Are used MB prices dropping rapidly?

[PC Dave]

When I have a few spare minutes at the office, I tend to check out the MB auctions on ebay (I know I'm not the only one). Say what you will about buying on ebay, it's useful for getting a general sense of where the market is, especially by watching the buy it now prices, the prices auctions actually close at, and the ones that don't meet reserve.

In the last few weeks, I've noticed that some of the cars I tend to watch, notably late 126's and late 124's, have dropped in price quite a bit. There are decent looking '95 E320s with buy it now under $9k, and E320 cabs with low miles under $20k. As in any market, some people still haven't got the word, and you see two seemingly identical cars priced at $20k and $35k respectively.

0% financing deals, $7-11k off MSRP pricing, and the economy in general have pushed down used car prices significantly since 9/11, but the fall seems to have accelerated lately. Anybody else noticing this, or am I extrapolating from a few outlier auctions?