Advice on a potential purchase

[ruudy]

Hi Guys. I have been looking for an Audi RS6 for 6 months however i have been very picky about the spec i wanted.

I have seen one which meets most of the criteria that i am looking for and i also negotiated a price. I have listed the details below and just want to know your thoughts. Is it a fair deal?

Audi RS6 Performance Edition
2016 - Demonstration model with 200 miles
Audi Exclusive Paint
Head up display
Audi PHONE BOX
BOSE surround sound
Quattro sports differential
21" '5 V SPOKE STAR BLACK' ALLOY WHEELS
RS SUSPENSION PLUS
DYNAMIC POWER STEERING
DYNAMIC RIDE CONTROL
Remote electric boot opening/closing
BLACK DOOR MIRROR HOUSING
3 spoke flat bottom multi-function leather steering wheel
Keyless Start
ELECTRIC PANORAMIC GLASS SUNROOF
DYNAMIC POWER STEERING
MAXIMUM SPEED LIMITER INCREASED
Alcantara door trim
CARBON FIBRE INLAYS
Parking package
Reverse camera
Front and rear heated seats
ADVANCED KEY WITH HANDSFREE
Audi PARKING SYSTEM ADVANCED WITH REAR VIEW CAMERA
Park assist system with steering assist
DYNAMIC PACKAGE
GLOSS BLACK STYLING PACKAGE

The car was advertised at £91k. Price which i have agreed is £80,000 inc. GAP insurance. Is this a good deal. The reason i ask is as i am wary of the big loss i will take buying a car which is practically brand new, which i have always avoided. I dont know if i am following my head or my heart and just want some advice. TYI

[doodlebug]

Nowt wrong with the spec/price only you know whether you can live with the cost.

It's going to be worth something in the low 60s,at best, after 12 months as an indication.

[MikeFish]

My car was new and spec price was £94k and I got discounts to the equivalent of £78k.

[Andy_W]

I got more like 16k off a 98k car 8-9months ago so I would think you could push them a bit harder.

[doodlebug]

Car was advertised at 91k, that's not the list price.

Support for a used car is going to be different to a new order.

[MikeFish]

Yes but that is a 96k spec car so can be had for 80k or less brand new. A 200 mile demo car will have sure as hell been thrashed, and from cold probably too. Unless you really have to have one now I'd rather order new and get the exact spec you want as this one meets most of your requirements but not exactly.

[kmpowell]

Don't let the spec or the word demonstrator blur the reality. Bottom line is you're buying a second hand RS6. £15k discount is easily achievable on a brand new order, so that car isn't in any way shape of form a bargain. Used cars have lower RV's and also worse finance APR rates.

Audi don't factor in any options to RV's so the trade price of that car will be significantly less. Pop the reg into WBAC, sit back take a deep breath and see what you would get for it now should you need to sell. My guess it's a lot less than £80k.

WBAC are owned by BCA which sell to the dealers, so the prices you see are generally there or thereabouts p/x prices, which are very different to screen prices.

On a new one Audi quote an RV of c£45k after 2years, so whichever way you look at it you need to prepare for a max £30-40k loss in that time.

I would love an RS6, but no matter which way I look at the numbers, they are one of Audis worst deprecating cars.

[kmpowell]

Here you go - providing it is EN16 SXT that I think you're talking about, here's what WBAC quote...

So a theoretical £20k loss straight away if the 'cap clean' p/x prices are in line with WBAC, which most of the time they are.

[wildbore]

Yes but that is a 96k spec car so can be had for 80k or less brand new. A 200 mile demo car will have sure as hell been thrashed, and from cold probably too. Unless you really have to have one now I'd rather order new and get the exact spec you want as this one meets most of your requirements but not exactly.

At 200 miles it is much more likely to have been a pre-registered car than a demonstrator so there is no reason to assume that it has been thrashed.

[kmpowell]

Yes but that is a 96k spec car so can be had for 80k or less brand new. A 200 mile demo car will have sure as hell been thrashed, and from cold probably too. Unless you really have to have one now I'd rather order new and get the exact spec you want as this one meets most of your requirements but not exactly.

At 200 miles it is much more likely to have been a pre-registered car than a demonstrator so there is no reason to assume that it has been thrashed.

If it is the car above then it's a demo. The car has a 3mth 'available in' date assigned to it, which means the dealer has registered it as a demo and is therefore now unable to sell it within 3mths without being heavily penalised.

[Leo-RS]

I would love an RS6, but no matter which way I look at the numbers, they are one of Audis worst deprecating cars.

