SL Market Analysis, Part 4

Due to the vast number of permutations of the venerable 107 chassis SL, we had to end last month's analysis with information on the 450SL, promising to cover the unloved SLC range and the popular 560SLs in this installment.

I'll continue with my adjustment of average asking prices to reflect more accurate selling values. 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.

The first time I saw an SLC cruising around my hometown in Northern California I was immediately struck by the lack of harmony in the styling of what was essentially a stretched SL. It just didn't quite look right. Much to the detriment to SLC values over the years, it seems most of humanity has felt essentially the same. Barring the 6.9, an SLC was always the most expensive car in Mercedes' US lineup, priced substantially higher than an SL. In 1979 the 450SLC sold for 18% ($5,790) more than a 450SL! Today an SLC can sell for half the price of a similar quality SL.

62,888 SLCs were constructed and their technical specification paralleled that of whatever SL was being constructed during a particular year. As was the case with the 107 series SLs, European buyers were offered a far wider selection of engine/transmission and option alternatives. Mercedes-Benz felt the power and accessory obsessed Americans should only receive highly optioned SLCs and fed us only the V-8 cars, ending the model's life here with the anemic 380SLC in 1981. A European buyer could choose a 350SLC with 4 speed manual gearbox, manual windows, no AC and plaid seats if they wished. The twin-cam 2.8 liter six cylinder was on the order menu as well.

Perusing the ourSL.com SLC listings shows 15 SLCs available, mostly 450SLC variants. Removing the $30k Euro 500SLC and the $3,500 450SLC, I come up with an average price of $9,750. Applying our 10% adjustment we end up with $8,775 as the likely selling figure for the cars listed. Our experience with SLCs over the years tells me this value is too high, likely by 20%. I hate to be so hard on these cars but there is very little market support for SLCs. Poor fuel mileage and potentially high reconditioning costs combined with low values seriously squash values. With the romance of top down touring capabilities, similar era SLs still capture buyers. SLCs lack the panache and cache of the SL.

In a moment of weakness - or was it foolishness - I restored the very cool Euro 350SLC 4 spd pictured at the top of this page. It was a ball to drive but took forever to sell at a loss! I have given up buying SLCs unless I am presented with a museum quality low mileage 240hp 5.0 liter Euro car for a song. With only 1,299 units produced from 1977- 1981 the 500SLC certainly has future collectible value. CPI values an excellent 1979 Euro 500SLC a whopping 67% ($8,000) higher than a comparable quality US 1979 450SLC. Let me know if you find good one.

The Black Book CPI guide shows the following for the best of the US SLCs, the 1979 edition:

These values also need to be chopped by 20% to reflect market conditions. SLCs must be brutally cheap to sell. A tired or “fair” example becomes a potential parts donor car. Weak 1973 examples and Euro models are useful for their small bumpers and any sheetmetal common to the SL.

(we've never seen an 1985 560SL but our data indicates 3,907 constructed in 1985)

Although the SL sold strongly in both Europe and the US throughout the ‘70s and early ‘80s, the cars were not without faults. The timing chain debacle with the early 380SLs and the regular subframe failures in the '70s and '80s were episodes Mercedes would prefer to forget. The swan song for the 107 chassis was a car that essentially corrected all the shortcomings of the earlier cars, the great 560SL .

The approximately $1.4m worth of 560SLs currently for sale on www.ourSL.com should provide us with plenty of market data. Removing the $40,000 and $3,500 examples we arrive at an average asking price of $18,212. After our 10% adjustment, we have $16,391 for an average presumed selling price. Prices for 560SLs are all over the map and are very sensitive to mileage. Unusually low mileage examples bring over $30k and high mileage cars fall below $10k. The 5 560SLs we sold last year ranged from a tired 1989 trade-in for $10,200 to a museum quality 8,700 mile 1988 for $35,000. Our average price for the 5 cars was $21,780, well above what we find on the site. To my knowledge the highest selling price for a 560SL in 2006 was $47,500 for a 1,700 mile 1989.

I feel an adjustment of 10% is still necessary against the $16,391 site average to reflect real world values. This gives us an average selling of $14,752. Most 560SLs on the market require significant reconditioning to look and feel as Mercedes intended. With the exception of the $10k example, our cars last year needed nothing. We routinely spend $4000-$6000 on 560SLs sellers tell us are “ready to go.” Well, usually they are “ready to go” directly into the shop for a few weeks of rehabilitation!

The CPI guide reflects the following for the most valuable 560SL , the 1989 model:

Interestingly, the average of the three CPI values is $16,033, about the site average before our adjustment. CPI is damn close on these cars. The value adjustment as you step back from 1989 is roughly a $1,500 reduction per year. I'm moderately bullish on 560SLs for 2007 and expect a 5%-7% rise for the spectacular cars. Tired, high mileage cars will languish and sag 10% and values for mid-mileage cars (70k-100k) will be flat.

The 560SL is a user-friendly, durable, and powerful top down cruiser that most of humanity recognizes as a strong symbol of an era where Mercedes-Benz was the undisputed industry leader in build quality and reliability. When new it was an automotive symbol that said “I've made it.” Today the 560SL is a personal automotive statement that quietly says “I prefer quality and an enduring timeless style.” Great 560SLs are respectable investments. I recently spoke with a fellow that owned a Gullwing, a 300SL Roadster, a 190SL, a 280SL, and…a mint 560SL !