Mercedes R129 SL500 Silver Arrow

[ArfanFarooq]

Hello all

I would like some advice from other members regarding their thoughts on the value of the R129 sl500 silver arrows (100 limited edition models).

I have been given an opportunity to purchase a UK car, 2 owner, low mileage (under 15k) extremely well looked after example.

My questions are ;

What are people thoughts on the value of this vehicle?
Also where do members see the value of such a car in 10 years time with say a maximum mileage of 25k?

As always any advice would be greatly appreciated.

 

[Doodle]

I would suspect the majority of any increased value would come from the very low mileage - ultimately the Silver Arrow is just some different trim and a set of Albireo wheels, against other more rarified 129 "specials".

As for where the values will be in a decade's time, if one could predict that accurately, one could make a tidy sum. As always it comes down to what people are willing to pay, and if one accepts the demand and competition for low mileage SLs is relatively limited in comparison to other more established classic fare, that's going to keep the prices more realistic.

The other thing to consider is that 129's aren't ideal for sitting around unused. While things like the roof mechanism are better understood these days, it's still a lot of work to get them right again if they start playing up through inactivity.

 

[ArfanFarooq]

Hello Doodle

Thanks for the input, I can see where you are coming from.

Bearing all that in mind then where do you see the value of this vehicle currently then please?

 

[Doodle]

IMO the 2 that are on the market currently are both a little optimistic, but they're from dealers that are known for being so.

The queue of buyers that are willing to hand over nearly £50k for a 129 (that isn't an AMG) is going to be very short, but Avantgarde will just sit on the stock as they always do until the right buyer comes along who absolutely has to have that last of the line, ultra low mileage car.

The other one I've seen is more miles, and consequently a bit less, but they're also asking £25k for a Subaru P1 when I know for certain (my friend has owned one for many years) that the realistic value is more like £15-17k.

This is the pointy end of a relatively thin wedge, and "values" become somewhat obfuscated.

 

[ArfanFarooq]

Yes the latter one you mention I came across and does seem expensive considering the mileage is 80k miles. I have found (albeit rather late) models which have very recently sold (by reputable dealers also) with half the mileage for circa £35k.

Bearing this in mind then would £45k be considered a good price for the example I have been offered?

 

[Doodle]

You have found another then, as the 2nd one I mention has around 50k on the clock, at an asking price that makes the £35k one look pretty ambitious. As you can see, there's a massive variance in the market.

In regard to your offering, if I had to invest that sort of money in a 129 I'd be looking at an SL60 or similar as the returns are sure to be more accessible. There's plenty of other 500s out there for those that want the experience, and the low mileage USP can be fickle - all it takes for a lower mileage example to come onto the market and suddenly yours isn't at the top of the tree anymore.

Another consideration is your intention for the vehicle. If you want something to drive and experience, this will be limiting as adding too many miles will hurt the investment. However, if you're looking for something to sit on for a decade and flip for a profit, there are probably better options out there.

 

[Eddy77]

Imho spending £45k on a low miles R129 silver arrows sedition with a view to making money on it over ten years is a non-starter.

I just don’t see prices going sky high in the next decade against a back drop of petrol / diesel being almost banned, the upcoming generation not bothering to learn to drive, and the much talked about classic car bubble we are in.

My honest opinion, with a likely recession thrown in during the next decade, is that its value will drop rather than increase.

If you fancy a 500SL buy a normal miles one for £10k, use it and enjoy it. Then sell it on for whatever it is worth when you are done with it.

Just my view of course. I was looking at buying a 45k mike one owner 300SL-24 a couple of years back as an investment. It was mint. £6,500! I didn’t buy it in the end, but had I done so, I don’t think it would have gone up much in the meantime. The market is very divided on the 129 for now.

 

[MikeInWimbledon]

The taxman is clear on this: cars aren't investments, they're depreciating assets.

1. To look at what will happen to resale values of a 20 year old car in 10 years time, look at its 30 year old equivalent, the R107, today.
2. Allow realistic amounts for maintenance, rot, damage, cleaning and storage costs over that time.
3. Understand that high values go to ultra low mileage and immaculate cars.
4. Remember that many "immaculate" cars have had absurd amounts of money spent on restoration.
5. Know that high dealer prices are subject to negotiation and include dealer margins of more than 20+%
6. Bear in mind that £50k invested in an equities ISA today (instead of an R129) will be worth £125k in 10 years time
(10% annual growth, all dividends reinvested)

Here's a low mileage R107 as an example, at just £40k
1982 Mercedes 500SL W107 only 32,000 miles -immaculate For Sale | Car And Classic

 

[Eddy77]

Mike makes a very good point. Even if it does go up by say £20k over ten years, factor in storage costs, servicing, tax, insurance and consumables and even with a 20k uplift, your lose a load of that in just owning it for ten years.

 

[Eddy77]

PS - I also have an issue with cars that never get driven and are pure investments. Seems like a waste to me. If I owned an SL500 you’d find me cruising through the alps and enjoying it!

 

[BTB 500]

The queue of buyers that are willing to hand over nearly £50k for a 129 (that isn't an AMG) is going to be very short

Particularly as the interior trim of the Silver Arrow Edition isn't to everyone's taste, which will further limit the pool of potential buyers. Rare doesn't necessarily mean desirable.

 

[rockits]

Better off buying my nice late 99 SL500 for much less when it is ready for sale soon [emoji6]

 

[SW18]

I was chatting to someone recently who has a cherished 911, owned for a number of years having purchased for much less than it’s worth now. When I congratulated him on the luck/foresight of having a car he had made money on, the response was “not really, you should see what I’ve spent on maintenance, repairs and storage!”.

 

[popuptoaster]

Rarity has almost no correlation to value with "modern" cars anyway, demand is what determines value, 2 door Mk1 Escorts are stupid prices these days but my car is fairly worthless despite Mercedes selling less than 300 in the UK.

 

[horatio]

Imho spending £45k on a low miles R129 silver arrows sedition with a view to making money on it over ten years is a non-starter.

I just don’t see prices going sky high in the next decade against a back drop of petrol / diesel being almost banned, the upcoming generation not bothering to learn to drive, and the much talked about classic car bubble we are in.

My honest opinion, with a likely recession thrown in during the next decade, is that its value will drop rather than increase.

If you fancy a 500SL buy a normal miles one for £10k, use it and enjoy it. Then sell it on for whatever it is worth when you are done with it.

Just my view of course. I was looking at buying a 45k mike one owner 300SL-24 a couple of years back as an investment. It was mint. £6,500! I didn’t buy it in the end, but had I done so, I don’t think it would have gone up much in the meantime. The market is very divided on the 129 for now.

I agee. I wouldn't buy any car as an investment (especially now) but as an interesting/semi-classic daily I reckon the R129 is a fantastic buy. Not because because it will rise significantly in value but a) it's unlikely to depreciate b) they are perfectly viable to run as a daily runner & take mileage well c) if written off, you should get most of your investment back d) servicing & minor work can be DIY'd. Yeah it can be hit with huge bills but so can anything -even a newish car just out of warranty.

 

[Doodle]

b) they are perfectly viable to run as a daily runner & take mileage well

There is some doubt as to whether this is the case anymore, not without a contingency plan or a 2nd car at least. Over the last 15 years of ownership, I've watched the parts holding slowly drift away from local dealers to MK and now many parts are several days coming from Germany or worse, ending up on the NLA list. Earlier this year they ran out of one side of lower control arms for a significant period.