pacman777

Been lurking for awhile on this site as I am definitely interested in the new ML350 (diesel). I've never owned a German Luxury car and I know there's a lot involved (cost-wise) in maintaining them and/or fixing them if something breaks. I currently own a 2001 Yukon that I bought brand new which now has 120k miles on it and my wife currently drives it to haul around our kids. I'm looking to potentially get the ML for my wife next year.

I know this next question may be off-topic a bit, but was wondering what is the average gross income of you guys that post on here that drive an ML or just bought one recently. Obviously if you're not comfortable sharing, then you can just ignore this, but I'm curious as I'm not sure if this car is out of my league based on what I make... I'm not asking this because I'm not sure whether I can afford the car or not. I know I can, but was trying to see what kind of income profile most of the buyers of the ML fall into.

Since I'm asking this, I'll start it off: ~$145k annual (gross)

Thanks in advance if you guys share, but if not, I totally understand

TundraRoads

Personally I am very debt averse. I've seen debt bring way too much misery to way too many people. So, we pay cash for everything (except our first house). If I can't comfortably write a check for it, I don't buy it. I've had to wait a bit longer for some things, but I'm much happier for it.

BTW, this is different from business where leverage can be critical.

jweezy

I'll agree with what Tundra stated - however I was not able to write a check for the ML. Buying the ML for me pretty quick decision and if I could have made it last I would have not bought a new car.

I have said it before, and I will say it again. I am cheap.

What I will say is this. How much money someone makes it not going to answer your question. A guy making 30,000 a year could basically afford an ML. Given he is probably living in his moms basement and doesn't pay for many other expenses.

OR

Just like a guy making 160K a year would bring in about 4,000 - bi-weekly making his monthly income around 8,000.

Yet this guy has a house (700,000) with a monthly payment of 4,800

Monthly expenses would net around $700 - $900 a month.

Then you got food and cellphone things like that $400 at least for a family.

Carpayment for the ML would be around $800 - $1000

The gas for the ML will cost about $200 a month if you only fill about twice a month.

The guy making 160K, would have less money than the guy living in his moms basement at the end of the month.


I am not trying to school you on money, your a grown man making good money of your own.


My dealer told me that most of the people that buy mercedes don't even make over 70K.

By the way, it doesn't cost a lot to lease a Benz, about 4,000 down and be able to make a pay of 400 - 600 and you can own most of thier lineup.

I paid $500 a month for my Dodge Charger. I think a lot of people can afford a Benz, the service cost is what scares people.

There is a saying "You got to pay to play"...

jweezy

Also, I know your probably being sincere in your post. However, most people are not comfortable with letting others know how much they make. I know I am not, even my close friends have no idea how much I make.

It would be better to ask what everyone did for a living and maybe you could get an idea how much people make. Asking for a number is kinda personal to most people. However, I am sure we are thankful for your honesty for you to post your own number. I don't judge people by how much money they make, some poeple do. And if what my dealer told me is true about most people not making over 70K, than a lot of people are not going to want to post because your salary is twice of theirs. YOu know what I am saying, it may be disappointing to some people.

TundraRoads

Pacman, think about it this way. On average most cars loose half their value every two years. If you have $60k and need a car you can:

1) Pay $60k for a ML350. In four years you will have a $15k car.

2) Pay $30k for something else. In four years you will have $36k investments + $7k car = $43k.

The ML will cost you $27k (or about $7k / year) more than a bit lessor of a car. Is it worth it to you to blow $27k to drive a 2012 ML350 for four years instead of whatever you can get for $30k? Would you rather have your wife in an ML for four years or something slightly less and be able to put down $27k cash for a boat in four years? What happens if your income is interrupted in some way and you find yourself out of a job or making only $110k?

300DTurbo

Based on my calculations, you have to own the vehicle for about 10 years to bring the average yearly cost down to about 7800 per year (includes extended warranty and gas/service/insurance/tires ...)

If you finance it your time value of money might make a little more sense, but if you buy it outright. It doesn't make much sense.

I would hope that you have atleast 500K in liquid assets because if not you will be dumping over 20% of your liquid assets into a BLACK HOLE of an investment. (This is the way a lot of my ASIAN friends think)

Then again, life is short. Live now, get it on credit and enjoy it. Who knows you may die tomorrow, your assets may be worth nothing when the world economy crumbles and you may have missed a great opportunity to make the banks richer. (American way of thinking)

GregW / Oregon

I doubt many want to get into specifics, but while German luxury car buyers may be better off than many, not all are rich. A car is never an investment, unless you're talking about some classics, but many like me get a lot of enjoyment out of owning and driving fine machines. Also, the longer you keep the vehicle (I keep mine a full model cycle) the less you get hit with that depreciation (though I think TundraRoads overstates the amount, based on my experience).

