I have been a long term car enthusiast. My first car was a modified Honda Prelude when I was in college and recently just sold loaded Panamera Turbo S.
Most of these cars I bought and sold within a year time frame (I have owned more than 20 cars in my life time) ONLY buying high mileage cars that depreciated so much in value and hit the bottom curve including the Panamera Turbo S.

I haven't experienced ANY financial loss in any of the cars I have bought and if I did, it was very minimal. Now I am getting older and need more comfortable car luxury car. Currently I am driving W212 e250 fully loaded. It is one of the best comfortable cars I have ever owned. However, I have a soft spot for W222 and I would like to upgrade to a facelifted (2018+) S450 or S560. I know anyone who will make a comment will say this is not the car to buy if you are thinking about financial situations.

Here is thing, I am financially capable to buy a brand new W223 as I am financially doing well and can afford to buy ANY car with except to high end special sports cars. However since I am an investor, I hate losses. I always buy appreciating assets to avoid losing money on cars which are known to be a complete depreciating assets (except of course special sports cars). AND W222 will not be an exception.

I am just wondering do you ALL W222/W223 owners don't care about depreciating assets at all. I am sure many owners claim car expenses for their business but I am definitely NOT one of them because as an employee, I cannot claim anything.

Do you all buy this car and lose 20%-30% in just few years and don't even care about it? How do you manage that even if you are financially well off? I want to buy s560 and sell it in few years and don't care about loss, how can I do it?

Thank you and I appreciate your positive feedback and constructive criticism

 

I’ve loved cars my entire life. I have been fortunate to be able to have had many. I’ve never looked at them as investments, just an extension of my hobbies and what brings me joy. I pick based on what my heart tells me after doing a lot of research. I’ve spent a lot of money on cars but I’ve also made sure to keep my finances in order, take care of family, and have retirement fully funded at the same time. I’ve never regretted any purchase by living this way.

Some say me doing all the work myself on all my cars is how I can afford/justify it. They’d be wrong as I’ve spent way more in tools and a lift in garage than what I would have spent having someone else do the work. But again it’s because I also love working on cars.

I literally don’t even think about how much money I’ve spent doing these things. I don’t see it as money lost. I see it as I’m lucky to have made enough money that allows me to use it on things that bring me joy. It took me many years to let go of the mentality that I have to save all my money or find ways to not have to spend it. Once I was able to it was very freeing. Even though I worked for all my money, I’m lucky and know it. Being able to not care about the cost of groceries or whatever bills come up is a very lucky place to be and I’m grateful for that. There were many years where it wasn’t that way for me.

I have friends with a lot of money, more than me, yet I feel for them because they’re trapped in a mentality that doesn’t allow them to spend their wealth out of fear or because they don’t feel they deserve it. I try encouraging them to spend more as having another 0 added to their account balance won’t bring anything additional to their life.

My young adult son thinks it’s wild and he jokes with me every time I bring him along on a shopping trip for more tools or coming home with another car. The prices in his young broke mind appear staggering. And they would be too for me when I was his age. I’m fortunate I can do this and be able to save properly for the future. It took me a long time to get to this point and be comfortable with spending money.

Just don’t spend all your money or go into debt for the fun stuff and you’ll be fine.

 

I love it to see more people willing to jump ship and enjoy the S flagship. Congrats on at least thinking about this car as a choice.

Don't over think it... just get what you love and what you can afford too. The advice by the forum colleage above is gold "Just don’t spend all your money or go into debt for the fun stuff and you’ll be fine." In other words, don't feel obligated to finance or lease if you can not afford the car. If you have to, just do it if you like it enough and if it won't impact your financial situation. There is a reason that not everyone has top flagship cars/SUVs for all his family members. Only you can decide if you can get one or more. Am sure you do not need a stranger to give you an advice on that, so I will skip this part.

