http://cgi.ebay.com/ebaymotors/08-CL...em220211211475

Is this a great deal or what? Buy now of $131K on a new CL63!!!

Tom

 

Ugh, this is the reason why CL resale values tank. These bad boys will probably be at the $100k mark a year from now.

 

Its only $10k under MSRP, that's nothing. Wait till you see them for $60,000 in a year or two!

 

Precisely. Avoid "buying" assets that lose 53% of their value in two years.

 

Yup + 1

 

Unless of course you want a car before the "general masses" and $50k-$100k is pocket change

 

My friend bought a CL63 for $18,000 off MSRP.

All high end Mercedes are have horrible resale value.

 

I almost feel bad for the guys on this board who buy these cars new when people are getting them with 5,000 miles for half the price. Just amazing.

 

There is nothing to feel bad about the people who buy 'new' versus 'slightly used' of these expensive Mercedes at a huge discount...as long as everyone is aware of the depreciation hit they will take at the time the purchase decision is being made. That is the great thing about a forum like this. And more people should come here (as I did) before a purchase decision so as to get an 'education' on the pros and con of buying a new vs used CL or S. I was a cash buyer and I got an incredible deal on a MY07 CL600 (never titled) used by the dealer principal for some 8K miles & for 6 months out of its original 4-year factory warranty. I also negotiated an additional 3 year/100K miles Mercedes Benz extended warranty - so this car is covered fully until July of 2014...and it's transferable to the next private party buyer! My deal is not half off, but it's pretty good nevertheless. It cost me approx. 2/3 of its original MSRP. So the dealer took part of the depreciation 'pain' upfront, and I will suffer the rest from now on. But if you want modern auto technology, it will depreciate, period. That is true whether you buy a Mercedes, a Porsche, a BMW or a Bentley. That may not be true for certain modern Ferraris, but they are the exception to the rule. The '07 CL600 I finally bought had the color combination I wanted - Black with the very rare Cognac leather interior! And there was no magic involved. Just a lot of hard work, with plenty of emails & telephone calls back & forth. I monitored prices at Cars.com, Autotrader.com, & the MB nationwide dealer inventory (internet) from late August to early December, 2007. And then, at a particular appropriate time of the year (when there is little car buying activity - between Thanksgiving and Christmas), I found a receptive dealer willing to deal.

The fact is that the vast majority of 'us' that acquire a new CL or an S are not cash buyers. Most of 'us' are leasing 'our' expensive cars. And the leasing a used car (even if less than one year old Mercedes model) is more complicated since they pay the penalty of a higher money factor rate than those available for a 'new' car. So some of the 'savings' of the 'cap reduction' is given back by the higher finance charges. Most of us aren't shopping around for these Mercedes with $100,000+ in our pockets. But for those few of us that are, there are incredible opportunities out there! WSH is about to turn in his CL63 030 early on his lease. I bet buying that car will be a great deal. Z356

 

Would be curious what discts are avail on new CL63 030 w/cf in blk/blk or slvr/blk....

Have been impressed w/wholesale and/or trade-in values that used CL63s have commanded to-date....I had expected far poorer values....

I suspect any semi-coherent buyer of new AMGs fully expects them to have dismal trade-in values, even in the best economies....tech-intensive cars are rapidly obsolescent/disposable tech devices, more akin to latest/greatest smartphones, rather than Patek/Petrus....

For me, my CL63 030 has been worth every penny of its likely ?$30-50K deprec after 10-15K much-enjoyed mis of driving....it has provided me superb discretionary, daily entertainment (and daily transportation)....but my car ADD/OCD prevents me from really enjoying any car quite as much after 5K mis and/or 6mos of use....but to each his own....

 

If the dealers do that I guess we can see how much they're making and even they sell it below MSRP, for sure they still make money one way or another. So like this one, sticker is at $140K+ reduced to $130K and I bet you can still squeeze on that so basically in each CL63's, they're cost would somewhere be like $115K-$120K maybe, just guessing

 

S%%: No need to guess. Here is what Edmunds publishes and it's public knowledge. 2008 Mercedes-Benz CL-Class CL63 AMG 2dr Coupe (6.2L 8cyl 7A) National Base Price (excludes destination charge) MSRP $137,500 / Invoice $127,875. You can then add destination charge (no difference MSRP from Invoice) and the costs of each option (MSRP vs Invoice). What you don't know is if MB dealer gets some 'holdback' at the end of year for total cars sold. If cars are not sold by end of model year, MB might give dealer a cash incentive to move them out. You might get news of this type of incentive at Forums like this - and be able to share part of it (or all) if you are a clever negotiator. This type of incentive is call 'trunk money'. But for your information, it is too early in the season for 'trunk money' on the MY08 CL63. And I doubt that even if inventories start to build up MBUSA will wait until the end of model year for a 'clearance-type' fire sale. Instead, look for an adjustment to their published money factor rates by MB Financial in the next few months, which will signal that a 'sale is going on'. Dealers who are savvy will let their customers know. And don't even try to to calculate or guess about a 'holdback' because MB dealers will NOT ever publicly admit to it and many observers don't believe MB does it (as, for example, Ford is known to do). There are other ways for MB to compensate a dealer for volume - more future allocations of desirable models, etc. So, for the sake of simplicity, let's call the margin the dealer has to 'play' on a MY08 CL63 as $10,000. And the dealer has costs - building overhead, salesmen commissions, flooring (finance) expenses on the car, advertising, insurance, etc. So he is entitled to make a profit on each and every car he sells. However, it is the market that dictates how much profit he will ultimately make on each car. In the good times, he can sometimes charge MSRP + a premium for a 'hot' model. And in bad times, like at the beginning of an economic downturn like now, he might break even or even take a slight loss. C'est la vie! The nature of our wonderful capitalistic system which I support 100%. Z356

 

Two years from now there will be something newer and more exciting. Its about having the latest and the greatest.

