Why Used Audi's Are Cheap (and Worth Every Dollar)

Life's too short to drive boring cars! I know I've often wondered, I bet you're probably wondering too, why is it that used Audis are so cheap? I mean they make some great sports sedans, sport coupes, they also make a supercar called the R8, and they've got SUVs to cover every single segment of the market. So why is it then that you can find yourself a well-crafted German-made luxury vehicle so cheap on the used car market for as little as 50% of its original value in five years? I mean am I dreaming? There's actually a few main reasons for that and I'm going to explain to you right now so you can go out there and buy the next car of your dreams. Let's get into it now! So before we get into the reasoning, first I want to talk about the fact that comparatively, did you know that Audi is actually one of the stronger holding luxury brands on the used car market? BMW loses as much as 55 to 57% on average in the first five years of ownership, whereas Audi is closer to 50%. Now some of the reason for that is Audi has some supercars in their lineup and they've been holding traditionally very very well. For example the Audi R8, it's not really much more or less than a Lamborghini Huracan or a Lamborghini Gallardo. As well as some of their S models, for example S4, S6, RS7 holds a strong value and pretty much everything else with the RS or sport series badging seems to hold a little bit stronger than a lot of the M cars in the BMW lineup. So the first major reason why Audis are so cheap on the used car market has to come down to service and repairs. As you can see there's the repair shop and we see we have vehicles lined up to go into service. Why? Because they're a maintenance intensive type vehicle. I mean aside from buying a Lexus for example, any German made vehicle is going to need a little bit extra additional maintenance and because a lot of the parts that go into these vehicles are very very exclusive, are well engineered or some would actually consider it over engineered and generally well designed into a tight small taut little package under the hood. The problem is they're not always crafted to the best specifications. A lot of the modern day German cars use a lot of plastic parts, for example plastic water pumps and thermostats and by their very design are set up for failure. And a lot of these cars, Audis, Benzes, BMWs are often very very similar in the way they're designed. Lightweight, efficient, but not really cheap to replace. And people just know that. I mean look at the Audi A4. Remember that two liter engine that you had about eight years ago? Those things were horrifying. We had timing related issues, coolant leaks, carbon fouling, O2 sensor failures, oil consumption and every other electronic failure that you can imagine. Scared people away. People ran for the hills. They didn't want those and often the warranties are very very good with these vehicles but unfortunately once warranty is up after three to five years, people feel the quick urgency to kick that car to the curb. And as the first owners do that, this can potentially represent some phenomenal values on a used car market. And if you buy the right vehicle and do the right amount of shopping, get great service history on that vehicle, and even better if you acquire a certified pre-owned warranty through the dealer, you may even be able to get yourself a real winning situation. But unfortunately outside of that, it's always a risk. And why do you think all these small little independent shops crop up everywhere? Because there's a strong demand for a great mechanic service network. Not everybody wants to go to the dealer and pay $200 an hour for labor rates. So people get scared. High expensive repair and maintenance and service costs. Now the second reason why these vehicles are so cheap on the used car market is primarily because they were over-inflated and over-ballooned on the new car pricing. Why is that the case? Well let's face it, these are essentially a glorified Volkswagen in many cases. Now while there's some very exclusive models that are unique to Audi, absolutely, unfortunately a lot of their mainstream vehicles, for example the A4, are so closely connected to the Volkswagen brand, not just by chassis, but as well as drivetrain, that Audi typically markets their vehicles as a premium brand, throw a few other knickknacks in there and call it 75% more on top of the retail price of a brand new Volkswagen. And that's all well and good when the vehicle's new. However, when the vehicle's used, people start getting past the whole idea of buying a premium vehicle. They're looking for something more with a track record and reliability becomes a much higher priority over a lot of the other brand features based on an Audi. That's why cars, for example, like the Volkswagen Golf R, holds a value almost as strong as an Audi S3, which essentially is the same chassis, same drivetrain, and largely the same vehicle, with a premium price tag as new. Now the third key reason why used Audis are so cheap on the used car market is because there were so many incentives to buy a new vehicle. Audi, like many other brands, are constantly innovating, upgrading their models, applying new technologies, new performance levels, and ultimately the game is to move the volume of vehicles through the system so you can interject them into the service department, and that's where the real money comes. So more vehicles on the road means more money because of the service side of the business, but it's those very lease and finance rates that you're finding on the new market that often motivates people to buy these vehicles brand new versus buying them used, particularly if you're looking in that three to five year range, where often people have to balance themselves good judgment between buying a new for slightly more or buying a used with less warranty, more miles, and on the verge of running out of dealer support. I mean a lot of the new car vehicles were offering 0.9, 1.9 percent finance and lease rates, whereas on the used car market the best rates you're getting on a five-year-old vehicle plus is typically in that 4.9, 5.9, and 6.9 percent rate. So there's far less incentive on your finance and lease rates on a used vehicle, and then you have to make that difficult decision. Hmm, do I take a chance, save 10 grand on the price of the vehicle, but spend it on the additional interest rates that are applied to my loan? Next reason actually has to do with just technology. Nothing more, nothing less. The newest Audis have some of the best headlights. They've got performance that counters almost everything out there. Look at the latest RS7, absolutely blistering