http://www.edmunds.com/insideline/do...hotopanel..1.*
The RS4 starts at $66,910. The S4 starts at $48,610. And, the new M3 sedan starts at...$54,575!!! I see a problem here - the M3 and RS4 are in the exact same performance league. And let's face it, most RS4 buyers take at least a glance at the M3 before writing a check to Audi. It only takes a glance to see that the incredibly similar M3 is over $12,000 less than the RS4! As an RS4 fanatic, even I would seriously consider buying the M3.
Did Audi, playing on a (arguably) higher level than the E46 M3 and the C55 AMG for a couple of years, simply charge such a high price for the RS4 because they could, because the RS4 had no true competition? Did they anticipate the B7 RS4's run ending right as the new M3 came out? Or did they not expect such a low base price for the M3 from BMW?
Or, does Audi simply know that the RS4 is such a lower-volume car than the M3 that people will buy it even thought it's $12,000 more expensive?
In any case, if the RS4 was directly competing against the E92 M3, the Audi showrooms against the BMW showrooms next door, I have trouble picturing many customers buying the RS4. $12,000? That's huge.
However, what is more relevant is this issue - won't an S4 driver have trouble justifying his purchase when he could have gotten 80 more horsepower, and wholly better performance car, with the E92 M3? Or are S4 and M3 buyers actually in distinct classes from one another? Right now, I think that SOME S4 buyers are also looking at the M3, and that some are not, and vice-versa with M3 buyers looking at the S4.