I am looking at the A4 listed below, the seller thinks it's worth $5800 with an engine replacement adding more value than the $4800 KBB gives it... It will also need a A/C compressor that I got an estimate of $1600 to replace... what would you offer?

2004 Audi A4 Quattro - Black/Black Leather

 

IMO, a new engine is good, who put it in? Does it have a warranty? It doesn't really add value....let's say, I had an Audi, put a new engine in it, it would make me want to get more money out of it, but in reality it doesn't add more value to a buyer, maybe a little more peace of mind if it was installed by Audi....makes it worth more to me, but not in general. It could have a new engine, but the trans is still original, all the modules are original etc...so is everything else on the car, so what does the original odometer say for everything else on the car?

I would ask about warranty on the new engine, who put it in? Was it a certified Audi shop or a dealership? Paperwork? Did they put in a COMPLETE NEW Engine, or just a crate motor and all the other parts are off the old engine? Hope that makes sense?

IF it is indeed a new engine put in by Audi or a certified shop, it Should STILL have a little warranty on it if it ONLY has 40,000 on it.

Besides the A/C, you're going to need a TB in about 30k or so to be safe...

take the $5800 minus the $1600 for A/C compressor and you are at $4200.... Take the KBB at $4800 minus the $1600 and you're at $3200.....there's a difference of $1000, so IF the new engine is legit, has all the paperwork, seller has all the paperwork for all maintenance done on the car (even previous to new engine), and it's in GREAT shape....I'd still only offer $4000.....maybe a little more if the new engine has a warranty that's transferrable...depends on how badly you want the car and how the owner treated it....

But then again, if he has NO paperwork, can't prove anything about the car, maintenance and engine wise etc...walk away.......

the last 2 Audi's I bought, the seller actually took me to the dealer/Indy Audi mechanic and had all the paperwork printed out for me....and had all the receipts...and let me talk to the mechanics etc......makes me feel a LOT better about a purchase....

 

Thanks for the input Markymarc.

Took all your advice into consideration and got everything I needed to make an informed offer. Dosn't need a new compressor according to my mechanic, it has a shut off when pressure gets low. Says he'll find the leak and pump it up for me for a couple hundred. $5k was my final offer based on overall condition and that all work including new engine was done by the dealership. Fingers crossed...