Hello Everyone - My first post here, and very excited to join the G-Class community!

I am looking at a 2017 G550 at a dealer in my area. Sticker price on it is around $125,000. I am very tempted to buy it because of how well these are holding their value currently. (I know that depreciation is an issue with all cars, but what to avoid a massive loss)

I have searched the web endless times now, and cannot seem to find any opinions on what the depreciation of this vehicle will be. I know currently, they have a very strong resale rate with 2014 models still going for around $80,000 with 25-33k miles.

My question to you all is do you feel these will continue to hold their value? I can remember a time not to long ago when ones on the second hand market would be ridiculously low for cars only 2-3 years old.

I apologize if this has been asked before, but wanted to get some more opinions!

Thanks!

 

Ask the dealer for the residual value if you leased it. Just to see what the dealer estimates the value of the car to be after X amounts of years of a lease. I'm in a very specific situation right now selling my '09 G550 back to my dealer and upgrading to a '17 G550. I still need to sign the papers in the next few days but I was able to get $55k for it with ~43k mi. Hope this helps

 

This will work for most MB's, however MBUSA notoriously under values the G Class for Leases. The G550/63/65 is the only car I would strongly discourage leasing, as the Resale Value is far greater than the Lease Residual.

 

Just left the dealer signing all the paperwork for a 2017 G550. The finance guy told me that 99% of people who lease, end up turning in the car at the end as the value of the car is lower than the residual. Did a little research and I do not think this is true.

I asked for the residual on a 3-year lease and was quoted $73k on a $132,775 sticker. On autotrader, 2014 G550's (3 y/o car) at 30kmi are currently going for ~$90k, so looks like NYCBenz is correct.

**EDIT: to be fair I have no idea what the original sticker prices are for the 2014's and it looks like the price has steadily risen. We got our 2009 G550 brand new from the dealer for $104k...2017 G550 that we just got was $132,775.

 

How much of the sticker did you get?
I was able to get like 7% off MSRP for a basic build, but did not commit to buy yet.

 

I think you should consider to ask other dealers too and compare their ideas about it. Remember, choosing the best and trusted dealer is advantage!

 

I actually didn't haggle them on the MSRP.

As I stated initially, this was a very specific situation. I brought my '09 G550 in for service and discovered $18k worth of repairs to the engine. My parents picked up a '17 G63 last month so I've had a recent itch to get into a new G. Long story short, the dealer offered me $43k for the car and wanted me to pay for part of the repairs. Was able to negotiate it to $55k for the car and dealer covers all $18k of repairs and I wouldn't haggle the price.

I was happy enough with that deal and they were content so we just left it at that.

 

7% is invoice, and a fantastic deal on any G Class.

No need to ask any other dealer, if they show you the residual from MBUSA Sales Programs, they can't change the percentage as they are set by corporate.

I used to work at MB Manhattan, the only MBUSA owned store in the country, so if you are looking for a "trusted" dealer, that is the one to go to.

This is actually the best thing a customer can say. If you are comfortable with whatever price you get from the dealer, and they treat you good, then you had a great deal.

You can get a better price anywhere else (99% of the time), however you get what you pay for regarding customer service.

Honestly, most of my "happier" customers were the ones who paid sticker or close to it.

It's all relative I suppose.

 

Can't be serious They would not sell it to me at invoice price. Why would they.. They must have some extra cash there..
Recently, quoted a local dealer only gives like few K off ... I would probably get one now with a resonable discount, but not only a few schwifty grand off..)

 

Dealers want to make deals, to hit targets, not lose a sale, etc...

There is no "extra cash" on a G, unless you have a Fleet Incentive. That was always $3,000, but you sign an official paper from MBUSA stating you see the $3,000 discount, so that is hard to miss honestly.

 

Thanks. Basically, 3k is always there for everyone as you say.. Not all of them. Especially when you come to look at G they start acting like take it or leave it type of thing... 99% of my experience so far )

 

No, $3,000 is only there if you qualify for the Fleet Incentive (USAA/AMA/ADA/Lawyer/Corporation/etc..).

Most dealers don't haggle too much on the G, as it is still low production, and has such a cult following.

 

Does these qualify for the Section 179 heavy truck rebate on taxes? I looked into a Lease on a G63 recently and the numbers were abhorrent. Would have to be a very special situation where a lease would make sense on one of these things.

 

They are abhorrent because most of the dealers want to make the most on this car due to limited production, appeal and etc. Which is true, but I believe it's being overused to keep prices high and play on you wanting to get the car...

 

No. Leases on the G do not make sense period.

Incorrect.

