Unbelieveable depreciation!!
12-23-2003, 10:48 PM
#1
Senior Member
Thread Starter
Unbelieveable depreciation!!
Hello all,
I stopped in at my local MB dealer to flirt with the unbelieveably gorgeous "Boutique" saleswoman, and while I was there an E55 demo was put out onto the lot. Initially, I had wanted an E55, but they were all sold out so I bought my 209 CLK55. Anyway, I was curious as to how much of a difference there would be on a trade, and to make a long story short, my $79075 msrp, 7000 mile CLK was appraised at $53000. Now I know of course that every car depreciates as soon as it is driven off of the lot, but $26000?!?! That's a 33% depreciation! I used to sell cars, and most cars would retain approximately 66% of their value after 3 years (Based on lease residual values). Was that just a particulary low appraisal, or are the CLK's suffering from horrific depreciation? If anyone is wondering, my CLK is flawless , and it had just been washed as well. If the CLK's really do lose 33% of their value after 1 year, then this is bad news for all of us. At least I hope that value will stabilize, and stay close to it after a few years, but I doubt that. Anyway, any comments or opinions are appreciated!
Best regards,
Matt
I stopped in at my local MB dealer to flirt with the unbelieveably gorgeous "Boutique" saleswoman, and while I was there an E55 demo was put out onto the lot. Initially, I had wanted an E55, but they were all sold out so I bought my 209 CLK55. Anyway, I was curious as to how much of a difference there would be on a trade, and to make a long story short, my $79075 msrp, 7000 mile CLK was appraised at $53000. Now I know of course that every car depreciates as soon as it is driven off of the lot, but $26000?!?! That's a 33% depreciation! I used to sell cars, and most cars would retain approximately 66% of their value after 3 years (Based on lease residual values). Was that just a particulary low appraisal, or are the CLK's suffering from horrific depreciation? If anyone is wondering, my CLK is flawless , and it had just been washed as well. If the CLK's really do lose 33% of their value after 1 year, then this is bad news for all of us. At least I hope that value will stabilize, and stay close to it after a few years, but I doubt that. Anyway, any comments or opinions are appreciated!
Best regards,
Matt
12-23-2003, 11:05 PM
#2
MBWorld Fanatic!
CLK depreciation
matt,
hope your "hot" boutique salesperson made it worthwhile for you. i just saw this at the place i bot my previous MB for your reference($45k for 2001 CLK55 w/ 28k mi). don't know what the scoop is, but thought i'd share what i found. at this pace, i could buy a year 2000 model next year for probably $30k...now THAT would be a hell of a buy for 349 hps.
http://www.gkautos.com/01clk55.htm
hope your "hot" boutique salesperson made it worthwhile for you. i just saw this at the place i bot my previous MB for your reference($45k for 2001 CLK55 w/ 28k mi). don't know what the scoop is, but thought i'd share what i found. at this pace, i could buy a year 2000 model next year for probably $30k...now THAT would be a hell of a buy for 349 hps.
http://www.gkautos.com/01clk55.htm
12-24-2003, 02:00 AM
#3
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996 Turbo
Re: CLK depreciation
Originally posted by bzliteyear
matt,
hope your "hot" boutique salesperson made it worthwhile for you. i just saw this at the place i bot my previous MB for your reference($45k for 2001 CLK55 w/ 28k mi). don't know what the scoop is, but thought i'd share what i found. at this pace, i could buy a year 2000 model next year for probably $30k...now THAT would be a hell of a buy for 349 hps.
http://www.gkautos.com/01clk55.htm
matt,
hope your "hot" boutique salesperson made it worthwhile for you. i just saw this at the place i bot my previous MB for your reference($45k for 2001 CLK55 w/ 28k mi). don't know what the scoop is, but thought i'd share what i found. at this pace, i could buy a year 2000 model next year for probably $30k...now THAT would be a hell of a buy for 349 hps.
http://www.gkautos.com/01clk55.htm
Most dealers rip you off on the trade in it goes towards the salesmans margin so he has an incentive to lowball you. I suggest you shop around a bit if you are serious on both the trade in and the CLK55.
12-24-2003, 09:03 AM
#4
MBWorld Fanatic!
CLKs have had the highest residuals for years because of the cabs. The CLK55s have the lowest percentage value of the model range, but still have higher residuals of a couple of points than the E55.
