talk about depreciation

[TURBO2GO]

Talk about depreciation. How do you lose 100K of value one year and 30K miles later? I was looking at these pre-NSX purchase and they were at 140K just last year. They have dropped another 50K in just the last year. I think its a fantastic car but my God... what a poor financial decision.

MBCL65.

 

[zahntech]

The Chysler Town and Co Mini van is another good one..they sell for 25-37k new and 2 years later they are going for 15k

 

[Diablo360]

The design was near the end of it's production run to start with. And if you think about it the car could be almost 3 years old. If they bought it in late 04 as an 05 model then it's not 1yr old..... Then you have to figure that very very very few people would want to pay almost $200k for a CL. The 65 doesn't perform "that" much better than a 55 or 600, so why the hefty premium? For $150k+ most would opt for a Bentley Conti GT, AM DB9, etc....
The S and the SL's are behaving similarly I believe.

 

[sahtt]

My question is why?

From personal experience with MB V12's, although the model was 11 years older than this one, you pay a very hefty premium for a V12 model over the long haul. The technicians that are qualified to work on them outside of MB are few and far between, and the part prices are unbelievable. There was a part on each of the 12 cylinders on the W140 V12 that would fail every 2-3 years if you didn't drive the car daily or close to it. The part cost -$1200- dollars, for EACH cylinder.

You have to budget around 10 grand annually to take care of an old W140 V12 properly, I doubt the 05 is going to much different in a few years. You can buy a mint W140 S600 for the high 20's now because of it. 400/hp400tq V12.

 

[Klayton]

Doesn't every cars resale value drop faster whenever the newer model comes out?

 

[mfh]

I'm sure the rich folks who drive around in brand new CL65's aren't exactly sweatin' the 100k.

 

[zahntech]

The reason cars like the MB converts and the BMW 12cyls have such poor resale is very simple....


If you can afford to drive one that is a few years old...you can afford to buy a new one.

The cost of service and repairs on these cars is totally outrageous..so owning a car that is a couple or more years old will end up costing just as much as leasing a new one with a warranty and maintenance included.

 

[Knox]

Another good one is the Chrysler Crossfire. MSRP is $30K for a new one and you can get a used 2006 for $20,600. Nothing like 33% depreciation over 1 year. Take in mind the 2006 I noted has 21 miles.

 

[CL65 Captain]

Jaguar X-Type. looses 50% of it's value after a year... and that's if you can find a buyer. :biggrin:

 

[rickysals]

I'm sure the rich folks who drive around in brand new CL65's aren't exactly sweatin' the 100k.

With a few exceptions - anyone who doesn't care about losing $100,000 and does it regularly - probably won't have it to lose pretty soon.

Some of the buyers for these cars want a new Mercedes... not just a Mercedes. If it isn't new, it isn't an option. That could drive prices down.

 

[ghost]

My question is why?

From personal experience with MB V12's, although the model was 11 years older than this one, you pay a very hefty premium for a V12 model over the long haul. The technicians that are qualified to work on them outside of MB are few and far between, and the part prices are unbelievable. There was a part on each of the 12 cylinders on the W140 V12 that would fail every 2-3 years if you didn't drive the car daily or close to it. The part cost -$1200- dollars, for EACH cylinder.

You have to budget around 10 grand annually to take care of an old W140 V12 properly, I doubt the 05 is going to much different in a few years. You can buy a mint W140 S600 for the high 20's now because of it. 400/hp400tq V12.

I own a w140 s600. I have owned several big mercede sedans in the last 10 years. The w140 are by far my favorite big body mercedes.

Zahntech is right, its the maintenance that you have to worry about specially on older ones. These cars cost money to maintain, and not because of the v12 engine like people think, its actually a reliable solid engine. It is the other items, such as A/C, hydro suspension, regulators, wiring .etc.. that can go wrong with the car that can cost money. That goes to whether it is v-6, v-8, or v-12. They all have the same body and parts. There is additional cost in the v12 however, and not because of its engine reliability, but for example the v12 takes so much space under the hood, that things are crammed. Therefore, additional labor time is needed to reach other components to fix. There is always something needing to be fixed with these cars. The high end models also come with special suspension ..which equals more expensive to service. It is a love/hate relationship. But when these cars are in good shape, they are such a pleasure to drive and admire.

