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In shopping for a used Honda CRV, I notice used Mercedes and BMW SUVs of same year/similar mileage are around the same price. I would think new Mercedes and BMW are at least twice the price of a new Honda or Toyota RAV4. Is it just that the pricey vehicles depreciate *that* fast and Honda/Toyota keeps their value that well?
Prices for used BMWs/Mercedes drop fast. BMW 7 series from late 90's cost only $5000 in decent condition, now compare that with a Camry/Accord from the same period ($3000-4000 ?). Also consider the initial price of a 7-series with that of a Camry/Accord.
- high end cars out of warranty carry high maintenance expenses
- high end cars have high insurance costs because collision repairs are expensive
- some of the buyers of high end brands don't like to drive old ones (past the 3 year lease for example)
If you can do your own maintenance, owning a used high end car can be a very attractive choice.
Because there's less demand for used benz than there are for used hondas.
To add to that, there's a high demand for new BMWs or Benz's because of their prestige but that prestige wears off when the vehicle gets older hence few people want the old ones. On the other hand, many people will buy used Hondas or Toyotas for because they don't cost too much to drive or maintain.. they're willing to pay a premium upfront for a lower cost of ownership over time.
I currently have a 2010 Benz S400 Hybrid, which I know I've easily lost 25 grand on already. I have a 2009 Nissan Altima Hybrid that the dealer offered $1k less than what I paid for it TWO YEARS AGO if I bought a 2011 model. I didn't want to pay sales tax so I didn't take him up on it.
Prices for used BMWs/Mercedes drop fast. BMW 7 series from late 90's cost only $5000 in decent condition, now compare that with a Camry/Accord from the same period ($3000-4000 ?). Also consider the initial price of a 7-series with that of a Camry/Accord.
it's not just 7 sereis and S classes vs Hondas and toyotas, but 7 sereis and S classes vs theri own lower model lines like 5 and 3 sereis. After a while a 3 series, 5 series, and 7 series will all have the same price for buy-in. And that's just the way luxury cars go, from any manufacturer.
Which is great for those of us that want the features and abilities of high end cars, but don't need them to be new and can work on them ourselves!
Residuals were 'higher'/overstated on many BMWs/MBs in past few years...
great for lessee, not so good after the financial arms of either took them back and 'let them go' into the wholesale/retail mkt.
As for maintenance costs, yes they are high(er), but most off-lease cars in past 3+ yrs still have at least a year left on
warranty & maintenance, and many are CPO'd for a further period.
As to 'why' they are in the "same price range", all anecdotal and may be overstated, without real price links, it is hard to compare.
Maybe America really does love used CR-Vs, et al, ;>)
Not my pick, but everyone has their own bag.
My guess is the OP was looking at out of warranty BMW/MB vs the the other cars of same situ.
GL, mD
bek people find out what it costs to repair and maintain them.
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