Hurtful depreciation
02-10-11 | 10:58 AM
#16
Lexus Champion
Joined: Jun 2001
Posts: 2,639
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From: California
Bottom line is that the best buy for an AMG or M is finding a slightly used CPO model. Let someone else take the depreciation hit.
02-10-11 | 11:24 AM
#18
Lexus Champion
Joined: Jun 2008
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From: Alberta
02-10-11 | 12:23 PM
#19
Thread Starter
Joined: May 2002
Posts: 81,674
Likes: 197
From: Lovely OC
Try to find a used LS600 for a decent price vs. an S600 or S63/65.
It's not even close how badly MB depreciates. With our experience with the ML it still scares me a little to think what we'd be getting into. Is the deep discount enough to justify the possible maintenance costs?
It's not even close how badly MB depreciates. With our experience with the ML it still scares me a little to think what we'd be getting into. Is the deep discount enough to justify the possible maintenance costs?
the way i see it is that people who buy high end amg cars NEW basically pay WHATEVER IT TAKES to get balla status. 
they drive the snot out of the car, treat it poorly, and dump it say 3 years later.
who wants to buy that? not many! the above plus the complexity, huge cost of repairs, and 'not new' make it less desirable.
the only thing worse than buying a used high end benz is buying any used jag.
they drive the snot out of the car, treat it poorly, and dump it say 3 years later.
who wants to buy that? not many! the above plus the complexity, huge cost of repairs, and 'not new' make it less desirable.
the only thing worse than buying a used high end benz is buying any used jag.
Could it be that the market for a used 80k car is not that big? Especially with a marquee that has a reputation for being expensive to fix and not all that reliable. I guess I'm too damn practical to understand spending 80k on a car in general. I would personal spend 80k on a down payment on a cheap condo that I can rent out to somebody.
Awhile back there was a Barrett-Jackson auction where the winning bid went for $700,000 for a Veyron. Only thing was, the bidder flaked. When, it was offered back to the underbidders the car went unsold and Barrett-Jackson bought the car for $700K. Not bad, half price for a Veyron.
you can read rest of the story here
http://jalopnik.com/#!5649147/bugatt...00-winning-bid
but yeah, talk about depreciation. It just goes to show that not even super/exotics are immune to it.
you can read rest of the story here
http://jalopnik.com/#!5649147/bugatt...00-winning-bid
but yeah, talk about depreciation. It just goes to show that not even super/exotics are immune to it.
I think two large parts of this is from the AMG cars to Maserati is the maintenance concern after a couple years and the gap in affordability for those buying the cars new and the middle market buying used.
People that are buying these cars new are typically not the same type that would buy something used and the amount of people that can afford the car drops off dramatically once you remove the handful that are buying new.
There is a much greater market for cars in the 40-80k car range in terms of those that can afford them, kind of.... Say you’re looking at a 150k car new and is listed at 120k 2 years old, if you can afford 120k then you just pay 150k and get it with the new warranty so that math does not work.
These cars have to rapidly depreciate until they hit the edge of the market where there is a larger group of people to afford the car.
Not only that, if you can only afford the car used at 2-3 years old chances are the maintenance is more then you can afford too which drives the price of these cars down even faster.
People that are buying these cars new are typically not the same type that would buy something used and the amount of people that can afford the car drops off dramatically once you remove the handful that are buying new.
There is a much greater market for cars in the 40-80k car range in terms of those that can afford them, kind of.... Say you’re looking at a 150k car new and is listed at 120k 2 years old, if you can afford 120k then you just pay 150k and get it with the new warranty so that math does not work.
These cars have to rapidly depreciate until they hit the edge of the market where there is a larger group of people to afford the car.
Not only that, if you can only afford the car used at 2-3 years old chances are the maintenance is more then you can afford too which drives the price of these cars down even faster.
on the used market, that could be the case too. though i can't find solid information on avg how bad it is to maintain a 3-4 yr old amg with extended warranty outside of the normal maintenance (which isn't that much more than lexus in general)
True, but you have to remember that MB has already replaced the W211 E63 with a brand new model...of course that kills the resale value of the outgoing model. When the new 5.5 AMG engine is available on the 2012 E63, I can only assume values will drop even further.
Bottom line is that the best buy for an AMG or M is finding a slightly used CPO model. Let someone else take the depreciation hit.
Bottom line is that the best buy for an AMG or M is finding a slightly used CPO model. Let someone else take the depreciation hit.
hahaha get outta here mike, no freaking way i am taking r63. my wife looked at the car and she asked me what's the point when there is a sienna?
true, i think the overall depreciation on lexus (even the 600hl) is noticeably better than mb, and more so when compared to amg. like i said, the lx570 is one incredible example
02-10-11 | 12:42 PM
#21
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Joined: May 2002
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From: Lovely OC
02-10-11 | 12:55 PM
#22
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Joined: Feb 2007
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From: IL
02-10-11 | 03:21 PM
#24
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Joined: May 2002
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From: Lovely OC
02-10-11 | 06:44 PM
#25
Lexus Fanatic
Joined: Dec 2006
Posts: 6,806
Likes: 6
From: californication
typical. applies to any mass produced car.
after 3 years, any of them will lose half their value.
40% left after 4 years is reasonable.
a 4 year old lexus won't sell for more than ~40% of new price either.
after 3 years, any of them will lose half their value.
40% left after 4 years is reasonable.
a 4 year old lexus won't sell for more than ~40% of new price either.
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