Drastic Devaluation on MB and other luxury cars

[zero]

I am curious, I've owned a few used "luxury" cars. The main reason being, they devalue SO quickly.
I am curious as to why that is.
My car friends and I have decided that its due to a combination of reasons. The intended user wants something perfect and new, to show off. They do develope problems due to their complicated and "ahead of their time" systems. And, those systems cost 200 dollar an hour diagnostic fees and incredible parts prices if you get it fixed at the dealer, usually the only place that will work on them.
SO, if you have say, a Mercedes with 100k+ miles on it, it is expected it has more problems than anyone would put up with, at a cost of repair that would far outweigh the car.
Any other ideas?

This is my first Mercedes, but the car is put together so nice, and the bodies are so rust resistant, and the retail is so rediculously low and used parts are so cheap and plentiful, i can see making a hobby of buying broken mercedes and fixing them. Not for profit, but for fun and transportation.

[450slcguy]

Originally Posted by zero

This is my first Mercedes, but the car is put together so nice, and the bodies are so rust resistant, and the retail is so rediculously low and used parts are so cheap and plentiful, i can see making a hobby of buying broken mercedes and fixing them. Not for profit, but for fun and transportation.

Agreed about the retail costs, but parts "so cheap"? Being your 1st Benz, I would hold off on that judgement for awhile. Where are you buying your parts and what have you bought? You can save alot of cash shopping on the net, but be carefull, some knock off parts can be quite poor in quality.

[waybomb]

Knock on wood here, I have very few repairs on mine. I buy my parts on-line, and do the work myself. I really do love working on these cars. I would guess my cost of operating, not counting fuel, is about 5 cents per mile, or less, on each of them.

Let the values drop so I can by that late model bi-turbo V12 SL.

[Mark DiSilvestro]

Originally Posted by 450slcguy

Agreed about the retail costs, but parts "so cheap"? Being your 1st Benz, I would hold off on that judgement for awhile. Where are you buying your parts and what have you bought? You can save alot of cash shopping on the net, but be carefull, some knock parts can be quite poor in quality.

Well, 'zero' did say "used parts so cheap".
I find many parts for the more common 'bread & butter' Mercedes models are plentifull and not particularly expensive. At least not compared with similar parts for some Hondas or Toyotas.
I'm currently refurbishing a 240D that I bought for $225. I've gotten various new and used parts from local suppliers and they've been pretty reasonable. Some of the new parts are from the same manufacturers that supply Mercedes or actually come in Mercedes packaging.

Happy Motoring, Mark

[450slcguy]

Originally Posted by Mark DiSilvestro

Well, 'zero' did say "used parts so cheap".
I find many parts for the more common 'bread & butter' Mercedes models are plentifull and not particularly expensive. At least not compared with similar parts for some Hondas or Toyotas.
I'm currently refurbishing a 240D that I bought for $225. I've gotten various new and used parts from local suppliers and they've been pretty reasonable. Some of the new parts are from the same manufacturers that supply Mercedes or actually come in Mercedes packaging.

Happy Motoring, Mark

I missed the "used" word, I stand corrected.

[Hatterasguy]

If one wants to buy say a two year old Honda Accord, you will save about $2k-$3k off sticker. Try that with an E320/350.

High end cars drop in value like a rock because parts are expensive, they are complexe, there market is limited, and in general they are pricey to keep.

Works for me, I'm not complaining when I can buy a 5-6 year old S for about $25k. But if one is not a car or MB fan that same $25k will buy a new, almost loaded Camry or Accord.

[nh500sl]

I also feel that thre r107 SLs and E24 6 series Bimmers are woth less now then what they should be.

[Mark DiSilvestro]

Originally Posted by nh500sl

I also feel that thre r107 SLs and E24 6 series Bimmers are woth less now then what they should be.

Like the '70s W114 Coupes, values of these cars should rally, as prices of even older and rarer models skyrocket. They're also relatively spartan and simple compared to todays overly complex and computer-laden Luxo-boats. And consumer reliability ratings for many European luxury marques are now rivalling the poor scores once reserved for cheap British and Korean cars. Most late-model luxury cars will suffer free-falling resale values as second or third owners find them to be virtually unrepairable when the electronics start to go. Plus, compared to such classics as BMWs 6-series coupes or even the W108 sedans, I find many of today's ultra-luxury cars, like the Maybach or BMW 7 series, to be downright ugly!

