I ran a couple of B6 S4 Avants (had a chipped 8L S3 before that) between 2003 and 2006 before getting my current RS4 Avant.
The S4s usually ran 18-22mpg depending on the mix of town and motorway driving (I did see 25mpg when in France one year), the RS4 usually does 16-25mpg - less in town than an S4 but more on a motorway (the effect of more power and FSI).
The S4s definitely were faster than my S3 but the lack of turbo "kick" makes you think they're slower. Add to that it's a fairly "lazy" engine in the S4 and it will feel quite different to your S3. But the V8 sound is just great!
Petrol is down below £1 a litre now so go for it - even if it's the only V8 you ever own you'll be able to say to your grandchildren "I once owned a V8".
Differences of opinions on few points, for a start my S4 Avant wasnt quicker than my S3, I had my remapped S3 approx 270bhp running alongside my S4 approx 365bhp, also had some TT's & S3's take me which was not nice at all, somewhat surprised, even took car to my tuner friend at amd & couldnt fault the S4, strange, but was 100%.
Lazy I would definitely agree, but possibly we also have to take into consideration the weight, was tad heavy, so would be slower given size of that lump, IMHO that is, it wasnt that quick & I can understand how some people would be confused from going from a turbo kick in back feeling to a non turbo V8, but I can say with running both at same time it wasnt this that made me realise the difference, it was actually quicker in my S3, put it down to smaller, lighter car, I expected more from the sums overall.
I personally didnt buy the car for how it sounded, of course if it sounded like a piece of ***** then wouldnt have bought, but I still dont get it to buy a car cause of how it sounds, personal preference.
But lets be seriuous here, fuel is on the rise & they say its possibly gonna stay higher this time, so just think about all these variables before making decision mate, its all very well having the bragging rights to own a V8, no disrespect to anyone as I also have that right for what is means anyway, but if it makes you broke in the meantime then it wont last long that feeling huh, lol.
If you can afford the extra costs which could be fair, then go for it as its a lovely car, just get yourself geared up for a completely different car mate, nothing like the present one, more refined I'd say, pleasure to own & drive except the economy & maybe not as fun, but have to say the fun aspect was replaced with relaxed & just more pleasant driving, sometimes a trade of in life.
Bet that new B8 S4 supercharger shifts though, lol.