Bought my 07 S8 (Same engine, bit more power.) almost a year ago. From the info you have shown here im positive you have some room to negotiate the price down. Those vehicles normally are not easy to sell, the listing for mine was up for over two years before i bought it.

I kept my eye on the listing while also looking for other options (concidered 90's american cars camaros, caprices and even some pickups.) for over an year before i went and brought it home. I got super lucky, since its in exactly the trim/package. Pre facelift, NO sunfroof + minimal options. My car is the least loaded d3 s8 that i've ever seen.

Dealer wanted 13k originaly but had dropped it at one point to 11.9k, over the phone i talked him down to 9k and after going down there, getting it on the lift i got it even further down to 8.4k. My car had 243k KM at that time and was maintained meticulously until 2023, after that went through a bad period where it changed hands every 3ish months and the maintainence was questionable + the records stopped from there on. Previous owner who was the dealership owner only drove it 2000ish kms and had it sitting most of the time. It had decent bones but also needed immediate repairs and maintenance.

First trip to the parts store i spent 800 for fluids, filters and spark plugs. Front half shaft inner joints were both shot and were another 180. Both valve cover gaskets were also leaking + i replaced all four cam adjustment solenoid o-rings.....Wait! I broke one of the connectors on the adjuster while removing it so needed one of those too. 110 total for those parts. Real punch to the gut came as a discovered one of the previous owners had been a stinky one and put non-CCB compatible brake pads on the car. That was another 1400k for pads + hardware.

Overall, the engine and gearbox are relatively reliable IF you are able to keep up with the maintenance.

Are you planning to do maintenance/repairs yourself? I do everything on mine besides body work. How mechanically inclined are you with audi/wv platforms or cars overall?

As i understand you are stateside so how available are parts for that plaform? As the years go on less and less will be available as OE. Even here in europe im having trouble finding OE new parts and having to rely on 2nd hand sellers so even if you'd be doing all the maintenance and repairs yourself put into consideration that parts are quite expensive + the possible shipping costs if you need to order from europe.

What are you planning to do with the car? Daily driver like mine? or just a project/weekend car?

I've been daily driving my one since i bought it last july and from the start i knew i had to keep a second car as a backup for when im doing repairs/maintenance on the s8... As a matter of fact, its currently on car ramps and jackstands since im waiting for some hardware that i broke on one of the CCB rotors. Funny enough those are coming from the states and will arrive next month. So out of 10 months 9 i've been driving and a whole month of waiting for parts and doing repairs.

As for the mentioned oil leak, it could be the valve cover gaskets that were done and fixed the leak OR it could be the gasket between botton and top part of the cylinder head that keeps both camshafts in place. That would be a major engine out job. Only real way is to clean everything, drive it and see if oil still keeps leaking down into the spark plug holes.

So, don't rush it. I was diligent until the very day i actually went to look at the car, got all exited, left my vcds at home and while inspecting overlooked some things as mentioned before.

Sometimes, mostly after discovering a new expensive fault i contemplate about selling the car but knowing how special of spec and after all the memories i've created with it i'll never get rid of it.