Thoughts on Downgrading Mercedes-Benz C43

paraneoplastic on 15/05/2020 - 16:28
Last edited 15/05/2020 - 17:20 by 1 other user

My situation:

Bought a 2017 C43 shortly after the car was released for $115k on a notated lease with a balloon of $57k this August. The car has been great but has depreciated substantially over the past 3 years as i happened to buy the car 4 months prior to the MY18 face lift :(. Current selling price is ~$65k. Warranty also expires in August. And I'm expecting do do around 55,000 to 60,000km by the end of the lease (at 46k now).

I'm stuck on whether i should refinance the car with a novate lease (and pay the balance down to 0) and keep it for another 4 years - but run the risk of out of warranty repairs + trouble in selling a high mileage AMG (would end up with around 120 - 130k on the clock) or if i should downgrade the car to a 2019 VW Golf R which is selling ~$35 - 40k - will have warranty till 2024 and I can run it to the ground and still be able to sell it for a decent price in 4 years time.

The reason for not getting an even cheaper car is, "spirited' driving is my way of dealing with stress after work. So I

Some thoughts would be appreciated.

Automotive

Comments

  • Hybroid on 15/05/2020 - 16:33
    +39

    What's your main motivation? Save money or enjoy driving experience? With that mileage, enjoy the C43. Get an extended warranty before it runs out for peace of mind.

    Also, obligatory: coughcough43isntarealamgcoughcough :)

    • paraneoplastic on 15/05/2020 - 16:36
      +3

      Bit of both to be honest, I was foolish getting such an expensive car so early into my career - i was able to afford it becuase i was living with my parents. It's a great car to drive but being a coupè it's very impractical - i think i've used the back seats like 4 times in the last 3 years because it's such a pain to get in and out of the back. Didn't know about extended warranty will look into it, cheers.

      Now i'm looking at saving for a house deposit and even though ~20k isn't huge, it's still a decent chunk.

      • tsunamisurfer on 15/05/2020 - 16:48
        +41

        If as a single man, I would want to use the back seat more than 1.33 times a year if I am paying $115k.

        • paraneoplastic on 15/05/2020 - 17:03
          +3

          Not enough space in the back for that ;)

          • [Deactivated] on 16/05/2020 - 18:26
            +23

            @paraneoplastic: Did you have to take them to your mum's place then? :/

        • jace88 on 16/05/2020 - 12:54
          +1

          Should’ve gone sedan although the rear of the w205 feels more cramped than the w204 IMO.

        • This Guy on 17/05/2020 - 13:08

          Front passenger seat is where it is at.

          • tsunamisurfer on 17/05/2020 - 14:03

            @This Guy: Thats for Tesla owners.

            • This Guy on 17/05/2020 - 14:26

              @tsunamisurfer: I thought Tesla owners hired vegan companions from gumtree and only practiced procreation on emulation banana leafs (can't hurt those trees bro).

            • [Deactivated] on 17/05/2020 - 16:05

              @tsunamisurfer: Don't judge a book by its cover car owner by the blandness of his car. This is what some Tesla owners are into.

      • Hybroid on 15/05/2020 - 16:50
        +2

        It sounds like your needs and fiscal priorities are changing which makes sense to want to downgrade. I would still consider the perspective of the amount of time you'll be spending in the car over next few years.

        A punchy 350hp 520Nm V6 4Matic luxury coupe vs 285hp 380Nm 4-pot hatchback? I know what I'd pick. Not the financially sensible one.

        Edit: Yea, after below comment on how much you're spending on it, maybe not then… That's just insane.

        • paraneoplastic on 15/05/2020 - 17:02
          +1

          The VW can be tuned to have the same power as the c43, but yeah exactly right priorities definitely changing.

          • jace88 on 16/05/2020 - 12:56
            +2

            @paraneoplastic: They’re still very different cars even if you get similar performance in the golf. Unless you need the practicality of the golf I would just keep the c43, enjoy it, and enjoy life before you really do need the rear seats.

