Q2 Residual Values and over supply

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A7YJJ
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Joined: Sun Feb 19, 2017 9:46 pm

Q2 Residual Values and over supply

Post by A7YJJ » Sun Aug 23, 2020 1:38 am

There seems to be an oversupply of Audi Q2s in the Liverpool/Merseyside area and (assuming this reflects nationally), I'm a bit worried about the impact on residuals. You can't drive two miles in Liverpool without seeing many (sometimes over a dozen) Q2's! My neighbour just bought one! My other neighbour's friend has one! Surely this can't be good for depreciation/residual values? My PCP is coming to an end in the next 6 months and I'm hoping the car is worth more than the guaranteed minimum future value (GMFV).

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ormesome
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Re: Q2 Residual Values and over supply

Post by ormesome » Sun Aug 23, 2020 1:57 am

That’s pretty strange. I hardly ever see any Q2’s on the road over here in Switzerland. Even when I’m travelling around the EU and U.K. I don’t see many. Residual wise, mine is the Edition 1 version so can only go by that and I see it’s keeping its value very well. I would be more worried about the facelift coming out than anything else, but as you are on PCP then I wouldnot think you have much to worry about, just be wary that Audi calculate these things very well and normally we are all at the beginning point when the PCP comes to an end, it’s how they make their money after all...
Audi Q2 1st Edition - 2.0Tdi Quattro - 190bhp - S-Tronic

Geh2020
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Re: Q2 Residual Values and over supply

Post by Geh2020 » Sun Aug 23, 2020 8:12 am

Hi,

When ever I buy a car I’m forever seeing the same model on the road and often wonder why that is! So possible theories (a bit early for this, and on a Sunday) is that we are now a member of the Q2 club, so spend time looking for the same model you have, or slightly controversial, to see if you have a better spec or colour model. It’s one to investigate when I retire.

The residuals I find are not a worry as the dealers objective is to get you into a new car at the end of the contract and will massage the numbers to achieve this. If for example the residual is £5000, the dealer may offer £6000, but that extra £1000 will of course disappear off the discount on the next car you want. The number I always work on is the ‘cost to change‘ as that is key to determine the real cost of your next car. Too many people get hung up on the part exchange allowance, the agreed residual or discounts, thinking the dealer has offerer thousands more for your car, or the discount offered on the new car Is amazing, when in fact all they have done Is to listen to what you have said during the sales process and flexed the numbers to meet your needs. That’s the skill of a good sales person.
2020 Q2 35 tfsi Black Edition s-tronic, Mythos Black and climate control.

Mods so far using Carista, needle sweep on startup.

A7YJJ
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Re: Q2 Residual Values and over supply

Post by A7YJJ » Sun Aug 23, 2020 1:12 pm

Geh2020, can you define what you mean by ‘cost to change’? I presume you are referring to the actual market value of the car (e.g assessed by an independent party, rather than the dealer), and if this is higher or lower than the GMFV? So, if actual market value is £5000 and the GMFV is £4000 then you have £1000 equity, which you can insist the dealer applies towards your new car, or you walk away? The key point is that the £1000 is your figure not theirs. Of course they can massage other figures to negate this £1000, so in the end you save nothing.

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ormesome
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Re: Q2 Residual Values and over supply

Post by ormesome » Sun Aug 23, 2020 4:43 pm

Is the “minimum” part in the future value an actual thing? Iv never heard of it. Iv only heard of GFV: guaranteed future value. Would love to see someone prove any other figure other than the one stated as the GFV without trying to get in to another PCP. I think that’s the point Geh2020 is trying to make, it’s not the market value that matters, it’s about the deal the dealer offers in order to get you in another car, ie: cost to change.
Audi Q2 1st Edition - 2.0Tdi Quattro - 190bhp - S-Tronic

Geh2020
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Re: Q2 Residual Values and over supply

Post by Geh2020 » Sun Aug 23, 2020 6:03 pm

Hi

The cost to change is what you will actually pay in cash, or borrow on finance, to get from your existing car to new car. So before I purchased my Q2, I checked out the discounts on offer using Carwow, and as I owned my car I used Webuyanycar and similar sites to get an idea what my car is worth on the market. In your case you have the GFV figure and that is definitely guaranteed as long as you haven’t exceeded the mileage or have damage on the car that is above the agreed limits of the contract. Also worth getting a quote from Webuyanycar to see if the GFV is in line with this.

