Hi dopes5,
Firstly, if you're in the market for an Audi V8 that's not going to break the bank, the pre-facelift S5 is the one to get. I have a '09 and just recently gone over 100K km's, which I guess is 60K miles in American speak, or thereabouts. I've had the car for a little over 2 and a half years now and got her on around 65K odd kilometers. Shortly before I got the car, the engine was replaced, but to be fair, the issue WASN"T the engine. The issue was that there was a bad batch of intake manifolds produced by Audi in Germany, and my car had one, but in troubleshooting the problem, the entire engine was replaced. The issue was perforations within the intake manifold. So, I got the car with very little miles on the engine, but regardless, I've not had 1 day of problems with her, apart from the usual carbon clean recently done, etc. I do look after my cars, and make sure that they are serviced when they need to be at regular intervals. Make sure you use the correct grade of oil too. The other common issues, which were replaced on my car about a year ago were suspension bushings. They don't tend to wear quickly, but I had a few hairline cracks in my suspension bushings, and as my car at the time was still covered by what we call Audi Freeway plan here in South Africa, they decided to replace them free of charge. The other issue with the suspension will be your front lower control arms, which either should have been replaced on a '10 or '11 car already, or I think the issue was remedied from the factory for those production years. The initial lower control arm was just a bit too weak for the heavy engine up front, so more beefier control arms were designed.
Apart from the above few niggles, the 4.2 V8 engine in the S5 in pretty much bullet proof, and not much goes wrong with it. There should also be plenty of "indie" shops around who should know how to work on the car, otherwise just ask in the forums.
Good luck and post up some photos when you get the car.
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