[BiturboS4] Rumor(s) Behind The New S4

[Ian McCloghrie]

On Sep 26, 2002 jysap at cs.com wrote:
> The other factor is economic. If the RS6 is being positioned by Audi NA
> against the M5 sedan, then a significant amount of the Audi (performance
> oriented)car buying mkt will be LEFT OUT.

The RS6 is automatic-only.  The performance-oriented crowd doesn't
care about it.

> Thus, the only option for those who want the panache of owning a TT, or
> that "smack u back into your seat feeling" of driving a (twin) Turbo will
> have no other option than a MY 2000-2002 S4.

Uh.  What panache?  I seriously doubt a significant percentage of S4
buyers picked the car because it's a twin turbo.  They picked it
because it's fast.  A 350hp V8 is fast too.

> ly stable. Remember, for basically $1k, I can purchase a chip and get nearly
> the same performance of the NEW 8 cyl non-turbo S4. If I make exhaust
> upgrades too, I can probably exceed the specs of the NEW 8 cyl non turbo
> S4 for about $4k.

Few people cross shop stock new cars against modified used ones.  Hanging
out on an enthusiast mailing list you get a skewed view of the
demographic.

> Why would I pay a premium (over the MSRP of a 2.7T S4) of $8-$10k for a NEW
> S4? It offers NO significant performance upgrades over the 2.7TT S4.
> Anyone willing to spend $45k+ for that car (the NEW S4), needs a lobotomy,
> in my opinion.

Everyone's entitled to an opinion.

There are plenty of reasons for buying a new S4 over a used one.  To
start with, it comes with a warranty.  It has that new car smell, and
you get to pick the color and options.  It'll probably have a much
nicer nav system, and you can get a much better loan when you buy a
new car.  Plus you're driving today's new, hot model, rather than
yesterday's old tired one.

Lastly, lots of people stay away from used turbo cars.  You never know
how the previous owner treated it, and when it might blow up on you.

Maybe you don't agree with those reasons, but you're in the minority
there.

> I think the NEW S4 is a mistake.Your money would be better spent trying to
> purchase an RS6 (good luck due to the limited importation to NA), or the
> next generation BMW M3 (rumored to be an 8 cyl), which should have BETTER
> specs than the NEW 8 cyl S4 for the premium (in MSRP) that u will be

I expect the new S4 will wind up costing about $5K less than the
current M3.  That's how Audi positions most of their cars.  A
propeller badge just commands a higher prestige premium than four
rings here in the US.

I also don't think it's likely that any next-gen M3 with a V8 will
come in anywhere less than $5K more than the current M3.  I've never
seem BMW drop the price when they brought out a new model, have you?

> paying. I think Audi should have positioned the RS6 to compete with the
> new BMW M3 and have an RS8 compete against the M5. That is how I would
> have positioned things in North America (NA).

Yeah, I think it'd be great if car companies sold me cars below cost, too.
I doubt they'd stay in business long doing it, though.

> superior to the existing model - I believe that Audi failed on this po
> int with the NEW 8 cyl S4) controls the value of an automobile.

It's only the enthusiast turbo snob who doesn't believe the new S4 is
better than the old one.  Audi doesn't care about enthusiasts, they're
a tiny percentage of the market.  They're more trouble than they're
worth with warranty claims on chipped turbos.

The average american buyer will see the magic phrase "V8" and snap it
up.

--Ian