speedfrk

I think the coupes may well have the worst depreciation of any car in history My dealer called me back today with some figures on trading my coupe on a new 230 sedan. I was stunned by what he told me. He said the coupes have been going through the auction for between 16500 and 18000 depending on equipment. For most people that translates into a 9000.00 loss in one year. When I talked to the Infiniti dealer, he called a couple of wholesalers and said the same thing. He said that 02 cars have a 2000.00 incentive and 03's have a 1500.00 incentive. This is really depressing. In just a few short months my Mercedes virginity has been violently stripped away.
1) Mercedes are expensive, exclusive cars.
2) Mercedes are reliable, durable cars.
3) Mercedes hold their value and have excellent resale value.

The new reality is that a 6mo old Mercedes is worth less than a 6mo old Honda.
I think MB should include free victim's counseling in the purchase price.

nyca

the dealer network are now geared to make most of their money from pre-owned cars. Alot of people basically "dispose" of their cars through the trade-in process, taking very low offers and moving up to a new car. Sell the car privately, and base your price not on what dealers get for them in trade, but what they turn around and sell them for off their pre-owned lots. Are the dealers selling these cars between 16500 and 18000?

AndrewK

I've checked several of the used car value sites, and while the depreciation is higher than normal, its not exactly $9000/year.

For example, I appraised my car (2002 C230, black, CD, C1, C5, TeleAid, 7k miles, "outstanding" condition) and it said a private party sale was around $22k, dealer retail about $24k, and certified pre-owned retail about $25k. Not quite great, but not bad either.

Matt230K

The problem is that the car business is going through a very slow time right now. It is hard to sell a car anymore. The dealers basically have to give cars away to make sales anymore. So if they are only offering mid teens for a car, this is because they can sell it cheap and still make some money. So you are better off selling it privately.

You should just be glad that you are not trying to trade in an SL on a new SL or any new car. The new SL has caused used sales of the old SL to drop. You could probably pick up a 2 or 3 year old SL500 for around $50,000 right now, maybe less.

trench

OK - I did a quick comparison on Edmunds with two roughly comparable cars, the Acura CL and the Lexus IS300 - which I think most would consider to have "above average" resale value. These are the Edmunds "true market values" for each type of car - I chose to use these "TMV" values because it's only a single number that is probably a good average value, plus I don't feel like doing the math for more specific appraisals. :p

2003 CL: $29,446 (2002 number not readily available, but 2003 is close enough)
2002 trade-in: $21,060 (loss of 28.5% of initial value)
2002 private party: $22,240 (-24.5%)
2002 dealer: $24,207 (-17.8%)

2003 IS300: $29,642
2002 trade-in: 19,659 (-33.7%)
2002 private party: 20,761 (-30.0%)
2002 dealer: 22,597 (-23.8%)

2003 MB C230K: 25,394
2002 trade-in: 17,307 (-31.8%)
2002 private party: 18,277 (-28.0%)
2002 dealer: 19,893 (-21.7%)

Funny, these were the only cars I chose to do and the C230K ended up being right in the middle. I think trying to sell any car after only one year is the best way to lose the most money.

- BT

Buellwinkle

First it's winter, the worst time to sell, best time to buy. Second the spread on luxury car lines between trade in and retail is tremendous. For example, I have a friend with a 2000 A6, wholesale book is 18K and retail is about 28K, that's a huge difference and on autotrader.com the average this car lists for in private party ads is $25K. So to me I would list it the cheapest and take $21-22L to sell it fast, no reason to give it to the dealer (which BTW, offered 17K). You can't go by auctions because they sell cars for 2-4K behind book this time of year.

The trick is to play their game, buy a 1 year old car at a dealer auction. There are some used car dealers that specialize in bidding on behalf of consumers for a small fee of a few hundred dollars. My neighbor did it last month and got a 6 month old Navigator for 10K less than the cheapest deal on a new one and got a more loaded model. The car was flawless and still gets the remainder of the manufacturer warranty. The trick is to have the cash to do it, no fancy lease deal or zero percent financing at the auction block.

