We hate to burst your bubble, but that new car smell won’t earn you a dime. That’s because investing in a new vehicle is a notoriously poor financial decision, whose long-term value can’t match the benefits reaped from a properly maintained used car.
Think about it: a new vehicle’s worth rapidly depreciates once it leaves a dealer’s lot, instantly diminishing its market value by roughly 20% depending on the model. Then, it continues to tank at a rate of about 12% (per the commonly accepted industry average) each year from there.
What kind of deal is that?
Conversely, buying used offers two very tangible types of investments. One approach returns money, while the other offers a return on transportation needs – like great cost per mile.
Opting for these smarter investments, we consulted Ed Owen of Waltham’s upscale, used Mercedes and BMW dealer and expert service provider, European Auto Solutions for tips.
To our delight, while visiting their impressive solar-powered facility we received honest investment advice as limitless as their industry leading service guarantees. Here’s what we learned:
Used Car Investment Types That’ll Get Any Driver On The Road To Value
Top-Tier Investment: 1955 Mercedes-Benz 300SL
Investing in a car fit for James Bond is certainly more fun than investing in stocks and bonds – if you have the means, of course.
A great example of an used car expected to return dollars to the owner, this 1955 Mercedes-Benz 300SL – also known as a Gullwing – was purchased locally in 2011 for $850,000. Now valued around $1.4 million, we think it’s safe to say this highly profitable mid-century investment won’t depreciate any time soon. After all, avid classic collectors aren’t going anywhere, so the longer a lucky owner can keep – and properly care for – his or her stunning showpiece, the better!
Entry-Level Investment: 1988 Mercedes-Benz 560SL
It makes sense that this beauty – on the road since the Reagan administration – is an investment so focused on returning dollars and stimulating the economy (for its lucky owner, anyways!).
Akin to a piece of real estate whose property is projected to increase over time due to an appreciation in neighborhood value, some auto investors buy “up-and-coming” retro models they anticipate will become true classics in years to come.
Take this totally tubular 1988 Mercedes-Benz 560SL. This perfect example of a vintage catch was valued in the mid-twenties range (as of winter 2016), proving it’s worth has already increased by roughly 25% over the last two years.
With that kind of growth and no signs of slowing an affordable investment like this gives hope to intelligent owners banking on future profits – not to mention aging ‘80s babies everywhere!
Best Value, Used Car Investment: 2013 Mercedes-Benz ML350
The saying “make new friends, but keep the old” is certainly justified when you consider the amazing value a second owner can incur by buying the right model. And, when the price and condition of a used vehicle are right for your driving needs, it can offer a huge transportation cost investment that really saves.
This well-optioned 2013 Mercedes-Benz ML350, for instance, was originally sold for $61,750 before bouncing back onto the market three years and 35k miles at just $38,200 – a fraction of the manufacturer’s cost!
Don’t believe these savings? See the math outlining the depreciation value below:
Year 1 – $61,750.00 – 20% (12,350) = $49,400.00
Year 2 – $49,400.00 – 12% ($5,928) = $43,472.00
Year 3 – $43,472.00 -12% ($5,216.64) = $38,255.36
Now that you see how this investment adds up what’s stopping you from letting the original owner take the financial hit while you hit the road with the same style, safety and elegance?
1997 Mercedes-Benz E420: Best Value, Low Cost Per Mile
Who says coffee drinkers are the only aficionados whose investment can be good ‘til the last drop? Investing in your vehicle through impeccable care is the best path forward for any owner who intends on getting lots of mileage out of his or her original purchase.
A great real-life investment example is this 1997 Mercedes-Benz E420, whose owner of 16 years has racked up some serious mileage with 410,884 (and counting!). Thanks to the owner’s long lasting relationship with European Auto Solutions, who serviced this little engine that could since the millennium, this older model won’t be slowing down for other cars any time soon.
Appreciate your auto investments – literally! Drive to European Auto Solutions today and avoid depreciation in value – while securing a future on the road to happiness.
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