Leases are abhorrent because MBUSA Corporate gives dealers TERRIBLE residual values (which cannot be changed), and the Lease Money Factor is the Standard Rate (which cannot be changed, unless you have excellent credit, and are using AutoPay every month. Even then the Money Factor goes down by only .040. Dealers are NOT required to pass the savings onto customers, so always know all of the numbers to make an educated decision). There are also never special Lease Terms from MBUSA Corporate. Even if you get a crazy discount from a dealer, the Monthly Payment still does not make sense versus a Finance/Cash Purchase.

 

 

Interesting thread, however, I think there is some misinformation regarding pricing. A discount of 7% from MSRP does not represent dealer invoice on a G or any other product in the MB line for that matter. I do a lot of business with my dealer and presently have three MB's in service and refer many customers to my dealer. I customarily receive a 7% off anything I buy/lease without any negotiation at all. The only exception would be for very limited production specialty models. The gross mark up over invoice is generally 12%. Although margins have been squeezed because of intense retail competition a dealer cannot stay in business very long selling units at a loss or breakeven. So even at a 7% discount the dealer still makes money...as they should.
When leasing a G MBUSA has historically set low residual values. This model generally doesn't lease well from a financial point of view. The key to a lease is the capitalized cost that is assigned to the vehicle. Most people don't bother focusing on that aspect of a lease because they are primarily concerned with the monthly payment. The capitalized cost is the starting number when you begin to calculate the lease. That means the better the discount you negotiate going into the lease the better off you will be. I leased my MY 16 G that had been used as a demonstrator with 2200 miles. I received a substantial discount from MSRP. As a result the present wholesale value of my truck exceeds the lease payoff (approximately 50% through the term) by a minimum of $5,000. In reality I could probably get more. The way that values are holding on the G the positive gap will probably increase as I get further into the term.
One of the "wild cards" with G values is how resale values will be impacted by the launch of the new model. My guess is that values on older models will hold firm because of continued limited production and a reluctance by dealers to discount the new model.

 

Nope, not the case. I think you are confused about what Dealer Invoice and Triple Net/Actual Cost is.

Triple Net/Actual Cost varies on the dealer, and depends on Customer Service Survey Scores/if they are a AMG Performance Center/lots of other factors. The discount you have "customarily" received is the Dealer Invoice (roughly 7% off MSRP +/- 1.5%). Keep in mind that this price/discount would not include Dealer Bonus Cash (Winter Event/Fleet Incentive/Etc) which your dealer is keeping, so in reality your dealer is selling you cars at most likely less than a 7% (Dealer Invoice) discount. Most times Dealer's show window sticker's printed off of Netstar which says what the "Dealer Invoice" is, however this is kind of misleading, but as long as the client is happy that is what is most important (to both the dealer and obviously the client).

There is a gap from MSRP to Dealer Invoice and then there is holdback which the dealer has behind the invoice. Stores can vary on their full discount based on if they are an AMG Performance Center or not. General rule is about 11.50% from MSRP to triple net (all of the holdback) but usually its about 5.5-7% from MSRP to invoice and then the additional 5.5% in holdback.

You mostly mirrored what I said earlier in this thread in your first couple sentences. The key to the lease in any vehicle is the Residual Value (% a car will be valued at when the lease is over), and the Money Factor (Interest Rate if you will). The G Wagon is notorious for being given a terrible residual value from MBUSA for leases (see my posts above...this % CANNOT be changed by the dealer), and the Money Factor is the standard MB Money Factor (again, see my posts above...this value CAN be changed by the dealer).

Contacts at my old dealer in Manhattan said they already have 60 (SIXTY) pre-orders for the New G Wagon (!). The G continues to command MSRP, and will always bring high prices with not much discount. If someone is able to achieve a 7% Discount for a 2018 or any New G, that is and has always been a phenomenal deal. When I was working at MB Greenwich and MB Manhattan, the biggest discount I gave on any G (G550/G63/G63/4x4) was $3,000...which was usually the Fleet Incentive lol. I actually gave that same $3,000 Discount for the New G Wagon before I left MB to a member on this forum, and I took that deposit over a year ago.

FYI, I sold anywhere from 1-5 G Wagons/Month...

 

sometimes i feel like theses cars are like real estate just going up in price lol

 

So how much do you think the later model G63 will be affected by the new model release? Will they continue to hold their values as before? or will they inevitably see the hit from the increase of current owners trading in their 463 models?

Thanks

 

No one says you have to turn it in. If its worth more than the residual then I would sell it and keep the difference. The last time I leased a car was in 2000 when I leased an ML320. Ended up selling a couple months before the lease was up and put a few grand in my bank account.

 

You get it! This scenario has worked with the G because MBUSA has historicaly dictated low residuals. So if you lease and are paying attention you can get out of the car with positive equity. That is exactly where I stand with my leased MY 16. The wholesale value is more than my lease payoff. Retail is even higher!! Just biding my time. Certainly won't be turning the truck in.