$51k for a 2017 A4 Prestige. That’s what I paid for my 2010 S4 Premium Plus. Oddly, it does seem like a good value because it’s like a rolling technology platform. The weight is quoted at 3626 lbs. I assume that’s with fuel? Seems a bit heavy.
Canadian prices will be retarded with the weakness in out dollar vs euro. I wouldn’t be shocked to see 61-62 base S4 price.
I cant see audi sales doing well with that kind of price for the A4.
time to bet on domestics then because the Germans are all in the same boat
hell even Cadillac has raised prices 20% or so.
As strong as the USD is vs. the EUro, I’m surprised US market prices are up.
Saki is clueless as usual on what’s going on in the United States. It’s subprime auto loans all over again. The average loan term is now 67 months. People are financing cars for longer to increase affordability, so manufacturers are able to raise the prices substantially. Cost of ownership is down because they are more fuel efficient, require less maintenance, etc. Consumers want the new technology features for phone pairing and partially autonomous driving / lane assist / self braking, which are trickling down into entry level models.
It’s cute how Saki believes auto manufacturers participate in the spot market for currency exchange. They are literally the entire futures and hedging market. The prices they pick are the prices you pay to go on vacation 4 years later, assuming you leave Canada.
you’re making no sense. I don’t think you understand how futures markets work. You think that futures don’t move in real time with spot? lololol. What do you think everyone does, just assumes current moves won’t translate to futures contracts? Man you’re funny.
The Euro weakening is recent…over the past 2 years. You really think the auto companies have their next xxx years of production hedged out and don’t react? And you think that’s free? And you think when it moves 20% with the germans (as the EUR-USD has for the past 2 years) it too doesn’t matter? lolol
They absolutely do react. Check out massive pricing changes with currency moves from one generation to another. They can’t move the needle intra generation without huge backlash (if you lower dramatically, earlier purchasers get angry. If you raise dramatically, new buyers revolt because the used market offers far better value and apple to apple doesn’t warrant a price increase in the eyes of the buyers).
But hey, looking forward to seeing your answer to how the futures markets are locked in and don’t move. That’s going to be fun to hear.
Yeah, when an industrial like an automaker plans to build a factory in Germany and export 50% of its output to the US they go to a global investment bank and enter into hedges to stabilize their returns. What they can’t control is commodities demand and the wild fluctuations from commodities exporters. That’s the bulk of the volatility in exchange rates. Canada knows this well as demand for its oil sands output reverses and the currency weakens against the dollar.
Even a n00b trader like you can get access to a December 2020 option for EURUSD settlement at 1.20, compared to today’s 1.08. VW Group has access to slightly more sophisticated products
you realise that Audi sells 10% of its cars in America, right?
also, I don’t think you understand how futures work. While you can lock in a price, the cost of that contract varies WILDLY minute to minute. If you purchase that contract today, or a month from now, the cost can be dramatically different. German automakers, if they are hedging the future value of global sales (including the paltry 200,000 US market sales) are constantly feeling the pinch when the Euro weakens against US markets, and reaping the rewards when the Euro strengthens against other markets. This was my point. The spot market movements are immediately reflected in future contracts. There’s a thing called intrinsic value you should learn about.
Well the dollar and China are effectively pegged. Actually the recent reversal is fairly alarming as it’s never happened before. I heard they like Audi over there.
If you’re BMW and you build a new plant at Regensburg, you’re exporting most (50%) of those cars in dollar denominated or dollar linked currencies.
The automakers are not traders in those markets. They hold the contracts to settlement or expiration to smooth out their earnings. Non industrial companies don’t do this, which is why they report their quarterly numbers with a footnote of “on a constant currency basis”. In the actual statements, their performance will vary. For the sake of comparing this quarter to last quarter and the quarter from a year ago, constant currency terms must be used.
Let me guess - you think the intrinsic value of an Audi car is “greater than the sum of its parts”. LOL. That was a good marketing campaign in 2005.
So who is buying a new s4?
I see your point. I guess I havent been car shopping in a while. The prices kinda shocked me.
Looks like the S5 preview is up. No configurator yet.
That front end is not working for me, the rear is better at least. Maybe it will grow on me
just built a Canadian market S4
Technik, carbon fibre trim, Daytona Grey paint = $64,000 CAD
Your 2018 S4 Sedan
3.0 TFSI quattro Technik tiptronic
MSRP 62,100.00 CAD
Optional equipment 1,790.00 CAD
MSRP 63,890.00 CAD
Ya…there’s no inflation ;D ;D ;D
Prices on everything have steadily climbed over the years yet salaries havent.
I also believe there is quite a bit of room in there for negotiation as profit margins are large.
In 2 hours of negotiating our new SQ5 lease (at the 3rd dealership - 1 online quote and 1 competitor quote) we knocked about $6800 off the total price. I believe there may have been even more to go, but I could tell the sales manager was getting really pissed!
Consumers today want the “SALE” or “DEAL”. EVery day I drive by businesses that have huge “SALE” signs posted outside all year long. I think manufacturers purposely jack up the price creating an expected market value then when the consumer gets that 2-3k discount they are happy thinking they got a “killer deal”.
Nah, that’s more currency movements.
CAD weakened to the tune of about 20% over the past 3 years. Hence the 20% price jump over the B8 price
A decent spec A4 is the same price as my S4 from 7 model years ago. I’m ok with it because I thought the car was cheap or a good value at the time. I’m going to rent a B9 Allroad to try out the air suspension. I thought the A4 with sport suspension was not very comfortable with 4 adults on the springs. But I feel like I’m going to want the B9 S5 sportback ultimately, especially for the seats and alcantara.
that makes no sense because the USD has destroyed the EUR over the past 3 years. Your buying power has appreciated measurably. Wonder why the pricing didn’t reflect that.
Up here for example the B67 S4 was $70,000. Our currency at launch time was around 1.45 to buy 1 USD. The US price was around $47,500 base.
The B8 S4 launched at $52,500. At teh time our currency wasn’t far off par. The US market price was about $48,000.
Just as airlines are the biggest hedgers of oil, automotive companies are the biggest hedgers of currency. They have their rates locked in for the entire production run of a car. 2009 was a bad recession and no one was buying cars. Then again 2005 was a boom year and I got a new BMW for $34k, which was cheap compared to the new ones.
Anyway specific to this A4 there’s a lot of upmarket technology in a small body car, in some cases exceeding what a recent A8 would have. They did a great job with the B9.
A5 coupe configurator is up. A loaded A5 prestige is $55k. So figure $61k for a premium plus S5.