 

Makes sense. That's what they said about the housing market!

 

dealers can still make money by sellnig below cost. they get factory bonuses for # of vehicles sold. bargain baby.

 

Ya think? Besides the balance sheet, I don't think many of us view our AMG's as assets. If you do need to consider your car as an "asset" then you should also quantify the "non-cash" enjoyment, excitement and pleasure of driving one of the world's finest automotive experiences. And speaking of losing 53% in 2 years, all of a sudden, Mercedes purchases don't look so bad compared to CMO's and Bear Stearns.

 

Indeed....

Would guess most MB/AMG buyers to whom depreciation is a new-found phenom aren't the brightest (and/or deep-pocketed) guys.....and may not be able to really afford $150K+ discretionary cars.....

Have been feeding my addiction for new, latest/greatest-tech, rapidly obsolescent/disposable, fast-depreciating cars for roughly a decade......have had a few cars that cost me near-nothing to drive for 3-5K mis....but far more cars that have costed me a few dollars in depreciation....

Totally agree...these cars are discretionary daily commuter cars for guys w/ample resources....for me, after 10K+ enjoyable mis, my CL63 030 has been worth every penny of its likely signif deprec upon trade-in.....conversely, have driven cars like 997TT at launch for some 3K mis that costed me near-$0 in deprec upon trade-in....that were rather uninspiring, rather weak, "values"....Luddite tech can do that...

 

WSH: Your killing me with the Luddite and Codger-ly references. I now have to have my Funk & Wagnalls nearby when I read this Forum. I agree with you that having the use of these modern cars (whether you buy or lease them) is a costly proposition for us all. But that is our choice and we are making these decisions with our eyes wide open, especially if prospective owners read up in Forums like this before they sign on the dotted line. Saludos, Z356

 

Z356, have been a curmudgeon since I was some 4yo....my parents were always worried if I'd ever make it out of elementary school....couldn't color within the lines properly/follow directions, etc....

And, in first yrs of my career, would mystify my elder (30-something) commute-via-train/cab bosses by commuting around Manhattan in a new CL55 (IMO, the safest/most comfortable way to travel around Manhattan at time)....admittedly unconventional...sort of like my penchant for stress-testing a 4600lb CL63 030 in CA mtn twisties driving every wkend.....to each his own....

Agree, smart buyers of any discretionary car need to fully expect signif depreciation costs....and judge value based upon pleasure derived from driving any car vs total costs incurred.....

 

Wow....can you act a little more superior and condescending? For someone who tries to portay himself as erudite in all things luxury, you could stand to learn a lesson in deportment. I myself am not surprised by the depreciation "phenomenon"....but I wouldn't cast all who are as simpletons and/or financially deficient. Then again, snobbery never appealed to me.

Tom

 

Don't take it so seriously.
The point is that people who can't take the pain of $50k+ depreciation on a car should not or have no business buying these cars.
Instead they should stick to cars that depreciate the same in percentage but much, much less in real $$$.
All cars (with a very few exceptions) depreciate similarly,when you want more luxury and performance you will pay for it.....

 

I can see three relevant positions here:

1. It pays to shop around for the best deal because if you’re going to take such a big hit you can minimize it somewhat by driving yourself and the dealers crazy. If depreciation off list is 50%, and you can lower the purchase price by maybe 10-15%, then you have saved quite a bit.
2. You’re well off and are accustomed to paying the luxury tax or “vig”, you don’t care.
3. If you own your company or have a really really nice boss you will have a lease that may be largely expensed pre tax. So, like in #2, you don't care.

 

Absent:

Just calling it how I see it....

I am not totally buying your assessment. Maybe my 2002 BMW M5 was an aberration but it lost 52% of its value over the course of 4 years...not 2 years. I can see how someone coming from a high performance car like that would think there should be a similar depreciation rate for an AMG product. Ultimately, you have to pay-to-play and the person learning the lesson isn't necessarily a simpleton or living beyond there means.

Tom

 

I consider E39 M5 as one of these exceptions to the rule (some Ferraris in particular) as that one was probably one of the best cars to get when introduced and probably still remains one of the best rides in its segment.
Everything else,even shortly after released,goes into a freefall....

Reamains to be seen how the new GT-R performs in that regard.

 

New M5's are getting pelted just like AMG's....

2007 M5's this month.... OUCH.....

03/04/08 DRIV Factory $59,000 6,721
03/04/08 DRIV Factory $58,000 5,882
03/04/08 DRIV Factory $57,400 4,509
03/04/08 DRIV Factory $50,400 5,310