Our S3 residual value (owned) 3 years from now.

[Wr3ks_S3]

Hi Everyone,

Let's start with my car, This is my 1st Audi it's a Premium plus 2016 Sepang Blue S3. I previously came from a 2013 WRX, the residual value held pretty strong.

OPTIONS:

Tech Pkg
Cold Weather Pkg (heated seats, mirrors)
Black Optics Pkg (5 v-spoke wheels, MRC TSB performed)
Front/Side/Backup sensors
Blind Spot assist
B&O sound
Audi Care

I won't be modifying the car aside from the CF duck tail spoiler I just installed and possibly installing the ED springs I just bought (maybe). I have OCD when it comes to caring for my cars so it'll be in near perfect shape. So, Given the dive in immediate residual value for Audis. What's a safe bet for my/our cars value in 3 years. No accidents, all maintenance done, low miles.

I'd have approximately 19-20K miles on the car by then. I'm guessing around low $30k?

Any feedback is appreciated.

[RoadRage]

about a 50% depreciation typically.

[Waaazooo]

The residual on my s4 was 30k on a 3 year lease


Sent from my iPhone using Tapatalk

[Wr3ks_S3]

about a 50% depreciation typically.

Yeesh! I guess was hoping for 60%...

The residual on my s4 was 30k on a 3 year lease


Sent from my iPhone using Tapatalk

I'm just curious why such a "technically" higher end car tanks so badly? Is it because of the maintenance costs after the warranty expires?

[BranCKY3]

The residual on my '16 S3 lease (3 years) is around $26k iirc

[Waaazooo]

Yeesh! I guess was hoping for 60%...



I'm just curious why such a "technically" higher end car tanks so badly? Is it because of the maintenance costs after the warranty expires?

I think it's the basis of need in a used car market. The majority of people will pay a particular margin more for a new car of the same make and model. Luxury brands position new cars to sell well and the used to not hinder the sales of new cars. So an expected margin is developed.

I doesn't make a lot of sense to me as a consumer but that was a note from a lecture i attended a while back.


Sent from my iPhone using Tapatalk

[Wr3ks_S3]

I think it's the basis of need in a used car market. The majority of people will pay a particular margin more for a new car of the same make and model. Luxury brands position new cars to sell well and the used to not hinder the sales of new cars. So an expected margin is developed.

I doesn't make a lot of sense to me as a consumer but that was a note from a lecture i attended a while back.


Sent from my iPhone using Tapatalk

IMO, even 60% residual wouldn't hinder new values. Interesting that these cars could theoretically be purchased still relatively new/used with low miles for the price of a brand new civic SI. This saddens me, however was an expected outcome when I bought the car.

In the end all purchases/trades/sales are a negotiation.

[forbiddenbeat]

Resale values tend to stink on luxury cars that are not rare, and have a newer model. The more of a commodity it is, the less residual value it holds. The A3 is likely worse in terms of resale, but I wouldn't expect more than 50%.

I'm guessing this is driven by perception of value for a used car. Used and new have vastly different perceived values (hence why driving a car off the lot devalues it immediately), so I would imagine people compare the value of a used German car to a brand new Civic Si, and "brand new" appeals to them more. I think e're a weird bunch as car enthusiasts - I'd always prefer a used German sedan over a new Japanese one - but most people aren't like that.

[Wr3ks_S3]

Resale values tend to stink on luxury cars that are not rare, and have a newer model. The more of a commodity it is, the less residual value it holds. The A3 is likely worse in terms of resale, but I wouldn't expect more than 50%.

I'm guessing this is driven by perception of value for a used car. Used and new have vastly different perceived values (hence why driving a car off the lot devalues it immediately), so I would imagine people compare the value of a used German car to a brand new Civic Si, and "brand new" appeals to them more. I think e're a weird bunch as car enthusiasts - I'd always prefer a used German sedan over a new Japanese one - but most people aren't like that.

I came over to the german side from the Japanese side. lol

I purchased my 2013 WRX with all the option boxes ticked for $28,000 and traded it in for the S3 3 years later for $24,000 (barely lost any value). Sure these two cars aren't even in the same class. From my end and I'm sure others opinions it's hard to believe a more luxurious,better built, highly praised vehicle would devalue so much and so quickly.

Don't get me wrong I'm 100% satisfied with my purchase, there just seems to be a disconnect somewhere.. At the same point it was also effortless to negotiate a lower purchase price on the S3 than what Subaru was willing to do on their end..

[A20V200]

Subaru owners like Audi folks are very brand loyal....I would say your higher trade in value would be due to the teenager "want" / influence of a WRX vs. Audi. Plus Audi is just starting to pop up on peoples radar and most considered Audi to be "out of their price range."

I came over to the german side from the Japanese side. lol

I purchased my 2013 WRX with all the option boxes ticked for $28,000 and traded it in for the S3 3 years later for $24,000 (barely lost any value). Sure these two cars aren't even in the same class. From my end and I'm sure others opinions it's hard to believe a more luxurious,better built, highly praised vehicle would devalue so much and so quickly.

Don't get me wrong I'm 100% satisfied with my purchase, there just seems to be a disconnect somewhere.. At the same point it was also effortless to negotiate a lower purchase price on the S3 than what Subaru was willing to do on their end..

[Wr3ks_S3]

Subaru owners like Audi folks are very brand loyal....I would say your higher trade in value would be due to the teenager "want" / influence of a WRX vs. Audi. Plus Audi is just starting to pop up on peoples radar and most considered Audi to be "out of their price range."

I can agree with your last statement. Considering a fully loaded STI is comparable to a base model low optioned S3. People tend to lean towards the it looks fast grab of the STI vs the more adult toned down sleeper S3. Looking on youtube there's several comparisons of the two cars.

It's the added "tech" that makes the S3 mildly expensive.