I think its more than just competition. I think that it is a change in philosphy. Mercedes used to build its cars with the philosphy that they would last for forever. As Mercedes goes mining for new (mainstream) customers, this philosophy and pride has gone out the window. New Mercedes buyers are not interested in what the cost of maintaining the car will be in 20 years. It seems most of them lease these cars and then move on.

Mercedes has changed direction. Models change after only a few years. Parts are getting more and more expensive. The cars are becoming unnecessarily complex.

I guess the thing I love about my 1992 500 SL is the low (yes low) cost of maintaining this car. I believe the reason is that the car was designed to last. It was understood that many of the parts would need to be replaced and rebuilt. This also is a reason that the car holds its value. People do not run when they see a 100 K Mercedes -- however they do when they see a 100k lexus or BMW. Look at the prices. This is all changing and I can only imagine what it will cost to keep a 2003 E class on the road twenty years from now. God forbid we even think of the cost of repairing the retractible roof of a new sl 10 years from now.

Look at the price of parts for cars like mine. We complain, but they are relatively low. Vacuum pumps, a water pumps, alternators, suspension parts etc. are all reasonably priced. It costs about $400 in parts to rebuild the front suspension. I do not think that $400 will buy even the struts on any lexus or BMW. For God's sake, a Mercedes steering box (rebuilt) is about $400.00. I think that this is true for three reasons. 1) Models were produced for a long time before major changes, 2) Models shared many parts and 3) parts were designed to be rebuilt.

Lexus changed much of this. It is a nightmare in this regard. I had an LS400 that rarely broke down, but when it did it was disastrous. I needed an AC compressor that cost $1000 for the part alone. No rebuilt units were available (Maybe this has changed since 1997?). What does a transmission on an LS400 cost? Steering rack?

A rebuilt transmission for my 500SL is about $1300.00. This is because Mercedes transmissions are DESIGNED to be rebuilt. When my 1995 740 blew a trans, the bill was $5000 (for a factory reconditioned unit). I searched for a company that would rebuild the trans, and no trans shop in Chicago would touch it. I was told that they were not designed to be opened up and rebuilt, except by ZF. I am sure that a transmission for the previous model, the 735, was much less money.

Here is my point. The junkyard is full of good japanese cars that required a major repair, but were junked because it was not cost efficient to do so. I am not an engineer, but I think the new philospohy, which BMW and Mercedes are adopting, places little emphasis on owners down the foodchain. That spells disaster for people who will own these cars 20 years from now.

In the end, we only put money in our cars because of the value they retain after the repair. As this disposable (replace rather than rebuild) philosphy grows, I think it will certainly affect the value of these new cars down the line.

Just look at the price of a 1995 Lexus LS 400. Almost perfect examples can be had for less than $10,000. Find an S class in same condition in that price range -- won't happen. Granted S class cost more when new, but today the difference in cost between a new LS 430 and an S430 is much much less.

Sorry for the rambling,

Mike