The law in most states say that it is illegal to remove the cat.

Vehicles with before and after cat sensors without a cat have hard time passing emissions testing.

 

In most cases i would say repair it and keep it for another two years and get your moneys worth, however since you have a CVT it would be in your best interest to get rid of it now. The CVT's in audis are ticking time bombs ready to explode, it wasn't until 2007 that audi made a reliable CVT, and even then its still a POS. If you keep it, expect to pay $6,000 just for a new trans, forget about the timing belt and the cats. That car will swallow $10,000 in the next 4 years easilly, its a dud.
I said my peace, do with it what you will.

 

I'm willing to give 3200 as a counter offer to NH_USA

 

...easy, Option #5 especially since you know it's history.

 

skyguy is just trying to inflate the selling price of an Audi so he feels better about his yellow thingy... LOL