angrypengu

No need to apologize. My statement is not based on gut feel but pure 'facts' based on studies such as the below. There was a very 'good' study with good visuals done that I am struggling to find. IIRC those who made >$150K/year had <5% "decrease" wrt hours worked or income changes. (I believe this study was in Canada).

https://www.mckinsey.com/industries/...-on-us-workers

That is the basis for my belief, but that's all it is, an educated belief based on article after article saying the same thing. Once in the six figure income range, the effect is a lot less pronounced, if any, than those at the other end of the spectrum. It also makes sense to me. White collar workers can work remotely and continue getting paid what they/we are paid, while those in the food service industry, construction industry, etc, are more likely to be affected, and substantially at that.

I have not seen any studies wrt discretionary budget choice changes for those in the top 5% of income or to see how behaviour has changed but just wanted to share my belief based on the studies similar to the one above.

I could very well be wrong.

Edited to add: I can't find the article to save my life. I tried, sorry.

Puzz1

Yep, good points for sure. If you're on a salary and can work from home you aren't impacted the same way as someone in retail, food and beverage, hourly, etc. I totally get that. The main point I was trying to make is that even in the upper income group (top 10 percent income bracket in the USA is anything over approx. $120k) people are proceeding with caution.

angrypengu

Your constructive dissension versus my opinion had me really really interested to what the target market is for the D5. I was trying to figure out the demographic that Audi specifically targets with the D5 and only came across a post from someone on here in the D3 (or D2?) board alleging the median income of the D5 buyer is $300K.

While this may be in fact the case, I wanted to read what Audi specifically targets themselves, and was surprised to find, on slide 10/50 in the attached, HH median income of all Audi customers are $193K (back in 2013!) and are substantially higher than those of BMW/Audi. So if that's the case for HH income of all Audi customers, then perhaps there is some truth to the $300K number.

Nothing based on scientific studies of course, but as a result, I think it lends a bit more credence to my opinion that perhaps the D5 won't be as affected because of this pandemic. I can absolutely see why someone making $120K who may have wanted to splurge for a D5 may hold off, but someone making >$300K would probably not be affected (or at least, as much).

Anyway, just a guessing game (and an exercise in critical thinking which is always fun!)

Edited to add: That last slide.... (slide 50).

Shark_V8

I was looking at one A8L dropped to $72K CAD and sold Two others with backseat kit SOLD!. So that is 3. There is one for sale in North Vanc for $88K CAD. Oh man,

Having said that I think we are going to for one of the surplus E-Trons. My wife wants electric so she can stop smelling fumes and charge at home etc. Being a PE EE I have to agree

angrypengu

Please keep in mind Audi Canada is giving 20k off of 2019 A8s so dealer margins are still 7 percent in Canada

gk1

My dealer just sent an offer of $25k USD off an A8L with 0% financing for 66 months!
Granted they only have $94k optioned A8L's, but still sorta makes up for the deprecation losses.

AugustHorch

There has always been negotiating room and discounting available for A8s depending on the time of the year. I talked down mine from an MSRP of $102,500 (US) to $81K, before convincing the dealer to throw in Audi Care for 4 years as well as lease return insurance, at no additional cost. That was in September of 2017.