Twglasgow

Any idea when prices will drop for a CPO D4? My question really is: would it make sense to put off buying for a few months? Or is the coming D5 not going to influence pricing for, say, 6 months?

MP4.2+6.0

Somewhat the other way around to me. Known announce of D5 has probably already influenced used prices. Some CPO'd are priced to move, some priced to haggle, and some just overpriced.

My rule of thumb is that in addition to annual depreciation, a model change takes about 20% more out of the price/value of a used one. Slide probably started better part of a year ago given the model cycle is pretty well known--by enthusiasts as well as any sales manager type. Incremental slide will continue until the new model is well known, up on Audi USA web site, etc. Call it maybe half clipped so far, half to go. The normal annual slide is probably 20 % (of prior year's value) too. I've watched it over several generations of C body Audis as well as the end of life of D3. Pretty predictable.

Twglasgow

Thanks, I've only been looking at prices for several months so I don't have your experience/insight.
On another topic, am I right to be suspicious of 2016 dealer offered non-CPO vehicles?

MP4.2+6.0

I would be. On some though they will do it if you negotiate for it as part of deal. But of course others have issues that preclude, and in turn are red flags--bad maintenance history, serious body work, etc.

Much more benign though and known to happen specifically on D4's and maybe more on the 4.0T's, the brakes are pricy enough in front that if they are worn too much, that precludes CPO unless they do them pre sale. If pads only, they may. But when you get to rotors and even more so on top of a set of tires if needed, that can be too much in for them. Supposedly costs them something like $2K to CPO it w/ Audi of America (the insurance component for essentially the extended warranty). But they also have to eat all the clean up to make it CPO worthy. If it is warranty, they can pass through, but typically not pre sale tires, brakes, etc.

Meantime, whether CPO or not, watch the known areas like brake wear, tires, etc. In CPO, was it really inspected. If non CPO (at an Audi dealer), why not and if cost related, what are the items in question. Their choice to not do it is often not irrational or hiding something, but then fix burden for wear items if a driver to their decision moves to buyer earlier.

slpat

I would say it depends on the car and the dealer. I recently bought a 2014 A8L and while looking there were a lot at dealers that were not CPO'd by the dealer. Typically when I called to inquire I was told they priced the car lower and not CPO'd to be more price competitive on the web.


Of the 7 cars at 3 dealers I checked out only 1 could not be CPO'd. What I was told about the CPO process is that is costs $1,800 for CPO warranty through Audi but that is not the only cost. The CPO inspection requires them to potentially do additional work that they would not have to do if they just sell the car as used with the remainder of the new car warranty. In the case of the car I finally got they replaced all 4 tires, do the front brakes, clean up a couple wheels and other smaller misc items. As a result, the cost to CPO a car can be $4-5K including the insurance from Audi.


I ended up going that route and getting a CPO'd car from a dealer that was originally not listed as a CPO. The only downside is that it becomes more difficult to negotiate because the dealer starts complaining about how much they have to spend to sell a CPO car.

Twglasgow

Thanks for your reply

audirb

MP4, do you think the depreciation you note above for CPO's also applies to a new 2017 vehicle? So, same question that TW the OP poses, but for a new vehicle. Thx.

MP4.2+6.0

Yeah, as in I expect it will take a bath as new model hits. Everyone always wants the new shiny object, even if drivetrain may largely carry over for first few years (though 3.0T will pretty clearly go from SC to turbo). Call it 30%+ down in something like 18 months. Even my pristine 2015 CPO was essentially that when I bought it 18 months in and at only 3K miles. I am sober it continues to fall, but I tend to hold a long time and then pass to family anyway. What I got on mine was likely at low end of range at time with launch then 2+ years away, so it could be even worse--35% or more. Inventory also goes up as most everyone with a lease turns them back in or occasionally even exits early. I've watched the movie before--D3, C5, others.

No doubt we will have some posts in coming few years with new purchase owners wringing hands feeling down. Bad for current owners, good for buyers. BTW, from experience 75% of the board posters will also turn over in next few years, especially those on lease or who want to stay with a current model ride. Watched that too, and another sign of what happens generally in luxobarge market in general.

audirb

I am speaking in the short run. So, if looking at a new 2017 that's been sitting on the lot for about 6 months or so; what would you expect the dealers discount in say a month vs. now (assuming the car is still there)?

Jack88

Probably about the same drop that occurred since last month.