Good News on Depreciation!
06-14-2009, 03:21 PM
#1
MBWorld Fanatic!
Thread Starter
Good News on Depreciation!
Automotive Leasing Guide (ALG) is the industry bible for depreciation rates. I was looking at their site and found a consumer-oriented 1-5 rating system, with 5 the best. No surprises, 5 star is dominated by Japanese brands...and most Mercedes are 2 or 3 stars.....but right there in the 4 star category...all by itself under the Mercedes brand...is our C Class!
....right with a bunch of Lexus, Toyota, Nissan models...Porsche 911 Carrera, and the 3 series. Its not anything to argue...its just the math on real world wholesale auction values.
....right with a bunch of Lexus, Toyota, Nissan models...Porsche 911 Carrera, and the 3 series. Its not anything to argue...its just the math on real world wholesale auction values.
06-14-2009, 04:26 PM
#2
Junior Member
Join Date: May 2009
Posts: 46
Likes: 0
Received 0 Likes
on
0 Posts
C300 W204
Well the concept of depreciation is to allocate the cost of an asset to its useful life. As far as I know, Mercedes cars last a long time. The only difference is that they are more costly to maintain. To me it makes more sense to say that Japanese cars have lower maintenance expenses.
Anyways, glad to see the C-class being appreciated somehow.
Anyways, glad to see the C-class being appreciated somehow.
06-14-2009, 05:02 PM
#4
Well the concept of depreciation is to allocate the cost of an asset to its useful life. As far as I know, Mercedes cars last a long time. The only difference is that they are more costly to maintain. To me it makes more sense to say that Japanese cars have lower maintenance expenses.
The C class is the newest re-design, so it's still early in its life, so it will depreciate less, as it is still a new shape and more 'wanted', etc. other models like the E class will be ranked lower, because they will not hold their value as much since they are at the end of their bodystyle lifecycle. That's why the BMW 1 series is rated at 5 stars, but the 3 series is at 4 stars.
next year the new E will probably move up to 5 stars, and the C might fall to 4 as they get more common and the body style ages...
06-14-2009, 05:06 PM
#5
Junior Member
Join Date: May 2009
Posts: 46
Likes: 0
Received 0 Likes
on
0 Posts
C300 W204
it's a little more complicated with cars i think, because you're not depreciating it in accounting terms alone, but also in terms of the current market, desireability, rarity, etc. etc.
The C class is the newest re-design, so it's still early in its life, so it will depreciate less, as it is still a new shape and more 'wanted', etc. other models like the E class will be ranked lower, because they will not hold their value as much since they are at the end of their bodystyle lifecycle. That's why the BMW 1 series is rated at 5 stars, but the 3 series is at 4 stars.
next year the new E will probably move up to 5 stars, and the C might fall to 4 as they get more common and the body style ages...
The C class is the newest re-design, so it's still early in its life, so it will depreciate less, as it is still a new shape and more 'wanted', etc. other models like the E class will be ranked lower, because they will not hold their value as much since they are at the end of their bodystyle lifecycle. That's why the BMW 1 series is rated at 5 stars, but the 3 series is at 4 stars.
next year the new E will probably move up to 5 stars, and the C might fall to 4 as they get more common and the body style ages...
06-14-2009, 09:01 PM
#6
MBWorld Fanatic!
As long as the reliability of the C holds up, it will likely stay in the four star range. Used car shopppers, especially those looking for used near luxury rides, will pay very close attention to this in thier search.
