1997 Avant Quattro: Pads & Rotors for all 4. 120k on it.

All the rest of the major work has been done for the miles.

Current lowest quote is $890 from the dealer.

Do I have it done, or dump the car?
Thanks for the answers.
I don't have the time to do it.

The rotors are apparently rusty and they said if they were turned then they would be below spec. Is that a reason to replace?

Buy your own pads and do it yourself. I checked, they're available, gonna cost between $60 - $150 for the pads, depending on which ones you get, $20 for the repair manual for your car to show how it's done, figure $5- $10 for supplies like brake cleaner and anti-rattle grease. Check and see if you are able to turn the rotors, for about 8-10 bucks apiece. Otherwise, figure 45-50 dollars each for new ones. Don't forget the 6.99 for the six-pack while you're doing it.

Did the dealer check your rotors for runout? Because the rotors should be dumped only if they're below minimum safe thickness, have scores deeper than 0.060", have parallelism or are warped.

If the rotors were damaged some way, then yes, they absolutely need to be replaced--and the pads along with them. Do this one major service, and then keep up on your brake maintenance. So long as you replace the pads within the specified service interval and your wheels are always torqued properly, you'll be able to avoid replacing the rotors again for quite some time.

Unfortunately, there are some instances where the rotors can't be machined with an on-the-car brake lathe (BMW's, for instance, have captive rotors that can't be machined on the car because of the dust shield). An on-the-car lathe is the only way to correct parallelism in the rotors. But I would get a second opinion at an independent shop that specializes in Audi...they might quote you a more reasonable price, though the dealer is offering you the fair going rate. Please don't dump a good car because of one $900 bill.