2021 G63 trade value. 1800 miles. $185k MSRP
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Interesting pricing dynamics happening here. 14 months ago when V8 production was suspended, prices spiked to MSRP + $100K on new G63s. ADMs have moderated to maybe about half as much, and prices on used '20 - '21 models are dropping to around MSRP. Is this entirely shrinking demand due to financing rate hikes and maybe a bit due to fuel costs, or is the market "on hold" awaiting the EQG? Can any insiders offer an opinion?
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Interesting pricing dynamics happening here. 14 months ago when V8 production was suspended, prices spiked to MSRP + $100K on new G63s. ADMs have moderated to maybe about half as much, and prices on used '20 - '21 models are dropping to around MSRP. Is this entirely shrinking demand due to financing rate hikes and maybe a bit due to fuel costs, or is the market "on hold" awaiting the EQG? Can any insiders offer an opinion?
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Interesting pricing dynamics happening here. 14 months ago when V8 production was suspended, prices spiked to MSRP + $100K on new G63s. ADMs have moderated to maybe about half as much, and prices on used '20 - '21 models are dropping to around MSRP. Is this entirely shrinking demand due to financing rate hikes and maybe a bit due to fuel costs, or is the market "on hold" awaiting the EQG? Can any insiders offer an opinion?
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IMO, financing, price exhaustion, and economic headwinds. Dealers are still able to land larger ADM's with monied clients but not stupid ones. My sales guy said people were driving off with 5K monthly's on 63's...absolutley insane unless you're making mega money. The party is coming to an end. I'm hoping 550's can be had at msrp in year. The one thing for sure is the demand for 63's will always be there, so ADM's not likely to go away. We'll see.
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Interesting pricing dynamics happening here. 14 months ago when V8 production was suspended, prices spiked to MSRP + $100K on new G63s. ADMs have moderated to maybe about half as much, and prices on used '20 - '21 models are dropping to around MSRP. Is this entirely shrinking demand due to financing rate hikes and maybe a bit due to fuel costs, or is the market "on hold" awaiting the EQG? Can any insiders offer an opinion?
Right now, mainly the high interest rates. 6 months ago we were talking 3%, right now it around 6.5% and keeps going up!
Additionally, Mercedes has already marked up the 2022 G 63 MSRP by a whopping $23,000! So let's say if you pay $30K over MSRP, you are effectively paying $53K above new '21 G63... The difference is that Mercedes decided to take a cut of the Dealerships' Mark-up up front!
Finally, we are soft landing into a recession right now... Next year it is going to get very ugly. Most G wagon owners will try to sell their cars to lock up any amount of money they can before they go too deep underwater. Which means there will be a flood of used G-Wagons on the market.. Prices will dip significantly because of the supply... Everyone will get a much better deal on used ones leaving the new ones sitting on dealerships floors. at some point they will be selling it at or slightly above MSRP to get rid of them
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G63, 911S, ModelX, Tacoma
I believe it is mainly due to
Right now, mainly the high interest rates. 6 months ago we were talking 3%, right now it around 6.5% and keeps going up!
Additionally, Mercedes has already marked up the 2022 G 63 MSRP by a whopping $23,000! So let's say if you pay $30K over MSRP, you are effectively paying $53K above new '21 G63... The difference is that Mercedes decided to take a cut of the Dealerships' Mark-up up front!
Finally, we are soft landing into a recession right now... Next year it is going to get very ugly. Most G wagon owners will try to sell their cars to lock up any amount of money they can before they go too deep underwater. Which means there will be a flood of used G-Wagons on the market.. Prices will dip significantly because of the supply... Everyone will get a much better deal on used ones leaving the new ones sitting on dealerships floors. at some point they will be selling it at or slightly above MSRP to get rid of them
Right now, mainly the high interest rates. 6 months ago we were talking 3%, right now it around 6.5% and keeps going up!
Additionally, Mercedes has already marked up the 2022 G 63 MSRP by a whopping $23,000! So let's say if you pay $30K over MSRP, you are effectively paying $53K above new '21 G63... The difference is that Mercedes decided to take a cut of the Dealerships' Mark-up up front!
Finally, we are soft landing into a recession right now... Next year it is going to get very ugly. Most G wagon owners will try to sell their cars to lock up any amount of money they can before they go too deep underwater. Which means there will be a flood of used G-Wagons on the market.. Prices will dip significantly because of the supply... Everyone will get a much better deal on used ones leaving the new ones sitting on dealerships floors. at some point they will be selling it at or slightly above MSRP to get rid of them
Oh boy do I hope you are spot on. A soft landing and an overabundance of used cars...
My views is a tad different. A promise of a soft landing is akin to a promise of a 2 week lockdown. Powell clearly stated "pain" for the market is our way out of this. Pain doesn't signal a soft landing. Neither does the fact that Ford has 45,000 F150 sitting, unable to be sold due to parts shortages, GM is @ 95,000. Rates going up should cause people to hold onto their cars longer which in turn will lead to a tighter used car market... The market isn't pricing in a soft landing, Ford is down 23% over the past 30 days...
