Flame Bait: RS6 Pricing......

[cohenfive]

i've been helping a buddy of mine look for an rs6 to replace his old 911 (multiple kids and bad climate necessitate a change) and we looked around this morning for about an hour and found 4 new rs6's for msrp. i was quite surprised given all the hype about the car.

here's one view on what is going on:

i think audi has priced the rs6 'richly' on purpose to minimize price gauging by the dealers. to me the car is overpriced relative to its competition and audi's resale value history. i think they know this but are taking the view of maximizing current revenues while also making it more comfortable for buyers who don't feel like they are getting ripped off by paying over sticker. the msrp leaves them plenty of room to discount as the initial flurry dies down (which i think it will) as customers look at cheaper e55's and m5's.

seems like a fantastic car by the way, starts to make my m5 feel old.....

what do you think of my theory??

[Erik]

The RS4 was even more expensive I think (for its size.)

I think the resale value of the RS4 is ok compared to how much the car cost and how much these types of car usually depriceate.

I would be more worried about the resale value of the M5 E39 when the E60 comes out...

...Flamesuit on :flamed: :D

[iconcls]

(Yawn)

I'm sleepy...time to take a nap.

(Yawn)

[nene]

I can't speak for European countries, nor can I speak for other states in the USA. I can only speak for the Boston area, or even Massachusetts.

In this case, the M5 (current model) is seen everywhere, almost as much as the current model M3. The RS6 however, I'm sure that even by the end of the year when all cars have been sold, you won't see as many. The car becomes more exclusive.
That's the reason I decided to pay the asking price for the RS6.
I'm sure that the E55 will be just as widely available as the current model M5 around these parts. I don't believe they are making the E55 as exclusive. I see CL55/CLK55 and the likes around here very often, but that could be because I live in a major city.

However, I still believe the RS6 will be more exclusive, in that it won't be seen in the same frequency around here.
So, given that, I think that if I were to sell the RS6, I think I'll find buyers willing to pay without issues.

More importantly, a car purchase is not an investment. Neither did I think the RS6 was that either. But, it's the car that I wanted, and the car that I was willing to pay the asking price for. Whether it's because I can afford it, it does not matter. I love the M5 and I'm sure I'll like the E55 just as much. But I still like the RS6 that '0.5%' better, thus justifiable enough for me to pay the $10K extra.

I will look at M5 and E55 buyers as folks with great taste. I hope that they will look back in reciprocity. I don't look at them and think their wallet is just as fat as mine!

[eph94]

I couldn't have come up with a better summation of my thoughts myself. :0: Some people are always going to harp about the price relative to its "peers". I thought long and hard about the less expensive E55, but in the end, it didn't have the features I wanted, namely quattro. I asked my wife, "If I could get into an E55 for $10,000 less than the RS6, should I do that?" To which she replied, "I thought you were sick of RWD and spinning out in the sand during the winter. Wouldn't that be even worse in a more powerful car? If that's the case, then forget it and keep your 540." So for her, the AWD alone was worth the $10,000 premium. And she also likes the exclusivity of the RS6.

[erjun]

It is what it is...if you want one, buy one--if not don't.

[2manycars]

Go to the MB site, and add all the options up to be comparably equipped to a "stripped" RS6. The MSRP difference is very small.

MSRP-$78,420

Bi Xenon lights-$1150
Parktronic(yes theirs is front and rear-$1035
CD changer-$400.00

Total-$81,005

Audi

$84,660

Yes it is a $3,655 difference. To my thinking the AWD certainly is worth that much.

[2manycars]

Add the following options to the E55, which are standard on the RS6, and the difference is less than $4,000. The AWD is worth that difference, at least to me.

Bi-Xenon light package
Parktronic
CD changer

[Erik]

Very well said nene. :addict:

[Finnus]

When making my decision, I considered the E55 for about .2 seconds (if that)!

If you go to the recent Road and Track comparison, the individual ratings for the car and the drivers' comments sum it up. In particular, the RS6 got the best marks on Driving Excitement and a number of other important categories. It was only the price that put MB ahead overall, and that didn't take into account Quattro, other standard features, and the car's exclusivity. And, we all know how "politicized" the car magazines are ...

But the real test: after one month of ownership, I'm ecstatic with the RS6. It just seems to get better and better and better the more I drive it!!! :MTM:

Finnus :cheers:

:addict: :addict: :addict:

[Erik]

I think many people who had the M5 E39 changed to the E55 AMG and the RS6. Maybe more changed to the E55 AMG, but have done so purely since it's the fastest rwd in the market. They are likely to have the M5 E60 on pre-order.
I know this is the case with a few people I know.

Another thing about interior. I really think BMW should think again regarding their interior. Not sure how MB's done it, but even the M3 has some 'brushed titanium' which is just cheap plastic. Take a look inside an Audi, it's the real thing not some funny name for a piece of painted plastic. Even the S60R has aluminium inside last time I looked.

[cohenfive]

thanks for the comments, you guys haven't been too mean to me even though i'm an infidel (m5 owner)....

interesting perspective on pricing, haven't thought of some of your thoughts. it will be fun to watch how the market determines what the car is worth.

i still like my theory though...it's like pricing concert or other sought after tickets on the high side to keep the 'markup' with the band rather than let the scalpers get it. audi might be doing a little of the same thing here.

heck there's even at least one new rs6 available for msrp in the bay area, the home of overpaying for things...

enjoy the rs6's gang, it seems like a fantastic vehicle.

:bye:

[nene]

We're glad you actually come on and add input. One thing about this board I've found thus far is that we're a pretty cool gang. No one is mean to anyone else (thus far), and we welcome all input from all parties, as long as it seems constructive in nature.

Your input/perspective on pricing is most definitely an interesting point to observe, but when it comes to cars like the M5, E55, and RS6, I'm not sure price was an issue. If you can afford these types of cars, then it's great. If you can't or barely can afford it, then the price becomes more of a deal maker/braker.

There was no need to put your flame suit on, and so far I have not seen any topic that required it. After all, a little roast is always fun, when no one is being attacked personally.

Really though, how can you go wrong with purchasing any of the cars mentioned? They are all awesome automobiles in my opinion.

[cohenfive]

nene, i agree with you, we're all fortunate to be able to own any of these amazing vehicles.

i just hope i was able to convince my buddy to buy one of the rs6's that we found....that way he'll have to let me drive it when i see him in chicago in a couple of weeks!

the tone here seems a lot like the tone at bmwm5.com where i hang out sometimes. those guys would love to hear how great this car is and especially how it compares with the e39 m5 whether better or worse.

i'll also say that it's good to see that audi hasn't gone the 'bangle' route of extreme styling changes. the a4,a6 and a8 are wonderfully styled and the rs6 is as well. plus audi still makes the best car interiors in the world imho.

maybe i'm talking myself into an rs6!!

[Benman]

and like nene said "i can only speak for my area". and in my area they (BMW dealers) are STILL marking up the M5. some as high as $10,000.00. when you add in that, it's the same as my non mark up RS 6. and i'm sure if the BMW dealers can still get away with it then the Audi dealers are just encouraged to do the same thing (which sucks for the buyer) :cheers:

Ben:addict: