Trade now, later or hold long-term?
08-19-2018, 07:34 AM
#1
Trade now, later or hold long-term?
I have a 2015 Audi Q5 Premium Plus 3.0T with around 15K miles on it. It is paid off, has had all of the usual service at the dealer, has never been hit and is in very good condition. The car has generally been fine and is reliable. However it will be out of warranty in about 4 months and owning any car out of warranty, especially a German one, makes me nervous. My gut instinct is that it still has decent trade value now but may not for long so I should either trade it now for max value or commit to holding it for at least seven years or so and just suck up the out of warranty costs. This is our only car and needs to be solidly reliable so I highly doubt I'd keep it much longer than that. Does anyone know what the peak and trough of trade in value tends to be for these cars, or can share experiences from a similar decision-making process?
I am am at the beginning of this process and have not received any dealer trade quotes, nor do I even have any idea what else I would buy. Not likely another Q5 however, as I am not enthused about paying these prices for made in Mexico and don't like the 4 cylinder only unless you spend for the SQ5 with the second generation. Mainly just looking for general insights from a financial perspective.
I am am at the beginning of this process and have not received any dealer trade quotes, nor do I even have any idea what else I would buy. Not likely another Q5 however, as I am not enthused about paying these prices for made in Mexico and don't like the 4 cylinder only unless you spend for the SQ5 with the second generation. Mainly just looking for general insights from a financial perspective.
08-19-2018, 11:14 AM
#3
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I just received a mailing from AFS for their Audi Pure Protection Plan for my ‘15 3.0T, so I suspect that would be an option for you as well in addition to other extended warranty plans. However, last month I traded it in on a new ‘18 SQ5. It’s very different from the 3.0T, and I have no regrets at all. I could have easily kept mine too but the new one puts a smile on my face in a way the ‘15 didn’t. As you make your decisions, I recommend checking it out.
Last edited by S4forDC; 08-19-2018 at 12:46 PM.
08-19-2018, 11:55 AM
#4
Thanks for the replies both. I wasn’t offered an extended warranty when I bought the vehicle new, so assumed that was not an option. Good to know.
If I may ask, what sort of deals are to be had on SQ5s at this point? I was assuming not much, given the newness.
If I may ask, what sort of deals are to be had on SQ5s at this point? I was assuming not much, given the newness.
08-19-2018, 11:55 AM
#5
AudiWorld Super User
I have a 2015 Audi Q5 Premium Plus 3.0T with around 15K miles on it. It is paid off, has had all of the usual service at the dealer, has never been hit and is in very good condition. The car has generally been fine and is reliable. However it will be out of warranty in about 4 months and owning any car out of warranty, especially a German one, makes me nervous. My gut instinct is that it still has decent trade value now but may not for long so I should either trade it now for max value or commit to holding it for at least seven years or so and just suck up the out of warranty costs. This is our only car and needs to be solidly reliable so I highly doubt I'd keep it much longer than that. Does anyone know what the peak and trough of trade in value tends to be for these cars, or can share experiences from a similar decision-making process?
I am am at the beginning of this process and have not received any dealer trade quotes, nor do I even have any idea what else I would buy. Not likely another Q5 however, as I am not enthused about paying these prices for made in Mexico and don't like the 4 cylinder only unless you spend for the SQ5 with the second generation. Mainly just looking for general insights from a financial perspective.
I am am at the beginning of this process and have not received any dealer trade quotes, nor do I even have any idea what else I would buy. Not likely another Q5 however, as I am not enthused about paying these prices for made in Mexico and don't like the 4 cylinder only unless you spend for the SQ5 with the second generation. Mainly just looking for general insights from a financial perspective.
08-19-2018, 01:09 PM
#6
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Trade value was spot on to the Kelly Blue Book value online, and I was able to bring that up some in negotiations because my Q5 was low mileage and I was in contact with two different dealers. You’d do better selling it yourself privately, of course. Like you, I wanted to trade while the car held its value. Looked to me as though there were a lot of used 2.0T Q5’s on the dealer lots but not 3.0T’s. As when new, many go for the smaller engine but some want the larger. Checking the dealer website, my old car sold within three weeks.