Personal cirumstances like whether you have kids and the size of your mortgage are big factors, obviously. If you aren't sure if you're pushing it too far in relation to your income, you probably are.

listerone

I'm probably older than most on this board and am financially "comfortable"...far from rich and far from poor.Like most,I make choices in life including choices about money.For example,I own two watches...one for "everyday" and the other for "dressup".The everyday watch cost less than $50...the dressup watch cost about $150.I could afford to spend more but didn't.The car I drive,OTOH,wasn't cheap but I plan to care for it religiously and keep it for a long time.I own it outright...in fact,I've never financed any car I've owned...always paid cash.

In short...my Dad,a child of the Depression,taught me (by example) to save and to live below your means.If you can swing this ML without getting in over your head...do it.If not....don't.

My 2 cents' worth.

DC-IT

As a self-employed person, it is not to my advantage to draw a big pay check for tax purposes.
Instead I paid for all my vehicles through my business.
My ML is leased but my other two are paid in full.
I'm 62 so I might as well indulge myself with my luxury vehicles before I kick the bucket!

pacman777

Appreciate all the input and advice... although it seems no one really answered my question which is fine. I figured since everyone is anonymous on forums, I thought most would feel comfortable sharing. My plan is to pay cash as I really don't like financing a depreciating asset. My first car straight out of college was the Yukon that I paid cash for that my wife currently drives (yes, I benefitted from a tech and bull market although I did lose most of my gains toward the end). I plan on keeping our next new car (as long as its problem-free) for at least 10 years. I wouldn't mind getting another Yukon, but the style hasn't changed and it won't for another couple of years, and I would like to get a new car in late 2012. The new styling of the ML caught my eye and the appeal of a fuel efficient diesel engine was another plus. I know I also need to consider the higher cost of maintenance for a Benz. The only thing I have done to maintain my Yukon has been the $30 oil changes at walmart every 5k miles and I've never even done any of the scheduled tune-ups. I've only had a few minor non-routine repairs totalling about $2k during the life of the car which is coming on 11 years and currently has 121k miles. From what I understand Benz cars require sticking to a strict maintenance schedule that costs from $500 to over $1k. I guess that is the price one pays for enjoying driving a luxury car. The difference between a decently loaded Yukon ($45k) versus the ML with options I would like is about $20k. If I plan to own the car for 10 years, then the difference is only $2k per year and the potential benefit of a slightly higher resell value at the end of 10 years. But as jweezy pointed out, its the maintenance and repair costs that make me think twice. We'll see how the overall economy, my job and market does in 2012. Hope its a good one for all. Happy New Year!

newyorktoLA

According to the Dealer Ordering Guide from MBUSA Logistics, here is the target group description for the ML:

The typical customer for an M-Class is usually married with an average age of 51 which is the same as the segment average. While the M-Class had targeted a 50/50 split of men and women, the M-Class is currently selling 52% of their vehicles to men. However this figure may be deceiving as many of our buyers are not always the actual driver of the vehicle (i.e. husband purchases vehicle for wife).
M-Class customers tend to be in line with the segment when it comes to education and household income. Customers in this segment are well educated and have household incomes into the mid and high $100,000s.

Customers in the M-Class segment are very active and outgoing and they need a versatile vehicle which matches their on-the-go lifestyle. The M-Class is the perfect vehicle for traveling due to its large cargo capacity and competitive fuel economy. Research conducted on these owners indicates that their primary activities include traveling, dining at fine restaurants, socializing with friends, and family and attending various events. Bottom line, these customers need a functional and safe vehicle, although they are not willing to sacrifice comfort, luxury or even a prestigious image that they wish to portray.

jweezy

I am 26 years old other than that everything is right. I bought the ML for my wife which is 23 years old. Not that age matters just amazing how they are able to say these people are going to buy this vehicle before its even sold

TundraRoads

Marketing & Prod Dev folk can be pretty amazing when it comes to the demographics of who will buy something. In this case the ML350 was designed with specific demographic in mind. Certainly some folks outside the target demo will buy it, but likely about 80% of sales will come from within the demographic. The sales guides give the sales folk a way to steer customers based on a very few elements so they can quickly determine if someone is more likely to be interested in a M, GL, Galenda, or Mog.