Opinions: Buy out Lease or walk away?
09-29-2015, 04:52 AM
#11
AudiWorld Super User
Thread Starter
I don't think CPO will cover brakes that wear out.... but they will require the brakes be replaced (if they are under spec) prior to selling the car as a CPO vehicle.
Same with tires.... if the tires are under a certain tread depth they will put new tires on the car before it's offered for sale.
Same with tires.... if the tires are under a certain tread depth they will put new tires on the car before it's offered for sale.
Mike
09-29-2015, 05:05 AM
#12
AudiWorld Super User
09-29-2015, 05:09 AM
#13
AudiWorld Member
That's good that YOU understand the CPO process..... :-)
But, I'm not sure that theanimala understands it. Which is why I quoted his response and provided some input.
Mike
Last edited by andrewmr; 09-29-2015 at 11:11 AM.
09-29-2015, 06:33 AM
#14
AudiWorld Super User
Likely walk...
The CPO flip wrinkle is interesting, but my instinct is walk. Exception case would be if you would actually hold the car for 8-10 years. But if I remember you from the D3 board, you are more likely move on before it gets that old.
Reasons, from the hard nosed don't own one, maybe still a (smart) buyer side perspective that may be different than the D4 current owners here primarily:
1. At 2013 you are pre-facelift. Seems so recent at only 2015, but as a used buyer rapidly I am shifting to only post-facelift ones. Market/price settles all, but it will settle these harder. I think you are 4.0T and should have Audi Connect type electronics by 2013, so you aren't in the yet older group I have already fully dismissed.
2. You are getting to where it will need work--brakes, control arms, etc. later on screen motors, etc. Patterns are well known from D3, and some of the same stuff remains in D4.
3. D5 is now only about 18 months from launch/annnounce. My rule of thumb is 20% per year on prior years value depreciation, AND 20% more in months before and after word is out about the new one. Fasten your seatbelt and prepare to bend over for the usual big Audi value haircuts just around the corner.
4. It's a niche, low following vehicle. I love Audis, but I'll be blunt here too. D4 hasn't really excited the market, no matter how good it is. S class is now newer, new 7 is just out, and Tesla has been eating a bunch of all the German luxobarge techno/engineer type market. And now with the AWD go fast Teslas, yet more so. More recipes for hard price knocks.
5. You describe your vehicle/equipment level as kind of ordinary. To me when i look at Autotrader those are sort of dime a dozen. There is already a big jump in supply as you go from 2014's to 2013's--like yours probably a lot of these are lease returns now hitting market and with a now older design vehicle less likely to be bought out. I personally tend to just sort them out intentionally by options I am looking for, motors, color choices, etc. Market won't value those that well since they are more commoditized among choices, though if yours is in good shape you personally may value it better.
6. D5 itself. My guess is it will be much more revolutionary than D4 was. Needs to be to re-ignite buyer interest. On C bodies (A6/S6) w/ longer history, the odd number ones are viewed as the more breakthrough ones w/ more interest: now C7, prior C5, C3, etc. My hunch is we may start to see the same pattern w/ D bodies. Plus, you can already see the outlines of the D5 on the wall--lighter, more agile, electronics and fancy dashes and all (which sell cars these days) that are yet next gen above newest A3, then newest Q7, then newest R8 announces. Maybe a real rethink on revising existing quattro and a bunch of porky weight and packaging bulk stripped out there. Biggest leap would be mixed mechanical and electric in how they do AWD, as you are already seeing in the exotics as well as a few more common outlier designs.
Contra might be a holding strategy against a D5 I suppose, if I remember you are a long term brand loyal buyer. The CPO wrinkle is then a good play there.
Reasons, from the hard nosed don't own one, maybe still a (smart) buyer side perspective that may be different than the D4 current owners here primarily:
1. At 2013 you are pre-facelift. Seems so recent at only 2015, but as a used buyer rapidly I am shifting to only post-facelift ones. Market/price settles all, but it will settle these harder. I think you are 4.0T and should have Audi Connect type electronics by 2013, so you aren't in the yet older group I have already fully dismissed.
2. You are getting to where it will need work--brakes, control arms, etc. later on screen motors, etc. Patterns are well known from D3, and some of the same stuff remains in D4.
3. D5 is now only about 18 months from launch/annnounce. My rule of thumb is 20% per year on prior years value depreciation, AND 20% more in months before and after word is out about the new one. Fasten your seatbelt and prepare to bend over for the usual big Audi value haircuts just around the corner.
4. It's a niche, low following vehicle. I love Audis, but I'll be blunt here too. D4 hasn't really excited the market, no matter how good it is. S class is now newer, new 7 is just out, and Tesla has been eating a bunch of all the German luxobarge techno/engineer type market. And now with the AWD go fast Teslas, yet more so. More recipes for hard price knocks.
5. You describe your vehicle/equipment level as kind of ordinary. To me when i look at Autotrader those are sort of dime a dozen. There is already a big jump in supply as you go from 2014's to 2013's--like yours probably a lot of these are lease returns now hitting market and with a now older design vehicle less likely to be bought out. I personally tend to just sort them out intentionally by options I am looking for, motors, color choices, etc. Market won't value those that well since they are more commoditized among choices, though if yours is in good shape you personally may value it better.
6. D5 itself. My guess is it will be much more revolutionary than D4 was. Needs to be to re-ignite buyer interest. On C bodies (A6/S6) w/ longer history, the odd number ones are viewed as the more breakthrough ones w/ more interest: now C7, prior C5, C3, etc. My hunch is we may start to see the same pattern w/ D bodies. Plus, you can already see the outlines of the D5 on the wall--lighter, more agile, electronics and fancy dashes and all (which sell cars these days) that are yet next gen above newest A3, then newest Q7, then newest R8 announces. Maybe a real rethink on revising existing quattro and a bunch of porky weight and packaging bulk stripped out there. Biggest leap would be mixed mechanical and electric in how they do AWD, as you are already seeing in the exotics as well as a few more common outlier designs.
Contra might be a holding strategy against a D5 I suppose, if I remember you are a long term brand loyal buyer. The CPO wrinkle is then a good play there.
Last edited by MP4.2+6.0; 09-29-2015 at 05:29 PM.
09-30-2015, 06:35 AM
#15
Couldn't agree more with the above. Facelift, lease returns, and a new model looming will continue to drive the vehicle value down quickly until it settles, but not until the new models are out for at least a year. So I would expect heavier than usual depreciation for at least 2 years on the 2013. Just my 2 cents worth after watching Cars.com for the last decade or so... I'm always car shopping in my head.
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