The original owner on my mercedes s600 paid around $145k for the car new, then sold it to the second owner for around $65k (just a couple of years later !!) and now you can get this w140 s600, for around $20k !!! A great bargain. at that price. compared to what it originally retailed for....

Even the w220 2003 S600 say a 2003 Bi Turbo with close to 500 HP... can be purchased for around $40k.. a saving of $100k !!! of the original price !!!

 

[steveny]

Talk about depreciation. How do you lose 100K of value one year and 30K miles later? I was looking at these pre-NSX purchase and they were at 140K just last year. They have dropped another 50K in just the last year. I think its a fantastic car but my God... what a poor financial decision.

MBCL65.

Depreciation only matters to those who can't afford it. :biggrin:

I bought a slightly used SL55 with only a couple thousand miles on it. The owner before me paid near 145K for the car, I paid 55K less than he did. I have owned the car since november and I am guessing I will lose 10k a year on the car in depreciation. Seems like a lot until I get a chance to floor the throttle then it seems worth every penny.

 

[steveny]

The Chysler Town and Co Mini van is another good one..they sell for 25-37k new and 2 years later they are going for 15k

My mothers boyfriend buys a new Chysler mini van every year. He takes like a 8-10k bath on every one of them.

 

[TURBO2GO]

Depreciation only matters to those who can't afford it. :biggrin:

You don't get to be able to spend 100K+ on your cars by being stupid with your money. Maybe some people don't care, but I would. I think it should send chills down MB's spine to see this kind of hit on their cars. Eventually, this kind of thing catches up with you. My CL600 went in for service on several occaasions, once to the tune of $36,000, or a new Acura TL. That is outrageous. That's why I told you make SURE you have a warranty on your SL. Its a nice car but I would 100% dump it before the warranty is out.

 

[zahntech]

. My CL600 went in for service on several occaasions, once to the tune of $36,000, or a new Acura TL. That is outrageous. That's why I told you make SURE you have a warranty on your SL. Its a nice car but I would 100% dump it before the warranty is out.

This is why the car has NO resale value:smile:

MB will continue to build cars that are expensive to service and repair as long as people keep buying them new...I really doubt they care what they are worth 2 years later.

I was chatting with a guy that moved to the US just a few months back from the UK, He said that cars that are not just cheep runabouts are not expected to be used for more than 3 years, mostly because "Company cars" are so common.

It's fairly obvious that companies like BMW, MB and Audi/VW are not really concerned with the car being used for more than a few years...They seem to be more interested in the latest and greatest gizmo's and features...But if you expect to be using all that technology long term without any issues?...think again.

 

[DocL]

I'm considering buying another weekend car and I'm considering an SL55 or 996TT. A 2003 SL55 with under 20k on the odo can be found for around $60k, and the TT for ~$65k with slightly higher mileage. I think part of the reason for such a drastic depreciation is the number of these cars that are built. If they would limit production numbers, they would probably hold their value a little better. It seems like on every corner down here that there are AMG's everywhere.

 

[steveny]

That's why I told you make SURE you have a warranty on your SL. Its a nice car but I would 100% dump it before the warranty is out.

That is the plan. About 6 months before the warranty is up the SL will be headed down the road to a new owner.

I had the rear struts go bad in the car a while after I purchased it. It was thousands of dollars to have them repaired. In fact the cost of the struts were just about the cost difference between buying a newer car with a warranty and a used car without.

 

[steveny]

I'm considering buying another weekend car and I'm considering an SL55 or 996TT. A 2003 SL55 with under 20k on the odo can be found for around $60k, and the TT for ~$65k with slightly higher mileage. I think part of the reason for such a drastic depreciation is the number of these cars that are built. If they would limit production numbers, they would probably hold their value a little better. It seems like on every corner down here that there are AMG's everywhere.

I would strongly recommend not buying a SL55 out of warranty.

