Mercedes-Benz has just launched the new E-class. But I am not interested in it. It is a new car, and it will depreciate. What I’m interested in is the outgoing model, because these cars have suffered the bulk of their depreciation already and that makes them look good value.

The outgoing E-class was introduced to Britain in October 1995. It competed for company car budgets with the BMW 5-series and Audi A6. The Mercedes sold well, appealing to the executive who favoured comfort and space over austerity and driving dynamics. With seven years of sales under its belt, you will have plenty of choice.

The Mercedes E-class offers a huge range of both petrol and diesel engines. The smaller four-cylinder petrol engine cars are adequate but uninspiring. The larger six and eight-cylinder units endow the car with the power that you would expect in a car of this quality. The best buy is the six-cylinder 2.8 engine, giving good power and economy around 30mpg.

High-mileage drivers may consider the diesels. The engines are almost unbreakable, I have driven cars with more than 400,000 miles on the clock and they still have the original engines and gearboxes. The non-turbo diesels are a little lacking in power, but the addition of the turbo changes all that. The pick of the bunch is the E 300 Turbodiesel. With 177bhp, it will embarrass most petrol-engine cars under acceleration and return 40mpg.

The E-class comes in three trim levels: Classic, Elegance and Avantgarde. The Classic is the most basic, with steel wheels and plastic steering wheel, although it does have electric windows and some wood trim on the dashboard. The Elegance model has alloy wheels, leather steering wheel, burr walnut veneer and an electric sunroof. The Avantgardes were aimed at the sporty driver, with stiffened suspension, 16in AMG alloys and a dark wood interior.

The Elegance and Avantgarde models sold in the biggest numbers, but it was not until June 1998 that air-conditioning became standard across the range. Most Mercedes are fitted with optional extras, so check the car thoroughly to find out what it’s got.

In 1999 the E-class had a facelift. While the cosmetic changes were subtle, technology and standard equipment took a massive leap forward. Cars gained a five-speed tipshift gearbox, Electronic Stability Program, electrically adjustable front seats and side airbags. These cars are now the most sought after second-hand models.

The colour of a Mercedes E-class can affect its value dramatically. Metallic paint is best — a non-metallic red, white, blue or black can reduce value by as much as £1,000.

Prices for a P-reg 1996 E 200 Classic start from as little as £6,000, but expect to pay around £9,500 for a decent E 280 and about £10,500 for the E 300 Turbodiesel, all with average mileage.

Prices on the older cars are now stable, so future depreciation will be very low. And the cars are so well built that you will rarely have to pay for anything other than standard service items. Which all adds up to surprisingly low running costs on such a prestigious car.

Points to note

Stay cool Air-conditioning is manually operated, climate control is automatic. Both will keep you cool, but the less common climate control is preferable
Side airbags Standard from August '99
Cold storage Cubby inside the front centre armrest is refrigerated on cars with air-conditioning
Keys Folding keys and infrared remotes are expensive to replace; all cars should come with two sets
Paintwork Best colours are silver and dark metallics
Wheels Avantgarde alloys are prone to scuffing, check that the spare matches
Upholstery Mercedes leather wears well but check for MB-Tex, a plastic material that looks like leather but makes the car worth less than one with cloth upholstery
Windows Tinted blue on all Avantgarde models
Service history Check that the service book has chassis numbers that match the car
Alarm Standard on all cars but the batteries in the remote control run down quickly, so carry spares

Vital statistics

Engine type 2.8-litre, V6
Transmission Five-speed automatic
Max power 204bhp at 5000rpm
Acceleration 0 to 62mph: 9.1sec
Top speed 143mph
Fuel 26.2mpg (combined)
Statistics are for a W-reg saloon

Values: Mercedes-Benz E 280 Avantgarde

Mileage 30,000
1999 S (facelift) Trade £12,950 Retail £15,950
2000 V Trade £14,350 Retail £17,495
2001 Y Trade £16,700 Retail £19,950

Mileage 50,000
1999 S (facelift) Trade £11,700 Retail £14,695
2000 V Trade £13,150 Retail £16,250
2001 Y Trade £15,500 Retail £18,750

Mileage 60,000
1999 S (facelift) Trade £11,250 Retail £14,250
2000 V Trade £12,650 Retail £15,750
2001 Y Trade £14,850 Retail £18,095

Equivalent E320 worth about £1,500 more than E280. 'Trade' is what a dealer would pay to buy your car
Source: estimates based on CAP confidential Black Book prices