Are they?

Considering you can buy a brand new no optioned car for £66k which this time last year had a 36 month residual of £46k, I found that incredible at nearly a 70% retained value. Since then, yes, the GFV dropped to £42k and then again to £38k when the PE was released.

The earliest press cars are July/August 2013 cars so now 3yrs old, cheapest I could find on Audi Used was £53k for a July 13 car and £52k on Pistonheads for the same.

Here you go - providing it is EN16 SXT that I think you're talking about, here's what WBAC quote...

Screen Shot 2016-08-15 at 09.27.37.png

So a theoretical £20k loss straight away if the 'cap clean' p/x prices are in line with WBAC, which most of the time they are.

We buy any car are taking the p*ss, I have just put the details for my own car into Audi's own valuation tool and compared it against WBAC and the difference was £7.5k

https://www.audi.co.uk/used-cars/part-exchange.html

We buy any car do not know the levels of GFV that manufacturers have set and they are very often miles out on valuations for cars that are under 36 months. For example, I know for a fact that the GFV of an RS6 at 3yrs old as set this time last year (Never mind in 2013 when the first cars were purchased) was £46,300.

I've just put the cheapest advertised RS6 on Audi Used ( http://www.audi.co.uk/used-cars/used-ca ... c=se_na_re_ ) and WBAC are quoting £38,200 on that car

The GFV offered by Audi on that car would be MINIMUM £46.3k but quite possibly higher (as that GFV is from Aug 15, not Aug 13)

In addition, you're very unlikely ever going to be able to buy a car at trade price, if you had a look at WBAC as a decision tool, then you would never buy any car. You only live once and all that

Back to the original post though, £80k is pretty much bang on the money for that car as a new purchase, £96k thereabouts advertised, £80k discounted. However, unless buying with a full cash transaction then it's going to be more expensive than ordering the same car new due to the uncompetitive Audi used finance rates. Audi used is circa 10%, Audi new circa 5%. Cash buy though, no difference, you'll beat the build wait and drive it away in a few days.

[Ian_C]

Another factor to add into the mix is that 99% of insurers would pay list price in the event of total loss in the first year........ *IF* you are first owner from new. They wouldn't on a second hand car with 200 miles on the clock - they would just pay book price

[doodlebug]

I'd also add plenty of other finance options are available that will offer a rate at least as competitive as Audi's though residuals will be lower. The upside being you will have more equity and have paid less interest.

You'd be able to haggle Audi down on their starting point.

However as stated it is their demonstrator so unless you agree a deal that sees the car parked up until their demonstration period has elapsed, three months, it'll have had one owner and many drivers.

[kmpowell]

I would love an RS6, but no matter which way I look at the numbers, they are one of Audis worst deprecating cars.

Are they?

Yes, by a long margin.

Considering you can buy a brand new no optioned car for £66k which this time last year had a 36 month residual of £46k, I found that incredible at nearly a 70% retained value. Since then, yes, the GFV dropped to £42k and then again to £38k when the PE was released.

RV is £37k after 3yrs. In order to retain desirability in the used market you need to fit 21's etc which takes the car back up to £70k min after discount. £70k minus £37k = c47% loss on a non PE.

The earliest press cars are July/August 2013 cars so now 3yrs old, cheapest I could find on Audi Used was £53k for a July 13 car and £52k on Pistonheads for the same.

Not sure why you think that's relevant. Do you think that's what these cars are trading for? I can tell you they aren't. A screen price has no relevance to CAP prices. These cars have lots & lots of margin in them whilst Audi try to fix the market so they aren't left in a financial shortfall as the GFV's are cashed in.

In addition, you're very unlikely ever going to be able to buy a car at trade price

You're missing the point completely. The OP asked about immediate shortfall and financial loss. Like it or not (which you clearly don't), WBAC are closer to values than you think. They beat each and every single dealer on mine for p/x quotes, and they are the ones seeing what goes through the Auction market. RV and auction prices have very little in common. All you end up with is a mix of two types of cars, one with lots of margin, one without. So this thread speculates how much of a loss the OP will take. Car is £80k screen price, it's entirely plausable a £30k residual drop will happen within 3 years. If I had the time I'd ring the dealer and ask for the RV figures, I bet I'm not far out.

[Ian_C]

However as stated it is their demonstrator so unless you agree a deal that sees the car parked up until their demonstration period has elapsed, three months, it'll have had one owner and many drivers.

The only other way of getting round this is Audi sign you the V5 at three months, but you have sole use of the car [as their demonstrator] until the three months elapses