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Mercedes-Benz is more expensive than BMW in nearly every cost category. Mercedes has a higher average transaction price ($75,700 vs $69,924), higher annual insurance costs ($3,625 vs $4,636 depending on source), and higher annual maintenance costs ($900-$1,400 vs $1,000-$1,700)[1][2]. However, BMW has significantly higher 10-year cumulative maintenance costs ($17,800 vs $12,900)[3]. For model-to-model comparisons, both brands are often within $1,000-$2,000 of each other at MSRP[4].
Purchase Price Comparison
Average Transaction Prices (2024-2025)
| Brand | Avg. Transaction Price (Oct 2024) | Avg. Transaction Price (Sept 2025) | Year-over-Year Change |
|---|---|---|---|
| Mercedes-Benz | $75,700[1] | $73,205[5] | -3.3% |
| BMW | $69,924[1] | $68,898[5] | -1.5% |
| Industry Average | $48,724[6] | ~$50,000[1] | +2.6% |
Mercedes-Benz buyers pay approximately $5,800 more on average than BMW buyers[1]. Both brands command significant premiums over the industry average—Mercedes costs 56% more, while BMW costs 43% more than the typical new vehicle[6].
MSRP by Segment (2025)
| Segment | BMW Model | BMW MSRP | Mercedes Model | Mercedes MSRP | Difference |
|---|---|---|---|---|---|
| Compact Sedan | 3 Series | $48,675[4] | C-Class | $49,600[4] | +$925 Mercedes |
| Compact Sedan (entry) | 330i | $45,950[7] | C 300 | $46,950[7] | +$1,000 Mercedes |
| Mid-Size SUV | X5 | $68,000[8] | GLE | $72,000[8] | +$4,000 Mercedes |
| Full-Size Sedan | 7 Series | $93,300 | S-Class | $117,350 | +$24,050 Mercedes |
The price gap widens significantly in higher-end segments, with the Mercedes S-Class commanding a $24,000 premium over the BMW 7 Series[4].
Ownership Cost Comparison
Annual Maintenance Costs
| Source | BMW | Mercedes-Benz | Difference |
|---|---|---|---|
| Foreign Affairs Auto[2] | $1,000-$1,700/year | $900-$1,400/year | BMW higher |
| WhoCanFixMyCar (UK)[9] | £213/full service | £220/full service | Mercedes higher |
| RepairPal[10] | $968/year | $908/year | BMW higher |
The data shows mixed results depending on the source and region[2]. In the US, BMW tends to have higher annual repair costs ($968 vs $908)[10]. In the UK, Mercedes has slightly higher service costs[9].
10-Year Total Maintenance Costs
| Brand | 10-Year Cost | Cost per Year |
|---|---|---|
| BMW | $17,800[3] | $1,780 |
| Mercedes-Benz | $12,900[3] | $1,290 |
| Audi | $12,400[3] | $1,240 |
| Cadillac | $12,500[3] | $1,250 |
| Toyota (reference) | $5,500[3] | $550 |
BMW has significantly higher long-term maintenance costs—38% more than Mercedes over a 10-year ownership period[3]. This represents an additional $4,900 in maintenance expenses.
For more BMW cost information, see our BMW maintenance cost guide.
Insurance Costs
| Brand | Avg. Monthly (Full Coverage) | Avg. Annual | vs. National Avg. |
|---|---|---|---|
| BMW | $242[11] | $2,904 | +25% |
| Mercedes-Benz | ~$302[12] | ~$3,625 | +55% |
| National Average | $193[11] | $2,316 | — |
Mercedes-Benz vehicles cost approximately $720 more per year to insure than equivalent BMW models[12]. CarEdge ranks Mercedes-Benz 11th among luxury brands for insurance costs ($3,625 annually) while BMW ranks lower at 14th ($4,636 annually) using different methodology[12].
