Here's How Much A 2021 Mercedes-Benz A-Class Has Depreciated In 5 Years

A luxury brand for less — that was the thinking behind the 2019 model-year introduction of the subcompact Mercedes-Benz A-Class sedan in the U.S. The idea was to get buyers to spend Camry money on a vehicle with a three-pointed star. It was a short-lived experiment that lasted only a few model years, ultimately ceding lineup space to the pricier CLA after Mercedes axed the A-Class after 2022.

For the 2021 model year, this meant spending at least $34,700 for the base A 220 with destination. But that's not the price you'll pay in 2026 for a used one. Thanks to the wonders of depreciation, you might be able to cut that original MSRP in half. A 5-year-old vehicle can be a sweet spot for used car shoppers, thanks to a balance of cost and relative newness.

To get a better look at today's valuations for the cheapest new Mercedes from 2021, we'll examine depreciation estimates from Kelley Blue Book (KBB) and iSeeCars. We'll also compare current A-Class valuations against the BMW 2 Series. Normally, the A3 would also be a contender, but Audi skipped production in 2021. A review of dealer listings on AutoTrader will also help assess the accuracy of the depreciation findings. All MSRPs mentioned here include factory destination charges.

Let's get back to that $34,700 starting price for the entry-level A 220 sedan with front-wheel drive (FWD) — all-wheel drive (AWD) was a $2,000 upgrade from the factory. iSeeCars says a half-decade-old A 220 is now worth 56.6% of its initial value, which works out to a 43.4% depreciation. At the same time, KBB indicates an $18,800 resale value, or a 45.8% drop in value over the original base sticker price. Not surprising, considering luxury cars take a severe hit in depreciation after just one year.

In fact, looking at FWD-equipped 2021 A 220s with average mileage or better (under 68,000 miles) and a clean title and no accidents listed on sites like AutoTrader, it's not that difficult to find examples priced close to $17,000 – less than half of the base MSRP and even cheaper than KBB's estimate. Pricing rises another $1,000 to $3,000 for A 220s with well-below-average mileage and exceptional features and condition.

Although the 2021 BMW 2 Series comes in many forms (including a coupe and convertible), it's the sedan (Gran Coupe in BMW speak) that's a natural rival to the A 220. The base 228i with rear-wheel drive (RWD) came with a starting MSRP of $41,045, while the xDrive (AWD) version cost another $2,000. iSeeCars reports a 5-year depreciation rate of 47.9% for this smallest Bimmer. That's roughly double the decline in value for the 2021 BMW M4.

KBB's numbers are harder to nail down because its depreciation rate blends different configurations and drivetrains, but a resale value of $18,400 creates an effective depreciation rate of 59%. This calculation is based on an average MSRP of $44,895, which represents the average between the initial base prices for the RWD- and AWD-outfitted 228i and the M235i xDrive Gran Coupe that started at $50,595.

Second-hand 2 Series sedans from the 2021 model year aren't as plentiful as the Mercedes A 220, but dealer listings for examples with a clean history and average mileage hover around $20,000, suggesting a 55.5% 5-year depreciation rate (based on the $44,895 average MSRP), which splits the difference between the findings from iSeeCars and KBB.