performer. You couldn't get that 10 years ago. The R8 performance, also blindingly faster than anything the R8 was 10 years ago. How about the improved MMI system? That's their user interface on the dashboard, much better these days than the original version, and even the quality and fit and finish is much nicer. How about the lights? Even the lighting system is a telltale for older versus new vehicles, and I'll give you some examples right here. Right here we have the Q7. Here's an older version. Here's something a little bit newer, but look at the grille. Even the grille alone, smaller, rounder, not as clean. The newer ones certainly are bigger, sharper, and cleaner. How about the headlights? Right there, look at the older headlights. They've got those funky little lights, but they're a very simplistic type headlight versus the newer ones here. Much more LED, nicer, cleaner, and much more intense. How about even the mirrors? Take a look. Right here, slightly restyled mirror system, but what's the back like on these? Look at the taillights on the older version. Much more rounded, not quite as clean looking there for sure by any means. A little bit more basic, although it can tow, and the new one can still tow, but it's got a nicer, cleaner LED square. You've got the arrows built in there, much nicer to look at. So Audi's a lot like BMW. They don't do anything major, but year on year on year, there's slight gradual improvements to the point where when you look 10 years back, vastly different, but you don't notice it year to year, and a lot of people love the new technology. But do you want some amazing examples? I'll give you some examples of some cars where buying them used can actually represent a phenomenal deal. I mean, that's how I roll. Look for an extended warranty, and then you can drive such an amazing vehicle, for example, like this. Right here, we have a Q8, but if you get the RS model, you'll get the large oversized wheels. You get tow capacity, quattro all-wheel drive system, a great stylish design as you scroll down the side of these beautiful vehicles, the latest in LEDs, and a very aggressive front grill. And these are nothing short of a Lamborghini Urus for about $132,000 brand new. Think in about five years, you can get this car for $60,000 to $70,000. What a phenomenal buy. How about this? How about this? We have a Q7, absolutely gorgeous family hauler right here, a quattro all-wheel drive system. Here, we have an S-line as you see right there, and you have this wonderful new style LED marked mirror system. And look at the great contours of this beautiful vehicle. They have great wheels, and this beautiful roofline. You can haul junk to the dump, and junk in the trunk there too. Keyless entry, beautiful headlights. Here, we have this great new system by Audi. Love the new style grills, and these rockers are all kind of detail and beautiful by nature. We've got some great color match molding, and this wonderful rear taillight assembly on these new LED style taillights by Audi with a quattro all-wheel drive. Of course, down there you have the fake style, that's okay, and you can actually tow some weight. And up there, you have a sunroof capable of allowing a whole lot of light in there for all the little hooligans going along for a ride to the cabin for the weekend. And at $70,000 brand new Canadian funds, you can get this for $30,000 to $40,000 after five years. Massive deal, so if you find one that's well looked after, well maintained, that's a whole lot of vehicle for your dollars. You want another great example? How about this? Right there, we have the beautiful S5. This has always been one of my favorites in recent years. I love this style. I love the design of this particular vehicle. Yes, it's a sedan style, but it's very stylish. I mean, look at that curved front haunch. It curves upwards in this wonderful S5, and you've got these great wheels. Love this rocker paddle design. Gives it a little extra sporty touch when you look down the side here. Looks very, very sharp. How about the rear taillights? They've got the revised LEDs. Looks very crisp, and it's the S5. I love this design. How about the tailpipes? You've got a pair there, and you've got another pair on this side, meaning quad exhaust, lots of power, and looks ultra stylish. You've got glass sunroof, which you can't see buried under the snow, but look at these great mirrors. I love that two-tone accented look. Very, very beautiful vehicle all the way around. And at $65,000 base MSRP new in Canadian funds, think about this car for $30,000 in five years. Maybe you find a car with 40,000 or 50,000 kilometers or 80,000 kilometers even that's well maintained. That's a huge win. Beautiful car. How about another one? Right there, we have the Audi RS3, a car here that was worth about $65,000 base MSRP in Canadian dollars. Right there, you'll notice the RS3 right there. This is a hot little hot rod. Of course, this is also based, the TTRS is the same chassis, same engine, and you have a five-cylinder turbocharged engine that makes 400 horsepower strapped to a seven-speed DCT gearbox makes this thing a little hot rod, pocket hot rod. There, you've got the great headlights right there, and of course, wonderful little spoiler on the front end. Beautiful, magnificent wheels with oversized calipers. Love this carbon fiber mirror and a wonderful interior, likely one of the best in the business. Q-stitching, high quality finishing, and the latest in the MMI system. Of course, you've got the glass on top and keyless entry. Front and back, of course, you've got that wonderful rocker panel all the way leading to this great little accent. You'll notice this piece here stands out for the RS model, and we look around the back, we have one and two exhaust tips. These are huge. My whole hand fits in that thing. On this RS3 and the latest LED tail lights, you'll notice it has this wonderful high gloss rear tail on it, and this car really is one of my favorites, and as a result, because it's such a hot car, this is one of those rare exceptions in the Audi world where you won't find this for 50% less after five years. As a matter of fact, I'm seeing about three-year-old versions of this car. Still, dealers are asking more than they were brand new. It's just absolute lunacy. Part of that is what's going on in the marketplace today, but generally, the RS models, specifically RS3, RS4, are always hot commodities, and with all of that said, in case you're sort of bored with the Audi brand, maybe you're looking at a BMW, you can find some great deals in the BMW brands as well, cheap on the used car market. Be sure to check out that video. You're going to love it. Hope to see you real soon. Catch you then. Bye-bye.