Most/Least Expensive BMW Models to Insure:
| Model | Avg. Monthly (Full Coverage) |
|---|---|
| M4 (most expensive) | $321[11] |
| X5 | $221[11] |
| 3 Series | $237[11] |
| Z4 (least expensive) | $190[11] |
Depreciation Comparison
5-Year Depreciation Rates
| Model Class | BMW Residual Value | Mercedes Residual Value | Better Value Retention |
|---|---|---|---|
| Compact (3 Series vs C-Class) | 49%[13] | 48%[13] | BMW (+1%) |
| Mid-Size (5 Series vs E-Class) | 43%[13] | 50%[13] | Mercedes (+7%) |
| Full-Size (7 Series vs S-Class) | 38%[13] | 42%[13] | Mercedes (+4%) |
| SUV (X5 vs GLE) | 48%[13] | 38%[13] | BMW (+10%) |
Mercedes generally holds value better for sedans, while BMW SUVs outperform Mercedes SUVs in resale value[13]. The E-Class notably retains 50% of its value after five years, compared to just 43% for the 5 Series[13].
Year-by-Year Depreciation
| Year | BMW Value Retained | Mercedes Value Retained |
|---|---|---|
| 1 | 81%[13] | 82%[13] |
| 3 | 57%[13] | 55%[13] |
| 5 | 45%[13] | 44%[13] |
| 7 | 33%[13] | 36%[13] |
| 10 | 22%[13] | 25%[13] |
Mercedes maintains a slight depreciation advantage in later years, with vehicles retaining 3% more value by year 10[13]. This difference can translate to $2,000-$5,000 on a $60,000 vehicle.
Total Cost of Ownership: 5-Year Example
Comparing a BMW 330i vs Mercedes C 300 over 5 years:
| Cost Category | BMW 330i | Mercedes C 300 |
|---|---|---|
| Purchase Price (MSRP) | $45,950[7] | $46,950[7] |
| 5-Year Depreciation (55%) | -$25,273 | -$25,823 |
| 5-Year Maintenance | ~$8,900[3] | ~$6,450[3] |
| 5-Year Insurance | ~$14,520[11] | ~$18,125[12] |
| Total 5-Year Cost | ~$48,693 | ~$50,398 |
The BMW 330i costs approximately $1,700 less over 5 years of ownership despite similar purchase prices[3][11]. This advantage comes primarily from lower insurance costs, partially offset by higher maintenance expenses.
For more information on Mercedes costs, see our Mercedes maintenance cost guide.
Which Brand Offers Better Value?
BMW Advantages
- Lower average transaction price ($69,924 vs $75,700)[1]
- Lower insurance costs for most models[11]
- Better SUV resale values[13]
- Lower entry prices in most segments[4]
Mercedes Advantages
- Lower 10-year maintenance costs ($12,900 vs $17,800)[3]
- Better sedan resale values (E-Class, S-Class)[13]
- Stronger brand prestige in luxury segment
- More competitive financing rates at times[14]
Key Takeaways
- Mercedes-Benz has a higher average transaction price than BMW ($75,700 vs $69,924), making it approximately $5,800 more expensive to purchase on average
- BMW has significantly higher 10-year maintenance costs ($17,800 vs $12,900 for Mercedes), adding nearly $5,000 in ownership expenses
- BMW is generally cheaper to insure ($242/month vs ~$302/month for Mercedes), saving approximately $720 annually
- Mercedes sedans hold value better (E-Class retains 50% vs 43% for 5 Series), while BMW SUVs depreciate more slowly than Mercedes SUVs
- For equivalent models, the actual MSRP difference is often within $1,000-$2,000, making total cost of ownership more important than purchase price alone
Frequently Asked Questions
Is BMW or Mercedes more expensive to buy?
Mercedes-Benz has a higher average transaction price at $75,700 compared to BMW’s $69,924—a difference of nearly $6,000[1]. However, when comparing equivalent models directly, the gap narrows significantly. The BMW 330i starts at $45,950 versus the Mercedes C 300 at $46,950, a difference of only $1,000[7]. The premium increases in higher segments, with the S-Class costing $24,000 more than the 7 Series.
Which costs more to maintain over time: BMW or Mercedes?
