Does Mercedes Benz hold its value?

This blog will answer the following questions: Does Mercedes Benz hold its value? What are the reasons behind the fast depreciation of Mercedes Benz cars? Which Mercedes Benz model does not hold its value? Which used Mercedes Benz models should you buy?

Does Mercedes Benz hold its value?

Mercedes Benz does not hold its value, the car will lose more than 50 percent of its value in 5 years since the date of registration. The value of the car not only depends on the model and manufacturing year but also on the mileage and the service history of the vehicle. If the car is poorly driven and not properly serviced then it will not retain its value.

Mercedes Benz is a premium passenger car brand and the cost of the new car is very high. The cost of the maintenance of the vehicle is also more than cars manufactured by Toyota or Hyundai. The cost of ownership of a used Mercedes Benz car easily exceeds its buying price in the used market.

Therefore, buyers looking for a used car do not go for Mercedes Benz, and dealerships have to further drop the prices of used Mercedes Benz cars. Mercedes Benz cars have the latest technologies and the cost of the spare parts is also very high since most of the parts are imported.

Mercedes Benz dealerships also offer exchange offers to their customers so every three to five years the used car market gets flooded with Mercedes Benz cars and very few of them have low mileage. 

As there is a vast supply of Mercedes Benz cars in the used market the dealers drop the price significantly in order to sell it. This can be a good opportunity to experience the performance and luxury of Mercedes Benz cars at almost half the prices provided the condition of the vehicle is good.

What are the reasons behind the fast depreciation of Mercedes Benz cars?

The reasons behind the fast depreciation of Mercedes Benz cars are explained below:

High mileage

The Mercedes Benz cars available in the used markets usually have high mileage. The cars can perform as well as new models if the engine and drivetrain are serviced regularly. Mercedes Benz does not use a sealed-for-life transmission and differential, the transmission fluid and the differential oils are replaced if the mileage is more than 50,000 miles.

This ensures reliability and the cars can easily last for more than 200,000 miles. The cost of the Mercedes Benz cars depreciates with the increase in mileage. Buyers do not want to pay more money for a car that has a high mileage as there are plenty of choices in the used car market.

High mileage on the cars usually also leads to expensive repairs, Mercedes Benz uses high-performance brake systems and even a simple brake replacement can cost 300-750 USD. Hence the value falls down very fast for the high-mileage Mercedes Benz cars.

Launch of new models

Mercedes Benz launched a facelift model every 3.5 to 4 years after the introduction of the new model series. New generation models also launch every 7 years, the face-lift models are launched in order to keep up with the competitors and the latest development in technologies.

There are no mechanical changes in the facelift version but the design and looks are updated so the model looks fresh. Interior equipment is also updated with features like wireless charging, bigger media system displays, and speakers.

The value of the pre-facelift model falls with the launch of the facelift model. Many customers also exchange their old cars and buy the latest model by paying the difference amount. The new generation model is more advanced compared to a mid-life refresh.

It is designed on a completely new platform and technology that will keep up with the changes and stay updated for the next few years.  The reliability is also very good in the new generation models.

Buying schemes

Mercedes Benz has its own financial service that can help customers to buy a brand new car. Customers can choose between leasing or financing a Mercedes Benz car at the lowest possible interest rates.

At the end of the leasing period, the dealership can either take the car back or the customer can get full ownership of the vehicle by paying the remaining amount in the leasing contract. Mercedes Benz Mobility also provided finance options like standard financing, balloon payment, three-way financing, and seasonal financing. The customer has the freedom to decide the monthly installment rate and the rate of interest is also fixed.

Buyers looking to buy a used Mercedes Benz car can easily benefit from the finance options and get a new car by paying only a few thousand dollars extra. Due to this used Mercedes Benz cars hardly find any buyers.

Complex systems

There are very complex systems in all Mercedes Benz cars. For example, the airmatic suspension system. It uses air bellows and electrical valves integrated into the suspension struts. The vehicle level is adjusted by the amount of air in the bellows and the air bellows also act as springs to absorb the undulations in the road.

Airmatic can develop a leak in the pneumatic pipes or air bellows which results in a critical level and the cars must be towed to the workshop. It is recommended to replace the airmatic struts in pairs. The final repair cost can be very high and average used car buyers don’t want to spend money on expensive repairs.

 Which Mercedes Benz model does not hold its value?

The following Mercedes Benz models do not hold their value and depreciate very quickly.

• S Class /S class Maybach
• CLS 
• GLS
• SL

The top-end Mercedes Benz models are very expensive due to the long list of equipment and customizations done to the car according to the customers. These models lose their value despite the exclusivity and features.

The cost of maintenance is also very high for premium cars. A simple oil change can cost 300 – 600 USD. Most of the premium models also cover more than 10,000 miles a year and by the time they are sold in the used car market, the mileage can be very high.

Which used Mercedes Benz cars should you buy?

The Mercedes Benz cars that you should buy are the E class, the C class, and the GLE class. There are plenty of options to choose from and the engines are inline 4 cylinders with good performance and fuel consumption.

As there are very few buyers for used Mercedes Benz cars, you can easily find a car with good service history for less than 30,000 USD.

Conclusion 

This blog explained the factors that lead to Mercedes Benz cars losing half of their value in 3-4 years since their initial date of registration. Only the cars that are produced in limited numbers and some AMG models can hold their value or even increase the value as many collectors are looking to buy them.