Mercedes-Benz produces some of the most expensive luxury cars on the market. Most Mercedes cars are more expensive than Audi and BMW luxury cars in the same class.
Surprisingly, Mercedes vehicles do not hold their value. The moment you drive off the lot in your new Mercedes-Benz car, it starts to depreciate. Note that the level of depreciation varies from one Mercedes car make and model to another.
Other factors that determine the value of your car are the color, initial cost, and cost of maintenance.
According to Edmunds.com, around 40 million second-hand vehicles are sold every year. While Kelley Blue Book says the average vehicle drops 49.6% of its original value after 5 years. This means that you will resell your Benz for half the price or less in five years.
So, before you buy your Mercedes car of choice, find out how much you can resell it for in the market after 5 years. Some Mercedes-Benz models do better than others. But if you don’t intend to resell the vehicle after a few years of use, you shouldn’t be worried about its resale value.
Why do Mercedes not hold their value?
A car of class
Most people who buy Mercedes-Benz cars are people of class. As a result, it’s difficult to sell a used Mercedes as most Benz buyers prefer new models. Additionally, most Mercedes users sell their cars after 5 years and buy new, more advanced versions.
High maintenance costs
Another reason why Mercedes fall in value quickly is because of the high maintenance and repair costs. Mercedes are highly engineered and luxurious vehicles, but their maintenance costs are another thing. A simple oil change will cost you dollars compared to some luxury cars like Lexus.
Expensive repair parts
Aside from the costly maintenance costs, repair costs are also very high, especially when you run out of warranty. Most Mercedes dealers sell OEM parts, which are very expensive. Furthermore, you cannot repair your Mercedes car anywhere as they have specialized engineers that are certified to work on Mercedes vehicles.
Mercedes vehicles are some of the most unreliable luxury cars on the market. Most models start developing issues after covering around 100,000 miles. So, most used car buyers see second-hand Mercedes-Benz cars as an expense that may cost them lots of dollars in the long-term.
Mercedes models with the highest resale value
Mercedes-Benz may not have a good resale value, but some of its models perform better than others when it comes to reselling.
Mercedes-Benz A45 AMG
The Mercedes A45 AMG is one of the luxury cars with the best resale value on the market. It fetches around 62 percent of its original price after 3-years of use. This car combines style, performance, and sheer power in one unit. Its sporty look is another selling point.
Next is the Mercedes-Benz CLS-Class. This is a large luxury sedan with exceptional performance, comfort, and reliability. The Mercedes CLS-Class has a resale value of around 43% after 3 years of use, which is good compared to other luxury cars in the same class.
The Mercedes-Benz GLC is another exceptional luxury SUV to buy. The car ranks highly among luxury compact SUVs on the market. It has a resale value of 58% after 5 years of ownership, making it one of the most valuable Mercedes models.
Mercedes models with the lowest resale value
Before you buy a Mercedes-Benz, you should know whether you intend to sell it again it after a few years or not. This will help you to avoid undergoing a loss when buying your car. Here are the Mercedes cars that fetch the lowest resale value:
Funnily enough, although the Mercedes-Benz E-Class produces some of the most reliable Mercedes-Benz vehicles on the market, this mid-range luxury sedan may lose up to 67.2% of its original price in a span of 5-years. You may end up losing at least approximately $35,000 if you decide to sell the car after 5 years of use.
The Mercedes S-Class is one of the best luxury cars on the market. It comes with a variety of sophisticated and safety features. However, the car depreciates at an average rate of 69.9% in its 5 years of ownership. This is equivalent to a loss of around $62,000, which is quite a lot.
FAQs about reselling your Mercedes
What determines the value of a car?
Even though your car value starts depreciating the moment you drive away from the dealership, other factors play a part in your car’s depreciation. These include the car’s mileage, ease and cost of maintenance, car color, state of the car, age of the car, and your location.
Which German luxury brand has the lowest resale value?
Among the three popular German luxury car brands – Mercedes, BMW, and Audi, BMW has the lowest resale value. On the contrary, Audi has the highest resale value, followed by Mercedes. The Audi A7 is one of the best second-hand luxury cars on the market.
Why do Mercedes have a lower resale value than Lexus?
Since Lexus is a Toyota brand, not only is it more affordable, but the maintenance costs are quite low when compared to Mercedes. That’s why many people opt for second-hand Lexus cars, instead of Mercedes. Besides, Lexus cars can be repaired anywhere, and their spare parts are easier to find than Mercedes parts.
Why do Mercedes fall in value rapidly after 50,000 miles?
Mercedes lose value rapidly when their warranty elapses. Mercedes offers New Vehicle Limited Warranty for 4-years or 50,000 miles warranty. The warranty covers defects in material or workmanship. Therefore, if the warranty elapses, the spare parts become expensive, which makes these cars have a low demand in the resale market.
Depreciating Mercedes value
Mercedes do not hold their value as they become expensive as they get older. Immediately after the warranty is over, the repair and maintenance costs rise as the manufacturer no longer pays part of the expenses. That’s why most second-hand car buyers prefer other second-hand luxury vehicles like Audi and Lexus.
However, Mercedes do have a better resale value than BMWs. Also, some Mercedes-Benz models have exceptional resale values, even when compared to Audi, such as the Mercedes-Benz A45 AMG car. Before you buy your Mercedes dream car, find out how much it will fetch if you decide to sell it after a few years.