BMW has significantly higher 10-year maintenance costs at $17,800 versus Mercedes’ $12,900—a difference of $4,900[3]. However, annual repair costs from RepairPal show BMW at $968 versus Mercedes at $908, a minimal difference[10]. The higher long-term BMW costs are attributed to more frequent major repairs and expensive parts for high-performance components.
Do BMW or Mercedes hold their value better?
Neither brand has a clear overall advantage—it depends on the model[13]. BMW SUVs like the X5 retain value better than Mercedes equivalents (48% vs 38% after 5 years). Mercedes sedans, particularly the E-Class, hold value better (50% vs 43% for the 5 Series). On average, Mercedes vehicles retain 2-3% more value after 10 years of ownership[13].
Which is cheaper to insure: BMW or Mercedes?
BMW is generally cheaper to insure, with full-coverage averaging $242/month compared to Mercedes at approximately $302/month[11][12]. This translates to roughly $720 in annual savings for BMW owners. However, both brands cost significantly more to insure than average vehicles ($193/month nationally)[11].
Are luxury German cars worth the extra cost over Japanese brands?
German luxury cars cost 3-4 times more to maintain than Japanese brands like Toyota ($17,800 for BMW vs $5,500 for Toyota over 10 years)[3]. However, they offer superior performance, more prestigious interiors, and advanced technology. The value depends on priorities—if reliability and low ownership costs matter most, Japanese luxury brands like Lexus offer better value. If driving dynamics and prestige are priorities, German brands justify their premium for many buyers.
References
- CarScoops. (2025). Average New Car Price Breaks $50,000 Barrier For The First Time. https://www.carscoops.com/2025/10/average-transaction-price-tops-50000-for-the-first-time/
- Foreign Affairs Auto. (2025). BMW vs Mercedes vs Audi | Maintenance Guide for Florida. https://foreignaffairsauto.com/bmw-vs-mercedes-vs-audi-comparative-maintenance-guide-for-florida-drivers/
- Hance’s European. (2025). Comparing the Most Costly vs Affordable Luxury Car Maintenance. https://www.hanceseuropean.com/costly-affordable-luxury-cars-maintain/
- TrueCar. (2024). BMW 3 Series vs. Mercedes-Benz C-Class Comparison. https://www.truecar.com/compare/bmw-3-series-vs-mercedes-benz-c-class/
- Cox Automotive / Kelley Blue Book. (2024). July 2024 Kelley Blue Book Average Transaction Price Tables. https://www.coxautoinc.com/wp-content/uploads/2024/08/July-2024-Kelley-Blue-Book-Average-Transaction-Price-tables.pdf
- Kelley Blue Book. (2024). New-Vehicle Prices Climb in November. https://mediaroom.kbb.com/2024-12-11-Kelley-Blue-Book-Report-New-Vehicle-Prices-Climb-in-November
- Cars.com. (2024). 2024 Mercedes-Benz C-Class vs. 2025 BMW 330 Comparison. https://www.cars.com/research/compare/?vehicles=mercedes_benz-c_class-2024%2Cbmw-330-2025
- YouTube – Car Review. (2025). BMW X5 vs Mercedes GLE Comparison. https://www.youtube.com/watch?v=eyZkNwjjmMw
- WhoCanFixMyCar. (2024). Audi vs BMW vs Mercedes: Which costs the most to maintain? https://www.whocanfixmycar.com/advice/bmw-vs-audi-vs-mercedes-which-costs-most-to-maintain
- RepairPal. (2025). BMW Reliability Ratings. https://repairpal.com/reliability/bmw
- Compare.com. (2025). BMW Car Insurance Costs & Cheapest Companies in 2025. https://www.compare.com/auto-insurance/vehicles/bmw
- CarEdge. (2025). Ranking the Least Expensive Luxury Cars to Insure. https://caredge.com/ranks/insurance/luxury/least-expensive
- YourGreatCar. (2022). BMW vs Mercedes: Depreciation Comparison. https://yourgreatcar.com/bmw-vs-mercedes-depreciation-comparison/
- Bimmerpost Forums. (2024). Seriously considering trading in my 2024 GLE 350 for a BMW discussion. https://g05.bimmerpost.com/forums/showthread.php?t=2146858
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.
