Concerned about recent value drop on the EQS
11-02-2023, 02:02 PM
#126
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You can add this to the data point. Took delivery of my 2022 EQS AMG on September 7 2022. It was at the height of crazy car prices. Mine was the first AMG that came in. No discount obviously but I also paid no ADM. I paid MSRP at just over 155k plus tax and fees. In March of this year, I considered trading it in on a S class. (Love the car but I was a little disappointed since the interior is not as luxurious as a S class. It is suppose to be the equivalent of S in EV after all) I was offered 125k for trade( milage was right under 2k). I passed. On the last day of May, my 992 GTS which was on order since 2021 finally came in. Porsche offered me 108k on trade. They called my Mercedes dealer and got a 95k offer from them(3700 miles). Last week, I again , for a minute, considered trading it in again. My Mercedes dealer offered 85k and my Porsche dealer offered 80k. Milage was 5600. I think I will hold on to it for another 2 years or so and just enjoy it.
11-02-2023, 02:03 PM
#127
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You ask questions I sometimes ask myself...why am I doing this? Especially with my chronically broken old Mercedes. My life would be way easier (and cheaper) if I bought a two year old Lexus--I wouldn't even need to know where the dealership was located, and would lose almost no money. However, as others said, this is not necessarily about making the most economic sense--it is about owning something thrilling to drive that we get to experience on a daily basis, that includes a level of comfort and sensory enjoyment that one just does not get in a Lexus, let alone a 2020 Jeep Wrangler or something. Life is short, and none of us are guaranteed the gift of time. So, I drive things that enhance my life on a daily basis. My old MB is more of a hobby, that is sometimes exasperating but it is something I (usually) enjoy learning about and working on. The reductive argument that driving an EQS is not worth it compared to driving a Civic could be made about virtually anything--why do we (probably all of us) live in big houses when we could live in a small apartment or mobile home? Why go out to a fancy dinner when you pass Wendy's on the way? Ultimately, it is choices that bring us pleasure.
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11-02-2023, 02:03 PM
#128
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11-02-2023, 02:53 PM
#132
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11-02-2023, 02:58 PM
#133
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Last year’s Inflation Reduction Act provided a federal tax credit of up to $7,500 to use toward an EV. Under the rules, a dealer can apply that credit to any leased electric vehicle, no matter where it’s made, to reduce a customer’s monthly payment.
Not so for people who buy an EV.
For buyers, only EVs made in North America qualify for the full tax credit.
To qualify for the full tax credit, the electric vehicles that buyers purchase must be made in North America. However, only 10 out of 49ish electric vehicles available for sale in the United States meet this requirement. Additionally, the EV must contain specific percentages of battery parts from the United States or from countries with which it has a trade agreement for the buyer to receive the full $7,500 credit.
Under the current law, leased (EVs) are classified as "commercial" vehicles, while purchased EVs are not. This means that leased EVs are exempt from the North America manufacturing and battery-content requirements, and therefore, lessees can enjoy a much wider selection of EVs that qualify for the $7,500 credit.
Not so for people who buy an EV.
For buyers, only EVs made in North America qualify for the full tax credit.
To qualify for the full tax credit, the electric vehicles that buyers purchase must be made in North America. However, only 10 out of 49ish electric vehicles available for sale in the United States meet this requirement. Additionally, the EV must contain specific percentages of battery parts from the United States or from countries with which it has a trade agreement for the buyer to receive the full $7,500 credit.
Under the current law, leased (EVs) are classified as "commercial" vehicles, while purchased EVs are not. This means that leased EVs are exempt from the North America manufacturing and battery-content requirements, and therefore, lessees can enjoy a much wider selection of EVs that qualify for the $7,500 credit.
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MBNUT1 (11-03-2023)
11-02-2023, 03:05 PM
#134
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11-02-2023, 03:06 PM
#135
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With respect, any electric vehicle (EV) and plug-in hybrid electric vehicle (PHEV) technically qualify for a $7,500 tax credit if leased. However, it's important to note that it's not mandatory for the lender to pass on the cash benefit of the tax credit to the customer.
Last edited by J_Boxer; 11-03-2023 at 12:34 AM. Reason: Clarification
11-02-2023, 07:28 PM
#136
Good info on the 7.5K credit if you lease. Also, good info on the Amex. I was told by the sales manager about it as well. In the end, neither were enough discounts for me to get the car on the lot. I went somewhere else an got a substantial discount on a <800 miles amg.
