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In my opinion , I think that over 75% of the new S classes are leased and returned after used to be resold for the used depreciated resale value. I would never buy a new S-Class as I have always purchased preowned and I know for a fact that the S-Class loses its retail value at a very rapid rate. A new S-class, that's 3 to 4 years old will be only worth a 3rd or less of its original MSRP unlike some other Vehicles. I recently sold my 2015 GMC Yukon Denali That had an MSRP of 69k with 34,00 miles in 2015 for 43k. I think I did well as some SUV's hold their value much better that luxury sedans. ( Just sharing some info.). Happy Holidays.
It may look radical now but I'm pretty sure it will become accepted with time and the current W222 dash will seem outdated.
Absolutely.
The initial distaste for the new dash will not last long and folks holding on to the previous model will eventually accept it too, what other choice would they have after all?
Talking with my salesman on yesterday and he told me that the new S.Class has been pushed back in the U.S to June 2021 launch.
Don't listen to sales people about these issues, they always have a story to tell based on what they personally prefer. I bit you no one at Mercedes company knows exact launch date yet even their management. These big projects really don't end until the last minute and it's nearly impossible to predict any launch date now while we are at least half a year away from mid 2020. Wait until you see the official confirmation is the only accurate date.
Many people who buy new Mercedes cars lease them through their businesses. It doesn't pay to buy an expensive car on the business due to very little write-off allowed. (Something like $35K or so)
High earners pay high tax rates, so leasing through the business is always better than buying. (you can write off most of the car's costs, maint, etc, and it comes out of the gross pay instead of the net) Add to that the fact that you cannot lease many used Mercedes (So I was told) so when you take into account all these factors it pays to lease a new expensive car through the business vs. buying it used. Depreciation will affect residual values but in the grand scheme of things, it might fluctuate the monthly payment up or down by $100 or so. Not a big number compared to a lease payment of 2K/month (for a loaded S-Class stickered at $143,000) Also, new cars are under warranty, so maintenance costs are pretty minimal. (I add to the maintenance to the lease by pre-purchasing it, so it saves a little there too)
Don't listen to sales people about these issues, they always have a story to tell based on what they personally prefer. I bit you no one at Mercedes company knows exact launch date yet even their management. These big projects really don't end until the last minute and it's nearly impossible to predict any launch date now while we are at least half a year away from mid 2020. Wait until you see the official confirmation is the only accurate date.
This is nowhere close to reality. Model Launches are well known in advance (to the month at this point) There are two dates. Actual model launch and the start date when the car can be ordered.
Country launches are a bit different as other variables play a part. First off, timing of the homologation and EPA certification. Then there is existing prior gen. inventory.
This is nowhere close to reality. Model Launches are well known in advance (to the month at this point) There are two dates. Actual model launch and the start date when the car can be ordered.
Country launches are a bit different as other variables play a part. First off, timing of the homologation and EPA certification. Then there is existing prior gen. inventory.
Why don't you support these claims with evidences? If you think that the exact launch and production date is already known, can you show me a single release by MB revealing those dates now? They won't do it until few months only from the launch date.
The straight up simple answer to the OP’s initial question is, no. The values of the 222 will not fall at any faster rate than they currently do. Supply and demand.
Values of well maintained 222’s may actually increase slightly in value initially as demand exceeds supply of pre-owned 222’s.
Most people that want an S Class can’t afford a new one. The luxury afforded by a pre-owned S Class is highly desirable. The price-point of $40,000 - $55,000 for a 3 year old S class is well within reach of the upper middle class segment.
The residual at 3 years on an S is about 40% of MSRP and it has been that way for the last 2 generations. It’s not going to change just because the 223 comes out.
The straight up simple answer to the OP’s initial question is, no. The values of the 222 will not fall at any faster rate than they currently do. Supply and demand.
The residual at 3 years on an S is about 40% of MSRP and it has been that way for the last 2 generations. It’s not going to change just because the 223 comes out.
That makes a lot of sense. And just to further support your thought, here is a screenshot from a very reputable and accurate tool in my opinion, which I've been using since 2015 to make decisions on what car to buy and sell (as I buy and sell quite often).
Clearly, the 2020 (worst), 2019 and 2018 W222s will continue to fall (at same but worst depreciation rate) for the next few 2-3 years, so those models are already under a high depreciation rate cause they are new and very soon in 2021 will be too close in value to the new 2021 S-class. The 2017, 2016 and 2015 seem to be at their sweet spot for the next 2 years and might not see that much of depreciation cause they offer almost or very similar luxury level but already way cheaper than new models (2021 for instance) so for these models any new model won't affect this group (15, 16, 17) that much at least for next 2-3 years.
Why don't you support these claims with evidences? If you think that the exact launch and production date is already known, can you show me a single release by MB revealing those dates now? They won't do it until few months only from the launch date.
What kind of amateur question is this? We are discussing internal launch schedules and you want some kind of press release? While model launches are listed on their roadmap, this would be the best way to diminish sales for the current production line...
That said, I have listed the roadmap for upcoming launches months back...
What kind of amateur question is this? We are discussing internal launch schedules and you want some kind of press release? While model launches are listed on their roadmap, this would be the best way to diminish sales for the current production line...