Member
Joined: Dec 2020
Posts: 85
Likes: 11
G63, 911S, ModelX, Tacoma
I believe it is mainly due to
Right now, mainly the high interest rates. 6 months ago we were talking 3%, right now it around 6.5% and keeps going up!
Additionally, Mercedes has already marked up the 2022 G 63 MSRP by a whopping $23,000! So let's say if you pay $30K over MSRP, you are effectively paying $53K above new '21 G63... The difference is that Mercedes decided to take a cut of the Dealerships' Mark-up up front!
Finally, we are soft landing into a recession right now... Next year it is going to get very ugly. Most G wagon owners will try to sell their cars to lock up any amount of money they can before they go too deep underwater. Which means there will be a flood of used G-Wagons on the market.. Prices will dip significantly because of the supply... Everyone will get a much better deal on used ones leaving the new ones sitting on dealerships floors. at some point they will be selling it at or slightly above MSRP to get rid of them
Right now, mainly the high interest rates. 6 months ago we were talking 3%, right now it around 6.5% and keeps going up!
Additionally, Mercedes has already marked up the 2022 G 63 MSRP by a whopping $23,000! So let's say if you pay $30K over MSRP, you are effectively paying $53K above new '21 G63... The difference is that Mercedes decided to take a cut of the Dealerships' Mark-up up front!
Finally, we are soft landing into a recession right now... Next year it is going to get very ugly. Most G wagon owners will try to sell their cars to lock up any amount of money they can before they go too deep underwater. Which means there will be a flood of used G-Wagons on the market.. Prices will dip significantly because of the supply... Everyone will get a much better deal on used ones leaving the new ones sitting on dealerships floors. at some point they will be selling it at or slightly above MSRP to get rid of them
Oh boy do I hope you are spot on. A soft landing and an overabundance of used cars...
My view is a tad different. A promise of a soft landing is akin to a promise of a 2 week Covid lockdown. Powell clearly stated "pain" for the market is our way out of this. Pain doesn't signal a soft landing. To me that sounds more like a significant crash.
As for the used car market, Ford has 45,000 F150 sitting, unable to be sold due to parts shortages, GM is @ 95,000. Rates going up will cause people to hold onto their cars longer which contributes to an even tighter used car market...
The market isn't pricing in a soft landing, quite the opposite. Ford is down 23% over the past 30 days... I don't know what flood you are referring to. What vehicle would a G owner switch to in order to cut expense? Or are you proposing a scenario where things will be so bad as to cause me and others to simply get rid of any "luxury" items. If that is your assumption, then I'd like to point out that it runs contrary to your position of soft landing.
Last edited by gokro; Sep 24, 2022 at 04:39 PM.
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Oh boy do I hope you are spot on. A soft landing and an overabundance of used cars...
My view is a tad different. A promise of a soft landing is akin to a promise of a 2 week Covid lockdown. Powell clearly stated "pain" for the market is our way out of this. Pain doesn't signal a soft landing. To me that sounds more like a significant crash.
As for the used car market, Ford has 45,000 F150 sitting, unable to be sold due to parts shortages, GM is @ 95,000. Rates going up will cause people to hold onto their cars longer which contributes to an even tighter used car market...
The market isn't pricing in a soft landing, quite the opposite. Ford is down 23% over the past 30 days... I don't know what flood you are referring to. What vehicle would a G owner switch to in order to cut expense? Or are you proposing a scenario where things will be so bad as to cause me and others to simply get rid of any "luxury" items. If that is your assumption, then I'd like to point out that it runs contrary to your position of soft landing.
My view is a tad different. A promise of a soft landing is akin to a promise of a 2 week Covid lockdown. Powell clearly stated "pain" for the market is our way out of this. Pain doesn't signal a soft landing. To me that sounds more like a significant crash.
As for the used car market, Ford has 45,000 F150 sitting, unable to be sold due to parts shortages, GM is @ 95,000. Rates going up will cause people to hold onto their cars longer which contributes to an even tighter used car market...
The market isn't pricing in a soft landing, quite the opposite. Ford is down 23% over the past 30 days... I don't know what flood you are referring to. What vehicle would a G owner switch to in order to cut expense? Or are you proposing a scenario where things will be so bad as to cause me and others to simply get rid of any "luxury" items. If that is your assumption, then I'd like to point out that it runs contrary to your position of soft landing.
I am obviously not talking about used Toyotas or Hyundais, because owners of these kind of cars are the consumers that will hold onto their possessions and spend less during a recession.
My point was regarding the G-Wagon owners representing the whole tribe of consumers that buy Ultra Luxury products for Thousands above retail. Just like Rolex/AP/Patek.. etc watch buyers. We are underwater the moment we (Luxury car owners) decided to pay all these thousands above MSRP and hence when recession hits, owners of this kind of goods are the first to rush out of the door to salvage as much as they can!
Just to put things into perspective, The market of certain Luxury Watches that have been a valuable investment stable for decades have dropped 25%-45% just in the past 4 months!! If that is what is happening with goods that appreciate in value, you can only imagine what will happen with Luxury Cars that lose value the moment it drives off the dealer's lot!
