Mercedes G-Wagon prices drop after recent surge: What buyers need to know
Added on: May 25, 2024
Author: OctoClub
1. An overview of the US G-Wagon market
4. Second-generation G550 and G63 AMG
5. Comparing with the broader market
6. Conclusion
An overview of the US G-Wagon market
As of May 2023, there are 1,545 G-Wagons listed for sale in the US, a 10% decrease from last year but a 28% increase from three months ago. The market includes a variety of models, from the older G500s to the high-end G63 AMGs and specialized variants like the G550 4×4 Squared. Let’s break down the price trends and see how each model has fared over the past year.
G500 and G55 AMG
Starting with the G500 and G55 AMG, both models saw similar depreciation rates. The G500s dropped by 14.8%, or about €6,100, while the G55 AMGs decreased by 14.6%, or €8,700. These fluctuations are minor and largely due to changes in market composition and low supply.
G550 variants
The G550 market is extensive and diverse, encompassing both first and second-generation models, along with the specialized 4×4 Squared variants. The first-generation G550s have experienced a notable depreciation, recording an average drop of 11.7%. In contrast, the more specialized 4×4 Squared versions have seen a much steeper decline, with prices plummeting by a significant 21.2%. This is particularly striking given the rarity of the Squared models.
When we turn our attention to the second-generation G550s, these models have also faced depreciation, with an average drop of 16.4%. The differences in value retention between the standard G550s and their Squared counterparts are particularly noteworthy. While the standard G550s have seen a more modest decrease of around €9,200, the Squared versions have suffered a dramatic loss of €46,000. This disparity highlights the challenges in value retention for specialized models, even though they are often viewed as more exclusive and sought-after in the market. Overall, these trends reflect the complexities within the G550 segment, where both model generation and unique features play significant roles in pricing and depreciation.
Second-generation G550 and G63 AMG
The second-generation G550s, particularly those from 2019 onwards, have seen substantial price drops, averaging a 25% decrease. This trend reflects the influx of new cars entering the market, which keeps median prices relatively high but also contributes to higher depreciation rates.
The G63 AMG, both first and second generations, also saw significant depreciation. First-generation models lost 19.5%, while second-generation models dropped by 17.1%. However, on closer inspection, newer second-generation models from 2021 lost up to 30%, amounting to a staggering €55,000 drop. In contrast, 2019 models have started to stabilize, indicating they may be a better investment if depreciation is a concern.
Comparing with the broader market
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Conclusion
If you’re in the market for a G-Wagon and concerned about depreciation, older models might be your best bet. They have already gone through the steepest part of their depreciation curve and are now losing value at a much slower rate. Conversely, newer models, especially those from the past couple of years, are still seeing significant drops.
As credit conditions tighten and more new cars enter the market, these trends are likely to continue. So, do your research, consider the model year carefully, and weigh the potential depreciation before making your purchase.
Inspired by the analysis of our friend @fourwheeltrader. Make sure you check his other videos https://www.youtube.com/@fourwheeltrader/featured.
Are you already a proud owner of a Mercedes G-Wagon? If so, check out our selection of parts for this car at the following link:
https://octoclassic.com/product-category/mercedes-benz/w463
Photos sources: autoevolution.com
