A8s

[isham-research.freeserve.co.uk at pop.pol.net.uk]

> In the UK a quick trawl through autotrader.co.uk gets A8's from
> 8999 gbp = (14k usd), the price of an MB urq in good nick. I see a
> 4.2 q sport for GBP13k (20k usd) unbelieveable considering their
> price new IMO

> AUDI A8 4.2 QUATTRO SPORT SALOON AUTO N blue/green metallic, beige
> leather interior, FSH, PAS, central locking, electric windows,
> mirrors & sunroof, air con, power seats, cruise control, walnut
> trim, twin airbags, ABS, alloys, tiptronic gearbox GBP12995 (T)

> N=1996 ish?

> And that's by no means the only one, do you think Audi is
> annoyed?

> I have to say, if I had that kind of money I would certainly take
> one out for a test drive, it is a lot of car for the money, not
> that it is a reasonable consideration for much DIY I'd expect but
> you have to at least think about it.

> I think in the latest EVO magazine there's a mention of a new
> mostly ally sports car using the 4.2 Audi V8, I was reading it on
> the train as I was delayed out of Paddington last night, remind me
> to take the quattro next time I don't give a **** how much the
> fuel costs, not even out of the station the train develops
> terminal brake problems and could not even move safely under its
> own steam (sic).

> Graham

Audi can be as annoyed as they like - A8 secondhand values are dropping
MUCH faster than (e.g.) the values of V8Qs.  Despite the aluminium
technology (or perhaps because of it) the A8 is a worse second user
deal than the V8.

There are two reasons:

a) A very short-sighted policy of articifially maintaining used car
   values through the warranty period.  This got sneaky - it's illegal
   in the UK for a manufacturer to attempt to influence resale values
   in the channel, but it's not illegal for them to enforce a
   no-advertising ban.  So for four years or so, you only saw 'POA'
   (price on application) on used A8 advertisements.  Len Hunt (now
   VP of AoA) said to me that Audi's main goal was to enhance what
   he called 'RVs'.  The abbreviation is for 'residual values', a
   term often mis-used to mean 'market values' as it was in his case.
   Residual values don't change as a result of market forces - they're
   defined mathematically when a lease is drawn up.  They may and
   usually do differ from actual market values at the end of the lease.
   Len's goal was to close this gap, but he chose to do so artificially
   via market controls rather than by enhancing the selling propositions
   for a down-the-line product.  I told him at the time that it would
   end in tears, as it has.

b) Technology -> scarcity -> repair cost -> insurance premiums.  The
   fact that A8s can only be repaired (in England) by a single complacent
   and incompetent company (Wayside Motors, Milton Keynes) must of
   necessity lessen their appeal.  This fact alone is enough to prevent
   me from buying an A8, even if it were offered to me at GBP5k or less.
   Were Audi to adopt aluminium technology in a mass-market product
   and release body repair technology to other companies, this position
   might change dramatically.  One problem is the serious lack of
   language and cultural skills in Audi UK - where the Germans say
   something about technical materials needing to be restricted to
   specialists, they say so for German legal reasons but don't really
   mean it - as a few minutes wandering around various places in
   Germany will show.  Unfortunately, Audi UK tends to interpret these
   words literally and it becomes virtually impossible to talk to them
   sensibly about the release of technical materials.  I have had almost
   zero success with Audi UK - Audi AG is much more helpful and just can't
   understand why I have problems in the UK.  Too many filters in the
   way.

As a consequence of the above I expect to see early A8s at GBP5k or
below in 2001.  Audi UK have only themselves to blame.  A viable
third-party A8 support programme would change the picture dramatically.

All opinions personal.

-- 
 Phil