Just figured I'd share my internal turmoil...

The salesman at the dealer who sold my brother his '03 E500 called to tell me that he has a black on black E55 there at MSRP. Doing research on the previous E55 and the new E500's I've figured out that from this point on for 2-3 years the 2003 E55s will lose close to $1,000 in value every month. Example: there are 2002 E55s (last year of previous body style) that had an MSRP of $72K and are now up for resale at $45K (lowest price I've seen). This '03 model is a bit of a step on from the last one and shouldn't take quite as bad a hit but its still horrible. As great a car as it is, I cannot justify a $1,400 car payment on top of $1,000 in lost value to an asset per month. It sure is hard for car lovers to endulge is it not? I could make that $1,400 payment on an investment property and spend that $1,000 per month on improvements and see it all back plus appreciation and be way better off financially in the end. I guess I should wait 12-18 months and pick up a used '03 E55 that still has warranty left for around $60K (or less probably).

Kevin

 

If you're buying a car as an investment, there is no way you can justify buying new. The laws of the free market economy simply don't allow it!

If, on the other hand, you consider that you're buying fun, elegant transportation and can afford the inevitable monetary loss, then a brand spankin' new E55 might be right for you. I'm just wondering, though, how long a term that loan will be--my GS payment is more than $1400 a month and that's for a car that costs $25K less!

 

That payment is about right for 10% down and 60 months or $25,000 down and a 48 month term. This is at the base MSRP of $78,000 and with a 4% APR.

Kevin

 

You said it yourself.
But if you think you can afford both (the car payment and the property) then go for it. E55 is a fun car to drive after the M3.

 

My outlook on these things, if you have to make a payment on a 70-80,000 dollar car, you shouldn't be buying a 80,000 car. That's MY thoughts only.

 

Not to break the vibe of the car investment discussion, but Benz's have one of the most awful depreciation values in the automotive market. The numbers JaxFL set forth in the 1st post pretty much represent how the rest of the Benz models are priced when resold. My friend just sold his 2000 S430 for a little less than $40K, when priced originally at $74K. That's almost a loss of $20K per year!

 

Huh? How could you be paying $1400 a month for a GS!? Did you put almost nothing down on it? That's astounding. That's more than my mortgage was! I hate payments.

 

Yes, nothing down because I was coming off the lease on my M Roadster. The L-Tuned GS after all taxes, etc. was about $60K and I did a 48-month loan. Monthly payment: $1440.54.

 

If you are looking to have your car payment more in line with your mortgage payment come out to California. You, too, can live in a $750K fixer upper and feel good that your car payment is only 1/3 to 1/2 your house payment.

 

I love california but I don't like debt enough to live there.

 

What about a lease ? Wouldn't the loss of the lease payment every month be less than the depriciation if you where to buy it ?

 

I just read a write up on the E55 and to be honest, the car is fast in the straight away but sucks when it comes to handling. The GS has a better lateral acceleration and stopping from 60MPH numbers. .83 vs .85 for the GS, and 127 vs 117 feet for the GS. Anyway, here is the Autoweek review of the E55 I still think it's a great car, wish the GS were that fast, but suspension and brakes need to be upgraded IMO for the amount of HP the car has. Good luck if you get that beast and post pics

Edit Note: Having trouble locating the .85g spec for the GS in lateral acceleration. Found .83 but that was on all season 16" tires, looking for 17" summer tires, which I think gives the car .85g. Otherwise my statement above is flawed. So reader beware!

 

Found a lease on leasecompare.com that is zero down and $1,200 and change a month for 36 or so months. Maybe that is the way to go as suggested above.

Kevin

 

lexusk8, how can that be? I'm always hearing Benz owners bragging about how good their resale values are yadda yadda. Could it be that certain models have a wide range of depreciation in Benz?

 

Correct me if I'm wrong (no accountant here), if you are a business owner you can also write off some of the lease or at least the interest portion of it ?