Hey guys,
Currently trying to decide whether to splash out on a new '06 A4 2.0T or keep my '03 A4 1.8T for a bit longer (just recently out of warranty). Trying to do some calculations.

Does anyone know approximate depreciation %'s for the A4 in its first 3 years?

Based on the t/in value of my '00 A4 for my current car and scanning the used car classifieds, I think it's something like this:
Year 1 = 20%
Year 2 = 12%
Year 3 = 10%
Therefore, value after 3 years = 58% of cost

What do you think?

I'll probably only need a car for another 18-24 mths so that's why I'm trying to estimate what the depreciation looks like on an annual basis.

Appreciate your opinions/experiences.

 

all I know is you loose several thousand off what you paid once the car leaves the lot when you purchase the car.

 

I don't know the exact % answers to your questions but it is definitely related to what kind of milage that you put on. Otherwise your probably close.

Thinking only financially, it is never a good idea to buy a new car.

Is your '03 paid for?

just out of warranty?...50k miles?

Actually, if you only need a car for another 18-24 months, then definitely don't by a new one. If you just want to drive a new car the lease it for 24 months unless you put alot of miles on. You going into the service, peace corps or something or maybe a big corporate job with a company car?

 

Yes, I own my '03 A4 outright.
The timing issue is job relocation overseas. This means I'll need to sell whatever car I have at that time.

I'm in Canada, so we're km vs. miles. There's definitely a psychological issue with people looking for a used Audi > 100,000km. I realize that's equivalent to only 60,000 miles which isn't t that much in a car's life but it's that magic "100,000" threshold. Im at 80,000km and do about 25,000km/year so that threshold will be crossed probably by the end of this calendar year.

So, I expect the cash value of my current A4 will take a drop at that 100,000 point. It will also be more difficult to find a used car buyer for an Audi with say, 120,000km on its clock, especially considering the Audi reputation for expensive repairs and I don't have an extended warranty. When you take that into account, I then need to start considering whether I'm just better off buying a new A4 now before the mileage gets higher. It would be easier to sell in 18-24mths time but I agree that it will probably work out more expensive. However, based on my calculations (using the depreciation assumptions I mentioned in my original post), you'd be surprised how close it is (I estimated approx US$2,500 more expensive to buy new over that timeframe). And of course, since my car is out of warranty, if I need a MAJOR repair in that timeframe, the difference would be negligible and might even turn in favor of buying new (I made the assumption of spending US$1,200 on repairs and maintenance at Audi dealership over the next 18-24mths).

Yes, I could consider a 2 year lease but I don't know the exact timing of the relocation and I don't want to be stuck with a car locked into a lease that may not expire until after I leave.

The decision is either keep my existing car or buy new. I will pick whatever makes most sense. Appreciate all your opinions on this quandry!

 

Seems like you have it pretty well worked out.

Good luck!

 

Ummmmm, did someone mention that you are in the military? I know that in the States, US Military members are not held accountable for leases if they are called overseas to duty. The lease company is supposed to allow you to terminate early, so you are not held liable for charges while serving oversea's.

Canada is pretty close to the laws in the states on "most" things, so maybe that's an option for you afterall...

Let me know if that's the same in Canada.