BLee80

Hey Everyone,

Im looking to order a 2019 sedan here very shortly. Im still trying to decide between leasing and buying. I usually lease all my cars but am having some second thoughts due to the crappy MF. Can someone give me a rough idea of what the car might sell for in 3-4 years with 30-40k miles on it? I know its just a guess but I just want a ballpark. Am I looking at 50% or 60% depreciation? thanks in advance!

stealth.pilot

50% at 36 months is a good benchmark.

BLee80

Awesome. Thank you!

susman@eurogermantown.com

on a 2018 E63 sedan the residual value is 54% assuming you do 10k miles a year.. drop another % for 12k miles a year.. 51% for 15k miles a year..

TheFranchizeSLB

insane how a $120k car drops to $60k in 3 years... insane! without any tax loopholes for leasing -- why would anyone purchase this outright? am i crazy or is that literally like throwing money out of the window to own it (even if you have that kind of money to blow)..

Vic55

Id argue even these percentages are too favorable compared to the market after 3 years. My guess, in the real world, is that the E63S with 45k miles in 3 years will lose upwards of 60% of msrp. But lets remember that residual %'s are based off MSRP and not invoice or triple net (thank god).

MBUSA does participate in residual support with MBFS on most cars to help move the metal so while MBFS might have a higher residual, the real value is less. When i was building McLaren residuals for a bank (first to do leasing with them) we forced McLaren to help participate in a residual guarantee because if they didnt the auction bath would be bloody at lease term. Banks and Leasing companies, live and die off the residual returns- unless its a very small institution that focuses on specialty higher end units (they do open ended leases mostly)

2012 merc amg

Sounds a little low to me, but then again I keep my cars like new and drive maybe 10 to 12K miles a year and don't do a bunch of mods. I'd hope my car in 3 years would be worth something like this 2016 which is now 3 years old. Assuming he gets 72K for the car the sticker was probably around 122K, price paid more like 114K so more like a 42K loss over the 3 years which is 14K depreciation per year which is not too bad. https://www.autotrader.com/cars-for-...elCode1=E63AMG

Clk63blkseries

Wagon has a little better resale then sedan

Pertplus

Here are the reasons you may want to purchase outright vs leasing (did they change the tax laws for certain businesses being able to write off car leases?):

1) You never want to worry about mileage limitations;

2) You plan on keeping the car to a point where the ACV and payoff (if there is any at that point) are either even or you come out ahead;

3) You want to do major engine modifications or heavily track the car; or

4) You want to have an asset on your credit (assuming you buy it with no financing).

susman@eurogermantown.com

still trying to find a 14-16 e63 wagon for decent deal..waiting for a trade in lol..

visualguy

If you keep for much longer than 3 years, then buying makes a lot more sense. This is particularly attractive for people who don't drive a lot. For example, if you drive only 5K or 6K miles a year, there should be no problem with keeping the car for 8-10 years. This would be MUCH less expensive than paying for 3 or so leases.

drbeck13

You are correct Its why I lease as well. I've done both AND the numbers are almost identical leasing vs. buying I hate paying 10% to CA tax on a new car knowing I may KEEP it four years but on sale never getting that back! IF you keep the car more then 5 years then buying maybe be a bit cheaper, but not much.

visualguy

Two leases (6 years) is pretty much equivalent to fully paying for the car. After 6 years, you have nothing if you lease, but you have a car that's still worth tens of thousands if you buy. Beyond 6 years, the financial advantage when buying is even more compelling. The problem is that repairs can be a pain, but if you don't drive all that much, this shouldn't really be a big concern.

E634Me

With the exception of one vehicle, I've always kept my cars longer than 6 years.

So for me buying seemed more appropriate as I'll likely keep the car for 10 years or longer given past experience.

