South Africans have long had love affairs with German cars; they are perceived to be aspirational, luxury vehicles boasting superlative build quality. The three most popular German brands – namely BMW, Mercedes-Benz and Audi – all produce premium cars, with an upmarket image, magnificent engines, superbly crafted interiors and good safety features.
Which is all very well. But which brand has the best and worst resale value? The answer to this question – which may well surprise you – can help a motorist select his or her next German luxury vehicle.
According to Darryl Jacobson, managing director of True Price, Mercedes-Benz rules the resale roost, BMW vehicles have the worst resale value while Audi slots in neatly between the two other Germans.
His findings are based on an analysis of True Price data. In order to provide motorists with realistic (and free) vehicle evaluations, the True Price team attends hundreds of bank repossession auctions each year. They document each and every price paid on auction, and so the True Price database contains the actual prices paid on thousands of individual vehicle auctions.
Jacobson has analysed this data. “Then we calculated the actual price achieved on auction as a percentage of the original list price. Mercedes-Benz is the clear winner when it comes to resale values,” he explains.
The total vehicle parc was used in this exercise. “We didn’t limit our analysis to certain models or certain body types. We compared our entire Mercedes-Benz database to our entire BMW database and our entire Audi database,” he explains.
At a percentage of the original list price of 70.10%, Mercedes-Benz is truly head and shoulders above the competition. Jacobson says he was not surprised to see the three-pointed star fare so well. “Everyone – both young and old – loves a Mercedes-Benz. Mercedes-Benz vehicles have long held their value, and I strongly believe that they always will. It has been interesting to see younger buyers avidly bidding on Mercedes-Benz vehicles in the last 10 years; the company has done an astoundingly good job of making its product range relevant and enticing to a large audience,” he notes.
Audi clocked in second, at 62.49% of the original list price. “We see a lot of bidding on Audi models on auctions,” Jacobson reveals. “It’s the vehicle of choice for many younger professionals. It’s also popular with families, who maintain that the vehicles are spacious and comfortable while offering good aftersales support from the dealer network. An Audi is perceived to be a ‘safe bet’ on auction. Dealers also know that they should be able to move the vehicle fairly easily (although, it must be said, not quite as easily as a Mercedes-Benz).”
Coming third with 58.65% – and therefore having the worst resale value amongst the German trio – is BMW. “This will no doubt surprise many die-hard BMW fans. But it does make a certain amount of sense. Although the BMW vehicles are still popular on auction, they seem to have lost their lustre when it comes to exclusivity, desirability and the bragging rights that go with owning one of these vehicles. In fairness, the 3 Series is still very sought after. The 5 Series is not quite as desirable, and the 7 Series has always been challenging when it comes to resale values. Plus, buyers feel that the X derivatives (the X3 and X5 especially) are too expensive,” Jacobson explains.
According to Jacobson, resale value should be one of the single most important factors to consider before purchasing any vehicle. “The majority of vehicles are depreciating assets. The exception to this rule is a classic or collector’s car. The longer you own a vehicle, the less it will be worth. In fact, depreciation is the single biggest cost factor when it comes to vehicle ownership. It is far more significant than the cost of servicing and maintenance, for instance. Yet some car buyers forget about this important aspect of vehicle ownership when making their choice,” Jacobson points out.
The consequences of ignoring vehicle resale values can be dire. “You will get a much lower trade-in price when the time comes to sell. That much is obvious. However, consider also the fact that the vehicle could be stolen or written off. Your insurers will pay you a market-related value … and resale value plays an important role here!” Jacobson notes.
Based on the findings of the True Price study, Jacobson says that going the Mercedes-Benz route is a safe bet. “Based on our analysis, if you’re shopping for a German car, it would be prudent to buy one with the three-pointed star. You will minimise your risk of the vehicle depreciating too much,” he concludes.
South Africans requiring free vehicle evaluations can get them at www.trueprice.co.za
The data pertains to vehicles that have done a maximum of 150000 km. They were registered in 2016 to 2019 (both years inclusive).
FAQs
According to Darryl Jacobson, managing director of True Price, Mercedes-Benz rules the resale roost, BMW vehicles have the worst resale value while Audi slots in neatly between the two other Germans. His findings are based on an analysis of True Price data.
