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Resale is simply supply and demand. Add other factors such as cost of ownership, reliability etc and that also affect resale. The market is heavily saturated with German luxury cars in general. A huge percentage of them are leased which creates a ample supply of cheap used ones. This goes back to supply and demand and drives down the resale value. It’s also not just the first year, they continue to depreciate rapidly, year after year.
Want to hear opinions why AMG cars (and M as well) loosing so much in first year of ownership comparing with Porsche.
example:
SL63AMG loaded costs 170K, 110K after 1 year.
911 similar 170K, 150K after 1 year.
Desirability.
SL is long in the tooth, outdated and in need of a restyle, was never as attractive as all previous generations used to be (and which enjoyed a pretty good resale).
911 is still a benchmark among sports cars and still in demand, even with being overproduced lately.
I just made a post about this not too long ago. Kind of. Mine was more in regards to leasng.
$115k 2018 M5s are already going for $86k asking, which I'd imagine could be brought down with little to no effort.
I see a $121k 2018 E63S sedan going for $82k asking. I'd eat my hat if that wouldn't go for $78k-$80k out the door. Although this listing may be the outlier. There are many more in the $84k-90k range.
1st year depreciation = from $120k to $80k = $40k = 33%.
You can get a 2015 F10 M5 with 40k-50k miles on it for $40k asking. Assuming $120k sticker, that's $80k of depreciation from 2015 to 2019, aka 66% in 4 years.
@Mandarin is there an app to view auction results?
Or are you in the trade and getting this off Adesa / Manheim portals?
would be curious to see the same info for wagons only
@Mandarin is there an app to view auction results?
Or are you in the trade and getting this off Adesa / Manheim portals?
would be curious to see the same info for wagons only
You should have dealer/car broker license to get access to that info. I don't have it, that screenshot has been provided by my friend's dealership because I've been considering to trade-in e63s for something else, but seems like it's not going to happen since I'll lose a ton of $$$$. Will check a year later what is resale value is going to be.
A combination of a couple things. The average person barely uses the modest horsepower their turbo 4-cylinders and diesels make, let alone feel the need to buy 500-600hp gas-guzzling versions. And despite what it looks like on these forums, the average household doesn't make enough to support the purchase of an AMG over basic transportation. Hence the low demand in the big scheme of things. Another factor is that we're heavily conditioned to expect steep depreciation on German luxury vehicles, so people hold off on purchasing anything close to retail on used models. In short, cars are depreciating assets, AMGs just do everything faster, including depreciating.
Love this topic.. and have always been value minded... so if you bought this as your dream car, what is worse, taking the awful depreciation at 1, 2 or 3 years? Or deciding to keep it for 10 or 15 or more? If it is way riskier to keep for 10 than to lose half in 2 years please advise! Interested in all thoughts!
Last edited by Pioneer222; 07-31-2019 at 04:27 PM.
Love this topic.. and have always been value minded... so if you bought this as your dream car, what is worse, taking the awful depreciation at 1, 2 or 3 years? Or deciding to keep it for 10 or 15 or more? If it is way riskier to keep for 10 than to lose half in 2 years please advise! Interested in all thoughts!
Advise....you bought the wrong car if you are value minded. Sell/trade it for a toyota or honda and call it a day. I'm sure most folks who buy AMGs, Ms, or RSs don't buy them for the value.
Love this topic.. and have always been value minded... so if you bought this as your dream car, what is worse, taking the awful depreciation at 1, 2 or 3 years? Or deciding to keep it for 10 or 15 or more? If it is way riskier to keep for 10 than to lose half in 2 years please advise! Interested in all thoughts!
Some people can't drive one car for years, I'm one of them. Only one car I had for over 3 years all others were in my in possession of fewer than 2 years. There are a lot of cars around that you can drive doesn't make any sense to stay with one for years.
I love my current e63s but simply want to try something else.
But in my head AMG is going to lose its value with first 1-3 years super fast then will slowing down for sure and I would say better to keep it for at least 3 yers if you value-minded person.
Yeah i got it that a honda is better value.. i am just aasking for commentary or consensus on it being crazier to take the hit and move on.. or keep.. if it is far crazier to keep I would like thoughts... i.e. not a super car but i kept a snazy r volvo wagon for 13 years and loved. It.. i easily could keep this E63 Wagon that long... unless it make way more sense to take a 50 percent hit in two years? That is what I am getting at.. thanks.
If the redesign from 2016 to 2018 hadn't been such a big change I would have gone with a couple year old car coming in off lease.
The 2018 was improved enough that in the end I was enticed to buy it rather than a used earlier model, and I also didn't want to wait a couple of years for the 2018 models to come on to the used market.
So I bought knowing that I'd be paying significantly more for the car than if I purchased a two year old model. I don't look at it as eating a significant depreciation because I tend to keep the cars for a long time so value of the car at 10 or more years down the road in 2028 of the 2018 versus a 2016 is probably only a few thousand dollars.
