D4 depreciation vs SQ5...what gives?
02-01-2016, 09:26 PM
#1
AudiWorld Super User
Thread Starter
D4 depreciation vs SQ5...what gives?
Hi folks,
I've been considering a change of vehicles recently, but have noticed that used D4s and SQ5s are almost identically priced. Recently I came across a 14 SQ5 Prestige and a 13 A8L (slightly higher mileage) and both vehicles were priced slightly lower than $40K. I understand that when new, the A8L was almost $20K more expensive, so why the rapid depreciation for the A8L vs. the SQ5?
I've been considering a change of vehicles recently, but have noticed that used D4s and SQ5s are almost identically priced. Recently I came across a 14 SQ5 Prestige and a 13 A8L (slightly higher mileage) and both vehicles were priced slightly lower than $40K. I understand that when new, the A8L was almost $20K more expensive, so why the rapid depreciation for the A8L vs. the SQ5?
02-02-2016, 02:04 AM
#2
AudiWorld Super User
All flagship cars, Mercedes S Class, BMW 7 Series, Audi A8/S8, Bentley depreciate like crazy because the original owners tend to be wealthy (most of them lease) and tend to move on every 24/36 months treating the car more like an appliance then something to own for a long time. They also want to be seen with the newest car, or they own a company and have a way to write off the lease and their new toy is a way to reduce their taxes.
Finally flagship cars technical/mechanical complexity makes them cost prohibitive to own long term when considering reliability. (exception being the Lexus LS) Companies tend to put all of their newest technology into their flagship cars and often times cutting edge is not synonymous with reliability. Google "Mercedes ABC Failure" if you want to see what I am talking about. You can buy a circa 2008 MB S65 with a V12 and 200k original sticker for 30-40k today, but you have to remember it has the repair bills of a 200k car, so you better have an emergency stash of 8-10k laying around or a really nice warranty backing you up.
Finally flagship cars technical/mechanical complexity makes them cost prohibitive to own long term when considering reliability. (exception being the Lexus LS) Companies tend to put all of their newest technology into their flagship cars and often times cutting edge is not synonymous with reliability. Google "Mercedes ABC Failure" if you want to see what I am talking about. You can buy a circa 2008 MB S65 with a V12 and 200k original sticker for 30-40k today, but you have to remember it has the repair bills of a 200k car, so you better have an emergency stash of 8-10k laying around or a really nice warranty backing you up.
Last edited by Audis or VWs 4Life; 02-02-2016 at 05:28 AM.
02-02-2016, 02:47 AM
#3
AudiWorld Super User
All flagship cars, Mercedes S Class, BMW 7 Series, Audi A8/S8, Bentley depreciate like crazy because the original owners tend to be wealthy (most of them lease) and tend to move on every 24/36 months treating the car more like an appliance then something to own for a long time. They also want to be seen with the newest car, or they own a company and have a way to write off the lease and their new toy is a way to reduce their taxes.
Finally flagship cars technical/mechanical complexity makes them cost prohibitive to own long term when considering reliability. (exception being the Lexus LS) Companies tend to put all of their newest technology into their flagship cars and often times cutting edge is not synonymous with reliability. Google "Mercedes ABC Failure" if you want to see what I am talking about. You can buy a nearly circa 2008 MB S65 with a V12 and 200k original sticker for 30-40k today, but you have to remember it has the repair bills of a 200k car, so you better have an emergency stash of 8-10k laying around or a really nice warranty backing you up.
Finally flagship cars technical/mechanical complexity makes them cost prohibitive to own long term when considering reliability. (exception being the Lexus LS) Companies tend to put all of their newest technology into their flagship cars and often times cutting edge is not synonymous with reliability. Google "Mercedes ABC Failure" if you want to see what I am talking about. You can buy a nearly circa 2008 MB S65 with a V12 and 200k original sticker for 30-40k today, but you have to remember it has the repair bills of a 200k car, so you better have an emergency stash of 8-10k laying around or a really nice warranty backing you up.
It's fear of repair cost which pulls them down the most, I think. That and some maintenance items have in the past been extra expensive, as well(timing belts in the D3's or brakes on an AMG, for example.) In the D4's, my biggest repair fear is the transmission coolant valve failure, that can get staggeringly expensive.
02-02-2016, 05:37 AM
#4
AudiWorld Super User
When I had a CPO D3, I am pretty sure I burned through the CPO cost in about 6 months. Gear failure on the MMI screen, the soft door closer went 4 times total on two different doors. Water pump leak was a blessing since I did the entire timing belt job during that repair. It took the job from 2k to around ~800. Trunk closing system, a few MMI modules lost their cookies and had to get replaced. 2 Sat radio modules died. Pretty sure at the end all told it was $7500 in repairs if I didn't have the CPO.
