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Discussion Starter · #1 ·
Does anyone know if this economic downturn could spur a reduction in the msrp for the 2009 Audi A5's? Does anyone have an educated guess?

Thanks for the info.
 

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Don't think the downturn would have any impact on the MSRP of the A5/S5 simply because of supply and demand. If there are people still lined up to buy a vehicle with no supply, then lowering the MSRP does not make sense...actually raising the price would make more sense based on simple economic principles, regardless of what the economy is doing. This forum has lots of examples of dealers trying to get $5K over sticker because of no supply and lots of demand.

Choose not to participate in the economic downturn and buy the $60K car. Now that gas is coming down, there should be more room in the budget...:D
 

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Discussion Starter · #4 ·
Hi Phantom,

Thanks for the insight. I would tend to agree that the price of oil has reduced the price of gas so there are savings there. I also agree with the simplistics of supply and demand but was thinking that maybe the economic downturn might reduce the demand (Due to most consumers reduction in available capital to spend) and hence decrease msrp.

I guess my question came from the fact that the shares I bought, that I was going to use as a down payment, have gone down so I might be out of luck in my Audi purchase.

Although I can afford the monthly payments I don't know if I'll have the deposit required to purchase my car when it comes in approx. May.

Here's hoping my stock prices increase, otherwise, I might have to look at the lease - buyout option.
 

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The gas reference was a bit of a joke, although it is coming down. It is nice now that I don't have to run the debit card twice to fill up the wife's Suburban...it doesn't cost over $100 to fill it up anymore with the pump shutting off at $90...

If you are having heartburn about the $$, then it may not be a good time to buy the car. I am not a financial advisor, and my strategies seem to be counterintuitive at times, like buying high to then sell low...:D All I know now is that in a down cycle, it is a good opportunity to have cash and buy low...only to then sell high when the market turns back up. All a cycle, just knowing when to pull the trigger on both low and high end is the key. Seems likely that if you are in the market for a $60K car, then the downturn shouldn't be that much of a factor, but rather a good buying opportunity.
 

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If one has to even ask the question (or has doubts) of whether he / she can afford to pump gas into his / her car, then he / she is not in a favorable position to get into a less-than-economical higher hp car. Maximizing your money and stretching it are two completely different things. Just my $0.02.
 

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The old adage "if you have to ask, you can't afford it" does have a modicum of truth to it in this economic climate.

I thought long and hard about the car I was going to get before settling on the 2.0T A5. There were plenty of other cars I could have afforded to buy but running costs would have seriously dented my pockets in the years to come.

Head won out over heart. But damn, I still wish it hadn't.
 

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I also agree with the simplistics of supply and demand but was thinking that maybe the economic downturn might reduce the demand (Due to most consumers reduction in available capital to spend) and hence decrease msrp.
When you talk about economic downturn and reduced disposable income, you're talking about the public as a whole. The pubic as a whole buys things like milk and bread, not Audi sport coupes -- unlike commodity items, maybe only 5% of the population was looking at buying a $50k luxury sport coupe. Even if a poor economy changes the buying habits of half of the overall population, there is a good chance that most of the 5% that were going to buy the A5/S5 were not part of that group.

A premium product doesn't fluctuate with the spending ability of the generic public because its demographic was never the general public.

-Ray
 

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Discussion Starter · #9 ·
Thanks to all who responded.

My questions were all anwered and I'll obviously try to make the best financial decision at the point of time when my Audi is on its way. Either way, this car will be mine because I know that I'm not going to be counting my pennies when I get it.

Take it easy
 

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I think price adjustments, if any (and I don't think there will be any), will be related to exchange rate fluctuations and cross border shenanigans.

For example, the rapid changes in value of the $CDN vs the $US have caused manufacturers a lot of heartburn when it comes to pricing goods for sale in Canada. Historically, CDN prices are higher partially because the $CDN has traded at a discount to the $US

However, last year at this time the CDN$ appreciated rapidly and ended up being pretty much at par with the US$. Canadians were screaming that pricing was out of whack on all goods and that the price of an Audi S5 in the US should be the same as an Audi S5 in Canada.

In the past few weeks the $CDN has plummeted and now CDN$1 only worth US$0.80. That means if you have $US you can buy a car here at 20% discount!

Not sure where you live (your profile isn't complete), but the cross border flow of cars from the US to Canada that occurred for the past 24 odd months has been hammered and is now about to reverse flow - depending upon differentials in MSRP between the two countries.
 

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Supply and demand

Supply and demand.. if demand goes down and supply goes up.. prices have to come down. It will not go below Invoice because that is what the dealership pays for the car. So depending on options it cannot be more than a $5k lower
 

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The gas reference was a bit of a joke, although it is coming down. It is nice now that I don't have to run the debit card twice to fill up the wife's Suburban...it doesn't cost over $100 to fill it up anymore with the pump shutting off at $90...

If you are having heartburn about the $$, then it may not be a good time to buy the car. I am not a financial advisor, and my strategies seem to be counterintuitive at times, like buying high to then sell low...:D All I know now is that in a down cycle, it is a good opportunity to have cash and buy low...only to then sell high when the market turns back up. All a cycle, just knowing when to pull the trigger on both low and high end is the key. Seems likely that if you are in the market for a $60K car, then the downturn shouldn't be that much of a factor, but rather a good buying opportunity.
Why can't more people be like that. Sure the world econ is having problems, but if I have to hear anymore end of the world stories in the news... It's like throwing explosives, not gas, on the fire. Sorry, Financial Advisor, this panic thing is driving me mad.

I don't think prices will come down with Audi. They are actually doing very well in comparison. I say buy it. Things will turn around and get better and I don't want you looking back and saying "why didn't I buy".
 

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Why can't more people be like that. Sure the world econ is having problems, but if I have to hear anymore end of the world stories in the news... It's like throwing explosives, not gas, on the fire. Sorry, Financial Advisor, this panic thing is driving me mad.
This IS a presidential election year in the US, so get used to the panic. Interesting that 2 months ago the economy was showing signs of life, although not being reported. Now that we are close to the election date, all you hear about is gloom and despair. I contributed to the economy by purchasing an S5 (even though I ordered it last year)...so I am choosing not to participate in the hysteria. And there are reasons they call them 'brokers'...:D
 

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brokers

I am one of those financial planners / brokers:rolleyes:, and just wanted to let you know their is still money to be made on a daily basis in the market for myself and my clients.

Keep in mind you can short the market, or invest bettting it will go down... Has worked well lately.

Although if you have purchases in 3-6 months I would recommend to keep it in the money market until the car arrives.

Joke sent to me yesterday- "what is the diffence between a pigeon and a stock broker?"

A pigeon can still make a deposit on a ferarri :eek:
 
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