A Rare Luxury SUV That Doesn’t Depreciate

Most Luxury SUVs Are Expected To Depreciate Quickly

Luxury Vehicles Typically Lose Value Faster Than Mainstream Models

Luxury SUVs start at much higher prices than mainstream models, leaving more room for depreciation. Unfortunately, for most luxury vehicles, depreciation begins immediately and is rapid. This isn’t a new phenomenon; there are many logical reasons. Luxury vehicles are often much more expensive to maintain, and the tech advantage disappears within a couple of years. This creates much lower-than-expected demand for these pricey models in the second-hand market.

Five-Year Depreciation Often Exceeds 50 Percent In This Segment

Out of the 25 vehicles that depreciate the fastest, nine are luxury SUVs. Each and every model on that list loses more than half its value over the first five years, with the Infiniti QX80 topping the SUV list at 62.8 percent. The highest depreciation list is dominated by EVs and luxury vehicles, which makes a lot of sense.

Because luxury SUVs often depreciate so quickly, it seems that smart buyers looking for used-vehicle bargains would be well served to wait five years before buying their chosen vehicle. That is simply not the case for one such vehicle, which holds its value well and does not become a used-luxury-SUV bargain like the rest. What makes this SUV so special that it can’t simply follow the well-established industry rules?

The Mercedes-Benz G-Class Completely Breaks The Depreciation Curve

It Consistently Ranks Among The Lowest-Depreciating SUVs

You might think it’s a bit of a no-brainer to expect the Mercedes-Benz G-Class to retain much of its value after five years, but it does so consistently. Only three models in the Large Luxury SUV class have a resale value of 50 percent or more, and the G-Class tops them all with an expected resale value of 65.3 percent across its model range. The other two are both Lexus LX models, which retain 62.6 percent of their original value. After that, you’ve lost half the original value of a luxury SUV in this class.

Base Trim Engine

4.0L Twin-Turbo V8 Gas

Base Trim Transmission

9-Speed Automatic

Base Trim Drivetrain

All-Wheel Drive

Base Trim Horsepower

416 hp

Base Trim Torque

450 lb-ft @ 2000 rpm

Fuel Economy

13/16 MPG

Make

Mercedes-Benz

Model

G-Class

Segment

Midsize Luxury SUV

Infotainment & Features

9 /10

Another surprising aspect of the G-Class’s slow depreciation is that it’s one of the few luxury SUVs in any class that retains at least 60 percent of its value and isn’t a Lexus. Regardless of the class, Lexus dominates the luxury SUV market, with several models retaining 60 percent or more of their original value after five years. This makes the large, old-school Mercedes-Benz extremely unique.

Strong Residual Values Defy Typical Luxury Segment Trends

The Mercedes-Benz G-Class is much more than a status symbol; it’s an investment. Considering the high cost of a new model, getting back more than 60 percent of your original price after five years is incredible. The G-Class ranges up to nearly $200,000 in some variations, but those models often continue to command close to the original price five years later. In some cases, this luxury SUV might appreciate, meaning owners will get back more than they originally spent, but that’s typically limited to high-end AMG models that are rare and collectible.

2023 Models Still Command Surprisingly High Used Prices

Base Examples Remain Well Above $100,000 On The Used Market

If a five-year-old G-Class holds over 60 percent of its original value, just imagine what you’ll have to pay for a three-year-old model. The 2023 Mercedes-Benz G 550 originally cost $140,950 and still averages $126,000 today.

As expected of such a high-class SUV, the G 550 rides on 19-inch wheels, features LED headlights, a brush guard, heated, power-folding mirrors, a tow hitch, stainless steel running boards, and a power sunroof, offering much of the rugged luxury expected. Inside, you’ll find leather upholstery, heated front and rear seats, memory settings for the front seats, tri-zone automatic climate controls, velour floor mats, a 115-volt power outlet, 64-color ambient lighting, a 12.3-inch digital gauge cluster, a 12.3-inch infotainment system, an impressive Burmester sound system, and a full package of safety and driver-assistance features.

Power for this base model comes from a 4.0-liter twin-turbocharged V8 engine that sends 416 horsepower and 450 pound-feet of torque to the wheels through a nine-speed automatic transmission. Of course, the G 550 has full-time 4WD, and it’s the only passenger vehicle on the market with three fully locking differentials, which give it the top level of off-road prowess desired.