      • Hardlyworkin on 15/05/2020 - 16:53
        +13

        Wait, you chose an expensive car over living out of home?

        • paraneoplastic on 15/05/2020 - 16:55

          I didn’t need to live out of home at the time, but in retrospect I should’ve waited till I really started to make money before divulging in such an expensive purchase - the cars under my mums name because I was too young that no one would insure me

          • notfrodo on 15/05/2020 - 21:11
            +9

            @paraneoplastic: indulging not divulging

          • JimB on 16/05/2020 - 00:42
            +1

            @paraneoplastic: Novated lease under your mum?

          • MrFrugalSpend on 17/05/2020 - 23:36
            +5

            @paraneoplastic: so if you crash it, which seems a possibility given you partake in 'spirited driving after work', you lose it and you're bankrupt because that's when they do an investigation, decide there was lying on the application, cancel your (mum's) insurance and don't pay out… her other premiums (for her own car etc) will go up, if she is still insurable at all, and have trouble getting car insurance for the next 10 years! Sounds like you should downgrade and live within your means for a while

  • wiipantz on 15/05/2020 - 16:37

    just off the top of my head, why not a Stinger?

    • paraneoplastic on 15/05/2020 - 16:45
      +7

      Don’t rest like the aesthetics of the stinger, I drove it once and didn’t like the ‘experience’ if you will.

      • wiipantz on 15/05/2020 - 16:47
        +1

        Fair enough. I had on old RS4 and this was hand in glove plus… also that warranty can't be beat.

      • Seraphin7 on 15/05/2020 - 18:04
        +2

        By 'experience' did you mean 'not German'?

    • BBear53 on 15/05/2020 - 17:39

      From reviews the stinger seems to be lacking at the auto. People say it's not aggressive enough for a sports car.

      • wiipantz on 15/05/2020 - 18:40

        Neither are the two German lumps mentioned by OP. For the warranty which seems to be a pull it's hard to go by, and after driving one I see the appeal but horses for courses I spose.

      • This Guy on 17/05/2020 - 13:14

        Off the line the Stinger is slow without launch control. Launch control is a PITA to engage. Great at speed (that suspension is amazing at speed on rutted B roads), but…. you would be a moron to drive at the speeds needed for a Stinger to become fun on public roads.

        • Eeples on 17/05/2020 - 23:54

          I think AWD (like in other markets) would have made the stinger irresistible.

      • hearitfromhorse on 17/05/2020 - 20:45

        I have a Stinger. Sporty is an understatement. Outperforms my old M3

  • [Deactivated] on 15/05/2020 - 16:39
    +14

    Mate, not matter what the badge says on the back, a C43 ain’t an AMG. 6months prior to you buying that car, the same engine was called the 450

    • paraneoplastic on 15/05/2020 - 16:44
      +1

      Yeah I know - in retrospect I would’ve bought an RS3

      But I was young stupid and making good money so MB it was

      • abuch47 on 16/05/2020 - 19:40
        +7

        retrospect dont buy a new car ever

        retrospect dont max out your spare cash on a depreciating asset

      • [Deactivated] on 15/06/2020 - 14:31

        Out of curiosity. What do people deem as making good money these days? I am a lil bit out of touch with reality. My associates think they make good money - 90k + another 40k bonus.

  • Gnostikos on 15/05/2020 - 16:45
    +8

    C63 AMG or go home.

    • pencilman on 15/05/2020 - 21:11
      +12

      Running cost of C63 AMG is enormous.
      So if it's C63 it'll be stay home…

    • gyrex on 16/05/2020 - 13:05
      +8

      If you love depreciation… sure. I bought my 2010 C63 AMG new for ~$180K and sold it in 2015 for $55K. At the 3/4 year mark they were going for $80K - that's in excess of a 55% loss in 3 years. After losing that much money with little to no ability to claim that depreciation via my tax returns because of the luxury car tax threshold, I vowed never to buy a brand new high yield investment high-end luxury performance car ever again.