CHARLIEBROWN

2002 Mercedes-Benz C-Class C230 Coupe 2D
Engine: 4-Cyl. Supercharged
Trans: 6 Speed Manual
Drive: Rear Wheel Drive
Mileage: 12,000



Equipment
Slip Control
Air Conditioning
Power Steering
Power Windows
Power Door Locks
Telescoping Wheel
Cruise Control
AM/FM Stereo
Cassette
Dual Front Air Bags
Front Side Air Bags
F&R Side Air Bags
ABS (4-Wheel)
Traction Control
Premium Wheels



Consumer Rated Condition: Excellent
"Excellent" condition means that the vehicle looks great, is in excellent mechanical condition and needs no reconditioning. It should pass a smog inspection. The engine compartment should be clean, with no fluid leaks. The paint is glossy and the body and interior are free of any wear or visible defects. There is no rust. The tires are the proper size and match and are new or nearly new. A clean title history is assumed. This is an exceptional vehicle.


Trade-In Value $19,950
Trade-in value represents what you might expect to receive from a dealer for this consumer owned vehicle. Keep in mind that the dealer must then absorb the cost of making the vehicle ready for sale, advertising, sales commissions, arranging financing and insurance and standing behind the vehicle for any mechanical or safety problems.


i just checked mine ( c230k) and i am not happy with that but... that's how the ***** bounce.

speedfrk

I'm just talking about the dealers here in Atlanta. I will call some of my contacts in Fla tomorrow and see what they are bringing down there. Probably not much difference since a lot of the Fla wholesalers bring their cars up here to the high line auction.
But my situation is a little different since I want to trade out of this car because of the trans problem. I would feel very guilty about selling this car privately since they would be calling me in a couple of days asking what is wrong with the trans, and I would have to say "nothing according to MB" but knowing that there is something wrong. It is still pretty discouraging knowing that this car dropped that much in value in less than a year. Plus, for you guys that trust KBB or Edmunds, those values are meaningless to a dealer when you are trading. They use the black book and their experience to decide a trade in value. No doubt the 1500-2000.00 incentives automatically make a one year old used car worth that much less to a dealer.

mctwin2kman

Buellwinkle, I work for an auto auction and yes the value of used cars has dropped so they are selling for much less. I have not seen any C230's go through yet, I was hoping too. But I do have an in now at the local MB dealer since they do business with us. I am planning on ordering at the end of the month, my stock check is on its way, now I am just trying to decide weather to lease or buy. If I lease it I would most likely buy it at lease end, but I have more than enough to buy itso I am still undecided.

trench

I'm aware that the numbers I posted are only estimates - my point was that the C230K's depreciation is about average when compared to other cars in its class.

I feel for you man, I'd be pissed too if my car had problems that dealer couldn't fix correctly. I primarily blame your dealer, as I recall someone else with a similar problem others on here had their entire tranny replaced by their dealer.

- BT

speedfrk

Knowing what you know about depreciation, and especially depreciation on the coupe, why wouldn't you buy a low mileage used car instead of throwing away that much money on a new one? When I bought mine there were no used ones, but if I was buying now, I would definately look for a used one.

mctwin2kman

Because if I am spending any money on a car I want certain items on it. And no one has a used one with the options I want. I am going to a dealer this weekend to see what he is asking for a 2002 with 13,000 miles on it. But I want C1, C2, C4, C7, heated seats, Cd, and Bose. I could do without the last two, but the rest are musts for me and my wife. Why should I spend $25000 on something I don't want when I can get what I want for $32000.

Buellwinkle

For me it's all about a getting a "new" car and I make compromises in what I get to acheive that end. For example, I got a brand new C230 coupe for 25K but I may have gotten an older CLK320 coupe for about that price but to me the newness factor was important than the prestige or a nicer car. I drive cars for about 50-65k miles and sell, if I get a car that's already half way there I would only be able to own it for half the time, not a bargain for me. Although a used car is a great idea for those that either keep their car too short like 1 year or keep it till the wheels fall off. On the other hand I generally always buy used motorcycles, there's no mileage issue as I change my mind about what I want too often so I save money by buying low, selling low.

session

Keep in mind that dealers almost never rate cars as "Excellent".