That said, I have listed the roadmap for upcoming launches months back...
amateur!??! settle down you should be more professional in your responses as a senior member and show some respect, no need to use such words. You told other members that the date is already known to the month (which is wrong) and all I asked you is to share with us where you got such information from!. No one knows that exact month, could be may, June, July, but the exact date, time and month are still undefined. There is an internal target to finish the project for sure just like any other project, but there is no guarantee that the release and production date would be in a June or any other month around it. Simple!
That makes a lot of sense. And just to further support your thought, here is a screenshot from a very reputable and accurate tool in my opinion, which I've been using since 2015 to make decisions on what car to buy and sell (as I buy and sell quite often).
Clearly, the 2020 (worst), 2019 and 2018 W222s will continue to fall (at same but worst depreciation rate) for the next few 2-3 years, so those models are already under a high depreciation rate cause they are new and very soon in 2021 will be too close in value to the new 2021 S-class. The 2017, 2016 and 2015 seem to be at their sweet spot for the next 2 years and might not see that much of depreciation cause they offer almost or very similar luxury level but already way cheaper than new models (2021 for instance) so for these models any new model won't affect this group (15, 16, 17) that much at least for next 2-3 years.
This chart shows that there will be a steep drop when the W223 comes out. Look at the slope between 2014 and 2012 which is the model change over time. It's always this way. Out with old and in with the new.
That makes a lot of sense. And just to further support your thought, here is a screenshot from a very reputable and accurate tool in my opinion, which I've been using since 2015 to make decisions on what car to buy and sell (as I buy and sell quite often).
Clearly, the 2020 (worst), 2019 and 2018 W222s will continue to fall (at same but worst depreciation rate) for the next few 2-3 years, so those models are already under a high depreciation rate cause they are new and very soon in 2021 will be too close in value to the new 2021 S-class. The 2017, 2016 and 2015 seem to be at their sweet spot for the next 2 years and might not see that much of depreciation cause they offer almost or very similar luxury level but already way cheaper than new models (2021 for instance) so for these models any new model won't affect this group (15, 16, 17) that much at least for next 2-3 years.
I am truly amazed by your scientific approach to buying cars for your personal use.
I just buy whatever I like at the moment and never think about depreciation curve or Consumer Report reviews for example.
I'm too lazy....
I am truly amazed by your scientific approach to buying cars for your personal use.
I just buy whatever I like at the moment and never think about depreciation curve or Consumer Report reviews for example.
I'm too lazy....
Thanks man, I have certain cars that I keep forever (like the S-class) but there are other cars that I only want to try and keep for around 1 to 1.5 year so it makes a lot of sense to study it this way so I would lose almost nothing compared to loosing 10s of thousands per year on exchanging cars if I don't select the model year carefully.
This chart shows that there will be a steep drop when the W223 comes out. Look at the slope between 2014 and 2012 which is the model change over time. It's always this way. Out with old and in with the new.
That is partially true, the reality is that the "trend" or in other words "slope" will remain the same but the entire curve for all models would shift down by certain value for each. However, those cars close to the top (2018-2020) will see a shift down of around 20-30% or maybe more (because they are already at rate of 20% per year even without the W223 is released), but the other models (2015-2017) would shift down by maybe 10% (cause they average 5-7% per year now) or so because the other models older than them can't get any cheaper so they have to stay somewhere in between at least for the next 4 years when they become out of date. Look at the 2013 W221, a fully loaded low mileage one can still be around 30K.
That is partially true, the reality is that the "trend" or in other words "slope" will remain the same but the entire curve for all models would shift down by certain value for each. However, those cars close to the top (2018-2020) will see a shift down of around 20-30% or maybe more (because they are already at rate of 20% per year even without the W223 is released), but the other models (2015-2017) would shift down by maybe 10% (cause they average 5-7% per year now) or so because the other models older than them can't get any cheaper so they have to stay somewhere in between at least for the next 4 years when they become out of date. Look at the 2013 W221, a fully loaded low mileage one can still be around 30K.
Sounds like you agree that the W222 will take a discreet hit in price after the W223 is introduced.
kind of... I think first 6-9 months won’t have that much of an effect, but they will certainly be a big hit after one 1-year from the release of W223.
I don't think so. The 1, 2, & 3 year pre-owned S-class buyer is not the same as the brand new S-class buyer. What will fall excessively in value will be the still previously untitled W222's that remain on dealer lots when the W223 hits the showroom.
However, this will merely be an acceleration of part of the first year hit all new s-classes take.
I don't think so. The 1, 2, & 3 year pre-owned S-class buyer is not the same as the brand new S-class buyer. What will fall excessively in value will be the still previously untitled W222's that remain on dealer lots when the W223 hits the showroom.
However, this will merely be an acceleration of part of the first year hit all new s-classes take.
I agree with you that the untitled W222 would see the biggest hit, but that’s the same reason why the preowned new models (say 2019) would also see similar hit cause they still hold high value nowadays. I think older models (15-18) would certainly hold their value better, but it’s hard to guarantee the same for the newer models that have narrower difference between their value and the brand new one. Am just saying they’d at least see a relatively larger hit than older models but it’s hard to quantify that hit.
50% of new sticker price is roughly the current asking price for a well-optioned 2017 W166 GLE350 4MATIC. This is after several months after a new platform, the 2020 V167, has been released.
It is in line with the chart above, for a three model year old S-Class.
12-16-2019, 02:10 PM
