Do you want to buy a luxury car but are split between a Mercedes-Benz or a BMW? Both of these German luxury cars are exceptional, but one brand depreciates faster than the other.
BMW depreciates faster than Mercedes-Benz. So, if you intend to own a luxury car for a short period and dispose of it, Mercedes-Benz is the better option. But if you want a car to use for many years, you may as well select BMW.
Mercedes and BMW are both luxury car brands from Germany, but their cars vary in many ways. Mercedes-Benz makes more luxurious and advanced vehicles than BMW, whereas BMW makes high-performing cars with better handling than Mercedes.
Which Mercedes and BMW models depreciate fastest?
Mercedes-Benz and BMW boast of some of the most advanced sedans on the market, including the Mercedes-Benz S-Class and BMW 7-Series. If you intend to buy one of these luxury sedans, you must be prepared to pay at least $90,000. Unfortunately, if you’re planning to resell, these models lose their value rather quickly.
The problem is that both of these luxury German cars depreciate faster than more affordable brands. The BMW 7-series once reported one of the worst depreciation values on the market of around 70%. The S-Class also depreciates very quickly, with a 50% depreciation value after 5-years of ownership.
Mercedes-Benz S-Class
A new Mercedes-Benz S-Class retails for around $94,000. But if you want the redesigned S-Class, you may have to pay over $110,000. This car is expensive because of its exceptional high-end features. But after 5 years of ownership, you’ll only be able to resell this car for around $48,000.
With this depreciation rate, you may end up losing a lot if you decide to sell the car. That’s why some people wait for the leased Mercedes S-Class models and buy them after a few years of use. A car that’s a couple years old will still offer a comfortable ride with the same quality features.
BMW 7-series
If you’re a fan of sports cars, you will love the exceptional performance of the BMW 7-series. This model comes with a twin-turbo premium unleaded V8 engine. It delivers a smooth, safe and comfortable drive. That’s why some people prefer it over the Mercedes S-Class.
A brand-new BMW 7-series retails at $86,000. But after 5 years of ownership, the car will depreciate rapidly and sell for less than $40,000. This is a huge loss considering the quality of the car. Some owners have even reported lower resale prices of below $30,000.
Which Mercedes and BMW models have the best resale value?
The Mercedes-Benz S-Class and BMW 7-series may have some of the worst depreciation values on the market, but the Mercedes E-Class and BMW 3-series don’t depreciate as quickly. Thanks to their exceptional performance and lower maintenance costs. You will get value for your money, even after five years of ownership.
Mercedes-Benz E-Class
Mercedes is among the car brands that depreciate fastest. However, the Mercedes E-Class line has some of the most reliable luxury cars on the market. Thanks to its excellent performance, durability, and ease of maintenance. Unlike many Mercedes models, the E-Class doesn’t develop problems as often.
Unlike the Mercedes S-Class with a low resale value, the E-Class has a better resale value. A new Mercedes E-Class retails at a base price of around $54,000, while the same used model has a starting price of $37,000. This is way better as it sells for over 50% of its original value.
BMW 3-series
The BMW 3-series is another reliable luxury car. It’s highly rated as one of the best BMW cars to own. It’s also easier to maintain than other BMW models, such as the BMW 7-series. Additionally, its spare parts are cheaper compared to other BMW models.
The initial price of a new BMW 3-series is $41,500, while the same used car retails at about $28,000. Like the Mercedes E-Class, this model has an outstanding resale price that’s over 50% of its original price.
Rapidly depreciating luxury cars
Why do luxury cars depreciate faster?
Luxury cars depreciate faster that regular cars because of their high cost of maintenance. Also, they attract high premiums, which used car buyers don’t want to pay. On top of that, the cost of spare parts is also quite high and they consume a lot of fuel.
Additionally, luxury car brands depreciate faster because most of them are leased and sold after three years. Because of their high cost, many buyers wait until the leasing period is over for them to buy them at a lower cost.
Which luxury car brand holds its value best?
If you love luxury cars but want to spend your money wisely, it’s important to invest in a luxury car with an excellent resale value. Volvo is one of the higher-end car brands with the best resale value. But if you’re comparing German luxury brands, Mercedes-Benz has the best value, then BMW, and Audi, in third place.
Which luxury car brands have the worst resale value?
Before you buy a luxury car, you should consider whether you intend to dispose of it after a few years of ownership. Some luxury cars depreciate faster than others. When it comes to German luxury cars, Audi has the worst resale value, followed by BMW, and finally Mercedes.
However, the luxury car brands overall, the one with the worst resale value is Lexus. It’s followed closely by Cadillac, Porsche, Tesla, Audi, Lincoln, BMW, Infiniti, Mercedes-Benz, and Acura. These are the top ten luxury car brands with the worst resale values.
What’re the most reliable Mercedes and BMW models?
Both BMW and Mercedes boast some of the best luxury cars on the market. However, some of their models have not lived up to the hype as they are unreliable. Fortunately, some models have stood out as the most reliable and they include BMW 3 Series and Mercedes-Benz E-Class.
Final thoughts
If you’re in the market for a luxury car, chances are you will consider Mercedes-Benz and BMW brands. However, it’s vital to know which brand depreciates faster so that you can invest your money wisely. Even though these two brands perform poorly when it comes to depreciation, BMW depreciates faster than Mercedes-Benz.
However, if you don’t intend to sell your car after five years of ownership, it could still be a good idea to get a BMW. BMW performs better than Mercedes-Benz, although Mercedes is more comfortable with advanced luxurious features. You can also compare different models as some perform better than others.
