SL Mark et Analysis, Part 2

Looking further into the crystal ball for 2007

March 2007

Let's continue with our look at the SL market for 2007 and begin to evaluate the various 107 chassis SLs. With over 237,881 units (SL only) produced worldwide from 1970-1989, this group certainly represents the “meat” of the SL market. It also represents the group of cars most accessible financially to SL enthusiasts around the globe.

I'll continue with my adjustment of average asking prices to reflect more accurate selling prices. For the sake of this study, we'll again use a 10% downward adjustment to approximate what a car might actually sell for. I should add that this and last month's analysis cover the SL market in the US .

Keep in mind there are always anomalies, actual sales either far above or below my results. If you are aware of any interesting sales, please email the specifics to roy@ourSL.com . I'm basing my observations on asking prices from www.ourSL.com listings and my direct experiences selling these cars and anecdotal information from other sellers. The Black Book CPI (Cars of Particular Interest) guide was also consulted as a trusted source of selling prices. As I collated the information, I generally erred on the conservative side to reflect more “real world” pricing.

Let's dive into a massive amount of data.

1976 280SL in Silver Green Metallic (861)

280SL (non-US: 1974- 1985) Total production: 25,436 units

The installation of the 2.8 liter twin-cam six cylinder into the 107 chassis produced a lighter and more agile SL. When ordered with manual windows, no AC and plaid seats the car recalled the more sporting nature of its spiritual predecessor, the 113 chassis 280SL. A manual gearbox 280SL was and still is a more agile SL to drive than the heavy V-8 cars.

I see 13 280SLs currently listed on ourSL.com with an average price after our adjustment of $9,800. The Black Book guide shows the following for the most valuable year of this car, the 1985 280SL:

These figures represent an increase in value from the July 2006 edition of 5%. I can attest to a spectacular 24k mile 1985 5-speed 280SL selling from the site for $23k last year. The ourSL.com project restored 1985 5-speed is listed on the site for $16,900 and represents a total investment on our part of $25k. Cars that warrant these values are rare however, and most examples are more accurately priced toward the lower end of the pricing spectrum. I feel there is a large caveat to Euro 280SL prices: the transmission type. I find the only reason clients consider this SL is to obtain a manual gearbox in the 107 style SL. A four speed was standard with a 5 speed optional until 10/81 after which it became standard equipment. Automatics tend to languish although my European friends tell me the auto is preferred abroad. The early (1975-1981) 280SLs are valued about 12% lower that the later ( 1983- 1985) cars. I see values for these cars to be flat for 2007.

1986 300SL in Diamond Blue Metallic (355)

300SL (non-US: 1985-1989) Total production: 13,742 units

With only 2 cars listed on ourSL.com and both priced in Euros, we don't have adequate data to form an opinion on values. The Euro 300 SL is a very interesting car, fun to drive and better balanced than the V-8 cars. Power was adequate at 188hp. I sold a 1986 300SL with 60k miles in early 2006 for $12,000. We don't find any values in the CPI guides and certainly nothing in the Kelley Blue Book so that one sale will have to suffice.

1972 350SL in Fire Engine Red (568)

350SL (US: 1972, Non-US: 1970- 1980) Total production: 15,305 units

The 350SL introduced the 107 chassis to the North American market in 1972. In a badging anomaly, the cars actually carried 4.5 liter engines to overcome the power loss due to the emerging US smog restrictions. I like these cars as they represent the purest iteration of the 107 series before the cars were burdened with AIR systems, thermal reactors; and the US mandated 5 mph bumpers.

We have 9 cars available on the site and after applying our value criteria, I come up with an average selling price of $6,550. The CPI guide suggests the following values for a 350SL:

Finding a 350SL worth $20k is a rare occurrence although a 24k mile example sold off the site 18 months ago for about $23,000. This quality/price level is the exception rather than the rule, however, and I feel most are worth precisely the average price of those on the site: $6,550. I sold a very nice car to Holland last year for $10,200. Comparing CPI values from 8 months ago reveals a 6% increase in value due largely to renewed European interest in this SL. I find zero interest in these cars from US clients. Most early 350SLs have fallen to dust in Europe so a sound US model is attractive to dealers abroad. I feel prices for clean, correct and structurally sound 350SLs will continue to advance as enthusiasts around the world realize these are attractive and usable touring cars. The next 10 years will see the gradual acceptance of the US 350SL as a collectible SL and values will gently rise for excellent examples.

