old car imho. Those who finance new cars are quite insane.

CatherineJ

9,586 posts

244 months

Thursday 26th October 2006
quotequote all
What car have before now had duff figures on the depreciation index.

I remember seeing a car (A4 I think) that depreciated in year 2 to £1,500 and then increased back up to about £18,000 in year three.

So it wouldn't suprise me if they haven't got the figures switched round the wrong way.

steve z

1,245 posts

223 months

Friday 27th October 2006
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Phil Hopkins said:
I'm suprised at the What Car figures I must say. Cap Monitor is suggesting the car will have a RV circa 58% of its original value after 3 year & 30000 miles.

Most finance companies use cap monitor to work out baloons and guaranteed future values, capital bank for example will guarantee 90% of cap monitors predicted value. This means the RS4 will have a guaranteed future value of £26,212.50. or approximately 51% of it's original value.

A maximum of 49% depreciation over 3 years ain't too bad at all in my book.


Hope you're right Phil. I'm hoping to pick up an 05 plate in May 08 for less than £30k

FUBAR

17,062 posts

239 months

Friday 27th October 2006
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Used RS4 in 12 month's time is my next car yes

exint2

282 posts

258 months

Saturday 28th October 2006
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RS4's will depreciate like all cars, less in % terms than an "ordinary" model as they will be sought after in the market, and there will be a limited number (though not as limited as it should be.

The interesting thing will be if the Saloon holds up as well as the Avant as fast Audis have traditionally been estates and there is a big fanbase for the superfast Labrador carrier!

The What car figure is just rubbish but specialist marques and models are not the strong point of generalist magazines. After 3 yrs you'll probably see 55%-60% of your money back but you'll still have "lost" in excess of £20K

bennno

11,677 posts

270 months

Saturday 28th October 2006
quotequote all
rob hamilton said:
My heart says buy one and my head says that the value has got to hold up ok. I have been lucky to date with cars as I have had a 2nd hand TVR that I only lost £5k over 6 years on, a Mini Cooper S and a Mark 5 Golf GTI which is holding up well.

My local BMW dealer told me that they wouldn't see a new M3 until October 2007?

I am test driving one on Saturday so I reckon there is a strong chance that they will see my money then.


I think a RS4 proably dops £5-6k as it drives off the dealers foreourt.

I suspect a 3 year old (Avant) car with 30-40k miles would be worth £30-£35k.

This is the sort of figure an M5, E55, C55 Estate is fetching and I cant see the RS4 doing much better.

Old old one was a limited run and faced little competition at the time, as above in this post if the next M3 is available as saloon and touring - plus dont forget increased comp from AMG (who used to be saloons only).

A 997 would be a better home for 55k or a current shapw 490bhp E55 at £30k.

bennno

mikeyboy

5,018 posts

236 months

Tuesday 31st October 2006
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bennno,
I agree with the figure you've given for the 3yr depreciation but can't see where you've got the figure for as new. I've seen one car on-line for 49k but all the rest are resolutely above 50k so not a 5-6k drop at all. confused

997 would be a better place to put your money. If you're not looking for a four door car with a boot. E55 is not as good a car at all, just bigger with a primitive if somewhat wonderful sounding engine.

mikeyboy

rob hamilton

Original Poster:

29 posts

283 months

Tuesday 31st October 2006
quotequote all
I test drove the RS4 Convertible on Saturday. Great Car, but...the Convertible is a 2+2, I sat in a Saloon and there is a lot more room in the back and half the boot isn't taken up by the roof. My thoughts are that if I want a convertible I may as well get a 997 because there is no difference in terms of space. I think the RS4 Convertible is going to take a hit for this reason (but what do I know?!). The Saloon however takes some beating as an overall package in my opinion, so it will be seeing my money!

bennno

11,677 posts

270 months

Tuesday 31st October 2006
quotequote all

Figure as new is common sense, if dealers are selling at list or just below then they will have 10% minimum mark up.

Personally i would strongly advise to buy a RS4 as an Avant. Saloon will drop further and faster.

I bought an S6 Saloon a few years back and it was £10k less than the equivalent S6 Avant

Bennno

Phil Dicky

7,162 posts

264 months

Tuesday 31st October 2006
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rob hamilton said:
I test drove the RS4 Convertible on Saturday. Great Car, but...the Convertible is a 2+2, I sat in a Saloon and there is a lot more room in the back and half the boot isn't taken up by the roof. My thoughts are that if I want a convertible I may as well get a 997 because there is no difference in terms of space. I think the RS4 Convertible is going to take a hit for this reason (but what do I know?!). The Saloon however takes some beating as an overall package in my opinion, so it will be seeing my money!


There's something about Audi's and especially the RS variants but they just have to be Avants, is it just me or does anyone else thing like this.