As far as choices, I think you are in a great spot. You never had a W222, so simply just get that one. In my case I already had two, and sometimes I wish if time was slower so that I can get a 3rd. In fact I wish Mbenz just gave us a 3rd facelift of the W222 instead of the disaster they offered us in the 223. Just get your first S-class and enjoy the W222. If you are buying pre-owned, both are used, and hence it's easy, the 222 is the better car. Looks much better, and it has much better build quality. Technologically, neither of them is top-end tech car nowadays, so you will miss a lot of things either way, but you will really enjoy a flawless cabin in the W222. It is also the smarter financial decision now. Grab a low mileage 2020 or 2019 and you will love it. The W222 also comes with many options that are not available anymore in the 223, like night-time vision. Rear seat entertainment is hard to find in the 223 and was not initially available with AMG exterior packages, but easier to find in the 223 with the AMG body styling. Nothing to worry about as far as the engine; they both have the same engine to some degree, and this engine is not the best you can get in the market today, but with the right maintenance you can spot issues early on. They have the same clunky transmission so that should not be part of your decision making process.

All of that is to say that you will really spend less with the 222, and also enjoy a better car since you never had either of them yet... The decision is easy if I were you. Go 100% with the 222.

As far as depreciation and so on.... am not sure; I look at all of this from a different angle. If I can afford both options, I would just get the car that excited me more. You also should decide not forum users. Which one excited more, and which one looks more boring or unattractive to you? The 222 is an exciting car. If I were you, I'd drive both, and choose the car that I think personally is the most impressive ride ever for me personally. Take both for a test drive. The interior of the 222, just like other options, puts the new S Class to shame. I read similar things by others and I agree. The 222 stands-out more as well, it makes a statement, in a way that the new one does not stand out and there is something boring about it. Take the car that you feel more happy inside it when you look at the cabin, and maybe even see your wife and kid's reaction; which is more likely for your wife to drive, and which one drives your kids and neighbors to go nuts. In this case, you will get much more thumps up, and be personally happy no matter what, in a car like the 222. From my search I also conclude that many folks would get a reasonably, balanced, great comments about the 222 and none about the 223. This is my experience too as well as my observation from what people say. I think there is some charm about the 222 that makes you feel happy in the cabin, and also shares nice positive vibe from the outside. It's an awesome car.

In the end, best of luck!

 

In short, do it, reward yourself for your hard work.

 

True!

 

Skip this years W223 as there is a new facelift coming that is far better (at least in terms of interior design) so for sure do not go in and buy a new one right now. You said you have never lost, well a new S-Class you will lose 20k as you drive out of the dealership on a new one and 50% of the value in 3 years. That is just the way these roll. I too could have afforded a new 2019 if I wanted to in 2019 when I bought my first S-Class, but opted to pay $58,00 on a 2016 S550e on a MSRP of $120. I bought a 3-maintenance package and an extended CPO warranty by 2 years, so I rolled out of there with a bill of $69,000 with tax and license. So literally more than 50% off a new one. CPO at least gave me the option of negiatiating the maintence package and extended warranty with MB, I ended up getting them down from $12,000 to $5000 for both and came out way ahead on both with 2 repairs and over 5k of work done.

Bottom line if you find a 2018-20 and want to drive it for 1-2 years as you have done before, you can easily not lose a lot except of course sales tax you paid and sales tax you will owe on your next one. Look for a 2018-20 under 50k with most of the features you want and you're getting a big bargain from new and get the idea of the car. during COVID I could have sold my car for 60k but then I would be without a S-Class.

I keep my cars a long time but don't plan to keep the MB after my aftermarket warranty is done (buy one if you plan to keep it longer than 3-4 years). I have a 42 year 300ZX and 21 year old Nissan X-Terra but the repairs on those car will not put me in the poor house!

 

Typcial S class will lose a huge chunk of value in the first 5 years. I purchased a 2018 S560 with only 20,850 miles last October for $43k cash. Original sticker was about $130k.

I would not purchase a new S class if you do not like depreciation. Find a used one with low miles and the depreciation already baked-in.

S class is a very well built car, and can last many years and miles. But you do have to be prepared for a large repair bill at some point along the way. I tell people, if you are unable to afford a surprise $10k-15K repair bill, then a flagship German luxury car is not for you.
Not saying it will happen, but you just need to be prepared for the contingency. My W221 S63 was purchased used with 22k miles on it. I had that car for 10 years and almost zero major repairs for 9 of those years. In the last year, I probably spent $40k in maintenance and repairs on it.
Tires, brakes, new starter, new rear differential, suspension air accumulator, a major oil leak that required a new ECU. Not everything happened at once, either.... it was death by a thousand cuts before I decided to sell it.