      • jace88 on 16/05/2020 - 14:22

        Ouch. I thought the 63s would retain value better given their cult status like M cars. I guess regardless, these “toys” aren’t cheap and the purchase price is just one part of the financial cost in the car ownership lifetime.

        • gyrex on 17/05/2020 - 14:09

          Very few cars retain value. This is especially the case with European luxury cars. It's a common misnomer that if you buy a luxury European car that it will suffer less depreciation than that of Asian manufactured cars. I'd argue that they probably suffer more depreciation since the repairs and parts for European cars are so expensive and people factor this into the cost of buying second hand.

          My subsequent purchase was a $70K 4WD and I've never looked back. Ironically, the $70K car had tonnes more safety and technological features and I don't have to worry as much about depreciation.

        • greatlamp on 17/05/2020 - 16:35

          They may not keep their value in dollars, but there is an argument that they keep their emotional value.

          If I bought a new c63, I would not feel the need to sell it in 3 years, and it would still be a nice car to own even at 20 years.

          If you buy a 'good value' mid tier car that you only kind of like, you will always be chasing the next model.

          Basically what I am trying to say is I would buy the 5 year old c63. How are you ever going to spend $130,000 in maintenance? It's an argument by people with too much money and car salesman BS in their brain

  • spackbace on 15/05/2020 - 16:47
    +45

    Jees, $19,333 every year to not even own the car (or $372/week)

    That's nuts

    • wiipantz on 15/05/2020 - 16:51
      +20

      Never underestimate the predictability of stupidity…

    • paraneoplastic on 15/05/2020 - 16:51
      +6

      I wish that was it, it’s $1200 a fortnight (after the tax saving with novated lease)

      • spackbace on 15/05/2020 - 16:52
        +41

        Farrrrrrk

        Now that's pissing away money!

        • paraneoplastic on 15/05/2020 - 16:53
          +35

          Yup $93,600 over 3 years (mind you about $20k of that was on petrol) but still - hurts to type that out.

          • Nugs on 15/05/2020 - 16:56
            +7

            @paraneoplastic: wow, my "purchase budget" is $1500 a year i.e. a $9k car should last 6 years
            .

            • mskeggs on 15/05/2020 - 18:02
              +7

              @Nugs: Luxury!
              When I were a lad etc.
              But I think that is an excellent way to budget for a car, and I agree very strongly with your way of thinking.

              My friend used to own a Laser that was worth between $400 and $900 depending on long since he paid rego.

              • Nugs on 15/05/2020 - 18:05

                @mskeggs: I just bought a $400 car recently, so it only has to last 3 months….
                .

              • serpserpserp on 16/05/2020 - 19:40

                @mskeggs: I bought a 2k car almost exactly one year ago and have sinced plowed 1.5k of repairs into it. runs like a dream now but the market value is probably only 3-4k. Hoping it is going to last me another 2 years with only 1 major service.

                • greatlamp on 17/05/2020 - 16:38
                  +4

                  @serpserpserp: Don't discount the value of parking wherever the hell you feel like, and never worrying if your car Will be stolen or damaged.

                  Also you can change your own oil, and only pay for service for issues you can't fix yourself

          • Kangal on 15/05/2020 - 17:20
            +4

            @paraneoplastic: I don't know wether to be angry at you, or be glad of the circumstance. Guess I'm jealous of your money, but not your brain :P

            Silver lining is that you've made this post, so perhaps you're coming around.

            • Bid Sniper on 15/05/2020 - 17:33
              +8

              @Kangal: everyone makes mistakes and buy dumb shit (myself included), its what keep the economy going.

          • [Deactivated] on 15/05/2020 - 21:03

            @paraneoplastic: You know with some negotiation, you could have bought a new C43 for mid 90ks? Leases really do sucker people in.

            Here's a demo for $99k, with 2000km on the dial. I'd bet my left nut if you offered them $93k for that right now, they'd bite your arm off.

