Re: S4vA4t (was:used car prices)LONG OPINION

["Osman Parvez" <oparvez1@Nycap.rr.com>]

Derek Daily wrote:
[major snippage]
> 
> IMO the biggest problem with Audis right now are the pricing
> disparities and I'm talking about USED cars.  One of us can pick up a
> CQ for $7k, while another poor soul has to pay $4-8k more!  Same with
> the 200tq's...last year a 200tqw off the q/e-page classified went for
> ~10k and I've seen pricing now up to ~$17k.  An '93 S4 in CO for $17k
> and even a '95 S6 in CA @ $24 (anyone grab it?) and a '94 S4 @$29k or
> '95 S6 @ $40k!  What the hell!
> The new car demand is killing the _reasonably-priced_ market.

IMHO, Derek is absolutely correct about the market conditions for Audis.
The resurgence of Audi Sales in the US (We just had our best Dec. EVER)  is
increasing the values of used Audis. The reality is that the reason many of
us, including myself, own an Audi is b/c of the recent poor showing of Audi
in the later 1980's (in the US). 

I've seen a opposite trend in Chrysler/Plymouths. Please, leave aside the
opinions on the product itself aside, and consider the market trend.
Chrysler is practically dumping the Neon's, Breeze's, Cirrus's, and
Voyagers. 1.9% financing/ $1500-1900 rebate has been extended to the summer
on the passenger cars 
until the summer, while the vans have a $750-1000 rebate on them. We have
several used voyagers sitting on our lot with little chance of moving any
time soon b/c it's so cheap to buy a new one. Why pay $17K for a used one
when you can get a new one for just a bit more (considering the finance
difference between new and used and/or the rebates). The unhappy owners who
show up with these cars looking for a good trade in value get crushed when
they see that their vehicles are worth so little after only a year or two.
We've also got an used LHS, several Concords, a couple of Breeze's etc that
are gonna be hard sells because of what Chrysler is doing on the New Car
side. I believe Ford created this same situation when it went to beat Honda
Accord as the #1 selling car in the US a few years ago. Ford pushed the
Taurus hard and killed their resale values. 

Now, if you were to look at even our Used Audi sales, including the
5000's... they are selling fairly well. I saw two indentical green 5000s's
move last month, and so far this month a Cabriolet Lease Turn is out the
door and a 90s is out the door. They seem to be moving better than before.
With the resurgence of Audi Sales in the US, I don't see this trend
changing any time soon. There is little doubt in my mind that many of the
FS cars I see advertised on this list are way overpriced, but the market is
improving on used Audis now. 

Personally, I think I can realistically expect the depreciation of my 200q
to level off a bit, although it will never see the numbers that other Audis
have thanks to 60 minutes. So, is it really a "problem" or a bonus. I guess
it depends on whether you are buying or selling. 

Osman Parvez
Albany, NY
89 200q, TAP Chip, 170K