 

Agreed you need to have the ability to step up to a big repair bill or deop 5k on an extended warranty. I bought a Freedom Warranty from Highline motos sponsor here and last year I had a $12,000 estimate from Autobahn Motors for motor mounts, a replacement AC Compressor (original reason I had it there) and valve cover gaskets. The insurance company tried to deny but got them to pay for the AC Compressor and motor mounts with the agreement that they would evaluate the covers in 1 year after the dealership cleaned them up. So I ended up with around 6k of repairs of which I had to pay $800 due to difference between the labor rate my insurance was set at and the rip-off rate that they now charge in Bay Area. I wouldn't own one of these unless I had a warranty and do buy from HIghline but do not buy from Freedom they were terrible to deal with and only because Trent from Highline helped the process they paid out.

 

While I do own a couple classic cars that have appreciated in value, I buy my everyday cars for the experience of driving them. I am on my 5th Mercedes and third S.
I love my current ‘15 W222 4matic for the wonderful feeling I have while driving. Of course it continues to depreciate but that is of no consideration.
Think of it as going to a wonderful high end dinner. You do it for the experience, not as an investment, because you know that tomorrow it will be sewage,

 

The math is simple for depreciation. Assuming you just want the car, and your primary factor is to lose the least amount of money instead of a plastic-wrapped brand-new car, and willing to search for a like-new condition (but not new) with few miles... the ranking from worst to best is as follows:
1. Lease and new: The worst financial decision is to lease; u lose the largest amount of money.
2. Finance and new: 2nd worst is to finance given the low interest rates. If financing rates are high, this can be #1 as far as the worst financial decision to make.
3. Cash and new: Mid-ground is to just buy and pay cash for a brand-new, meaning u only buy what you can really afford (or what matches your definition of "money laying around" which varies from one person to another). Zero interest, pay what you actually afford, and deduct it as usual for business use if you can.
4. Finance and CPO/used: The 2nd best is buy and finance a lightly used CPO car with 10-25K miles. You will lose only half (give and take) the money u'd pay for a lease or financing.
5. Cash and CPO/used: Best financial decision is buy, and pay cash, for a lightly used car, even better CPO. You can even make money on this car later when u sell.

 

I bought my ‘15 W222 in January 2025. $28k total due. I could have paid cash but decided to finance at 6.75%. I kept the money in Vanguard S&P500 ETF.
S&P500 up 26% since Jan 25. Net gain of approx 19% so far

 

Glad that it worked out for you. Anyway, like I said earlier, I think the value or magnitude of money laying around differs from someone to another anyway so I get that there are better cases for some. Some prefer to pay cash, if it feels like a small amount, while still investing as normal with better monthly freedom to invest more. It's a risk equation.

 

You guys are not getting the point of my Original Post. My question is NOT whether I can afford it or not as I can afford it and I do have all the money to spend on cars. However, I do feel bad if I buy and spend money on cars as they are depreciating assets. I am just looking for owners who do share same thoughts I have and how did they manage to overcome it. That's really my question.

I do agree, I am one of the people who I do not enjoy what I earn when it comes to getting toys. I always set priorities to other things and don't ever think about rewarding myself

 

Thanks for your input. If you can still finance in today's rates and still beat interest rates in stocks, that's perfect. Since the stock market is all time high now, I am not willing to invest any dollar until major correction happens so I would still prefer to buy cash at this moment

 

When I got my S65 last year I sold stocks to pay for it. For a minute I thought about using a 5% loan to pay for it, and yes I would have made more money doing so by keeping it invested in the market, but the reality is the difference I could have made by keeping it invested is not that significant. The same for the depreciation.

I don’t mean to downplay the amount. It’s just that the difference or the depreciation wouldn’t change my life one bit. It’s like going to a restaurant and deciding not to pick the entree I want because its price is higher than an alternative and if the $20 instead was invested for 50 years it could have turned into….a car I’ve wanted but won’t buy anyway because it’ll depreciate.

I’d kindly suggest exploring why you feel the way you do as you’ve acknowledged you can afford it but the opportunity cost to you still remains so high.