icebeam

Dear mbworld.

I'm currently driving a ls 400 and I'm looking for a upgrade. Me and my wife have been out of school for a little while now and the money is starting roll in but I can't seem to want to spent more then 50k on a car...

Given the MSRP for a fully loaded S class is $135k when do you think this car will hit the 50k mark? how many years of depreciation. I know that no one can say for sure but a educated guess would be nice

I'm 6 foot 6 and I don't fit into many cars but my god when I test drove the MY14 S550 the other day I fell in love.... So much room and so smooth. But still cant bite the bullet for 1.5k lease payment (even though I could afford to do so)

Thanks,

Kevin

Kratos-TM

4 years.

icebeam

Wow, love it. Wait 4 years save $85k plus a lot of tax. I guess in 3-4 years I will be looking for a fully loaded Magnetite Black Metallic with black on black or black on white interior CPO car with a good car fax. Amazing how fast these go down in value. I know it's hard to be picky used but if it was in a different state I would just ship it to it's new second home

TomS

It's only money.

New cars are like technology. You buy what you need when you need /want it. It will always be cheaper next year ( or with better options ).

Tom

icebeam

Yes, I'm a network security engineer so i know how that goes. I don't mind spending 2-3k on a computer as its such a small loss. But I would rather wait 3-4 years (according to members) and take that 85k and go on a few trips to europe with my wife or a cruise or two. And smile every day thinking about the person that paid 85k for me.

TomS

Well mine will be at least 10 years old and I will more than likely die with this one I keep them a long time. Maybe in 5 years or so, Kratos will be itching for a more romantic ride and he will let his go. LOL.

Tom

Wolfman

A fully loaded S550 won't hit $50k in 4 years. A base model at around $100k, more so.

Unless it's a high mileage car, of course.

Kratos-TM

Well I'm going off of 221 sales knowledge. A 2009 S550 semi-optioned is going for 37 to 41K. Look on ebay, a long laundry list of cars. Only 30-35,000 miles on some I found.

Jason B

Depreciation is at least $1k a month... Just do the math. Options though will depend on what a buyer really wants.

icebeam

These cars are just so nice. Why do you guys think they depreciate so fast just because of perceived reliability compared to say Lexus?

DaveVY

I haven't looked recently, but I don't think there is a significant difference in depreciation rates between MB and Lexus, but even then it isn't a fair comparison. When we purchased we looked at Lexus and MB (along with quite a few other luxury brands) and the difference in depreciation rates over 5 years was not significant. The depreciation $ on the S Class will be higher than the Lexus LS because the original purchase price for the S Class is much higher (and S Class is in a totally differnt league of luxury IMO). The S Class, IMO, is a totally different car than a LS and really cannot be compared with that. A well optioned S can be compared to Maserati Quattroporte, Bentley, Rolls Royce, etc. So depreciation rates should be compared to these competitors.

The S is not a "rational" financial decision, it is a luxury item pure and simple. Yes we have a new S Class and we love it. When it comes to luxury items like this I like to think of what Warren Buffet named his private plane, "Indefensible". You cannot make a rational financial defense for a luxury item like this, it is Luxury, not practicality. So I am not too concerned about a couple percentage points in depreciation.

icebeam

I agree with this S class being beyond it's league. If you sit in a 7 series or a ls 460 they just seem like a Avalon now. I was just wondering if the car will still depreciate the same way given that it might have a higher used demand. I would love to just buy one new but I have only just eclipsed a 6 figure household income being that (i have only been out of school 2 years and my wife 2 months) Given 5 more years of work xp for both of us and a 200k household income then yea.. I would just get one new (then drive and keep the car for 10 years). I'll say it's just like life can't go fast enough but I guess try to slow down and enjoy the younger years. She is a ASP.NET programmer and me a Network Engineer (I put this because I know it might get asked)

Note: School pays well

Jason B

It will not matter. This is a pattern that doesn't change. BMW, Mercedes, Range Rover, etc. The last gen S class was the best selling luxury sedan, nominated in 2013, and that didn't help resale values.

Now, a newer Lexus LS will hold it's value much much better than an S class. But after 5-6 or so years, the LS might only be worth a few thousand more. Where it matters is at the 4 year mark aprox. Then they start dropping hard for all.

Wolfman

The W221 prices got a a double whammy of the cars age and the extra hit of a model change.

Even brand new those could be leased for ridiculously low prices...

Kratos-TM

Yeah that's true too. I actually hope you're right Wolf. For people who take the full hit like me, it would kind of suck for someone to come in at the 3/4 year mark and buy my car for little of nothing. Lol

icebeam

Well it may suck for you... It will rock for me



Doesn't a basic s class lease start at $1,500 a month? how is that low? for some people that's a mortgage.

Kratos-TM

Not the 2013 models. Because they are the old bodystyle now, you could probably lease one for a dirt price.

lsdreem

I got 54k for a MY2011 W221 fully loaded 38k miles in november 2013. It was worth less than half what I paid within 30 months. I'm sure the accelerated depreciation was due to W222 so unless W223 comes out within 4 years, it is unlikely to find one under 50k, even with high mileage.

Tjdehya

If you look at depreciation as a "number" then it will look like its fast. If you look at it as a "percentage" (IMO it is) then you will see that its roughly the same.
However you are correct that Toyotas are perceived to be more reliable. (IMO they are).

LETO

In 4 years it is possible that a S550 will be worth 50% that what it is now. However, that will be at facelift time so even a new engine is a possibility not to mention all the COMMAND softaware will be significantly dated. Without a CPO I would not touch one.

Also, keep in mind it wont stop depreciating just because it is 4 years old.

Jason B

It's all the same. In 4 years it will be worth half. Body style is a matter of personal taste and opinion. Some may not like the new body style as much as the old, and would prefer the older car. Everyone is different, but I don't think just because a new model comes out, that is kills resale value automatically. We are in a crappy economy to begin with, unless it's a CL, which is a more limited/rare car (hold value a little better). The market is always saturated with S classes. The fact is, a $100k 2014 S in 4 years can be had for $50k, and that's nothing new.

It comes down to color of exterior and interior, sport package, etc, that will bring the premiums over basic cars.

Wolfman

Not quite. Anytime a model changes the prior model drops in value. Always. That's not a matter of taste. To a lesser extend the same holds true with a mid-cycle facelift.

The more expensive the car, the more radical the drop in value; exotics excluded. That IMO has more to do with the available buying audience though...