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Mercedes-Benz is more expensive to buy, but BMW costs more to maintain long-term. Mercedes buyers pay an average transaction price of $73,205 versus BMW’s $68,898—a difference of roughly $4,300[1]. But the tables turn over time: BMW’s 10-year maintenance cost averages $16,021–$17,800 compared to Mercedes’ $12,900–$12,942[2][3]. Insurance costs also favor BMW slightly, with annual premiums averaging $1,463 versus Mercedes’ $1,875[4].
Price Comparison Overview
| Cost Category | BMW | Mercedes-Benz | Winner |
|---|---|---|---|
| Avg. Transaction Price | $68,898 | $73,205 | BMW (-$4,307) |
| Annual Maintenance | $968 | $908 | Mercedes (-$60) |
| 10-Year Maintenance | $16,021–$17,800 | $12,900–$12,942 | Mercedes |
| Annual Insurance (Avg.) | $1,463–$2,051 | $1,565–$1,875 | BMW |
| 5-Year Depreciation | ~55% | ~50% | Mercedes |
Based on US market data[1][2][3][4]
The short answer depends on your timeline. Mercedes costs more upfront and less over time. BMW costs less to buy but carries higher long-term ownership expenses. Your choice hinges on whether you keep cars for 3 years or 10.
Purchase Price: BMW vs Mercedes by Segment
Model-to-model, Mercedes typically commands a slight premium over comparable BMWs.
| Segment | BMW Model | BMW MSRP | Mercedes Model | Mercedes MSRP | Difference |
|---|---|---|---|---|---|
| Entry Sedan | 330i | $45,950 | C 300 | $46,950 | +$1,000 MB |
| Compact SUV | X3 | $55,395 | GLC 300 | $54,200 | -$1,195 BMW |
| Mid-Size Sedan | 540i | $61,700 | E 350 | $63,900 | +$2,200 MB |
| Mid-Size SUV | X5 | $68,000 | GLE | $72,000 | +$4,000 MB |
| Full-Size Sedan | 7 Series | $93,300 | S-Class | $117,350 | +$24,050 MB |
2025 model year starting MSRPs[5][6]
The gap widens dramatically in higher segments. While entry-level models differ by $1,000–$2,000, the S-Class commands a $24,000 premium over the 7 Series[1]. That’s not just trim differences—Mercedes positions its flagship as the definitive luxury statement, and prices accordingly.
For budget-conscious luxury buyers, understanding whether BMW or Mercedes is more reliable helps weigh purchase price against potential repair costs.
Annual Maintenance Costs
The yearly maintenance gap between brands is surprisingly narrow—but it reverses what you might expect from the purchase price difference.
| Brand | Annual Maintenance | Service Cost (Full) | Oil Change |
|---|---|---|---|
| BMW | $968–$1,700 | $213 (UK avg.) | $150–$300 |
| Mercedes-Benz | $908–$1,400 | $220 (UK avg.) | $150–$250 |
RepairPal and WhoCanFixMyCar data[7][8]
RepairPal reports BMW averages $968 annually while Mercedes costs $908—only $60 difference[7]. Other sources show wider gaps: some estimate BMW at $1,000–$1,700 versus Mercedes’ $900–$1,400[9].
The catch? These are averages. High-performance M-series BMWs can exceed $2,500 per year, while AMG Mercedes models run similarly high[10]. Your actual costs depend heavily on the specific model and how you drive.
10-Year Maintenance: Where BMW Gets Expensive
Long-term ownership reveals BMW’s hidden costs. The difference becomes substantial over a decade.
| Brand | First 5 Years | Years 6–10 | 10-Year Total |
|---|---|---|---|
| BMW | $1,700 | $9,300 | $16,021–$17,800 |
| Mercedes-Benz | ~$6,450 | ~$6,500 | $12,900–$12,942 |
| Difference | +$3,000–$4,900 BMW |
CarEdge and Hance’s European data[2][3]
BMW’s 10-year maintenance averages $16,021 according to CarEdge, while Mercedes comes in at $12,942[2]. Hance’s European places BMW even higher at $17,800 versus Mercedes’ $12,900[3].
