Why do AMG's depreciate so rapidly?
 

I've been trying to figure this out. Why do AMG's tank so hard? My e92 M3 kept it's value pretty nicely.

I think the brand isn't as well recognized as the M division and generally don't review as well which would lead to a perceived lesser value. The new M5s are depreciating pretty hard probably due to initial bad reviews. You haven't seen depreciation though until you've had an SL65 or any other MB with the 65 badge. The big AMGs depreciate like lead balloons. I would say they're overpriced. An SL65 is about 220k, for that money you could be looking at McLaren, Ferrari, Lambo, etc which are far more desirable.

My E90 M3 and C63 depreciated about the same over a 2 year period. At least the trade in value did. Both depreciated around 20K. Neither hold good value in my opinion. I would also say timing plays a factor as well.

German luxury car...bound to happen. Public perception is expensive to own and maintain, for AMG's damn near useless outside of the warranty period. This leads to a smaller buying pool and consequently, lower prices.

I don't think the C63 depreciate any more than an E90. Maybe that was true with older model, but not anymore.

I think this sums it up. Not cheap to maintain out of warranty.

I would say that an M3 keeps its value more than a c63. IMO used car buyers tend to be younger because they have more limited financial means and younger buyer want a BMW more than a Mercedes.

agree+1:nix:

Totally agree. I also don't like to keep my cars after the warranty expires...too expensive to own & maintain. I just traded my loaded, excellent condition '08' C63 w/51K on it (also had a Mercedes Benz extended warranty till 4/15 or 75K) Saturday morning. Had it online for months & couldn't get a serious buyer so i just traded it in.

they depreciate b/c of a combo of all these things + high inventory. MBs and BMWs in general are dumped into the market...so many lease returns. I read somewhere that like of the new 7 series purchase more than 60% were leases...so these affect residuals and how much the car will cost in the end.

The M3 is really the exception here, being the only sport variant of the German sedans that is reasonable resell value. I is probably simply because it has so many fans who really, really desire one but don't have the money or credit to afford a new one.

Had the same experience with my 06 C55...after multiple tire kickers and time wasters, I just traded it in and have never bought an AMG since. Instead just lease them new and rotate when I want something new. Simply not worth the time and hassle to buy/sell, and if you get in an accident, game over, it's a boat anchor.

Luxury cars and high performance luxury and sport luxury such as AMG and M go down in value fast due to the cost of ownership such as fuel, insurance, upkeep and repairs, cost of parts. While not many made when compared to say Mustang Gt or something there are not as many people who can really afford a say C63 or Sl65 then say a Mustang GT.

Tires, brakes, fluids, oil changes, worn parts add up fast.


Well worth it in the end hands down :)

Depreciation + maintenance on an out of warranty car would be less than the same costs on a new vehicle. Unloading a car post-warranty because it costs more doesn't make sense. You can eat a lot of repairs for the five-figure depreciation experienced in the first couple years.

My take is that AMG buyers typically like having the latest, and are willing to pay for it. After a few years MB makes some changes that make newer vehicles more desirable, and people unload the old in favour of the new model.

Also, given the price of the cars, and desires to minimize monthly payments, leasing is much more prevalent, leading to a glut of used vehicle supply at the 2-3 year mark.

I buy to keeps. Not going to pry my C63 from me no matter what. Warranty this and warranty that, non sense poopie pants. Find a good Indy shop with someone you trust and stay in for the long haul while everyone drools with envy.

Took me forever to be able to buy one. Now that I have it, I'll love it no matter how many dents dings knocks or clicks it makes. No selling, no trading, no leasing, no nothing.

......there are many like it but this one is MINE!

I have no idea what you are talking about, E92 M3s are falling like a rock.

Both fall bc at the end of the day they are generic mass produced sports cars. Supply/demand economics

2011' M3's still going for 45K+ with 2012 going 55k+ (cars.com)

Thats pretty solid, especially considering 2015's are out with new engine.

Not AMG's, but 2012 S550's are going for for 55K with a new MSRP $100K+ price tag.

using standardized tables (that banks and insurance companies use) the AMG is actually better than the M, but not much
depreciation is more brand associated rather than a brand group like M or AMG or Audi RS/quattro

Jag & Porsche are much worse
The Jaguar XJ may not only be pricey to buy, but it turns out it is also expensive to own. According to IntelliChoice, the 2013 Jaguar XJ loses $52,014 of its value in five years and has a complete cost of ownership of $92,175 for five years.

Coming in a little better in the depreciation category is the 2013 Porsche Panamera, with an MSRP of $80,450. According to IntelliChoice, the Porsche Panamera loses $41,988 of its value in five years and has a complete cost of ownership of $84,293 after five years.

another thing to consider
there are 10 times as many M3's produced as C63's
supply and demand

I am not sure it is correct. The dealer took my 2009 C63 with 112k Km on it for 36k. I didn't think this was bad.

honestly they all are about the same
Audi may be a bit better than MB or BMW

depreciation should not be factored into a decision like this
buy new and bite the bullet or buy used to avoid it

cars are not assets: they are consumable depreciating commodities, they are 'used up' like a pair of shoes, not retained or increasing value like a home

I once bought an Audi with <100 miles, 4 years of factory warranty PLUS 2 years of Audi CPO...6 years of warranty/100k miles...yet since it was 'last years model' I paid 15-20% less and got more warranty

Audi had a program where they CPO'ed all MY left-overs
outstanding
the 15% discount offset the depreciation

Check the 750s and compare them.

I've gotta be pedantic here. A car is an asset. It's not an investment. Also, houses rarely increase in value; they're depreciating assets that require constant maintenance and upkeep just as cars do. The only thing you're betting on with a house is that the land it's built on will be worth more when it's time to sell.

Awesome!

E9X's are tanking as hard, if not harder than the C63's lately. Not sure if it's because of the F8X's or whatever the new M3/4's are called. I've been watching carefully and patiently waiting for pricing to hit the sweet spot on the E93 M3 vert.

+1MM.

When you're buying/driving a new modern car, it's going to lose value, period.

Unless you're looking for a mint 1st Gen E-Type Jag, 993 Turbo S, McLaren F1, etc., cars are going to depreciate.

Just get over it, and enjoy it.