In the changing landscape of luxury cars, the ability to own a car that retains its value is a huge plus. When shopping for a premium used car in 2025, two titans that frequently come up are Audi and Mercedes-Benz. The two have really good engineering, prestige, and performance, but how do they compare in terms of resale value? So, if you’re considering a foray into the luxury pre-owned market this year, a little knowledge here could save you some cash and make for a less bumpy ride while you’re enjoying it. 

The Importance of Resale Value in Luxury Cars

Luxury cars generally depreciate faster than more mainstream makes. It’s a reality that most buyers have to grapple with: a new car loses a chunk of its value as soon as it drives off the lot. Still, how much it loses — and how quickly it depreciates — varies significantly between makes and models. In the case of luxury cars, this depreciation is typically rather steep in the first few years, but then it levels off as the car gets older.

Resale value is important because it indicates how much money you will recoup when you upgrade or get rid of your car. A car that holds its value well is generally more buyer-friendly as well, making it a better investment in the long run. 

Audi vs. Mercedes-Benz: Who Holds the Crown?

When comparing Audi vs. Mercedes-Benz, remember their resale value because it will become a financially strong decision. Both have different time-periods for resale options, as these manufacturers have differing behaviors in each of those time periods.

Mercedes-Benz: The Short-Term Resale Champion

Mercedes-Benz is a blend of luxury, reliability and prestige, that play a big part in its resale value. The make is particularly good at holding onto early ownership value. For example, the Mercedes E-Class generally recoups 55-60% of its original value after three years — a good number for the luxury class.

Why does Mercedes succeed so well? For one, there’s the brand’s cachet. Mercedes has a broadly established name and its service networks are vast especially in metro cities like delhi mumbai and bangalore. That gives buyers confidence that they won’t have a headache taking care of and servicing their car, which is a big plus when they go to resell it. 

There are used versions of the E-Class, the C-Class, and even the GLC SUV that are in high demand. In particular, the GLC capitalizes on increasing demand for luxury SUVs, occupying a solid position in the minds of buyers looking for a good premium compact SUV. 

Audi: The Long-Term Value Contender

Among premium brands, however, Audi is a different beast. It may not be worth as much as a Mercedes the first three years, but like Audi, Mercedes has an incredibly high long-term value. Studies show that Audi has a 54.4% retention rate over five years, beating Mercedes-Benz by a large margin, which is around 48.6% during the same period.

Audi’s attraction is a stylish mix of technology and more affordable maintenance. Such models as the Audi A4 and Q3 combine luxury and practicality with initial outlay that’s a bit lower than comparable Mercedes models – which appeals to buyers worried about both cost and quality.

In particular, the Q3 and Q5 have gained a massive following among city consumers because of their small size, sporty design and fuel efficient driving. Also, resale values for petrol versions are increasingly higher, as emission regulations and buyers’ preference shift away from diesel versions. 

Key Factors Driving Depreciation and Value Retention

Luxury vehicles lose value rapidly, often shedding half or more of their original purchase price by the time they reach three years old. Here’s a quick summary of the patterns of depreciation that most luxury vehicles are subject to:

• The first year sees the sharpest decline, usually 15-25 %.
• Years two to three then follow with an additional 10-15% drop per year.
• During the fourth and fifth years, the rate falls to around 8-10% a year.
• In most cases after six years, the car holds its value with depreciation slowing down. 

Several factors influence this depreciation rate:

• Brand Prestige and Recognition: The long-term positioning and brand loyalty of Mercedes-Benz also provides it with a layer of protection from the rapid depreciation.
• Service and Maintenance Infrastructure: The extensive network of Mercedes service centers also provides reassurance to prospective buyers who are vary of maintenance costs.
• Fuel Type Preference: Due to increasing environmental consciousness and regulatory norms, petrol cars generally hold better resale value as compared to diesel cars.
• Urban Demand: Metro cities are the place to buy and sell luxury cars and this impacts the turnaround of models such as the Audi Q3 or Mercedes GLC. 

Read More:- Top 10 Most Fuel-Efficient Cars in India Under ₹10 Lakhs You Must See in 2025

What Brand and Model Should You Get?

If you’re only interested in gaining the highest resale value over a short period, Mercedes-Benz (and particularly the E-Class) tends to be the safer bet. The combination of luxury and comfort coupled with high demand in the used car market really keeps its value high in the first 3 years. 

On the other hand, if you plan on keeping your vehicle for a little longer or you want to spend a bit less up front, Audi’s A4, Q3 and others models have appealing value propositions. Their long term resale value, sleek designs and the fact that they tend to be cheaper to maintain also makes them the best choice for those who intend to keep their vehicles for five years or more.

The rising popularity of luxury compact SUVs such as the Mercedes GLC or the Audi Q3 makes these top choices in terms of resale value. With the world turning more towards SUVs, their demand that they have makes their used car market very appealing. 

Here is a list of popular Audi and Mercedes models Along with their approximate market prices in India & what they will cost in 2025! 

Timing Your Sale for Maximum Value

What many people also don’t know is that a key to making the most of your investment in a luxury car is to sell it at the right time. The sweet spot is usually about three years. At this stage, your car will have retained a hefty chunk of its original value, but you will have reaped most of the rewards of driving a new(ish) luxury car.

Keeping the car past five years is normally less about holding value, and more about holding the experience of ownership, unless you have an iconic, classic or rare model. 

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Conclusion

When it comes to picking between Audi and Mercedes-Benz for a used luxury car in 2025, it really depends on what you value most. For the short-term value, prestige, and service convenience, Mercedes-Benz will make you happier. Conversely, if you prefer a lesser upfront expense and a vehicle that retains its value well over the long haul, with excellent performance, then Audi could be the better choice.

Remember the effect of fuel type, model popularity and your location on resale values too. From the commanding presence of the Mercedes E-Class to the sleek and versatile Audi Q3, a little research and knowledge of depreciation can turn your luxury car experience into not only one of comfort but smarts when it comes to your finances.

Buying a luxury used car is a dance between passion and practicality, and in 2025 both Audi and Mercedes-Benz have plenty of intriguing choices for varied tastes and requirements.