You can buy a $250,000 luxury car for just 10% of its original retail…Here’s why
I often report on just how quickly new cars depreciate upon purchase, including how easily many drivers end up underwater on their car loans. Today, I’ll share why car shoppers might want to be aware of just how much even luxury cars depreciate over time. After all, $25,000 for a $250,000 luxury sedan sounds like a steal, right? Well…maybe. Let’s take a look at this Mercedes-Benz S65 AMG.
“This is the most depreciated car in our showroom.”
Unique Motors is a car dealer with a luxury showroom in Kent, Washington, just south of downtown Seattle. Its inventory is “hand-picked” and the dealership runs by appointment only.
A staff member recently posted a walk-around of a 2007 Mercedes-Benz S65 AMG. It’s a stunning example of the sedan, which had a base retail price of $190,000. Spec’d out, its original retail value was somewhere around $250,000.
It has a 6.0L V12 twin-turbo engine making just over 600 hp. Reviewers and owners praise the S65 for its incredible performance mated with an “unintimidating” yet luxury-filled driver experience. One even said it drives as easily as a Honda.
17 years later, though, and it’s well-known for its depreciation.
Unique Motors listed its 2007 S65 for about 10% of its original retail value. Sounds crazy, right? Well, it’s just how it goes in the aftermarket. The truth is, it’s “old” now, and the Mercedes-Benz nameplate just doesn’t age all that well in the used market.
It’s not just Mercedes-Benz, either. BMW, Audi, and other performance-based makes depreciate rapidly, too.
Still, $25K for a $250K V12 twin-turbo luxury car sounds like a steal, right? Up front, sure. But just know what you’re buying before you sign up.
Automakers and their certified dealership partners earn most of their money from two types of events: the original owner’s purchase, and non-warranty upkeep.
Factory-recommended maintenance on luxury cars is a wallet killer
According to the creator of AutoVlog, who owns a 2016 Mercedes-Benz S65 coupe, used S65 owners need to be aware of expected maintenance costs.
Case in point: After putting 6,000 miles on his S65, he brings it to the local dealership for “Service B” and some other “small” items, like a spare key and a replacement door trim piece.
Service B included an oil change, a series of basic inspections, topping off fluids, and installing an aftermarket fuel system treatment (you can buy it yourself at any parts store). The total just for Service B? $599.
By the way, the spare key estimate was a ripe $600.
The invoice doesn’t include any unexpected repairs or more involved maintenance, surely coming further down the road. If an oil change service is $600, imagine what literally anything more complex can run.
So, understand that when you purchase a depreciated high-end luxury car, the sticker price might seem dreamy. The long-term overhead, though, might keep you up at night.
If you’re already prepped for the maintenance and are looking for a good used S65, check out MotorBiscuit’s seamless car buying service to compare prices and find the best deal near you.