 

[zahntech]

I think part of the reason for such a drastic depreciation is the number of these cars that are built. If they would limit production numbers, they would probably hold their value a little better. It seems like on every corner down here that there are AMG's everywhere.

There are Honda Accords on every street corner too...but they seem to hold their value pretty well:wink: :smile:

 

[DocL]

There are Honda Accords on every street corner too...but they seem to hold their value pretty well:wink: :smile:

Good point. I'll have to check out the prices on an Accord also. :smile:

 

[steveny]

There are Honda Accords on every street corner too...but they seem to hold their value pretty well:wink: :smile:

Not as much fun to drive a Accord though. And the roof doesn't fold into the trunk on an Accord either.

 

[TURBO2GO]

I'm considering buying another weekend car and I'm considering an SL55 or 996TT. A 2003 SL55 with under 20k on the odo can be found for around $60k, and the TT for ~$65k with slightly higher mileage. I think part of the reason for such a drastic depreciation is the number of these cars that are built. If they would limit production numbers, they would probably hold their value a little better. It seems like on every corner down here that there are AMG's everywhere.

If you already have an NSX, the SL might be a better car because the 996TT in many ways behaves like an NSX. The SL is a lot more luxury. But... the 996 will hold its value very well, much like an NSX, whereas the SL will continue to tank. Steveny is right, I would NOT, I mean no way in hell buy an MB of any type without a warranty. They are riddled with electrical problems and they are expensive to fix. Get a CPO car or one that has a CPO on it from an individual. FYI MB's extended warranty is only good if you buy the used car from MB, or buy from the original purchaser of the warranty. If the car goes to a used car dealer, that warranty is void. No matter what that dealer tells you. How does MB find out? I don't know... but they do.

Steveny, are you under a CPO/old starmark warranty?

 

[steveny]

If you already have an NSX, the SL might be a better car because the 996TT in many ways behaves like an NSX. The SL is a lot more luxury. But... the 996 will hold its value very well, much like an NSX, whereas the SL will continue to tank. Steveny is right, I would NOT, I mean no way in hell buy an MB of any type without a warranty. They are riddled with electrical problems and they are expensive to fix. Get a CPO car or one that has a CPO on it from an individual. FYI MB's extended warranty is only good if you buy the used car from MB, or buy from the original purchaser of the warranty. If the car goes to a used car dealer, that warranty is void. No matter what that dealer tells you. How does MB find out? I don't know... but they do.

Steveny, are you under a CPO/old starmark warranty?

I bought the car slightly used. I had a choice of buying the car with the original factory warranty or I could have the car starmarked. I only plan on keeping the car for two years tops so I went with the original factory warranty. I am hoping to get the new NSX if that comes out any time in the next two years. If not than I am going to get a Gallardo. I just wish Honda would hurry up and release the new NSX in the HSC form.

The SL only had a few thousand miles on it when I bought it. The original owner was a friend of the MB dealerships owner. The story goes...the SL55 owner and the MB dealership owner were out on the golf course discussing car colors. It was then that the SL55 owner decided he wanted a firemist red SL that just came in to the dealership. He traded in the SL55 after only owning it for a few months. I had been in and out of the MB dealer quite a few time up to that point and had made friends with one of the salesman. He knew I was looking for a AMG car, I really wanted the SL65 but they are VERY scarce around here. Anyways he called me when the SL55 was being traded in and I was able to purchase the car for wholesale at the time. I really do love the SL55 but it does not handle like a NSX by any means.

As far as luxury and comfort goes the SL55 is not a very comfortable car. I took many trips in my NSX and was always comfortable. I drove my SL55 to Ponte Vedra from NY and my butt was asleep 1/2 way through PA. I never had that problem in the NSX.

 

[zahntech]

Not as much fun to drive a Accord though. And the roof doesn't fold into the trunk on an Accord either.

Yes but I think you guys are smart enough to see that just because there are a lot of a certain car doesn't mean they have poor resale value.

Poor resale value come from people being unwilling to pay for something..IE a fancy car that is not the latest or greatest and has huge repair bills looming:biggrin: