How to Buy a Classic Mercedes-Benz
PART I of a guide to the process and pitfalls of acquiring and selling classic vehicles
Article: Richard Simonds, Gary Anderson
Images: Daimler Archives
The Star features Buyers Guides on postwar models of Mercedes-Benz classic vehicles covering the chronology of models within a chassis series, good and bad points, specific issues to look for, technical specifications and owners’ experiences, as well as illustrations of exterior and interior features. These guides help members seeking information about a model they are considering, but don’t answer more general questions about how to go about buying a classic Mercedes-Benz.
What is a classic Mercedes-Benz?
Before offering tips on venturing into the classic-car hobby for the first time, let’s digress to define the word “classic” when used to describe a car. In the broadest sense, a classic automobile is one that has intrinsic monetary value for its technical achievement, styling, performance, longevity and utility – such that it will always be salable and may increase in monetary value over time – as long as it’s maintained in presentable and usable condition.
At Mercedes-Benz, a chassis series becomes a classic when the majority of units produced are more than 25 years old. Organizationally, responsibility for maintaining replacement-parts inventory necessary to keep the cars in running condition shifts from Mercedes-Benz Cars to the Mercedes-Benz Classic division.
When friends ask for advice about buying a classic of their own, as a longtime owner of Mercedes-Benz automobiles, I think we should acknowledge that buying any automobile is an emotional decision for most of us. By asking “why,” as well as “what” and “how,” we can apply some logic to the decision (although we acknowledge that much of the time our logic is used to justify what we have already decided to do; that’s why this is a hobby).
What kind of a classic are you looking for?
What kind of a classic Mercedes-Benz should you look for? This question is better framed as, “Why do you want a classic car?” The answers usually organize themselves around questions such as: Does it remind you of one you admired in your youth? Is it one your parents, grandparents or some other relative had? Is it one you will inherit or have inherited? Will people admire you for owning it? Do you love the engineering or styling? Do you want the experience of driving a car that people drove many years ago?
What do you see yourself doing with it? … Just cruising around town? Perhaps entering parades and supporting local charity events? Taking regular road trips through scenic countrysides? Using it to compete in vintage racing? Reserving it for special occasions (such as a limousine for weddings, anniversaries or similar events)? Using it regularly or as a daily driver?
The list can be as long as you wish, but how you visualize yourself in the car will affect what model you look for, the condition it needs to be in, its age, its intended use and how much you intend to spend on it. The answers will help you decide if you want a sports car, vintage racer, four-door sedan, four-passenger cabriolet or two-door coupe, and stick or automatic transmission.
How original and perfect does it need to be?
The first practical question concerns originality and condition relative to when the car first appeared at the dealer or in a commercial car show. If you are buying a car to compete in concours d’elegance, then originality and perfection are very important. The cost to bring a car to these standards can easily exceed the market value of the car, emphasizing the adage, “Start with the very best example you can afford.”
However perfect a car appears to be, there is always something hidden (even to the seller) that will take time and money to correct. If you’re considering concours events, be aware that the costs depend on your goal (e.g., to be best in show, first in class or just to enjoy taking part) and the level of the event (e.g., local, regional or national club event or multi-marque regional event).
If you just plan to show the car at informal events or to drive to the ice cream store, then originality and appearance are not so important. One word of advice: Do not buy a car for other uses and then decide you want to make it original and perfect. This is a recipe for financial disaster or, having to choose between your significant other or getting rid of “that car.”
How important is reliability?
If you want a car for road trips or even as a regular daily driver, then reliability should be of paramount importance. Fortunately, Mercedes-Benz cars are known for their reliability and longevity, but the age of the car you choose will make a difference in what kinds of driving you may choose to do.
Also, there are after-market changes you can make to any classic car (such as putting in electronic ignition, installing an electric fuel pump, or substituting disc brakes or a standard suspension) that are fine for driven cars, but will attract point penalties from judges in a concours competition.
Many of the models we have listed in the sidebar with this article (especially the sedans and station wagons, and particularly the 1980s’ diesels) can be used reliably on a regular basis. Many are vehicles you could even have your family use without being concerned that they might get stranded somewhere or injured in a collision – although modern cars are more reliable in these areas.
We strongly advise that you assess the car’s operating condition before you buy it. Unless you know the seller, inspect the car or have a reliable friend inspect it before making a purchase decision. We have an excellent checklist available at the www.mbca.org website for you to use for that purpose.
Better yet, after you’ve assured yourself that the car is as it was represented, have the seller take the car to a reliable independent Mercedes-Benz mechanic who is knowledgeable about older Mercedes-Benz vehicles to do a pre-purchase inspection for you, with you paying the cost (usually about $250 or so). That way you’ll know in advance what, if any, work may need to be done before the car can be driven safely and reliably.
We occasionally publish stories about people who fly in to drive their new car home. When the plan works out, they’re good stories, but they often turn into adventures of fixing unexpected issues in less-than-desirable conditions.
What about buying a project car?
Clarity about your intentions is critical. If you want a car to use at once, then you will want to buy the very best car you can and still allow some time to ensure it is sorted out before you hit the road. Alternatively, some folks enjoy the challenge of tackling a car that hasn’t run in many years – and doing the work themselves or having it done (or a combination of both) – bringing it back to life.
If that’s you, there are some other big questions to ask: Am I going to give this car to a skilled restorer, or am I skilled enough to do what needs to be done myself? Or, can I do the basic disassembly and assembly myself and have others do the specialized work? Second, how much do I need to budget for needed parts? Third, do I have the time and space to do the restoration?
As a general rule of thumb, it is usually possible to find the model you desire in the condition you want for a lower price than it will cost you to restore the same model to that same condition, even assuming that the psychic return on your own time justifies ignoring the foregone income you could be earning. You can expect any restoration to require at least a year of spare time, and more likely two; during that time, you’ll also need the equivalent of at least two garage spaces for the actual work and parts’ storage.
But there are times that restoration is the only option, such as when the car is a treasured part of your family’s history, or the car you want to fill a space in your own memories can’t be found except in unrestored condition.
If you choose a professional restorer, be sure that your choice is a restoration expert for your model, with impeccable credentials and a record of satisfied customers. You should be continuously informed during the project with regard to what the shop has done (with pictures), and what will be done next. After you’ve provided a deposit to cover the first month’s work, make sure that you pay only for work accomplished.
It is helpful to be near enough to the restorer so that you can see for yourself what has been done and how the project is proceeding before you make payments. There also are major risks if you have one person do body work, another interior work, another drivetrain work, another wheels and tires, and so on; no one person is responsible for everything working together and the costs can rapidly exceed budgets because they are coming in piecemeal.
When you’re searching for a project car, keep in mind that the thrill of the chase can blind you to the longer-term issues of restoring the car. Many projects start with good intentions but after a flurry of disassembly and parts buying, wind up sitting in the garage untouched for years. And life has a way of impinging upon good intentions. Beware of buying into someone else’s dashed dreams, paying nearly full price for a car that is “90 percent complete,” only to discover why the project was abandoned in frustration when trying to fix the issues that stymied the seller.
How much should you budget?
Before making any purchase, find and use price guides that provide values for the model you are seeking according to condition. Condition rankings typically range from: No. 1, a car that is as it left the factory in top-tier concours d’elegance condition; No. 2, a restoration showing signs of aging that could win at a local or regional car show; No. 3, a car that would not win an award but could be a regular-use or daily driver; No. 4, a car that needs some work to be a daily driver; No. 5, a car in really rough condition that will need work just to be driven; and No. 6, a parts car.
Published and online price guides from reputable sources are a good place to start to determine the probable price of a desired model and year. The Hagerty Price Guide is a good source; it’s updated three times each year and is based on actual sales results and auctions around the world. Cited values are usually a bit higher than what cars sell for in North America because Hagerty includes sales prices in other countries. Still, the guide is one of the more reliable value guides. The NADA National Appraisal Guides published monthly by J.D. Power and the Sports Car Market Pocket Price Guide published for subscribers are other reliable and up-to-date value guides for classic cars. The Kelley Blue Book and Edmunds appraisal guide, for cars built after 1990, are other pricing guides that are available online and can help determine a fair price for what you are seeking.
Be careful when buying from fellow club members. It is possible to be misled by an owner who suffers from pride of ownership and who cannot see the flaws in his/her own vehicle. Thus, “Caveat emptor” – buyer beware – is the phrase to remember and refer to when a model catches your eye.
Determine the current value, especially when the market is volatile – as it has been between 2015 and 2018 – so that you do not buy on the downturn in values when the seller is valuing his car at what it was at its peak in value.
In addition, be sure to set aside at least 10 percent of your budgeted purchase amount for unexpected repairs and correction of deferred maintenance problems that you find after you take delivery so that you won’t be immediately confronted with unplanned expenses for your new purchase.
Is investment potential important?
If your purchase of a classic automobile is, at least in part, for investment – using money you might otherwise keep in savings or invest in equities – and you are seeking a car that will appreciate at or above the rate of inflation, you’re going to be looking for an example that is rare, with only a limited number of examples produced; sporty and stylish; coming from a top-tier manufacturer, such as Mercedes-Benz; and/or with a significant history – what automotive collectors label “provenance” – such as having been shown at a significant manufacturers’ event or owned by a celebrity. In contrast, if you are looking for a sedan or station wagon, you must be doing it because you just love that model.
Though select examples of classic cars have appreciated substantially more than the overall investment market during the past 10 years, that outcome can’t be said to apply to all classic cars or all periods of time. Buying a car as an investment is a bit like trying to time the stock market or being a day trader. It is a difficult process surrounded by uncertainties beyond your control and, as the investment advisers say, “Your results may not reflect past performance.” Certainly, there is nothing wrong with aiming for investment appreciation as part of your overall goal, but – perhaps paradoxically – you’re more likely to realize your goal if you are primarily buying the vehicle for personal enjoyment rather than strictly for appreciation.
As an illuminating personal example of costs and value, consider that The Star magazine’s technical editor purchased a 1965 230SL in 1991 for $18,600. Recently he made a spreadsheet to identify costs of ownership (not including fuel, license fees and insurance) and discovered he’s invested nearly $105,000 in the car that – in No. 2 condition, even though it has won first and second places in class at several MBCA and regional concours des elegance – would probably sell today for a maximum around $75,000. However, he can also interpret his results as indicating that if he sold it tomorrow, he would have owned and enjoyed an unusual automobile for 27 years at an average cost of $1,800 each year – about the cost of a nice annual vacation. He thinks that’s a pretty good return on investment.
Whatever you decide, the best of luck with your classic-car ownership experience and always make sure to have fun.
Some Affordable Classics
An investment buyer should be aware that classic cars – those that can be expected to always retain at least some resale value if kept in good shape – generally have their lowest value between 10 to 25 years of age. Mercedes-Benz in Germany calls these models “Young Timers” or “Future Classics” to encourage buyers to consider their purchase since they can provide current ownership pleasure and have the potential to increase in value.
For the entry-level buyer who may be on a limited budget, there are several chassis series, especially in sedans and station wagon body styles, that are in the affordable range and should at least hold their value. There are also coupes and cabriolets on the same chassis that have already appreciated significantly, but because of their rarity and style, may still be desirable as a first purchase. Series to consider include:
1953-1962 sedans: W105, W120, W121, W180 Pontons
1954-1960 sedans, coupes, cabriolets: W180/W128 Pontons
1959-1972 sedans, coupes, cabriolets: W111, W112, W110, W108, W109
1967-1997 sedans, station wagons, coupes, cabriolets:
W114, W115, W116, W123, W124, W126
1955-1963 W121 190SLs and 1963-1971 W113 230SL, 250SL and 280SL Pagodas have appreciated significantly in recent years. Values peaked in 2016; currently undergoing a market correction.
1971-1989 R107 Coupes and Roadsters are beginning to appreciate but have not started a stratospheric climb in value.
1990-2002 R129 300/320SL and 500SL R129 Roadsters have been given a “buy” rating by Hagerty Insurance valuation experts.