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The new Audi A7 and residual values

THE new Audi A7 enters a new niche for Audi. But what effect will the styling of this upmarket hatchback have on the car’s residual values? Glass’s prestige car editor, Richard Crosthwaite, files this special report.

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10 January 2012

THE new Audi A7 enters a new niche for Audi. But what effect will the styling of this upmarket hatchback have on the car’s residual values? Glass’s prestige car editor, Richard Crosthwaite, files this special report.RECENTLY I was given the opportunity to drive the new A7 and to see at first hand how this coupe-styled hatchback fits into this once niche sector between premium large and luxury saloons. And what effect that might have on residual values.

My first observation concerns the very high standard specification. This includes leather and 6.5 inch MMI sat-nav being the two standout items. Heated electric seats, Bluetooth, DAB radio, xenon headlamps and parking system are not to be sniffed at either. On many levels this high standard specification makes sense (it provides improved residual values and brand perception for starters) and it won’t surprise me if we see the new A6 next year step up with regards to this area.

As concerns the styling, the familiar front end follows the pattern that most manufacturers now take…how do we make all our cars look alike from the front? I’m not a fan of this design ethos, but I do understand why it’s done – to build the brand. Taken as a whole, there are angles where the car looks great and then angles where the design, to me at least, doesn’t quite look ‘fluid’. It’s also more colour dependent than some and I thought it looked best in black. However whatever you think about the ‘look’ this sector is not full of beauty queens so it could easily claim to be the most stylish within it.

Inside the new Audi A7

The interior of the Audi A7 is something of a departure. Being a creature of habit, I wasn’t as keen on this one as some of Audi’s simpler, more classic interiors. There are simply too many lines and the stepped dash looked a touch fussy. It may age quicker than others…

However there is no doubt the interior offers quality and comfort, although at 6ft 4ins tall that came with some head height restrictions and (in the driver’s seat) some viewing difficulties. However rear leg room was excellent and seating four in comfort on long journeys should be a breeze.

Audi A7 driving impressions

When driving on launches I prefer to drive the car in the way prospective owners would drive the car, so I’m not going to try and drive the A7 in the same way as I would the RS4 or R8, for instance.

What I found is that, driven in ‘normal’ circumstances, the car rides very well and soaks up most of what you can throw at it. I can’t imagine anyone thrashing this car around country roads regularly and, after a short burst of doing so, I’d suggest it’s not what the car is best at. The Audi A7 is most at home on the motorways where it’s supremely quiet and stable.

As far as engine choice is concerned, the 3.0 TDI will be the main seller, but due to being lighter and sweeter my preference lay with the 3.0 TFSI – it sounded, handled and felt better than the diesel, but of course will be worth less on the used market, where diesel remains king.

Residual value predictions

Volume is to be around 3,000 units a year, which is more than manageable and roughly on par with the sector average. I’d expect the A7 therefore to be a sector leader when it lands as a used car towards the end of next year. I can see no reason why it won’t maintain that further down the line. Indeed I note that our forecast team see the 3.0TDI S line being worth 47% of its original cost new after three years and 60,000 miles, some way ahead of the BMW 5 Series GT and the outgoing Mercedes CLS.

So, niggles aside, this car will be another success for Audi. The brand strength allows Audi to increase the volume of cars it sells without the ‘normal’ levels of depreciation that are generally associated with such a strategy. This can, and indeed has, added several percentage points on their residual values – and that translates into a whole heap of cash, especially if your business is buying the car and wants to see some sought of return when selling it on.

Further information

You can read more of Richard’s views on the prestige car market here: glassguide.co.uk/Editors-Blog.

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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