So for me the cost to change when I purchased my Q2 based on my existing car valued at £14,500, and the Q2 best discounted price of £27,350, so the cost to change equates to £12,850. I wasn’t worried how the dealer achieved this figure, but my drop dead number was £12,850!

So before you enter the dealership you should have the best discounted price for the car you want, and you know the GFV, so you will have the cost to change to hand. If the dealer comes up with a number that’s less than that number, you are on a winner.

Good luck


When you sit down with the dealer, they usually bombard you with numbers that at first sound amazing, especially when they offer way over what you expect for you existing car, but you miss the fact the salesperson has cut the discount off the new car. Keep the cost to change in your head as that is the figure you should use in my opinion.
2020 Q2 35 tfsi Black Edition s-tronic, Mythos Black and climate control.

Mods so far using Carista, needle sweep on startup.

Deleted User 1125

Re: Q2 Residual Values and over supply

Post by Deleted User 1125 » Sun Aug 23, 2020 6:23 pm

I've been thinking about changing my 2019 35TFSi so I got a valuation from WeBuyAnyCar and they'd give me £19500. To settle my PCP is £18400 so I'd say values are good, especially since my PCP agreement is only 15 months old. At this point I'd definitely be expecting to play catch up. And to those who say WBAC don't give you what they quote, my experience of using them tells me they do as long as you're honest about the condition. :)

mr c
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Re: Q2 Residual Values and over supply

Post by mr c » Tue Aug 25, 2020 5:34 pm

Do you mean to settle your PCP is £18400 now ? or is that the final payment at the end of your PCP contract?
I took my PCP deal over a 36momths contract, bought the car two years ago today funny enough as they wanted it gone badly before the first of September which led to me thrashing out a good deal.

My quandary is my contract obviously runs for another twelve months but in April the car will run out of warranty, so do I take a chance and run it for just over four months without a warranty or purchase a warranty or chop it in early next April ?
Haven’t have any issues with the car other than having the two front leather seats done but have only done eleven thousand miles so not expecting problems.
Although I didn’t expect to have the seats done at just over 1000 miles so will probably see want they want for the extended warranty then get a quote to chop it in early and decide then.

Deleted User 1125

Re: Q2 Residual Values and over supply

Post by Deleted User 1125 » Tue Aug 25, 2020 7:22 pm

mr c wrote:
Tue Aug 25, 2020 5:34 pm
Do you mean to settle your PCP is £18400 now ? or is that the final payment at the end of your PCP contract?

To settle my PCP now (the settlement figure) is £18400.
My PCP is over 4 years but I never intended to keep it for more than 3. I'm considering swapping it before the next service maybe, if anything else takes my fancy and if the WBAC value stays ahead of the settlement figure. TBH, there's nothing out there ATM that I like more than my Q2 (not in my price range, at least).

How is your PCP settlement figure stacking up against the WBAC value ATM?

Also, I wouldn't worry about my car being 1 year out of warranty if it hasn't caused any problems during the warranty period. Unless you get a dud, as long as you keep them maintained, I reckon cars are good for at least 5 years of trouble-free motoring, especially at low mileage (IMHO).

richii
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Re: Q2 Residual Values and over supply

Post by richii » Thu Aug 27, 2020 1:24 pm

In terms of UK numbers, at the end of Q1 2020, there were 46,000 licensed Q2's on the road:

https://www.howmanyleft.co.uk/family/audi_q2

Looks like roughly 4000 are being registered each quarter.

Quick question on part-exchange prices - say a Q2 is traded in to an Audi dealer right before the three year mark. If I see a second hand Q2 is advertised at £20k at a dealer, what is the previous owner likely to have sold it for? I get that they may reduce the price of a new vehicle or pump up the part exchange value at changeover, just wanted a ballpark how much the dealer might make on this example - £1.5 k?
Audi Q2 2.0 TFSI Quattro S Line 190bhp, S-Tronic, Tech Pack, Comfort & Sound Pack, Adaptive Cruise Control, Side Assist, Park Assist

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