Check out this site to see how other brands are doing...the Taurus is worth only 39 percent of MSRP after 2 years!
http://www.cars.com/carsapp/national...ota&mdnm=Camry
It looks like there aren't too many cars these days that lose only 33 percent in 3 years.
Check out this site to see how other brands are doing...the Taurus is worth only 39 percent of MSRP after 2 years!
http://www.cars.com/carsapp/national...ota&mdnm=Camry
It looks like there aren't too many cars these days that lose only 33 percent in 3 years.
12-28-2003, 12:36 PM
#6
MBWorld Fanatic!
% of MSRP
This can be quite deceiving on your comments of Taurus %.
Specifically, many american brand cars sell for 10 to 20% OFF MSRP. So a $25k Taurus selling new for $20k and then having a 39% value of MSRP after 2 yrs is getting about $10k, or 50% of purchase price.
For most AMG cars two years ago, they usually sell for MSRP or even higher. Therefore, as a % of purchase price, one may argue that AMGs have greater %(and definitely $)depreciation than a Taurus.
Of course, I realize that most AMG buyers are not evaluating their purchase decisions this way, especially if many are leasing it thru their own companies and writing off the expense. However, some of the fellows on this board are good pre-owned buyers and these type of inputs are helpful to making future purchase decisions.
For me, I am looking forward to an E55 or CLK55 Cab one day if I can get a great price. Specifically, a normal mileage 2000 or 2001 E55 for $35k would be an ideal entry point. Also, one previous MB guy had a 2002 CLK55 Cab for $47k(w/ cigar smell that needed to be cleaned) and that's a great buy too.
Just some food for thought.
Specifically, many american brand cars sell for 10 to 20% OFF MSRP. So a $25k Taurus selling new for $20k and then having a 39% value of MSRP after 2 yrs is getting about $10k, or 50% of purchase price.
For most AMG cars two years ago, they usually sell for MSRP or even higher. Therefore, as a % of purchase price, one may argue that AMGs have greater %(and definitely $)depreciation than a Taurus.
Of course, I realize that most AMG buyers are not evaluating their purchase decisions this way, especially if many are leasing it thru their own companies and writing off the expense. However, some of the fellows on this board are good pre-owned buyers and these type of inputs are helpful to making future purchase decisions.
For me, I am looking forward to an E55 or CLK55 Cab one day if I can get a great price. Specifically, a normal mileage 2000 or 2001 E55 for $35k would be an ideal entry point. Also, one previous MB guy had a 2002 CLK55 Cab for $47k(w/ cigar smell that needed to be cleaned) and that's a great buy too.
Just some food for thought.
12-28-2003, 02:24 PM
#7
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2001 CLK320
is the current market a factor?
with the economy being "soft", the overall quantities of luxury items (cars, electronics, etc) being have decreased.
Many people are holding off or waiting later in the year when dealers will let things go for less than MSRP.
Back in 2000 and the first 1/2 of 2001, sales were going strong for luxury cars...remember the waiting lists for the AMG models and cabrio's - plus the lack of stock on the dealer's lots?
I remember that here in CA you couldn't find a CLK on any lot unless it was a car that a buyer just backed out of - usually lasted just a couple of days.
If you wanted brilliant silver as a color that was all you could hope for to find without waiting. Back then the cabrio was typically 1 to 1.5 years wait for the CLK430 model.
Now with most of the larger dealers, you can find several colors of the hard to find models on the lot, even AMG's...quite a different situation now.
Anyway, another factor is a lot of folks who bought or leased the cars while they felt flush (or were employed then) are now being turned loose on the market and there's a glut...supply and demand economics at work. When there were fewer cars, it helped keep the price up for resale vehicles.
Many people are holding off or waiting later in the year when dealers will let things go for less than MSRP.
Back in 2000 and the first 1/2 of 2001, sales were going strong for luxury cars...remember the waiting lists for the AMG models and cabrio's - plus the lack of stock on the dealer's lots?
I remember that here in CA you couldn't find a CLK on any lot unless it was a car that a buyer just backed out of - usually lasted just a couple of days.
If you wanted brilliant silver as a color that was all you could hope for to find without waiting. Back then the cabrio was typically 1 to 1.5 years wait for the CLK430 model.
Now with most of the larger dealers, you can find several colors of the hard to find models on the lot, even AMG's...quite a different situation now.
Anyway, another factor is a lot of folks who bought or leased the cars while they felt flush (or were employed then) are now being turned loose on the market and there's a glut...supply and demand economics at work. When there were fewer cars, it helped keep the price up for resale vehicles.
