Based on the reactions I get, most people still seem to see MB as a prestige brand. I drove a friend to lunch in my 15 year old, diesel powered station wagon. He's fairly sophisticated and knowledgable about cars. He gets in and says "THIS is what you use to haul your dog around in!?!?" with an air of disbelief. As if it's too nice or some such thing.

On a related note, there was an article on used car residual values in the 'Personal Journal' section of Tuesdays' Wall Street Journal. It discussed how widely varying is the depreciation of vehicles, even within a market segment. The main input to the article was from employess of the Automotive Lease Guide - the defacto standard in setting residual values, and hence lease rates. MB is still on top in their opinion, despite the quality concerns of late. According to ALG, the number of problems in the first 90 days has little impact on a cars' value five years down the road - overall appeal in terms of design, durability, support, etc. are far more important. MB still excels in these areas. Hey, it's some good news...