c230pete

Just curious how the value of our C-Class would hold up after a few years...The finance person at Benz said that the residuals should work like this ----

1st year -- 83%
2nd year --73%
3rd year-- 63%
4th year--53%
5th year--43%

Do you think these are fair numbers?

mctwin2kman

That is better than the residual value of my 2 year old Saturn that is worth a quarter of the original price. And yes I would say any vehicle that is still worth almost %50 of what you paid 5 years later is good. Especially in todays market where it is sometimes more cost effective to buy new than used.

Edit: Residual values don't really mean squat as it all depends on the vehicle and finance market when you decide to trade or sell. My Saturn is a lease deal so in a year it is gone and GM can eat the fact that it is not worth anything close to what is left for payments.... Also buy a car because you like it, not because in three years you want to know what it will be worth. It is never going to be worth what you think it is.....

session

My car is 19 months old and, according to what dealers have offered me, is worth 65% of what I paid for it.

itsjustacar

FWIW, edmund's has a TCO (True cost of ownership) 5 year chart that shows 5 yr depreciation like this for the 2004 c240 4matic:

$7,018 $3,836 $3,375 $2,991 $2,685 (TCO= 0.62/mile)

edmund's

A e320 4matic is depreciated thus :

$11,247 $5,225 $4,597 $4,077 $3,657 (TCO=0.79/mile)

----
The 2003 C240 4matic has a depreciation chart like this :

$8,023 $3,667 $3,227 $2,862 $2,569

I find it better to not think about it too much and just enjoy the car.

goingbrabus

So is it better to lease a car..?? my cousin leased his 01 C 320 the same time i bought mine..we both paid about 43k..,but in a year ill be done w my payments and at 55k my car is obny worth 19k if im lucky..my cousin on the other hand can choose to buy for 26k or just return the car...i think he is going to return it because for 26k he can pick up a different car.

itsjustacar

Better to lease a car?

I guess it depends on how long you intend to keep it. Thing is, I've kept all my cars for about 10+ yrs so far, and have paid cash for all of them. I expect to still be driving the c240 in 2013.

Also, not having to deal with the dealer lease hassles gives you some bargaining leverage.

However, if you get to write off the lease as a business expense, then that changes it and it's always better to lease in that situation.

my $0.02

goingbrabus

thanx

session

You also need to factor in mileage. If you find that you drive more than 15,000 miles a year, then a lease is probably not for you.

www.leaseguide.com is an excellent resource.

Matt230K

Hey session, are you still looking for a 350Z? My dealer just got in an '03 Track model, Red/Black, 6 spd with 3900 miles. I took it for a drive and I was very impressed.