liveaboard wrote: ↑
Sat Oct 26, 2019 1:07 pm
I recently bought a 21 year old Mercedes coupe with 220,000 miles on it.
This thing is 5 computers, a supercharged engine, and 4 wheels.
It drives great; and it's got no rust at all.
But I know that the day will come when an electrical fault will end its life.
I recently was stunned at how little some older luxury cars were selling for, so I compared the depreciation of high-end vs middle-market cars.
I used a Mercedes E class with AWD vs a Subaru Legacy. I think the comparison covered 10 model years.
The Mercedes started at at $60,000 and after 10 years fell to $8,000. The Subaru started at $24,000 and fell to $7,500.
When excessive (and I would say needlessly) complex cars get old, maintenance and repair costs skyrocket. And if the only place that will work on it is the dealer at $200 per hour, that's an extra kicker. The present value of all that cost is built into what a buyer will pay, reducing the value of the car.
A local fellow had a dead battery in his BMW. AAA couldn't get it to start so they towed it to the dealer. Dealer charged it up and called the owner. The dealer said "you need to call your insurance company". The car was totaled.
The reason the battery had gone dead was there was a short in some part of the rear defroster circuit. After charging it, the short caught the harness on fire. The fire didn't total the car - the repair cost to replace the harness did. It was 70 hours of labor at a cost of $14,000.