Long term planning: in two years, which Audi TT should I buy

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Hello,



If you do a Google search of the website you see this saga of a graduate student back in April that wanted to get an Audi TT. You can’t see the whole thing, which for me is a bummer, because I am ALMOST in the same scenario.



The difference is that as a graduate student my 1500 dollar 1993 Geo Prizm will most likely run forever, I’m getting paid about 30K, and I have enough that I could buy a used 2004 Audi TT right now. I’d be insane to do it, but I could.



I’ve done a ridiculous amount of research about the Audi TTs (what else would a grad student do?). I don’t want the new design that came out in 2007, blah. I don’t want something prior to 2004 because consumer reports says that owners aren’t thrilled.



So, that puts me in a sweet spot of 2004-2006 for the car I may buy in a year or two. I am in love with the car for its design, the speed would be fine, but since I am driving what amounts to a Toyota Corolla with a funny mustache, anything vaguely sporty would be fun.



That said, the fancy-smancy DGS (this smooth and complicated gear system) on the 3.2 model looks like a lot more fun than the base model automatic (I don’t know how to drive stick and at my age I’m not sure I’d really want to play with a stick all day).



So, is the extra 5,000 bucks, plus more expensive insurance, worth the four wheel drive, the V6 engine, and the DGS?



If you can answer this question, is one of the production years (2004-2006) any better than the others?



Thanks bunches.

According to the on line Kelley Blue Book, retail prices for a 2004 TT run from $23k for the bottom coupe to $29k for a V6 Quattro roadster with the DSG transmission. For a 2006 car, the range is $29k to $38k.

Your big worry isn’t purchase price; it’s maintenance cost. Audis are notoriously unreliable and expensive to repair. Check Consumer Reports. If you can afford to maintain an Audi, a BMW or Porsche should also be within your means. At your income level, I would look for something fun that won’t nickel and dime you to death. (In this context, a nickel is $500 and a dime is $1,000.) Even though I am in a position to pay cash for a Porsche Cayman or 911, there are too many things I would rather do with the $10k it would cost to replace one of their engines. That’s why I just bought an Infiniti G37.

More reliable alternatives, new and used, within the above price range are Mazda MX-5 Miata and RX-8, Pontiac Solstice, Saturn Skye, Infiniti G35 and G37 coupes, Lexus IS250, IS300 (used only) and IS350. Acura RSX (used only) and TSX are front wheel drive. With the possible exception of the IS250, none of them is boring.

Don’t fixate on one car, especially an Audi you really can’t afford at this stage in your life. Instead, test drive lots of alternatives (at least a dozen) within your budget. If the one you like best is used, take it to a good, independent mechanic for a pre-purchase inspection to make sure it hasn’t been trashed.

An Audi, or something similar, isn’t necessarily forever out of reach. Make the most out of your career, be careful of debt (especially credit cards), and live below your means so that you have money to invest. In time, you will be able to afford what you want without worrying about the cost.

Get a used 'Vette instead. You’ll have a better car for less money with better performance and good parts availability.

With any luck you’ll come to your senses in two years and find something more reliable than a TT. Pretty, yes, but EXPENSIVE to keep on the road.

And after all, it’s just a VW Golf/New Beetle in disguise, at an inflated price.

I’ve never owned a TT, so I’m not qualified to give useful advice on the specific years. You may want to hang out in a dedicated TT forum for a while and see what the actual owners think of the various years/options. It probably depends what you are going to use it for.

http://www.audittcca.com/discussions/auditt

BTW, I would ignore consumer reports for a car of this type (I can only imagine how tiny the population of TT owning CR readers would have to be). Actually, I ignore CR completely, but it probably does have some utility if you are shopping for a dishwasher.

Lucky you. One audi is pretty much like any other Audi in reliability which is average. Average is alright. They are all about in the same range, so get the one you like.

Thank you for all of the comments.

I agree that one of the nice things about waiting is that maybe I will realize I don’t need one in a year or two. From everything I have heard, the comments regarding the reliability are spot on. Of course, the V6 model may not have some of the same problems as the others since the motor and gear box are different, but it will take a year or two for CR to have enough data to speak regarding that.

The comment about the VW Golf/New Beetle seems true as well (once again excluding the V6 version).

I also appreciate the car list in the first response…I am unfamiliar with some of them so I look forward to checking them out.

I appreciate the design of the Audi TT, not so much the speed, so hopefully someone will come out with something with better reliability that is just as pretty…

I look to any more comments this forum generates.

Hmm,
That reply seems to have gone down one level in the thread.
I am going to repost it hear in case you can’t see it:

Thank you for all of the comments.

I agree that one of the nice things about waiting is that maybe I will realize I don’t need one in a year or two. From everything I have heard, the comments regarding the reliability are spot on. Of course, the V6 model may not have some of the same problems as the others since the motor and gear box are different, but it will take a year or two for CR to have enough data to speak regarding that.

The comment about the VW Golf/New Beetle seems true as well (once again excluding the V6 version).

I also appreciate the car list in the first response…I am unfamiliar with some of them so I look forward to checking them out.

I appreciate the design of the Audi TT, not so much the speed, so hopefully someone will come out with something with better reliability that is just as pretty…

I look to any more comments this forum generates.

I hope you graduate without debt and have an extremely good job waiting. A used Audi will be varacious in its appetite for maintenance and repairs. When I was graduating every guy wanted to buy a British sports car. The ones who did, did it only once; and went back to Detroit Iron. A used Mazda Miata, or its new name, is a good bet, since these little cars are very reliable and don’t cost a second mortgae to fix.