The difference is the acquisition of the car cost $150+ k after taxs and all that, versus maybe $90+ k after taxes for a used E63S. Figure I've tossed away $60 k give or take but I knew that was going to happen going in. On the bright side, I got to spec every option on the car as I wanted and do the Euro Delivery with my family.
Financed the car for a year then paid off in full. Cost of money trade versus expected gains on some investments. Once the equation balanced out to my trigger point, paid it off.
Probably the single worst investment / decision I've ever made in my life from a financial point of view, but one made with my eyes open going in.
Tracking completely. Ours mostly will be paid off in one year.. the $ are alralready mentally gone and justified from other inveatments... so inclined to just keep it.... unless that is crazy! Thanks
Originally Posted by E634Me
If the redesign from 2016 to 2018 hadn't been such a big change I would have gone with a couple year old car coming in off lease.
The 2018 was improved enough that in the end I was enticed to buy it rather than a used earlier model, and I also didn't want to wait a couple of years for the 2018 models to come on to the used market.
So I bought knowing that I'd be paying significantly more for the car than if I purchased a two year old model. I don't look at it as eating a significant depreciation because I tend to keep the cars for a long time so value of the car at 10 or more years down the road in 2028 of the 2018 versus a 2016 is probably only a few thousand dollars.
The difference is the acquisition of the car cost $150+ k after taxs and all that, versus maybe $90+ k after taxes for a used E63S. Figure I've tossed away $60 k give or take but I knew that was going to happen going in. On the bright side, I got to spec every option on the car as I wanted and do the Euro Delivery with my family.
Financed the car for a year then paid off in full. Cost of money trade versus expected gains on some investments. Once the equation balanced out to my trigger point, paid it off.
Probably the single worst investment / decision I've ever made in my life from a financial point of view, but one made with my eyes open going in.
You should have dealer/car broker license to get access to that info. I don't have it, that screenshot has been provided by my friend's dealership because I've been considering to trade-in e63s for something else, but seems like it's not going to happen since I'll lose a ton of $$$$. Will check a year later what is resale value is going to be.
you are tired of e63s too?! how long have you had it?
Advise....you bought the wrong car if you are value minded. Sell/trade it for a toyota or honda and call it a day. I'm sure most folks who buy AMGs, Ms, or RSs don't buy them for the value.
Not that I ever worry about resale value because I just drive and enjoy BUT! Porsche 911's do hold their value. I lost nothing on my 911. Buy it, drive it, enjoy it and remember that you are driving a awesome sounding big engined car!
Yeah i got it that a honda is better value.. i am just aasking for commentary or consensus on it being crazier to take the hit and move on.. or keep.. if it is far crazier to keep I would like thoughts... i.e. not a super car but i kept a snazy r volvo wagon for 13 years and loved. It.. i easily could keep this E63 Wagon that long... unless it make way more sense to take a 50 percent hit in two years? That is what I am getting at.. thanks.
The thing with AMG is that they lose their value rather quickly. I sold my 2013 performance pack for 35k after four years because most that looked at it didn't care for the Porcelano Napa leather interior on polar white exterior. Was a great car with no issues during ownership. Now the E63s sedan or wagon is the same unfortunately. But really, a Honda? I have one of three Edition 1 wagons in the U.S. but apparently it's not worth any more than any other wagon. I plan on keeping it for quite some time as it's very utilitarian while still being able to smoke just about anything on the road and, yes, I paid cash for mine. Is it a sound "investment?" Depends on what one means. I could have made more on stocks but stocks don't make me smile as when I drive this AMG which certainly does so I don't care about lost value as it's valuable to me.
Concur Completely...but I did not suggest the Honda - someone above did when I said I was usually value minded. Meaning I usually weigh out lots of things before decided what is a value for me - and agree - this car makes me smile way more that the stocks that paid for it. Thanks! I may just keep this thing.
It is an expensive hobby, some may call it an addiction for the newest, quickest, etc.
I know I am making a bad financial decision but just can not help myself.
Life is short, getting new cars frequently is fun and in the end, what difference does it make whether I die with millions in my accounts or just a few dollars?
My family is provided for, kids received their education all paid for, have a place to live, cars, etc, if they want more they can (and should ) earn it themselves.
It is an expensive hobby, some may call it an addiction for the newest, quickest, etc.
I know I am making a bad financial decision but just can not help myself.
Life is short, getting new cars frequently is fun and in the end, what difference does it make whether I die with millions in my accounts or just a few dollars?
My family is provided for, kids received their education all paid for, have a place to live, cars, etc, if they want more they can (and should ) earn it themselves.
nicely said.
Vacation is financially a waste of money, drinking expensive wines is a waste of money and keep going. But for some of us we earned it and we enjoy it.
I enjoy my wagon every day and plan to keep it till I don't have any significant problems. Probably will add little convertible pCar to enjoy something different.
07-31-2019, 05:11 AM