The deal was good on the SQ5, especially with incentives. I wouldn’t have done it otherwise because I was perfectly happy with my ‘15. Happy to provide more info on that. If you decide to go forward with a new one, keep in mind the ‘19’s are coming so you can get favorable pricing on a remaining ‘18 or wait a bit for a ‘19. I pulled the trigger on my ‘18 right after I saw the order guide for ‘19. Mine is a lightly equipped Prestige that was on the lot, and it had everything I wanted and nothing I didn’t.
08-19-2018, 02:04 PM
#7
If you are serious about trading it in, I'd also take it to your nearest CarMax if possible and hear what they will offer. They give an offer good for one week, and there's no harm in letting it expire. You only lose an hour or two to drive over and interact with them.
Nobody can report on their experience of owning a 2015 model for 10-20 years yet. I owned a 1998 A4 for 7 years, which I reluctantly sold due to a move overseas. Through family, I also kept a 1999 A4 for 17 years. Low miles and garage storage can make older cars surprisingly nice inside and out, but eventually time catches up and you should perform maintenance regardless of miles. Outside strange collector cars, I don't think you should assume there are multiple peaks in value. They just depreciate rapidly at first and then slowly converge towards their rolling utility/scrap/part-out value. Rational buyers know that a warranty and any consumable parts should be prorated, not treated as a sudden value change. A periodic service item should be anticipated and amortized over its whole period.
Your own knowledge of how your low-miles car has been treated is something you can never fully convey to the next buyer. So, it usually has more value to you than to them. If you replace it with another Q5, I suggest you should admit to yourself you are doing it for novelty or feature envy. It's certainly not a wise financial decision and a 2019 Q5 doesn't substantially differ in capability nor longevity from a 2015 Q5. You'd get a new set of tires, new set of brakes, new fluids all around, new seat covers, clean carpets, and a nice new clear coat, but at a shocking premium. If you can be happy driving your slightly older car, put that money away and keep it for a rainy day...
Nobody can report on their experience of owning a 2015 model for 10-20 years yet. I owned a 1998 A4 for 7 years, which I reluctantly sold due to a move overseas. Through family, I also kept a 1999 A4 for 17 years. Low miles and garage storage can make older cars surprisingly nice inside and out, but eventually time catches up and you should perform maintenance regardless of miles. Outside strange collector cars, I don't think you should assume there are multiple peaks in value. They just depreciate rapidly at first and then slowly converge towards their rolling utility/scrap/part-out value. Rational buyers know that a warranty and any consumable parts should be prorated, not treated as a sudden value change. A periodic service item should be anticipated and amortized over its whole period.
Your own knowledge of how your low-miles car has been treated is something you can never fully convey to the next buyer. So, it usually has more value to you than to them. If you replace it with another Q5, I suggest you should admit to yourself you are doing it for novelty or feature envy. It's certainly not a wise financial decision and a 2019 Q5 doesn't substantially differ in capability nor longevity from a 2015 Q5. You'd get a new set of tires, new set of brakes, new fluids all around, new seat covers, clean carpets, and a nice new clear coat, but at a shocking premium. If you can be happy driving your slightly older car, put that money away and keep it for a rainy day...
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08-19-2018, 04:16 PM
#8
I think you need to go over the numbers a little better. You want to buy a new car because you are afraid of repairs on an out of warranty car? The new car will depreciate at least $1,000-$2,000 a month as soon as you take possession of it. What are you so afraid of that will fail on it and cost significant money?
In general and especially true for luxury cars. They depreciate the most in the first 2 years, and after that the depreciation starts to slow down. I buy cars when they are about three years old so I let someone else take a hit on it. There are brands worse than Audi (Cadillac and Jaguar are a couple) that depreciate even more.
Selling your car for a new one due to out of warranty fears makes NO financial sense at all. Literally none. If you are thinking about an extended warranty then you need to keep in mind that the numbers are against you. They are not offered because companies like losing money. Statistically speaking you are not likely to incur repairs on your vehicle that will make the warranty worth it. My suggestion is keep your car and stop worrying. If something breaks then fix it. Take the money you would spend on a new car payment and put it in a savings account. If your car needs a repair then go into that account. After a few years chances are you will have a bunch of money in there that you can enjoy.
