SL/R129: Depreciation
12-13-2003, 03:14 AM
#1
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Depreciation
Someone posted recently that they had bought a 2002 SL500. Were happy but commented that MB depreciates like an anvil in a vacuum.
R230s are not depreciating that much right now are they? If so, only because of the horse power war going on.
When the series swithces to a new version. The later series becomes a bit redundant.
Just before we bought in Dec 2002 the R129 had dropped about $ 20K Canadian ($14 K US) in the previous year because of the introduction of the R230.
R170s that are 13 years old still are advertised on MB Canada for $30 K Canadian. Not bad for a 13 year old car.
At this rate my R129 I bought for $ 70 K Canadian will still be worth $ 30 K 10 years later. Lots of fun to be had for $ 40 thousand over ten years.
A good investment if you can afford the initial capital outlay.
R230s are not depreciating that much right now are they? If so, only because of the horse power war going on.
When the series swithces to a new version. The later series becomes a bit redundant.
Just before we bought in Dec 2002 the R129 had dropped about $ 20K Canadian ($14 K US) in the previous year because of the introduction of the R230.
R170s that are 13 years old still are advertised on MB Canada for $30 K Canadian. Not bad for a 13 year old car.
At this rate my R129 I bought for $ 70 K Canadian will still be worth $ 30 K 10 years later. Lots of fun to be had for $ 40 thousand over ten years.
A good investment if you can afford the initial capital outlay.
Last edited by ChrisB; 12-13-2003 at 03:20 AM.
12-19-2003, 12:32 PM
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Bought my '95 SL500 in 98 for $62K. Sticker was about 97K. Car had 9,000 miles, now has 26,000. It's in primo shape so I think I could get may be $30-35K for it. But there is no reason to sell - the car is still a blast to drive and is one of the best looking cars on the road - still!
12-19-2003, 03:00 PM
#3
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1997 SL500
From my experience the depreciation of a vehicle depends on a few different things. Popularity, supply/demand, initial cost. Using the 129 body compared to the 230 body there are a few factors.
Lately you have seen a drop in the value of the 129 body becasue the there are more 230 available since this is the second year of the car. Since the 230 body is such a popular car the demand for the 129 body will be reduced becasue of the ability to get a 230 used has increased. So a person who has the means to buy a 2002 but may be able to pick up a used 2003 instead. You will see a little bit faster depreciation on the 129 body the longer the 230 are out. If the new 230 body style was not a desireable model then you may not see a lot of people wanting to move to the new body style and keeping their 129 cars. If this was the case you would see the value of the 129 holding a higher or less depreciation in price.
Another strong factor which is related to the one above is the supply/demand of the car. Alot of people who have 129 want to upgrade to the 230 body style. So people are trading in there 129 leases or trading in the 129 for the 230. Since there are a lot of 129's the price will be pressed lower because you have more people trying to get rid of a car which has a greater supply and people are willing to take a lower price just to get rid or the car.
One thing that you have to understand is that cars with High purchase prices will loose most of their value in the first year or two. Once the car takes the hit on depreciation in the first few years you will see the depreciation levels change. A good exaple is to look at a late 90's 129. The 98 started out at 80K and now you can pick one up for 28-39K depending on where you look. So you r looking at about 40-50K drop in price in 5 years. If you look at the value of the 98 129 say 3 years from now you may see these cars going from 20-28K. You will be looking at less depreciation than the first few years. For the mercedes you will see a point were it the depreciation will almost bottom out.
Lately you have seen a drop in the value of the 129 body becasue the there are more 230 available since this is the second year of the car. Since the 230 body is such a popular car the demand for the 129 body will be reduced becasue of the ability to get a 230 used has increased. So a person who has the means to buy a 2002 but may be able to pick up a used 2003 instead. You will see a little bit faster depreciation on the 129 body the longer the 230 are out. If the new 230 body style was not a desireable model then you may not see a lot of people wanting to move to the new body style and keeping their 129 cars. If this was the case you would see the value of the 129 holding a higher or less depreciation in price.
Another strong factor which is related to the one above is the supply/demand of the car. Alot of people who have 129 want to upgrade to the 230 body style. So people are trading in there 129 leases or trading in the 129 for the 230. Since there are a lot of 129's the price will be pressed lower because you have more people trying to get rid of a car which has a greater supply and people are willing to take a lower price just to get rid or the car.
One thing that you have to understand is that cars with High purchase prices will loose most of their value in the first year or two. Once the car takes the hit on depreciation in the first few years you will see the depreciation levels change. A good exaple is to look at a late 90's 129. The 98 started out at 80K and now you can pick one up for 28-39K depending on where you look. So you r looking at about 40-50K drop in price in 5 years. If you look at the value of the 98 129 say 3 years from now you may see these cars going from 20-28K. You will be looking at less depreciation than the first few years. For the mercedes you will see a point were it the depreciation will almost bottom out.
12-20-2003, 03:09 AM
#4
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Agree with that. If you constantly replace your cars from new every 2 or 3 years, you will be funding constant heavy duty depreciation. Only if you get into a newly released car early and out again before the novelty wears off can you avoid it.
My solution it to buy cars and keep them for a long time. My Ferrari is 8 years old and has probably stopped depreciating as such. It's value will be related to its condition, not age. My SL600 is 7 years old tomorrow (Happy Birthday....), has depreciated by at least 75% since I bought it, but is still in excellent condition and there's no reason to sell it, the car is worth more to me than I could get by selling it.
My solution it to buy cars and keep them for a long time. My Ferrari is 8 years old and has probably stopped depreciating as such. It's value will be related to its condition, not age. My SL600 is 7 years old tomorrow (Happy Birthday....), has depreciated by at least 75% since I bought it, but is still in excellent condition and there's no reason to sell it, the car is worth more to me than I could get by selling it.
12-26-2003, 07:29 PM
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E 63S Wagon Renntech, E55 Renntech, SL65, SL 55 030, ML, bunch of old ones--they come, they go...
Gotta say it again.....
TOO MUCH PRODUCT in the marketplace. Not just Benz, but Porsche, BMW, Audi too. Things were better when there was less product, better resale, and dealers had more margin to play with. The only group benefitting from this strategy is DC. And boy are they benefitting.
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