Image cars' pricing - Ed V

Put my nose into the local Audi dealer today, just for fun.

Totally astonished to realise that one can potter about town in a 4-wheel drive diesel estate, and pay the bandits £55,000 for the privilege. Quite extraordinary!!

Image cars' pricing - jamie745

Don't buy it then.

Image cars' pricing - Avant

This just shows how manufacturers make their profits: you can buy an Audi quattro diesel estate (A4 Avant) for about £30,000: but get a bigger car than you need and load it up with extras and as you say it's easy to get to £55k.

I know nothing about economics except that the right price is what some other poor sap will pay. If people wil pay £55k, Audi will sell them a car costing that much. I wouldn't blame Audi for that: anyone in business has to provide for their market.

Image cars' pricing - jamie745

Audi is VW's lower-luxury arm though isn't it. Much of that Audi may be VW parts but nobody spends £55k on a Passat. It's certainly where they make their money, main dealer margins are far thinner these days than we peasants outside believe.

Image cars' pricing - LikedDrivingOnce

VW released its financial data for 2012 yesterday, but I haven't been able to get hold of the full breakdown of the figures yet.

However I expect this breakdown to be broadly similar to last years. Interestingly, within the VW group as a whole, VW cars sold 5.1 million units and Audi sold 1.3 million. Yet Audi contributed 5.3 billion euros to total profit, and VW 3.7 billion.

I accept that Audi cars are more expensive on average than VW/Skoda/SEAT, but I suspect that there is a hefty markup here!

Image cars' pricing - Bobbin Threadbare

And then get yourself a nice used one for about £8k. Am waiting for my F-i-L to pass on his lovely and well specced A6 Avant which he pre-ordered.....

Image cars' pricing - jamie745

At first reading I thought you were waiting for him to die.

Image cars' pricing - unthrottled

Freudian slip?

Image cars' pricing - Avant

"VW cars sold 5.1 million units and Audi sold 1.3 million. Yet Audi contributed 5.3 billion euros to total profit, and VW 3.7 billion."

Thanks for that - just as I thought. It doesn't cost that much more to make an Audi compared with a mechanically identical VW or Skoda - but my Octavia vRS estate is £7,000 cheaper than the equivalent A4 Avant.

Interestingly the A3 is an exception, costing much the same as the equivalent Golf. It seems to be from the A4 upwards - the cars that image-conscious people buy - that Audi prices are loaded.

Image cars' pricing - jamie745

Like I said, it's VW's low-luxury arm. By low luxury I mean an A8 is a very poor mans Bentley - which VW also own.

The most stark example of this trend is probably vans. Vans are expensive, yet they're very simple things. This is what economics folk will call 'commercial value.'

Image cars' pricing - Ed V

For VW, the lack of image upmarketness (I just made that up) meant that a two year old Phaeton was a real bargain, if large 4 x 4 saloons are your thing

Image cars' pricing - jamie745

if large 4 x 4 saloons are your thing

They are. They certainly are.

Image cars' pricing - James Brown

Thanks and Contiue the sharing of this type of information.

Image cars' pricing - gordonbennet

One of my MB's (had 3 at the time) came with a complete and full history incl the original invoice.

It was a 1995 E320 estate, facelift W124 for those interested.

Basic car was £31k, extras (still many more if you were inclined) came to £19k so a medium sized estate cost exactly £50k back then.

Interestingly nearly all the expensive extras such as climate failed at least once during the cars life and off the top of me head cost the first owner around another £20k in servicing and repair costs over an 8 year period...amazing considering the bills involved yet the (second especially) main dealer never failed to charge for every little item incl washer fluid and items costing pence, the first owner moved from Anglia to the West Country half way through the cars life, the bills were noticeably heavier at the new dealership.

That car was my first and only dabble into a car loaded with questionable and unecessary (to me) extras, if i wanted a car with lots of goodies it would have to be Japanese or as is my present fortune to have the services of a good make specialist indy on tap if a German marque.