The value retention rate of luxury cars is revealed: Mercedes-Benz G-class leads the plummeting of electric vehicles
For car owners, the value retention rate of the vehicle is a very important consideration. A car is a high-value asset, and if it retains its value at a high rate, it can get a better return when it is sold on the second-hand market. Recently, the data on the retention rate of some luxury car brands has attracted widespread attention.
Let's take a look at the performance of this classic off-road vehicle of the Mercedes-Benz G-Class. According to the authoritative Kelley Blue Book, the value retention rate of the Mercedes-Benz G-Class in 2024 will be as high as 61.2% after 5 years, ranking third among the models in the same class. This number can be described as quite staggering, which fully illustrates the status and popularity of the Mercedes-Benz G-Class as a luxury off-road vehicle. In the Canadian Black Book's 2023 Best Value Retention Awards, the Mercedes-Benz G-Class also won the highest honor in the "Luxury Medium and Large SUV" category.
It is not difficult to see that the reason why the Mercedes-Benz G-class retains such a high value is largely due to its unique design and strong off-road performance. As a hardcore off-road bike, the G-Class has been highly sought after since its inception, especially in regions such as the Middle East. Even though it is expensive, its unique hardcore image and excellent performance still make it very attractive in the used car market.
The Mystery of EV Value Retention: Brand Power and Technological Advancement
Although the value retention rate of electric vehicles is generally lower than that of traditional combustion vehicles, this situation may be reversed in the future. Brand reputation and technological advancements will be the two key factors that will affect the value retention rate of electric vehicles.
Let's take a look at the impact of brand power on value retention. Generally speaking, luxury brands have a higher relative value retention rate for electric models, such as Tesla, Mercedes-Benz, BMW, etc. These brands have a good market reputation and loyal consumer base, which makes their models more popular in the second-hand market. Tesla, for example, has an excellent value retention rate for used cars due to its huge brand influence, despite the higher price of new cars for its electric models.
On the other hand, some emerging brands or low-end brands of electric vehicles, due to the lack of popularity, consumer awareness and trust in them are low, so they often encounter large discounts in the second-hand market. This explains why models such as the Kia Soul and Renault Zoe have a low retention rate.
In addition to brand influence, the rapid development of battery technology will also profoundly affect the value retention rate of electric vehicles. At present, battery mileage and charging time are the two major bottlenecks restricting the development of electric vehicles. But with the continuous advancement of battery technology, these problems will be gradually solved. New electric vehicles with longer ranges and shorter charging times are bound to emerge, making existing older models rapidly obsolete and depreciating.
For consumers, the purchase of an electric vehicle requires a trade-off between brand reputation and technical level. If you are looking for a higher retention rate, then a luxury brand or a technologically advanced model is undoubtedly a better choice. But if you have a limited budget, you can also consider buying a second-hand low-to-mid-range electric vehicle, as long as the battery is in good condition.
The government's subsidy policy will also affect the value retention rate of electric vehicles. Generally speaking, new cars that enjoy higher subsidies will experience large discounts in the second-hand market. If the government gradually removes subsidies for electric vehicles, the price gap between new and used cars will narrow, thereby increasing the retention rate of used cars.
Reflections on the topic of value retention: pay equal attention to environmental protection and economy
We can see that there is a stark difference in the current status of the value retention rate of luxury cars and electric vehicles. On the one hand, classic luxury cars such as the Mercedes-Benz G-Class are extremely attractive in the second-hand market due to their unique design and strong performance, and their value retention rate is among the best. On the other hand, due to the reduction of new car prices and the rapid iteration of technology, the current value retention rate of electric vehicles is generally low, but it is expected to improve with the improvement of brand influence and technological progress in the future.
This difference reflects an important topic in the current automotive market: how to find a balance between environmental protection and economy? Electric vehicles represent the future of the automotive industry, and they play an important role in reducing carbon emissions and combating climate change. However, consumers also have to consider economic factors when buying a car, such as the value retention rate.
For consumers, the purchase of electric vehicles needs to weigh many factors such as brand reputation, technical level and value retention. If you are looking for a higher retention rate, then a luxury brand or a technologically advanced model is a better choice. If you have a limited budget, you can also consider buying a second-hand low-end electric vehicle, as long as the battery is in good condition. The government should also formulate reasonable subsidy policies to avoid distorting the price difference between new and used cars.
In the long run, as battery technology continues to advance, new electric vehicles with longer ranges and shorter charging times will inevitably be introduced, making existing older models quickly obsolete and depreciate. The value retention rate of electric vehicles will certainly increase in the future, which will further reduce consumer concerns.
In the process of seeking a balance between environmental protection and economy, we cannot ignore the value of luxury cars. Although the fuel consumption of hard off-road vehicles such as the Mercedes-Benz G-Class is high, their unique design concept and powerful performance add a unique charm to the car culture. Therefore, we should also appreciate and cherish the charm of these classic models as we make great strides towards electric vehicles.