            • paraneoplastic on 15/05/2020 - 21:05

              @[Deactivated]: Hindsight is a bitch, if i could go back i would'be bought an Audi RS3, they've only depreciated ~35% over 3 years and i would've saved 35 to 40k :(

              • [Deactivated] on 15/05/2020 - 21:07
                +3

                @paraneoplastic: Sorry, forgot the link

                https://www.carsales.com.au/cars/details/2019-mercedes-benz-…

                I would actually suggest you don't downgrade at all. I would suggest that you sell your C43 right now, and put money down on a Tesla Model 3 Performance (not a lease, a loan). You'll get 3% interest rates, you'll get much better performance, and zero running cost. Plus the depreciation isn't going to bite you in the ass.

                • johhny on 16/05/2020 - 11:07
                  +2

                  @[Deactivated]: And then have trouble insuring it?

                  • [Deactivated] on 16/05/2020 - 11:23
                    +1

                    @johhny: He’s not 22. And it’s going to be no more expensive to insure than a C43

          • foolsgold on 19/05/2020 - 11:22

            @paraneoplastic: thats a lot on petrol, I pay for all the fuel in my house hold, and run a euro turbo 6 cylinder, a diesel turbo 4 cylinder, and do about 40,000km between us both and we still spend under 6 a year on fuel. how bad are the C43s on fuel? I was thinking about buying one as a family car.

            I have lived with a Mk7 Golf R over the last couple of years for variously extended periods of time, even with city driving, spirited driving etc it returns 10l/100km. Only issues I had with it were slight oil burning (all within VAG tolerances).

            The Golf 7.5 is already out of date, don't go out and buy one right before another new model comes out. I think you be nuts to trade a C43 for a Golf R. Theyre not on the same level, same class, same build quality. I haven't driven a Coupe, but the W205 (was an update model) has great build quality, nice transmission, cool infotainment system etc.
            I get Mercedes servicing is a rip but theyre are so many specialists out there who will charge half as much as Mercedes. It seems half of this is fueled out of being bored of a 3 year old car, and justifying the expense of swapping for some sort of financial benefit.

            If this was 3 years ago, I would say go right ahead, 50k on a Golf R is a great bargin for a practical, decently built, great handling, and bubbly fun car. It 'feels' faster than my turbo 6 from just the way its set up, and the adaptive dampers make it more comfortable too.

    • This Guy on 17/05/2020 - 13:17

      That's 1k to 4k on your comm check.

    • Eeples on 17/05/2020 - 23:57

      The nuts part is paying interest (usually high) on the 57k balloon payment for the 3 years.

      Scam.

      • paraneoplastic on 19/05/2020 - 00:01

        Exactly right, when i realised the royal F up i'd made, it was too late - as if i sold the car prior to the lease ending i'd have to pay the interest regardless and then miss out on the tax saving :(

  • Cheeper on 15/05/2020 - 16:53
    +12

    " "spirited' driving is my way of dealing with stress after work."
    ??
    Other people use those roads. No other way to relieve your stress?

    • paraneoplastic on 15/05/2020 - 16:59
      +9

      I do not drive in that way with others motorists on the road and weekend track days.

      • OzzyOzbourne on 16/05/2020 - 10:38
        -1

        Good, hopefully you won't hit someone's kids crossing the road.

        I've seen a lot of Mercedes drivers driving spiritedly and they're gonna kill someone one day.

        • paraneoplastic on 19/05/2020 - 00:03

          Luckily kids don't usually cross roads at 3 or 4am in the morning on highways :)

      • NMC on 17/05/2020 - 09:21
        +4

        You take your $115k Mercedes that you can't really afford to a race track where it's unlikely to be covered by insurance? Faaark.

        • jace88 on 17/05/2020 - 09:27

          Either he’s baller or ballsy.

        • YellowDieselGolf on 17/05/2020 - 18:16

          Not all tracks are dangerous.

        • paraneoplastic on 18/05/2020 - 19:17

          Definitely not covered by insurance lol on track

      • Cluster on 17/05/2020 - 11:18
        -4

        Weekend track days? Is that allowed by your lease? My understanding is pretty much all cars have their warranty expire as soon as you drive it onto a racetrack. Hyundai N series is one exception I can think of.