1982 380SL in Manganese Brown (480)

380SL (US: 1981-1985/Non-US: 1980-1985) Total production: 53,200 units

The 380SL has been a much maligned SL for a variety of reasons. It represents the lowest output V-8 SL with a paltry 155hp (US) and suffered from endless timing chain issues. Mercedes decided in the interest of silence and simplicity to reduce the width of the timing chain for the all new alloy 3.8 liter engine series introduced in 1981. Almost immediately, chains were failing resulting in catastrophic engine failures. After absorbing massive warranty costs to correct these failures, Mercedes-Benz faced the music and began fitting a double width chain to the 380SL from the middle of the 1983 model year forward. That left roughly 29,000 early 380SLs on the road with the earlier single row chain. Updating these cars to the newer system was expensive and leaving them alone risked potential engine failure when the single row chain decided to give up. And so the 380s became forever tainted by this dilemma and remain so today.

We have plenty of price data as I see over 57 380SLs available on the site, about $680,000 worth! My formula results in an average selling price of $11,840. The CPI guide shows the following for the most valuable 380SL, the 1985 model:

I feel both the average value for cars listed on the ourSL.com and CPI's values are too optimistic, even for the double chain 1985 cars. These values approach average to above average examples of 560SL s, a car that will always be a better alternative. CPI correctly values the 1981- 1983 at 26% less that the 1984- 1985 cars. I believe all these values are at least 15% optimistic. The 380SL will be forever depressed due to the timing chain issues and be overshadowed by its more desirable big brother, the 560SL . I must confess to having sold some extremely low mileage (8,500 and 17,000) examples for $23,000 and $21,000 respectively. I consider these exceptions to the general market as both cars qualified as “best on the planet” examples. My current offering is a nice 1982 example with 111k miles and a brand new single row chain for $7,900. I see 380SL values flat to slightly declining for 2007.

1979 450SL in Classic White (737)

450SL (US: 1973-1980/Non-US: 1971-1980) Total production: 66,298 units

The iconic 450SL represents the largest segment of the 107 chassis production. Its evolution further distanced the “SL” range from its roots as a light and agile sports car. By the late ‘70s, owning a 450SL had become the definitive automotive statement of success in North America .

Like the 380SL, we have no shortage of market data with over 83 450SLs currently listed on ourSL.com! I come up with an average value of $9,000 after tossing out the $75,000(!) and $1,200 examples. The CPI guide suggests the following for 1980 examples:

These values represent a 6% decline over the last 8 months and I feel a further 10% could be removed to reflect the real market. Extremely low (<15k miles) examples will sell for above $20k and we have knowledge of a 10k mile example selling for $30k within the last 60 days. As with any marque, museum quality examples will defy general market pricing.

I regard the 450SL as a more robust if less refined alternative to the 380 although 450 values are also capped by 560SL prices. A high percentage of examples offered nationally require so much reconditioning that they fall to the level of parts cars. It is simply prohibitive to attempt to bring a tired 450SL back to life.

The 450SL has been burned into our collective automotive consciousness and may yet gain respect as cultural icons of the 70s become once again cool to own. Interestingly, the first car, the 1973 small bumper model, is valued essentially the same as the last car, the 1980 model. As with most cars with such long production runs, certain years (1974-1976) are to be avoided. I see a slight decline in 450SL values for 2007 with mint 1973 editions gently rising as European dealers scoop these cars up using inflated Euros. I feel the same about the small bumper 1973 450SLs as I do about the 1972 350SL: the car will be gradually accepted as a collectible SL over the next 5-10 years and prices will gently rise.

I think I've given you enough information to process for the moment. I'll tackle the unloved SLCs and the cool 560SL s in next month's newsletter.

Roy Spencer, editor www.ourSL.com