In this current generation, Audi was late to the party with its ultra-fast four-door luxury sedan. The F90 BMW M5 has been on the market since 2018 and the W213 Mercedes-AMG E 63 S sedan arrived a year earlier. Despite this, Audi won't go directly into battle with either of these two cars. Instead, the 2020 Audi RS7 arrives with a Sportback body style, which is more similar to the Mercedes-AMG GT 63 S.

The big question on everyone's mind when the 2020 RS7 was revealed was how much it would cost. Audi has finally given us an answer by placing a $114,000 starting price on the new RS7. At first glance, this means the Audi is more expensive than the BMW and Mercedes but there's more to it than meets the eye.

This new RS7 is powered by a 4.0-liter twin-turbo V8 producing 591 horsepower and 590 lb-ft of torque. Power goes out to an eight-speed automatic to Quattro all-wheel-drive, enabling a manufacturer-estimated 0-60 mph time of 3.5 seconds We have a feeling these numbers are underrated but just looking at the spec sheets, this puts the RS7 at a disadvantage compared to the 600 hp M5 and the 603 hp E 63. That's not even counting the M5 Competition and GT63 S, which shell out 617 and 633 hp respectively.

Both the BMW and Mercedes undercut the Audi on price too. BMW prices the M5 at $102,700 ($110,000 for the Competition) while the E 63 S sedan starts at $107,350. This may seem like a loss for Audi but you have to remember that the A7 Sportback on which the RS7 is based costs more than the A6 sedan. The Audi S7, for example, is priced at $83,900, exactly $10,000 more than the S6. So if Audi did build an RS6 sedan, it would likely be priced at around $104,000, keeping it more in line with the BMW and Mercedes.

With RS7 pricing now revealed, all sights turn back to Audi for RS6 Avant pricing, which has yet to be announced. For reference, Mercedes prices the E63 S Wagon at $111,750 and it will be the RS6's only rival in the US.