I know this subject has been posted before and will be in the future.

I'm selling my 07 SL55 on eBay and several other sites without success even though my price is very competitive when compared to other less equipped 07 SL55's. Yesterday I drove my car to a local high-end reseller to test drive an 07 BMW Alpina B7 that retailed new in 07 for $122K. The asking price is $58,500 with 26K on the speedometer (I have 28K). What a beautiful car but that's off subject. Anyway, my Sl55 retailed in 07 for $154K, over a $30K difference compared to the BMW. When I asked what my car was worth in trade with a CPO I was quoted $52-53K based only upon recent auction prices. Carmax also quoted me $53K based again on auction prices. Features, options and condition are no longer factored in. So, I re-valued my car using KBB, Edmunds, Vehix, and NADA. My current price is well within the trade-in/private party values established by these "notable and reliable" sources.

My point is, it doesn't make sense anymore to trade your car in because you're not going to get a fair price for it. If auction prices are the only indicator of value then selling it yourself (unless you are desperate to sell it for a lot less than its worth and you enjoy a Vaseline finger) is the only sensible alternative solution. I've bought and sold a lot of cars and I know the dealer rules are get the sucker to "buy high and sell low" but current auction prices are killing private party and trade-in values, especially when it comes to high-end cars. Also, since I'm ranting and raving here IMHO, those of you with access to auction prices should not provide that info to the "newbie's and lookie-loos" that want to low ball everyone based upon auction prices only. Let them find another source. Bottom line, I will never sell or buy another car from a dealer. From now on it's strictly private party sales.

 

private party resale has always been better than trade-in for getting top dollar for one's vehicle when selling.

auction prices "killing" trade-in prices is debatable.

auction prices "driving" trade-in prices is probably a much more accurate statement

 

Auction prices have ALWAYS set the bar for trade in prices. The weekly black book that the dealers have are mainly derived from auction prices.

 

What is killing prices on luxury items is the current leadership that hates business and wealth in general. The socialist agenda is creating uncertainty, which affects supply and demand. Fewer people spending = less demand...... prices drop.

For us..... we have actually been busy. I call it the 'Home Depot Effect'. With less people buying new or newer cars, and guys still want to have fun. So, they spend a little and have some fun with what they already have.

 

Agree, its a better more accurate statement.

 

True.

+1

In bold, I don't think so. Prices on luxury items dropped bottom before said current administration. The rest is on point.

I can agree with the OP though, trade-ins to dealers in general have always been a losing battle, especially now.

 

So very true. I thought I was giving away my e55 at 33k. Carmax offered me 26. FML.

 

Whats killing things is not our clueless lying President. It's the over leveraged and broke consumers and businesses and insolvent banking system. No one put a gun to peoples heads to buy things they cannot afford or drive up the cost of housing until it collapsed. No one forced small businesses to overleverage themselves by constantly borrowing funds. Things will not get better until people and businesses work off their debt. Obama is foolish to try and reinflate the housing and financial services bubbles. It will not end well if he does.

 

in these trying times....keep it, mod it, and drive it...very fast!! remmember price of gas is down compared to '07 and '08 haha

 

I can commiserate with the OP's feelings on the pain of depreciation, but the whole idea of suppressing information on auction prices is ludicrous. It's this same information imbalance that leads to the artificially increased prices at the dealers particularly CPO. CPO has dubious value as it would probably be better to just extend the warranty to 7 years vs paying the CPO fee.

Most buyers that I have seen purchase high line cars tend to only keep them only 3-4 years. Therefore, the churn rate is quite high for these cars. As a result the depreciation is substantial and more in percentage terms than mid-market cars i.e. 5-series, E-class. Interestingly, the differential between a used S and used E is smaller than one would expect. These same buyers don't care to sell their cars on the private market. They simply sell them to the dealer or return their lease.

I myself looked into purchasing an S class for my wife earlier in the year and markup on a dealer used car and auction car was ~12k which is ridiculous in my opinion. A used car can easily generate a higher profit margin than a new car.

Just don't blame the consumer for trying to purchase his car at the lowest price possible. There will always be information asymmetry in any transaction. Private party transactions are better for both parties, but the lower than historical prices on the used market are more a function of lack of demand.

 

and have experienced a great deal of it myself. I'm in the industry, have been for years, and it is about as strange as I have ever seen it.

You've got lots of info in your post, some if it quite accurate, some maybe not quite as much. Unfortunately, your friends at Mercedes Benz are making this tougher for you, not so much your dealer. Once MBUSA gets through forcing more SL's down the dealers pipleline, why would he want to own used ones with less warranty and less available financing? One fact of the matter is that no matter how you slice it, the manufacturer/distributor (in this case MBUSA) is the party with the most money left in the transaction. Their profits are substantially more than the dealer's, and they hold the cards when it comes to the franchise agreement ("you don't want another new sl? to go with the 6 you already have that you can't sell at $100k? then gosh, it looks like the supply of new E classes has just dried up....").

As Benz geeks, we love SL's. I've owned at least a dozen, and will own more. But the fact is that demand drives sales, and there is just not that much demand for a $100k+ GT in this marketplace. As demand for new ones becomes softer, the used ones follow. I know it sux, for those of you who buy new. For those of us who buy slightly used, there is great stuff out there for remarkable dollars.

How about "no more NEW car purchases, ever again"? With the economy and credit in the state it's in, I'm not so sure I'm going to give some guy I just met $75k at his house with a payoff and a promise, only to find another hidden lien somewhere. Or a laser jet printed title with no lienholder. Yeah, I know you're smart. They are too. As a lawyer, I''m constantly amazed by the depths that criminals will go to. (It they are that smart and smooth, why are they wasting thier time being crooks?) You CAN find honest reasonable dealers--both new and non franchised ones--that are fair to play with, and will make your net cost of ownership better. If you are inflexible on options, colors, etc, and you want "what you want", then new may be your only alternative. Be prepared to lose. Big. And it's not just SL's. Have you seen the depreciation on late model Porsches? Or big BMW's? Or frankly, anything?

The days of buying new and losing a little in the short term are long gone. I know this doesn't make you feel any better. Just get a new strategy from here on out.. You have a beautiful SL, one of my favorite colors, so maybe she hangs around for a while longer....OK, flame suit on, go ahead.

 

Depreciation is a strange thing.
If you bought a new SL say 100k and put it in dry storage for 5 years , you would probably get 50-60 k but why? it's a new car!!

 

Simple: Because you can get a 5 year newer SL, with the latest and greatest technology for that same money.

 

All president's have lied, sent people to kill or be killed, spent ungodly amounts of money, etc...that's part of the job description. You only say this because you don't like who is occupying that job currently. I'm not a Bush fan or Obama fan, I am an American fan and I respect the office. We, or at least I, couldn't imagine what it's like to have such power and responsibility...and less than half the people in the world think you can't do the job or aren't capable. That encompasses the majority of our presidents.

That being said suckers are born every minute...including all of us who buy $100K+ cars only to see them descend into $10Ks cars a few years later. It's called capitalism which I fully support, love and participate in at my discretion. God bless America!!!