At the end I drove the car cross country in a 7800 mile journey and it was like having your own road going executive jet, and it was fantastic. One of my favorite cars, I only wish it had more hp. The 2013+ V8 D4's addressed that wish.
At the end I drove the car cross country in a 7800 mile journey and it was like having your own road going executive jet, and it was fantastic. One of my favorite cars, I only wish it had more hp. The 2013+ V8 D4's addressed that wish.
02-02-2016, 10:04 AM
#5
AudiWorld Super User
Thread Starter
All flagship cars, Mercedes S Class, BMW 7 Series, Audi A8/S8, Bentley depreciate like crazy because the original owners tend to be wealthy (most of them lease) and tend to move on every 24/36 months treating the car more like an appliance then something to own for a long time. They also want to be seen with the newest car, or they own a company and have a way to write off the lease and their new toy is a way to reduce their taxes.
Finally flagship cars technical/mechanical complexity makes them cost prohibitive to own long term when considering reliability. (exception being the Lexus LS) Companies tend to put all of their newest technology into their flagship cars and often times cutting edge is not synonymous with reliability. Google "Mercedes ABC Failure" if you want to see what I am talking about. You can buy a circa 2008 MB S65 with a V12 and 200k original sticker for 30-40k today, but you have to remember it has the repair bills of a 200k car, so you better have an emergency stash of 8-10k laying around or a really nice warranty backing you up.
Finally flagship cars technical/mechanical complexity makes them cost prohibitive to own long term when considering reliability. (exception being the Lexus LS) Companies tend to put all of their newest technology into their flagship cars and often times cutting edge is not synonymous with reliability. Google "Mercedes ABC Failure" if you want to see what I am talking about. You can buy a circa 2008 MB S65 with a V12 and 200k original sticker for 30-40k today, but you have to remember it has the repair bills of a 200k car, so you better have an emergency stash of 8-10k laying around or a really nice warranty backing you up.
However, the delta between an A8 and an SQ5 isn't quite the same chasm. In fact there are a lot of similarities between the two models: engine, internal electronics, etc... Furthermore the demographic of people purchasing an A8 isn't drastically different from those buying an SQ5. Neither automobile would be categorized as "cheap" and there is an overlap of those who would purchase both types of vehicles.
The SQ5 has similar electrical modules: Nav, ACC, Blind spot detection and although doesn't share all the same amenities as the A8 (i.e. massaging seats), the gap related to the depreciation seems quite severe. Perhaps the fact that folks have been tending to buy more and more SUVs as of late and that buyers are going for a different kind of product, which has lead to the difference.
FWIW, I'm very familiar with the crazy price drops of the higher end AMG models...although the price of the car has certainly diminished in present value, replacement parts and servicing is based upon the original value of the car. Hence, why buying a once $200K MB, which now sells for a fraction of its original value, isn't usually a good bet for someone who is cross-shopping for a $30K Accord.
Last edited by raj99; 02-02-2016 at 03:11 PM.
02-03-2016, 05:13 AM
#7
I'm annoyed now as i just bought a 2013 A8L with almost all the goodies with 27k miles on it for over $50k! and you're saying under $40k? dammit! unless you're looking at higher mileage cars... and funny, when I looked at every dealer, all the 2013s similarly equipped were at least $50k. but again, maybe your looking at higher mileage or you're in a different area geographically? for $40k, get the A8!!!!!!! I do like the SQ5 but it's too darn small for me with 3 kids and 2 big dogs.
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02-03-2016, 06:38 AM
#8
AudiWorld Super User
Thread Starter
I'm annoyed now as i just bought a 2013 A8L with almost all the goodies with 27k miles on it for over $50k! and you're saying under $40k? dammit! unless you're looking at higher mileage cars... and funny, when I looked at every dealer, all the 2013s similarly equipped were at least $50k. but again, maybe your looking at higher mileage or you're in a different area geographically? for $40k, get the A8!!!!!!! I do like the SQ5 but it's too darn small for me with 3 kids and 2 big dogs.
I'm just surprised as to how well the sq5 tends to hold its value vs the much higher priced A8l.
02-03-2016, 02:35 PM
#10
AudiWorld Super User
Thread Starter
The world certainly seems to have shifted to the SUV market. Heck even Lamborghini is making one again. For me, I'll need to figure out which I'd rather live with. I've never owned an SUV, but had a lot of sports and sedan vehicles