Happy Motoring, Mark

[zero]

High end cars drop in value like a rock because parts are expensive, they are complexe, there market is limited, and in general they are pricey to keep.

I dont know.. the parts are a bit more expensive, if one is silly enough to visit a benz dealer. Other than that, they are about average. Even better, i can FIND parts. Try that with an old honda, they just dont sell some parts anymore. You can find parts for a 75 merc, a 75 toyota? maybe an oil filter.

Complex? Now, i am comming from 80s merc standard. Nothing could be LESS complex. Now i grant that there are systems a honda doesnt have, like headrests that plop down on command. But, they are engineered to be fixed as well as work right. A 1985 car is likely to be carburated, but with so much vaccumm and sillyness, they are a nightmare. The merc with it's mechanical fuel injection is only confusing due to being rather unique. But otherwise so easy to figure out and work on.

[Hatterasguy]

Afaik the 2007 Camry uses standard shocks, what maybe $200 each from the dealer? The 07 W221 S uses what adaptive air ride or something like that? I bet those suckers are a cool $1k a corner.

Parts cost a lot more because they are more complex cars, nature of the beast. I spent $300 on a rebuilt climate control unit on the SDL, my moms old 86 GM car did not have a climate control unit!

Oh yeah high end cars cost a bit to keep going, unless you don't fix anything and drive them into the ground like a lot of people do.

[Mark DiSilvestro]

Regarding the typical mid '80s Mercedes, particularly the S-class, even those relatively simple cars suffer when second or third owners, are reluctant to pay what a repair shop charges to maintain them. The problems will multiply as today's computer-chip infested wondercars age and make repairing an '80s S-class seem like child's-play. I believe that much of today's high-tech gadgetry isn't really necessary, but just the result of manufacturers trying to 'out-tech' each other. Are those thousand-dollar-plus suspension units really 5 or more times better than a Camry's shocks? Is the second or third owner going to pay for the repairs when one breaks? I know people that have junked perfectly good 15 year old cars because they couldn't afford the repair of a defective anti-lock brake system.
Now we have the latest Lexus ads bragging that their car actually parallel-parks itself! Despite Lexus excellent reliability reputation, when it's time to replace whatever I'm driving in 2016, I won't be shopping for a 10 year old Lexus. I prefer to not risk a 'parking malfunction'.

Happy Motoring, Mark

[Hatterasguy]

15 year old cars are old. MB only has ever cared about the first owner, thats where they make there money.

The new Camry is not in the same league as the new S class, miles and miles apart. If you can afford a $100k car you should be able to afford to buy yourself a new one every 5 years or so.

[Mark DiSilvestro]

Originally Posted by Hatterasguy

15 year old cars are old. MB only has ever cared about the first owner, thats where they make there money.

The new Camry is not in the same league as the new S class, miles and miles apart. If you can afford a $100k car you should be able to afford to buy yourself a new one every 5 years or so.

Well, at least for now, Mercedes still makes parts availible for some of their classics (and the 'drive forever' cars that made their reputation!)
If contemporary $100k cars are so 'disposable', why would I want one. I suppose today, you're just not 'somebody that matters' unless you can afford to discard a $100k car every 5 years!

Happy Motoring, Mark

[PaulC]

In 1972, my physician purchased a 350SL 4.5 which was $10,500 MSRP. In 1976, I spotted a new 1976 450SL on the showroom floor, essentially the same vehicle, for $16,500. In 1973 the w116 450SE and 450SEL made their North American debut at $13,500 and $14,500 respectively. By decade's end, these were $30,000 cars. Carry on through the 1980's when a w126 560SEC was a $60,000 prospect. The steeply climbing MSRP's throughout this era did wonders for buoying used Mercedes resale value. Fast forward to the mid 1990's when MB was under sales pressure from Lexus to start leveling off this price escalation. The resale of w140's and w220's were particularly hard hit by this situation.

Look at Ted! $6,995 for a perfectly good '03 S600! As Jeff Spicoli once said, "Righteous bucks!"