High-Performance AMG Versions Often Stay Near Original MSRP

If the Mercedes-AMG G 63 only has standard equipment and packaging, it should fetch around $141,220 today, which is impressive considering it was sold for $179,000 in 2023. Many G 63 models have been customized and upgraded, either at the time of order or later, which means they often command much higher prices, ranging above $200,000 in some cases.

The G 63 includes a full slate of performance upgrades, including an AMG Speedshift transmission, high-performance braking, an upgraded exhaust system, an AMG Ride Control suspension with adjustable damping, and AMG Dynamic Select with five drive modes and three off-road modes. Several packages and options are offered for the AMG version, making it easy for owners to have an extremely unique driving experience.

Power for this high-tuned top-shelf SUV comes from an impressive 4.0-liter twin-turbocharged V8 engine, which is tuned up to 577 horsepower and 627 pound-feet of torque, making it much more powerful than the G 550 model.

Demand And Exclusivity Override Normal Market Forces

Limited Supply Keeps Used Inventory Tight

Limited production numbers and unusually strong global demand help keep the used inventory of the Mercedes-Benz G-Class remarkably tight compared to most luxury SUVs. Even several years after launch, clean, low-mileage examples can be difficult to find, which prevents prices from falling as buyers typically expect in the luxury segment. Strong resale prices, steady buyer interest, and relatively limited availability have created a market where used G-Class models remain expensive despite their age.

Strong Global Demand Sustains Premium Pricing

The Mercedes-Benz G-Class sees unusually strong global demand, helping keep its resale value above expectations for the large luxury SUV class. A 2023 G-Class depreciates expectedly during its first two years, but after two years, the price takes a turn upward, offering a bit of an appreciation, much like a stock ticker. This is due to the limited supply, strong demand, and incredible build of the G-Class.

It Functions More Like A Status Symbol Than A Typical SUV

Iconic Design And Heritage Drive Long-Term Appeal

If the G-Class appears to be a little old-school, that’s because it is. Much like the Jeep Wrangler, the G-Class is a vehicle that was great from the start and has only received tweaks and improvements, not a complete redesign, along the way. The iconic design is a major part of its appeal.

This design dates back to the original models introduced in 1979. It came from the W 460 model series, which was built entirely by hand at the Graz plant. The original model came with a solid ladder-type frame with coil-sprung rigid axles; a formula that has worked well in the off-roading world for decades.

Cultural And Celebrity Influence Boost Perceived Value

The first bulk order for the G-Class came from the Shah of Iran for his military, but this luxury SUV has grown well beyond military needs. It has become a status symbol of celebrity, luxury, and capability. It’s often depicted with recognizable names behind the wheel, or at least riding in the back while drivers handle traffic.

The first Popemobile to feature a see-through box for the Pope to stand up while greeting crowds was a four-door G-Wagon 230G. This was created in 1980 for Pope John Paul II to greet and bless crowds during public appearances. The celebrity cache of a vehicle doesn’t get much greater than the Pope.

The Result Is A Used SUV That Refuses To Become A Bargain

Buyers Expect Depreciation, But The Market Delivers The Opposite

Most luxury SUVs lose value rapidly, but the Mercedes-Benz G-Class is unlike most luxury SUVs in many ways. It continues to hold its value over time, not because it’s cheap, not because it’s affordable to maintain, and not because it’s efficient. It holds this value well because it’s built right, has a near-cult following, is in high demand, and isn’t saturated within the market. This means you’ll have to pony up some serious dough when shopping for this luxury SUV on the used market.

The “What Went Wrong” Is Simply Unmatched Demand

The unmatched demand of the G-Class, regardless of trim, makes it extremely unique in terms of pricing and depreciation. As long as this demand continues, the G-Clas will demand a high price on the used market, thanks to its rarity, image, heritage, and luxury appeal. Buyers willing to pay premium prices for the G-Class keep its value well above average, which makes sense since the Mercedes-Benz G-Class is not your average luxury SUV.

Sources: Mercedes-Benz, iSeeCars.com, Autotrader, Kelley Blue Book.