Thread: trade in value?
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Old 05-13-2011, 06:45 PM   #8
golfster
Senior Member
 
Join Date: May 2010
Location: Chicago and NorCal
Posts: 462
Drives: Titleist
Plummeting Trade-In Myth

Quote:
Originally Posted by RJC View Post
It would depend upon how the two cars drive/ride, many new buyers may not even notice the difference w/o the airmatic. I think the new engines will be the biggest allure especially for the 350's. If I had a current 350 and was looking to move into something new I'd do it quickly as resale has only one way to go and that's unfortunately lower.
Not trying to inflame anyone, but I've seen this myth now posted in two different threads. A quick research of blue book trade-in values shows little to no impact when a new engine is released, and trade-in values are more a factor of age and condition. If the release of a new engine triggers a drop in trade-in, the same effect would impact the trades on the E550 as well as all other cars when a newer version of that model includes an upgrade to a new engine. As an example, I know first hand a 2007 997 S didn't lose significant value simply as a result of the 2009 997.2 being equipped with the DI engine, but did lose a rather predictable amount based upon mileage and condition.

Using Kelly as a source (yes, we can dispute KBB, but it is at least as credible as an internet forum for such facts), here is what it shows:
  • 2010 E350 - 24,000 miles, excellent condition = $42,450
  • 2009 E350 - 36,000 miles, excellent condition = $33,375 (21.37% drop from following year, even with new body style in 2010)
  • 2008 E350 - 48,000 miles, excellent condition = $28,050 (15.95% drop from following year)
  • 2007 E350 - 60,000 miles, excellent condition = $22,600 (19.42% drop from following year)
  • 2006 E350 - 72,000 miles, excellent condition = $17,875 (20.9% drop from following year)
  • 2005 E320 - 84,000 miles, excellent condition = $14,750 (17.48% drop from following year. This was the last year of the E320 variant. Note, the 2006, first year of the E350 with the new motor suffered greater % loss in trade-in value)
  • 2004 E320 - 96,000, excellent condition = $12,700 (13.89% drop from following year)
  • 2003 E320 - 108,000, excellent condition = $10,700 (15.74% drop from the following year)
Besides the impact from a new body style, it seems in this case the greatest % loss in trade-in value came from the 1st year of a new motor rather than the last year of the previous motor.

Rest easy, my MBWorld brethren, the sky is not falling!!

**For sake of comparison, equipment packages were kept as close as possible; sport, multi-CD player, HK stereo, Nav, premium wheels, no leather.
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