MerCruiser84

Hello fellow Mercedes enthusiast, I have a simple question I'm hoping you can assist me with.

With the MY14 release right around the corner, how much in deprecation can we expect in the current models?

The reason I ask is that I was expecting to purchase a 2010 S550 on the 30th however I'm beginning to wonder if I should wait or look for at a different model, such as a used 2012 CLS. I like both models, however the primary reason for selecting the S550 was I found a great deal and the movement to a CLS is about 15k more. If I'm going to take a depreciation hit of 20% in 6 months I'd rather go with the CLS and have the most current model vehicle. Thoughts?

Thanks for you advice.

brownbomber

For some strange reason, these vehicles don't maintain their value. From MSRP to 24 months, to 36 months, its like giving money to your ego.
If you look at getting in and getting out in a 24 month period, then the cost of ownership is more than $1000/month. Add maintenance and the outside of warranty mishaps, and you're upside down from the moment that you drive it off lot!
#MBownership

bgrodin

if you find a great deal on a 2010 S - take it and run, and drive that car for the next 7-10 years. what are the details on the deal you found

MerCruiser84

It's 2010, black on cashmere, 42k miles $50k. I believe it still has 8 months of the original warranty left.

On the flip side I could get a 2012 cls550 around 63k w/ 20/30k miles and a lot more warranty.

MerCruiser84

What I'm mostly concerned with the depreciation on the S550 once the new model is released on May 15th. Can anyone handicap the amount of depreciation one could expect once its released?

skrontz

The release of a new model does not do anything for the value of the previous model. The only things that cause depreciation are the age, mileage, and condition.

It is simple economics: you cannot expect a potential buyer of a MY2010 W221 to pick up a brand new W222 instead, so there is absolutely no reason for the value of the former to suddenly drop.

A W221 in good condition would continue do depreciate at about 10% per year until stabilizing somewhere around the mid-20s.

MerCruiser84

Correct, however, economics is primarily driven by supply and demand. With the W222 release I assumed the market would become saturated with W221's, therefore reducing the overall value of that particularid. I'm sure there are many 2010 W221 owners waiting to go into MY14. There will also be many 3 year leases coming due.

Thanks for the help everyone, I believe I'm going to jump into the S550 and take whatever depreciation comes. The value of the car is worth the money anyway.

skrontz

There are very few buyers who would dump their W221s earlier than they originally planned just to get into a W222. Most purchases are leased/financed anyway, and the terms are fixed; it is not advantageous for Mercedes to have a spike of lease returns at any given time, so these quantities are spread out by manipulating the most fiscally attractive lease terms to begin with.

The roadmap for W222 was pretty well known for a while, which gave everyone with an itch for the brand new car plenty of time to plan ahead. Keep in mind that some folks would prefer the W221 design and keep it as opposed to jumping into a W222. I am personally interested in upgrading, but I will wait at least until MY2015 for all the initial quirks to get worked out.

Good luck on your new car!

MerCruiser84

Thanks for the very useful information skrontz. That was exactly what I was looking to hear. Once I make the purchase I will post some pics.

All best,

Merc

USCGTO

My dealer has already announced on radio, the $15k discount on all S class on lot.

Imagine, what's gonna happen when the 2014 hits the lot. I am expecting prices of 2012s to shift into low 70s atleast.

skrontz

Oh wow, so the same thing happened this year that happens every year for the previous year models. How unexpected!

MY2013 is already a year old car and MY2012 is a two year old car. So, the former should be $15K below MSRP and the latter should be $25K under. W222 has nothing to do with this, it's the age.

ImInPA

There is a pretty big difference in just about everything between a S-Class and a CLS (Which is really just a gussied up E-Class). It would seem that the depreciation of a car is more important than the car itself to the OP. The OP should just get the car he will actually want to drive for a few years and not worry about the depreciation. Just my 2 cents.

Quadcammer

meh, i think they will blow right through that.

Higher mileage, low option cars will definitely be in the teens in a few years.

zam2000

They might cost even less than $1 !!.

Lets be real guys, only classic car's price go up. Else, you pay for the value of the car, at the snapshot on current market, and utilize it. Other factors would also be, given the amount, what other choices (new & used) you have. That's all we should worry about when we're buying a car, or just about everything that we use everyday. Car is not an investment.

There's no such thing as stabilizing-price for car. Housing, may be.

Any car lose value the moment you sign off the paperwork. If we worry about depreciation, we should just walk

ImInPA

+1 zam2000

MBNUT1

There is no question that the arrival of the W222 will reset the depreciation of the W221's, as the dealers will discount them to blow out their stock of w221's prior to and after the arrival of W222. After the W222 get's here the W221's will definitely be yesterday's news. This will be an optimal time to get a W221.

MerCruiser84

Thanks for the feedback everyone. Pulled the trigger on the S550, 2010, black exterior, cashmere interior. Only 38k miles and was purchased and serviced at a local Mercedes dealer. I'll post some pics later on.

OzFl

Congrats Mercruiser!

I didnt want to open a new thread, so I am somewhat hijacking this one since it seems almost resolved

I went to the dealer today for a GL test drive and the sales person told me that 2013 W221's are sold with 20k off of the sticker price due to W222 arrival. I am "intrigued."

Do you think this would be the optimum time to buy a w221 or would the price go even lower? May be towards the release date or even after that date of the W222. Of course, then there will not be as much inventory as now. So the color combo/options combo that you want may be hard to find.

What are your thoughts?

sloanbj

If you are concerned about depreciation, Mercedes are not the car for you. They are just about the worst you can buy! And once they settle down to a manageable level of depreciation (>5 years) you get hit with the repair/reliability stick.

If you want to lock-in on depreciation and plan only a brief ownership period, just lease one. If it depreciates less, sell for a profit. If it depreciates more, hand the keys to the dealer. Best part is, in every case you only pay for the sales tax on the forecast depreciation not the full car price.

NickCats

Tax is state specific. In Illinois you pay full tax on the car even if you lease.