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J_Boxer (11-03-2023)
11-02-2023, 07:35 PM
#137
True, but also the captive financing company needs to make it available to the customer. Some companies are playing around with availability and limiting it to lower end trims. IIRC, BMW did this with the i4 and Hyundai with the Ioniq 6. BMWFS only started offering $7,500 rebate on the top M50 spec last month for example.
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J_Boxer (11-03-2023)
11-03-2023, 12:21 AM
#138
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True, but also the captive financing company needs to make it available to the customer. Some companies are playing around with availability and limiting it to lower end trims. IIRC, BMW did this with the i4 and Hyundai with the Ioniq 6. BMWFS only started offering $7,500 rebate on the top M50 spec last month for example.
11-03-2023, 03:01 AM
#139
Member
With respect, any electric vehicle (EV) and plug-in hybrid electric vehicle (PHEV) technically qualify for a $7,500 tax credit if leased. However, it's important to note that it's not mandatory for the lender to pass on the cash benefit of the tax credit to the customer.
These things depreciate faster than the gas equivalent and the insurance cost is more so it really diminishes the gas savings and the charging infrastructure is a joke when traveling.
My 2 cents... nothing against you.
11-03-2023, 04:56 AM
#140
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11-03-2023, 06:31 AM
#142
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2008 CL550, 2022 EQB300, 2022 EQS580
I've got both and EQS and EQB. Bought my EQB for 20% under MSRP as a CPO demo w/ 2000 miles. No tax credit. To answer your question, probably less depreciation because it is about 3 notches lower on the food chain than an EQS--cars in this class just don't drop the same as high end German cars. Probably more like 'normal' depreciation, or a little worse since everyone is hating on ev's right now. I love my little EQB--completely different experience than the EQS, but fun in it's own way.
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MBNUT1 (11-03-2023)
11-03-2023, 11:25 AM
#145
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True, but also the captive financing company needs to make it available to the customer. Some companies are playing around with availability and limiting it to lower end trims. IIRC, BMW did this with the i4 and Hyundai with the Ioniq 6. BMWFS only started offering $7,500 rebate on the top M50 spec last month for example.
11-03-2023, 11:34 AM
#147
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Unless you are in CA who the heck buys an EV without any incentives? If the EQS had no credit benefits I would've stuck to a gas-powered W223.
These things depreciate faster than the gas equivalent and the insurance cost is more so it really diminishes the gas savings and the charging infrastructure is a joke when traveling.
My 2 cents... nothing against you.
These things depreciate faster than the gas equivalent and the insurance cost is more so it really diminishes the gas savings and the charging infrastructure is a joke when traveling.
My 2 cents... nothing against you.
11-03-2023, 01:18 PM
#148
Member
There is going to be a huge difference.
I owned 2 Alabama trash cans:
1. 05 W163 ML500. 2. 16 W205 C300
1. Bought CPO 3 years old. I had constant issues... just gave up at the end and sold the car.
2. Bought new. It was in the shop 120 days. Constant rattle somewhere, drivetrain issues, battery issues, I ended up using CA lemon law to get a refund.
The rest are German build
W211, W213, W222, V297 - No issues at all. Very solid ownership experience. EQS is kind of an exception until now but the latest recall fixed everything so let's see.
If I don't see a "W" in front of my MB I'd run.
I owned 2 Alabama trash cans:
1. 05 W163 ML500. 2. 16 W205 C300
1. Bought CPO 3 years old. I had constant issues... just gave up at the end and sold the car.
2. Bought new. It was in the shop 120 days. Constant rattle somewhere, drivetrain issues, battery issues, I ended up using CA lemon law to get a refund.
The rest are German build
W211, W213, W222, V297 - No issues at all. Very solid ownership experience. EQS is kind of an exception until now but the latest recall fixed everything so let's see.
If I don't see a "W" in front of my MB I'd run.
11-03-2023, 02:42 PM
#149
You have to be a tough negotiator to hedge against depreciation. And if the car reviewers don't like the car, and the public buys into the reviews, then you have an advantage when you negotiate your buy or lease.
11-03-2023, 03:18 PM
#150
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You can't possibly negotiate enough off to hedge against depreciation, and you can only negotiate what is achievable, theres only so much off there is that can be taken off. The only way to protect yourself against unforeseen depreciation is to lease.
