Mercedes Benz is known to produce the most expensive luxury vehicle models in the market. Astonishingly, Mercedes Benz does not hold their value well; your car starts to depreciate immediately you drive off the dealer’s yard. According to caredge.com, Mercedes Benz loses about 40% of its value in the first three years.
The depreciation rate of a Mercedes Benz varies depending on the model and year of manufacture. Other factors such as the cost of maintenance, color, and initial price also play a role in determining how much value your car will hold after years.
If you plan to resell your car after some years, you need to research and find out which Mercedes model holds its value best since some models perform better than others. If you have no intention of reselling the vehicle, you shouldn’t have to worry about resale value.
This article takes you through some reasons why Mercedes Benz depreciates fast and takes you through the models that hold their value well and those that don’t. If you are looking to buy a Mercedes Benz, you will find this article resourceful in helping you decide the best model to buy. Please read through to the end.
Why Mercedes Benz Don’t Hold Their Value: Five Reasons You Need To Know
Compared to other luxury brands such as BMW and Audi, Mercedes Benz is more expensive and depreciates quickly. There are several reasons why Mercedes Benz depreciates faster than other luxury cars in the same class. Let’s look at these reasons:
1. High Cost Of Repair And Maintenance
The cost of repairing and maintaining a vehicle dramatically impacts how well it will hold its value. Mercedes Benz depreciates quickly because they have high repair and maintenance costs. The average price of maintaining a Mercedes every year is $908, which is relatively high compared to brands such as Toyota, which cost an average of $441 per year.
2. Most People Prefer Buying New, Causing Little Demand For Pre-Owned Vehicles
Mercedes Benz is meant for people with class; they will hardly buy a used car, and most will prefer buying new. This reduced demand makes the vehicles depreciate significantly immediately they are used. Most Mercedes users hold onto them and sell them after five years or more to get more advanced models and trims. After this time, the vehicle will have lost much of its value; not many buyers will be willing to buy, so owners will have to sell the car significantly less to get a willing buyer.
4. Mercedes Is Not Reliable
When buying a second-hand Mercedes Benz, you already know that you will spend a lot of money on maintenance and repairs. If the car isn’t well driven and maintained, you might end up driving the car for only a few years. Most Mercedes Benz models will develop issues after reaching 100,000 miles. Mercedes Benz is among the most unreliable luxury vehicle models in the market. According to Repair Pal, Mercedes has a reliability score of 3.0 out of 5 and ranks 27th out of 32 car brands.
4. They Are Commonly Leased And Returned, Causing An Influx Of Used Vehicles In The Market
Another reason why Mercedes Benz depreciates faster is that they are commonly leased, which causes an ample supply of off-lease vehicles. When you lease a Mercedes for three years, the most depreciation will have taken place. Leasing a car also means that the car will be returned to the market after three years, causing an influx of used cars. The flip side of buying an off-lease Mercedes is that you can buy a good Benz with less than 50,000 miles on the odometer for cheap and enjoy driving it for long.
5. Expensive Spare Parts
Other than the cost of regular maintenance, the cost of repairing Mercedes Benz is relatively high when a warranty does not cover you. OEM (original equipment manufacturer) spare parts are expensive, and aftermarket parts are not cheaper. Most times, you will need to visit specialized and certified engineers to repair your car, and the cost will be relatively higher.
Which Mercedes Models Hold Their Value Best?
Mercedes Benz depreciates quickly, but some models perform better than others and hold their value quite well. Below are some models that hold their value well and have a relatively high resale value:
1. Mercedes Benz GLC
The Mercedes Benz GLC is a luxury SUV that ranks highly among vehicles of its class. This vehicle holds its value quite well and only depreciates by 42% after five years. If you resell this car after five years, you can get up to $32,315 if the vehicle is in good condition. The depreciation rate of the Mercedes Benz GLC varies depending on the model year. According to caredge.com, the 2019 Mercedes-Benz GLC holds its value the best. Below is a table showing the historical depreciation of Mercedes-Benz GLC.
|Model year||Value rank||% Paid||Price|
2. Mercedes Benz A45 AMG
The Mercedes Benz A45 AMG is amongst the best luxury cars in the market that retain their value quite well. After three years, the vehicles will only depreciate by 38%, while after five years, the car will still be worth more than 52% of its original value. After five years, you can recoup up to $19,806 from your initial investment if you resell this vehicle. This is the car for you for anyone looking to buy a sporty Mercedes Benz that combines power, performance, and style while still holding its resale value after years.
3. Mercedes Benz CLS-Class
If you are big on getting a luxury Sedan that is comfortable, reliable, and delivers unmatched performance, the Mercedes Benz CLS-Class is your best bet. This vehicle will depreciate 55% after five years and have a resale value of $37,700. Compared to other luxury vehicles of its class, it is safe to say that it holds its value impressively.
Which Mercedes Benz Models Depreciate The Most?
Some Mercedes Benz models depreciate quickly, losing a significant amount of their resells value in their first years. If you are buying a car intending to resell in the future, you will need to avoid models with high depreciation. Here are some models that depreciate the most and fetch the lowest resale value:
1. Mercedes Benz S class
Almost everyone I know has desired to own a Mercedes S class at least once in their lifetime; this car comes with sophisticated features that make it one of the best luxury cars in the market. The vehicle depreciates relatively fast and has a depreciation of between 55% and 69.9% in 5 years. If you buy a new Mercedes Benz S class and hold it for five years, you will lose over $62000 in depreciation, which is a considerable loss.
2. Mercedes Benz E class
The Mercedes Benz E class is a popular luxury sedan that loses 67% of its original value in 5 years. If you resell the car after five years of use, you will lose more than $40,000 in depreciation
Luxury cars are a worthy investment if you want to leave a long-lasting impression even before you say a word. However, before you buy a luxury car such as the Mercedes Benz of your dreams, you need to ask yourself a few questions. You need to know how long you plan to keep the car. If you are buying a Mercedes with the hope of reselling after a few years, go for a model that doesn’t depreciate as fast.