Why the difference? BMW’s post-warranty years (6–10) see costs spike dramatically—$9,300 compared to a more consistent Mercedes pattern[11]. Common BMW issues like cooling system failures, oil leaks, and electrical problems compound after 60,000 miles. Mercedes vehicles have their own quirks (air suspension, infotainment), but repairs tend to be less frequent.
For specific model data, the BMW 328i costs approximately $15,600 over 10 years, while the Mercedes E350 runs $14,700[3]. Learn more about BMW maintenance costs to plan accordingly.
Insurance Costs
Mercedes vehicles cost more to insure than BMWs across most models.
| Brand | Annual Premium (Avg.) | Full Coverage | Minimum Coverage |
|---|---|---|---|
| BMW | $1,463–$2,051 | $1,702–$2,753 | $599–$609 |
| Mercedes-Benz | $1,565–$1,875 | $1,658 | $612 |
Youi Australia and MoneyGeek US data[4][12]
Australian insurer Youi reports BMW averages $1,463 annually versus Mercedes’ $1,875—a 28% difference[4]. US data shows narrower gaps but still favors BMW, with MoneyGeek reporting full coverage averaging $1,702 for an X3 versus $1,658 for a GLA 250[12].
Higher-end models like the S-Class carry dramatically higher premiums ($1,863–$5,371 annually) due to expensive parts and repair costs[4]. Insurance costs also correlate with theft rates—and both brands remain popular targets.
Depreciation Comparison
Mercedes holds value slightly better than BMW over typical ownership periods.
| Model | 3-Year Depreciation | 5-Year Depreciation |
|---|---|---|
| BMW 3 Series | ~45% | ~55–60% |
| Mercedes C-Class | ~40% | ~50–55% |
| BMW 5 Series | ~50% | ~60–65% |
| Mercedes E-Class | ~45% | ~55–60% |
SuperCarsKing depreciation estimates[13]
BMW vehicles lose approximately 23.75% of value in the first year alone, with five-year depreciation averaging over 50%[14]. Mercedes models typically depreciate 5–10% less, though specific models vary.
And here’s something often overlooked: Mercedes’ higher resale values partially offset its higher purchase price. A $73,000 Mercedes that depreciates 50% leaves you with $36,500. A $69,000 BMW depreciating 55% leaves $31,050—a $5,450 difference at trade-in time.
Total Cost of Ownership: 5-Year Comparison
Combining all costs reveals the true ownership picture.
| Cost | BMW 330i | Mercedes C 300 |
|---|---|---|
| Purchase Price (MSRP) | $45,950 | $46,950 |
| 5-Year Maintenance | ~$8,900 | ~$6,450 |
| 5-Year Insurance (est.) | ~$8,500 | ~$7,800 |
| 5-Year Depreciation (55%/50%) | -$25,273 | -$23,475 |
| Net 5-Year Cost | ~$88,623 | ~$84,675 |
Estimates based on available data[1][3]
Over five years, the Mercedes C 300 costs approximately $4,000 less to own than the BMW 330i despite a higher purchase price. Lower maintenance, better depreciation, and comparable insurance tip the scales.
The calculation shifts for different segments. SUV buyers should check BMW X3 versus Mercedes GLC comparisons for segment-specific data.
Which Brand Offers Better Value?
Value depends on your priorities and ownership timeline.
Choose BMW if:
- You plan to keep the car under 5 years
- Lower purchase price matters more than long-term costs
- You prefer driving dynamics over luxury comfort
- Insurance costs factor heavily into your budget
Choose Mercedes if:
- You’ll own the vehicle 5+ years
- Lower long-term maintenance matters
- Resale value is important for your next trade
- You prioritize interior luxury and technology
For those considering the fastest models from each brand, see our guide on the fastest BMW M Series to compare performance-oriented options.