I do agree that you should wait until you can pay cash to buy the TT, borrowing money to buy a car is always a bad plan. In the mean time, buy the ricer if you want to drive something “sporty.”

Just to expand on my situation since there is a bit of fuzzyness.
I have no debt other then a 30 year mortgage. I could buy it with cash if I had to but I’d be cashing in the bond portion of my retirement investments. Likewise, paying it off at a terrible interest rate is unattractive because of the whole retirement = compounding interest scenario. Having thought about this a lot, the only time it would begin to make sense to get one of these things is when I have a new job that will allow me to save for retirement and buy a gas driven folly.

In your shoes, I would do three things:
(1) For the time being, hang onto the Prizm. After you graduate and have more income, consider one of the cars on the list.
(2) Keep on contributing to your investment portfolio. Since you appear to understand compound interest, you should understand how valuable it is to get the earliest possible start. Once the stock market hits bottom, consider switching from bonds to stocks. Historically, the rate of return is better over several decades.
(3) After the mortgage is paid off, the kids (if any) are raised and your retirement is secure, go ahead and buy your dream car.

I would not cash out a retirement fund to buy a car, but I would set aside some savings in a “car fund” that will allow you to pay cash for whatever car you want. I also would not wait 20 years to buy a TT, it’s not a ferrari that costs more than some people’s houses, it’s just a mid-priced toy. I bet you can find a decent used one for $20-30K, so save up you pennies for a year or two after you start your “real job” and go buy it. After you buy the car, continue to contribute to your fund to support the next car purchase of to fund any major repairs. Retirement is fine (for some people) and you should have an adequate fund just in case you have to retire someday, but I wouldn’t lose too much sleep over funding it either.

Do Not Use Your Retirement Savings.

That said, why not buy the TT in a couple of years? When I was young and foolish, I bought a Porsche 914. It was fun, even if it broke a lot. Now that I’m an old fool, I certainly would not do it again. But I might spring for a Cayman S or Corvette! After the kids are out of college, of course.

Enjoy your youth. So what it it’s a money pit? Keep the Prizm, too. If you have two cars, having the TTin the shop if it ever needs to go, is not such a big deal.

That’s what I was going to say… a Golf with a funny moustache.

"I’ve done a ridiculous amount of research about the Audi TT’s (what else would a graduate student do?)

This must be an interesting institution you attend where graduate coursework is offered in Audi TT’s. When I was doing my graduate work, all my time went to my coursework, doing research for my papers, and preparing for the classes I taught as a graduate assistant.

The automotive scene or your automotive desires may change by the time you earn your graduate degree. Your profession after you graduate may keep you so busy that you won’t have time to worry about your car. You are fortunate right now that you have reliable transportation with your Geo Prizm. I’m in my mid sixties, my son is grown and on his own, my mortgage has long since been paid, and I could probably purchase almost any car that I would like to have. However the closest dealerships for the Audi, the Mercedes Benz, or the Jaguar are sixty miles away. I still work and am very active in my profession and for me it is convenient to drive a Chevrolet since the dealer is right around the corner. Don’t become a slave to your possessions, least of all a high maintenance automobile. My automobile is there to serve me at a minimum of inconvenience to me. Wait until you have advanced in your field before you buy an expensive toy. I’ve found that my profession (teaching) brings me more satisfaction than any possession.

Good points, cars are really just toys and they do take some time and effort to maintain. I went through a phase when I was very busy with career and young kids so I just drove appliances. When the kids got older and the job went away (now I pretty much control my own work schedule) I was able to buy more toys and actually have the time/money to enjoy them (hint: time is more important than money). Playing with and collecting cars is a hobby (like collecting stamps) and you should only do it if you really have the time to enjoy it. If you are not in a position to occasionally spend a few $1000 and let the car sit in the shop for a few days, buy something cheap/reliable.

When I had my first job (and no family) I mostly played with porsches, now I’m more interested in old sedans because they are more practical toys that I can actually use every day (although I still have one 914 hidden away in my garage waiting for me to invest a little time/effort, and to decide if I really want to build a 914/6 one of these days). I also have an old motorcycle kicking around for fun (although I really should have it restored). Maybe I’m getting old (pushing 50), but these days I would rather drive an old benz than a sports car most of the time (unless it’s motorcycle weather). Of course, I do keep thinking that a dino might be fun (maybe a 246 GTS, not the new one they are supposedly going to build).

The point is that you tastes and priorities will change as your situation changes. By the time you can afford the car that you think you want, you will probably want something different anyway, and what you really want may not be the most expensive or fastest car around (one of my neighbors drives around in a delorean for some reason). Just play it by ear and see how you feel when the time comes to actually write the check. There’s only one firm rule; never, under any circumstances, buy a mini-van. (-;

Triedaq: This is a great reply, as well as all the others in this thread.

“There’s only one firm rule; never, under any circumstances, buy a mini-van.”

Unfortunately, I hadn’t heard this rule 16 years ago when I bought my first minivan. The Chevrolet that I mentioned in the posting above is an Uplander mini-van. Once you own one, it is almost impossible to break away from the mini-van habit. I manage and play in a small chamber orchesra and am always hauling people, musical instruments, music stands, etc. If I did not own a mini-van, someone else would have to do the hauling. In the musical “How to Succeed in Business Without Really Trying”, the first rule is to stayu out of the mail room or you will be there forever. I think the same is true with mini-van ownership. Stay away from buying that first one or you will be buying mini-vans forever.

“…Stay away from buying that first one or you will be buying mini-vans forever.”

Hopefully, it’s not to late for the OP to learn from other’s mistakes.