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That sucks to hear, higher the value higher the drop, unfortunately..... At least it's not a boat right?
Here is something from a couple of months ago of the highest depreciating vehicles. No idea how accurate it is.
Pretty close. 20% per year on declining balance, AND another 20% in the year or so around when a new model announce happens. This has been the Audi situation for the bigger ones as long as I have owned them--40 years now. The small models (A4, or now Q5), typically hold value as a percentage much better, and are the classic market for Audi's bought by "kids" where there is more demand than for the "old fart" big ones.
Math proof:
A = big Audi new car price
.8 x A = .8A
.8 x .8A = .64A
.8 x .64A = .512A
.8 x .512A = .4096A
AND, the model change over announce (D4-->D5) usual further one time hit:
.8 x .4096 = .32768 a
22/98 = .22449A 29/98 = .29592A
Thus as usual, bad buy as a new car unless you plan to hold it 7-10 years and the value would be largely gone on most any car anyway. Much better buy used as you ride down the depreciation curve. If I had to tweak my traditional simpler formula--and from my own buying experience--I would make it either 25 or 30% for (just) the year one step. Thus, both my then year old D3 A8 W12 and year old D4 S8 came with 30%+ haircuts at 5,000 miles or less CPO. The same with my then year old 1996 C4 A6 also bought very slightly used. With that math tweak, it would get to just about the values cited here.
It's insulting especially if you bought new up front. For me, I bought a slightly used (2,400 miles) service loaner with a CPO warranty. MSRP was $87 and I paid $71. Good deal at the time. Trade in value for the car is likely in the low $30's 3 years later. So basically losing $1,100 per month in depreciation. Really makes me think I should have leased new instead of buying the whole cow. Key is to try and keep it for 5 years or more which is what I'm going to attempt to do despite my itch to get something else.
Sticker on my A8 was $102k - it had every option except B&O and night vision. Bought it from a dealer 2 years later with 29k miles for $48K. These are not cars to buy new anywhere close to MSRP, unless you've got money to burn.
If you are buying any new car and expecting a good re-sale later—you're buying the car for the wrong reason. As soon as you go to the dealer, pick up the keys, sit in it and start it, the value drops by thousands.
Owning cars is nothing but a money pit from a financial point of view—however, their utility and enjoyment you can get from them are what you get in return.
Just be glad you don't have car that starts to fall apart after 3-4 years...remember the 1970-1980's U.S. built cars?
Audi must have the worst depreciation among luxury brands.
There speaks a man who has likely never bought a Jaguar or Maserati in the US.
My recent experience with luxury cars suggests the following:
1) They are largely out on lease from new.
2) Those that are bought are used as tax write-offs
3) The manufacturers don't always build them with longevity in mind.
If point#3 upsets you, consider the following:
All 5.0 and 3.0 Jaguars suffered from a Ford engineered water pump until 2015. (Been there, done that, sat on the side of I-40 for a while)
Mercedes had 11 tries to get their 7-speed transmission to work reliably in the 2000s.
BMW dealers ran out of parking space for all the dead cars after the high pressure fuel pump debacle circa 2008.
Look how many on here lost the turbos on their 2013-2015 4.0 motors.
One disturbing theme in the above examples is that none the manufacturers recalled their defective products. Indeed, I believe the class action lawsuit against Mercedes failed.
Consequently, the market has spoken with its pocket book when it comes to the long term value of most large luxury vehicles. The near exception is the Lexus LS, and even then they can be bought at reasonable prices. Trouble then is explaining to your friends that you now have the ultimate Fat Man car since the demise of the Lincoln Town car. Good luck with that.
There speaks a man who has likely never bought a Jaguar or Maserati in the US.
Consequently, the market has spoken with its pocket book when it comes to the long term value of most large luxury vehicles. The near exception is the Lexus LS, and even then they can be bought at reasonable prices. Trouble then is explaining to your friends that you now have the ultimate Fat Man car since the demise of the Lincoln Town car. Good luck with that.
Having owned 2 UFMCs in the last 30 years, I agree.
Time to go electric. Looking for a nice used Tesla Model S.
05-07-2018, 10:19 PM
Worst Depreciation Ever!