Key Takeaways
- Mercedes-Benz costs $4,307 more on average at purchase ($73,205 vs $68,898), but this gap narrows or reverses when considering total ownership costs[1].
- BMW’s 10-year maintenance averages $16,021–$17,800 compared to Mercedes’ $12,900–$12,942—a $3,000–$4,900 difference favoring Mercedes[2][3].
- Insurance favors BMW with average annual premiums of $1,463 versus Mercedes’ $1,875—a 28% difference in some markets[4].
- Mercedes depreciates slower (50% at 5 years vs BMW’s 55%), partially offsetting its higher purchase price at trade-in time[13][14].
- For 5-year ownership of comparable sedans, Mercedes saves approximately $4,000 total despite costing more initially[1][3].
FAQs
Is BMW cheaper to buy than Mercedes?
Yes. BMW’s average transaction price is $68,898 compared to Mercedes’ $73,205—a difference of approximately $4,300[1]. Model-to-model comparisons show BMW typically costs $1,000–$4,000 less, though the gap widens to $24,000 for flagship sedans.
Which German brand has higher maintenance costs?
Is BMW or Mercedes more expensive to insure?
Do BMWs or Mercedes depreciate faster?
Which is cheaper to own overall: BMW or Mercedes?
References
-
Autvex. (2025). What Is More Expensive: BMW or Mercedes? (Cost of Ownership).
What Is More Expensive: BMW or Mercedes? Full Cost Breakdown
- CarEdge. (2026). Ranking the Most Expensive Luxury Cars to Maintain. https://caredge.com/ranks/maintenance/luxury/10-year/worst
- Hance’s European. (2025). Comparing Costly vs Affordable Luxury Car Maintenance. https://www.hanceseuropean.com/costly-affordable-luxury-cars-maintain/
- Youi Australia. (2026). Mercedes-Benz Insurance Costs. https://www.youi.com.au/car-insurance/insurance-by-make/mercedes-benz
- Cars.com. (2025). 2024 Mercedes-Benz C-Class vs. 2025 BMW 330. https://www.cars.com/research/compare/?vehicles=mercedes_benz-c_class-2024%2Cbmw-330-2025
- Kelley Blue Book. (2025). 2025 Mercedes-Benz CLA vs. 2025 BMW 2 Series. https://www.kbb.com/comparison/mercedes-benz-cla-vs-bmw-2-series/
- Yahoo Autos. (2025). Mercedes vs BMW Maintenance Costs Compared. https://autos.yahoo.com/ownership/articles/mercedes-vs-bmw-maintenance-costs-125309808.html
- WhoCanFixMyCar. (2025). Which Is the Cheapest Premium German Car to Maintain? https://www.whocanfixmycar.com/advice/which-is-the-cheapest-premium-german-car-to-maintain
- Foreign Affairs Auto. (2025). BMW vs Mercedes vs Audi Maintenance Guide. https://foreignaffairsauto.com/bmw-vs-mercedes-vs-audi-comparative-maintenance-guide-for-florida-drivers/
- Auto Garage Services. (2025). Is Audi Maintenance Cost Higher Than BMW and Mercedes? https://autogarageservices.com/blog/audi-maintenance-cost-vs-bmw-mercedes/
- Quartz. (2025). The Most Expensive Car Brands to Maintain: Consumer Reports. https://qz.com/consumer-reports-most-expensive-car-brands-maintenance
- MoneyGeek. (2026). BMW Car Insurance Cost and Cheapest Companies. https://www.moneygeek.com/insurance/auto/bmw-car-insurance/
-
SuperCarsKing. (2025). The True Cost of Owning a BMW or Mercedes.
The True Cost of Owning a BMW or Mercedes: What No One Tells You
- Jerry. (2026). BMW Depreciation Rates. https://jerry.ai/car-loan/bmw-depreciation/
I am a senior automotive analyst at Autvex. Expert vehicle evaluations, in-depth reviews, and objective analysis helping readers make informed automotive decisions with years of industry experience.