In general and especially true for luxury cars. They depreciate the most in the first 2 years, and after that the depreciation starts to slow down. I buy cars when they are about three years old so I let someone else take a hit on it. There are brands worse than Audi (Cadillac and Jaguar are a couple) that depreciate even more.
Selling your car for a new one due to out of warranty fears makes NO financial sense at all. Literally none. If you are thinking about an extended warranty then you need to keep in mind that the numbers are against you. They are not offered because companies like losing money. Statistically speaking you are not likely to incur repairs on your vehicle that will make the warranty worth it. My suggestion is keep your car and stop worrying. If something breaks then fix it. Take the money you would spend on a new car payment and put it in a savings account. If your car needs a repair then go into that account. After a few years chances are you will have a bunch of money in there that you can enjoy.
08-19-2018, 04:17 PM
#9
If you are serious about trading it in, I'd also take it to your nearest CarMax if possible and hear what they will offer. They give an offer good for one week, and there's no harm in letting it expire. You only lose an hour or two to drive over and interact with them.
Nobody can report on their experience of owning a 2015 model for 10-20 years yet. I owned a 1998 A4 for 7 years, which I reluctantly sold due to a move overseas. Through family, I also kept a 1999 A4 for 17 years. Low miles and garage storage can make older cars surprisingly nice inside and out, but eventually time catches up and you should perform maintenance regardless of miles. Outside strange collector cars, I don't think you should assume there are multiple peaks in value. They just depreciate rapidly at first and then slowly converge towards their rolling utility/scrap/part-out value. Rational buyers know that a warranty and any consumable parts should be prorated, not treated as a sudden value change. A periodic service item should be anticipated and amortized over its whole period.
Your own knowledge of how your low-miles car has been treated is something you can never fully convey to the next buyer. So, it usually has more value to you than to them. If you replace it with another Q5, I suggest you should admit to yourself you are doing it for novelty or feature envy. It's certainly not a wise financial decision and a 2019 Q5 doesn't substantially differ in capability nor longevity from a 2015 Q5. You'd get a new set of tires, new set of brakes, new fluids all around, new seat covers, clean carpets, and a nice new clear coat, but at a shocking premium. If you can be happy driving your slightly older car, put that money away and keep it for a rainy day...
Nobody can report on their experience of owning a 2015 model for 10-20 years yet. I owned a 1998 A4 for 7 years, which I reluctantly sold due to a move overseas. Through family, I also kept a 1999 A4 for 17 years. Low miles and garage storage can make older cars surprisingly nice inside and out, but eventually time catches up and you should perform maintenance regardless of miles. Outside strange collector cars, I don't think you should assume there are multiple peaks in value. They just depreciate rapidly at first and then slowly converge towards their rolling utility/scrap/part-out value. Rational buyers know that a warranty and any consumable parts should be prorated, not treated as a sudden value change. A periodic service item should be anticipated and amortized over its whole period.
Your own knowledge of how your low-miles car has been treated is something you can never fully convey to the next buyer. So, it usually has more value to you than to them. If you replace it with another Q5, I suggest you should admit to yourself you are doing it for novelty or feature envy. It's certainly not a wise financial decision and a 2019 Q5 doesn't substantially differ in capability nor longevity from a 2015 Q5. You'd get a new set of tires, new set of brakes, new fluids all around, new seat covers, clean carpets, and a nice new clear coat, but at a shocking premium. If you can be happy driving your slightly older car, put that money away and keep it for a rainy day...
08-20-2018, 05:54 AM
#10
AudiWorld Senior Member
Here are a couple of thought experiments to try out, that don’t involve either buying a new car or buying an expensive warranty:
—put $150 a month in an account for maintenance and repair. Anything you don’t spend is still yours
—find an independent mechanic in your area who specializes in Audis
—change your own oil and filters, change your own wiper blades (these aren’t covered by warranties anyway)
As Frank Herbert famously wrote in Dune, “Fear is the mind killer.” IMHO, we as a society have been making more and more and more decisions based on fears (I’m gonna blow the engine and I’m gonna be stranded at night in a dark road in the bad part of town) when we should be making them on cold, precise reasons that come from the most advanced lobes of the brain.