quattro Digest, Vol 70, Issue 20

[TooManyAudis at aol.com]

I've got a  95 A6 with 230k, and it's a tempting time to buy new.  I don't 
want to  think about the increased insurance and monthly payments, but it's  
tempting.
 
There's  also a $1,300 tax credit that may still be out there for the TDI.  
So,  you're really talking $5800, not $4500.  So, the $23,000 car is not in 
the  $17,000+ range.  There probably won't be much negotiation from the 
dealer,  since this is a car in limited supply and high demand.
 
The TDI  VW's hold their value, so the depreciation will be pretty 
reasonable.  If  you decide to sell the car in a year or two, you may even make a 
buck or two  (over what you paid, not the list price).  So, it's a safe  
investment.
 
There will  come a point where the 200q20v will be junked.  it's not going 
to live  forever.  So, are you doing this 1 year early?  3 years early?   If 
you were to sell it today, how long do you think the next owner would keep  
this car on the road?  What's the value of the car as it sits?   $1800?  
$2500?  So, you're "making" the difference between $5800 and  what you could 
potentially sell the car for, plus the savings of any repairs  that you need 
to make to keep the car running.  
 
I think  that the biggest thing you'll be giving up is quattro, especially 
in  Michigan.  Now, if you could get an A4 quattro with a TDI engine....   
Isn't Audi coming out with some diesel engines in their  cars???
 
--  Tom


Not only that Ben - but what's the opportunity  cost?

Positives:
-- $4500 mostly covers your immediate depreciation on  a new car in the
$20k range.
-- new car, you'll just drive it and do  regular maintenance on it for
the next 3-5yrs (depending on what you  buy)
-- happy wife, happy life :)
-- you'll have nothing to do on the  weekends

Negatives:
-- you'll have nothing to do on the weekends
--  doesn't apply if you are paying cash - I hate paying interest on a
rapidly  depreciating asset.
-- Insurance goes up ($)
-- Registration goes up  ($)
-- If a TDI is anything like my diesel truck - your regular  maintenance
is going to be more expensive. ($)
-- Nothing you buy will be  like a 20vt
-- If you get a loan you're now going to spend $4k - $6k per year  on
payments, for the next 4-5yrs:
o what else could you do  with that $?
o what's the opportunity cost of the $$ you spend  on a new car

I wrestle with this subject every time I have a bad Audi  month - and
this month has been worse than most (4k no-start, S6 bad HG, 200  10vt
ign switch, A4 control arms - I'm driving the F250 super crew  :o!)

If $ was not an issue, you'd just buy it outright, take the $4500  to
cover depreciation and have yourself a good deal, albeit on a  rapidly
depreciating expense.

Can't see dropping $20k-$40k, that's me  - I'd rather own it, than owe on
it.

Vittorio -
 

1995 A6q 5-speed (up for interesting offers) 230k
1988 80q (sold, and  still going strong!) 250k+
1991 200q20v towed away in the middle of the night  by a VW diesel pickup 
275k+
1985 4kq a freakin' beast of a car! 275k+ and  presumably still going
1987 4k died in a hit and run 250k+
1983 4k Very  first Audi 35 to 38 mpg.  Victim of crank key failure 300k+  




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