What holds value more Audi or BMW? ›
Audi cars depreciate slower, while BMW cars have the worst resale value among German brands. But the situation changes when you buy a used BMW – the BMW 5 Series turns out to be the most profitable.
Do Mercedes hold their value better than BMW? ›
Both brands are titans in the luxury vehicle market, known for their engineering, performance, and status. When it comes to resale value, both Mercedes-Benz and BMW hold their value pretty well, but like any vehicle, they do depreciate over time.
Which holds better value BMW or Lexus? ›
Every year, the experts at Kelley Blue Book name their top choices for vehicles with the top resale value in their respective segments in the Best Resale Value Awards8. Lexus was named the Best Luxury Brand for resale value in 2023, with special mention going to the LS as a top model. No BMW models were named.
Which is more expensive to maintain BMW or Mercedes or Audi? ›
Routine services and parts for BMWs are typically on the higher side compared to non-luxury vehicles. Mercedes-Benz vehicles also tend to have higher maintenance costs due to their sophisticated engineering and advanced technology. Audi's maintenance costs are generally in line with BMW and Mercedes-Benz.
Which luxury brand holds its value best? ›
Hermès, Chanel, and Louis Vuitton are top-performing brands in terms of average resale value, with pieces like the Hermès Constance, Hermès Picotin, Chanel Deauville Tote, and Louis Neverfull retaining an average 127%, 120%, 114%, and 136% value in 2023, respectively.”
Who sells more BMW or Mercedes or Audi? ›
BMW Group's other brands MINI and Rolls Royce, together registered 3,01,506 units of global sales. This takes the Group's total sales figures to 25,55,341 vehicles (BMW, MINI & Rolls Royce) - a 6.5% increase compared to 2022. BMW's closest rivals Mercedes-Benz & Audi finished second and third, respectively.
Is Mercedes more classy than BMW? ›
Mercedes focuses on elegance, comfort, and sophistication. Their cars are known for their sleek lines, luxurious interiors, and cutting-edge technology. BMW, on the other hand, focuses on performance and driving dynamics.
What car holds value the longest? ›
1. Subaru. Subaru ranks first (#1) in retained value after 3, 5 and 7 years of ownership. Read our analysis and view the Subaru depreciation curve here.
Should I buy a Lexus or a BMW? ›
Not only is Lexus a more dependable brand, but its average annual maintenance costs are also lower than BMW's. On average, Lexus owners report spending approximately $550 per year on maintenance. Comparatively, BMW owners report spending an average of $1,000 to $1,700 per year to maintain their vehicle.
At the top of the list, the Maserati Quattroporte loses nearly two-thirds of its value after five years. First introduced in 1963, the car is Maserati's flagship, and is on its sixth iteration as a four-door luxury sedan, with a high performance Ferrari–made V6 or V8 engine.
Is it cheaper to maintain Audi or BMW? ›
Brace yourself – both brands command a premium for scheduled services. While Audis might require slightly higher initial outlays, the gap narrows for newer models. However, specific BMW models like the 3 Series demand pricier spark plug replacements every 4 years compared to Audi's 6-year window.
Which is low maintenance BMW or Audi? ›
Both makes are in line with each other in terms of maintenance costs making them both viable options if you can afford it.
Which car is better to buy Audi or BMW? ›
Both Audi and BMW are known for their luxury vehicles, but Audi comes out as the superior brand for earning its trust in providing the best features for the greatest value. Where BMW expects you to spend more for less, Audi believes you should pay less for more.
What car brand hold the most value? ›
KBB also ranks Toyota as number one for best resale value by brand. Subaru is known for producing safe, reliable vehicles and ranks very high in retained value after three, five, and even seven years of ownership.
Is Audi cheaper to fix than BMW? ›
However, Audi tends to be more costly for repairs to your gearbox. In general, Audi and BMW cars are somewhat more expensive cars to maintain. There may be a slight difference in costs overall, but it won't be so much that it should make or break your decision between the both of them.
What makes BMW better than Audi? ›
Why? BMW continues to use standard rear-wheel drive throughout its lineup. This driveline provides a more balanced drive, as well as greater response and better handling compared to standard front-wheel drive across much of the Audi lineup.
