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Originally Posted by Red Bread
Limited production, seventy extra hp (of course it weighs more), fewer production years (in more recent years) and being an RS car all lead to that. I'd guess there are about 20 M3's for every RS4. There's also the fact that it's a more practical sedan instead of a coupe, and that they're all three pedal cars.
If you think it has less performance, don't look at track performance or anything over about 80 mph, as the RS4 does quite well at speed and tends to hold its own on a track too, which is impressive for how heavy it is and the fact that the engine is in front of the suspension.
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70 extra HP? The M3 and RS4 have nearly identical power output specs. I'm guessing the reason it retains a higher value is because of the AWD. People who absolutely must have AWD but want a true sports sedan tend to flock towards the RS4.