For the first time I purchased an extended warranty so I'm good out to 7 years for most things. After that, even a relatively expensive repair is still a fraction of the price of a new car.

visualguy

True, but it's a big hassle, and it's hard to find truly competent service. From my perspective, it all depends on how much you drive. 12K or more miles a year - lease. 8K or less miles per year - buy. Somewhere in between - I would still buy, but it makes less difference.

E634Me

Well under 8,000 miles a year. I live close to work and have several vehicles to spread the mileage over.

The first year for the E63S will be about 10,000 miles, but that includes the touring in Germany and the cross country drive from Germantown to San Diego. Subsequent years should be much lower.

Slugsy

drbeck13

Thats why you are the perfect candidate for purchase. Makes sense. I'm debating about by C43 (which is on a dock in Germany), whether or not to lease or buy. I keep asking myself...self..."are you going to love this car and keep it for 4 years more..."? haven't decided...

susman@eurogermantown.com

the 18 C43 lease was fantastic for 48 months...not sure yet for 19's..October before we know

HDEddie54

I have wonder the same myself through the years but I don't find a compelling case for either one. I thinks the "money-out-the-widow" is the price we (enthusiast) pay to drive a particular car. But the low residual or market resale value is just a fact of car life...except for vintage collectables or super rare exotic rides, cars just depreciate. Yes, there are brands and models that may have higher resale or residuals after 3/5 years but they may not be the models you want. Even then, the spread between our car (anybody on this forum) compared to the high residual/resale cars might be 10% or less. One survey I read showed the Suburu WRX at 57% after 3 years. But I don't think any one on this forum is cross shopping a Suburu. So, no disrespect meant by my post. No, I don't have $ to blow but I think we enthusiast lease or buy our cars and the money-out-the-window (for a high depreciating car) is the cost of driving. I guess each person has to decide weather to live with that kind of cost (like the expensive vacation I took with wifey and after 2 weeks it was over! ha-ha). Otherwise, I would have kept my '89 Honda from way back which is probably still running somewhere and even has a higher relative resale value than the AMG I want to buy.

NYC365

Lease the car, beat the hell out of it, and let it be the next person's problem. Best way to go.

TheFranchizeSLB

I understand where everyone is coming from... let me ask those who said they prefer buying since they'll keep: do you buy at the depreciated amount (CPO) or brand new because you like that feeling of it being your car from the beginning? CPO offers all of the perks of new (similarly) but obviously isnt new... i have always bought(used) since i do believe in having that equity towards my next purchase... but buying new seems a bit crazy... hopefully i will get an e63s next after my CLS.. but im still leaning towards buying CPO... leasing is starting to become something i consider tho since i just started a company in which i can write some payments off..

BC-2

I'm sure there are plenty of various reasons people choose to buy new but for me, it is a few things. In the case of my E63 S, deciding to buy this car also meant I wanted exactly the color, and options that interested me so I wanted an exact spec and this was not available off any showroom floor. I could have saved money buying a car that was in a dealers inventory and of course even more if I bought a used one on top of that. However, if I'm going to spend the money, I'm going to get exactly what I want rather than settle for what someone else wanted. To me, this is a bit crazy. For many people, this is a fine option, but not for me. Also, I find additional enjoyment in a brand new car, especially in this category. This comes at a cost (buying new) which I have no problem paying. These are the main reasons for me, others will vary.

HDEddie54

If its the W213 E63 AMG you're considering, you might find the selection of M/B CPO on the short side. My recent search showed only 1 2018 E63S on M/B website and about a dozen on the secondary market. All these used E63 AMG were asking in the $100-$110K range. So unless there is a E63 CPO with all sorts of options included (that you would not have ordered) and an extended warranty, then maybe a new factory order with a 4 year warranty the better value proposition. This might change in a few years as more W213 are available for CPO but for now, with limited supply of a relatively new model, CPO deals don't seem that attractive.

visualguy

You can keep longer if you buy new. If you keep for a long time, buying new is fine. Also, you never know what issues used cars have, and what they went through, regardless of CPO.