  • nephilim on 15/05/2020 - 17:03

    Why a golf though if you want luxury? downgrade to a giulia veloce for 70k or something

    • paraneoplastic on 15/05/2020 - 17:35

      That’s more of an upgrade as the c43 is 57k

    • Drakesy on 15/05/2020 - 19:33
      +13

      I think spending more money on an Alfa would be an impractical outcome to say the least. Given the OP's issue with out of warranty repairs, from Alfa's history this is probably the last rabbit hole they'd want to go down.

      • Yorkshire-Man on 16/05/2020 - 18:22

        Yeah, Alfas and Landrovers are moneypits on wheels. Was stupid enough to buy a Landrovers once… Never again !

      • greatlamp on 17/05/2020 - 16:41

        Thats why it is the perfect car to lease.

      • SelfMade on 14/06/2020 - 00:17

        The Giulia is a different breed of Alfa and one of the most beautiful!

  • Muzeeb on 15/05/2020 - 17:20

    Are you in the medical field?

    • MarsTitan on 15/05/2020 - 17:32
      +7

      Isn't that obvious…

    • paraneoplastic on 15/05/2020 - 17:45
      +1

      Yeah

      • Muzeeb on 15/05/2020 - 18:36
        +4

        I guess it was obvious.

        the cars under my mums name

        Only a mother's pride (my beautiful boy is a doctor with an expensive car) would get in the way of passing on some good financial advice.

        • paraneoplastic on 15/05/2020 - 18:51

          Hahaha, she drives a SQ5 so I guess it runs in the family

    • LeoDMD on 16/05/2020 - 16:50
      +7

      I'm in a medical field and I drive a 2013 Citroen C4 Picasso, which I bought in 2017 for 15K … :)

  • Bid Sniper on 15/05/2020 - 17:31
    +4

    Wow seriously burning money there, just wow. You lost more in deprecation what I paid for my WRX STI premium.

    There are plenty of cheap cars that are fun to drive. I have a cheap little Kia turbo hatch as a daily , honestly find more fun than my modded STI. More power does not mean more fun, think opposite.

    Think test drive some hot/warm hatches like including i30N, also maybe BRZ/86 buy used, I think you'll be surprised. Golf R and GTI hold their value ok compared to luxo cars but still loose money.

    • spackbace on 15/05/2020 - 17:33
      +12

      also maybe BRZ/86 buy used

      Let's be honest…No.

      MCM were spot on!

      • Bid Sniper on 15/05/2020 - 17:36
        +7

        LOL I can see the appeal and think as a daily beater its fine. Id rather a own a BRZ than lease a AMG.

    • Kangal on 15/05/2020 - 17:34
      +1

      Instead of a Golf R, which has the same issues of reliability, parts availability, servicing, and depreciation.
      Maybe you can consider Japanese?

      Apparently the upcoming 2020 Toyota Corolla GR is supposed to be more nimble and powerful than the Golf GTi. So it wouldn't be too dissimilar to a Golf R, and you could enjoy your spirited driving but without the financial burden. The same goes for the Kia GT Stinger, which is basically a better version of the C43.

      • Bid Sniper on 15/05/2020 - 17:39
        +3

        Rolla GR, havent seen that, not bad.

        If it was me, Yaris GR, total Traffic light GP troll car, love it.
        https://www.toyota.com.au/news/new-toyota-gr-yaris-rally-car…

        "Powered by a new 200kW/370Nm1 three-cylinder turbocharged engine" o.0

      • spackbace on 15/05/2020 - 17:49
        +3

        Corolla GR will be a while away still, the Yaris GR will be first and even that is likely to be late this year, maybe early 2021

        • Kangal on 15/05/2020 - 17:53

          Cheers for that info.
          Yeah, always takes a while to build the cars and have them shipped. I remember following the rumours and subsequent announcement of the 86 GT. Walked in to a dealer and was told there was a 13month wait list, walked right out. Now I see those cars everywhere and it's lost its appeal to me.

          By the way Spackbace, where do you work now? Still with the dealership (was it Suzuki?) ?

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