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Sadly Gregg has passed away
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Discussion Starter #1
I pinged 12 dealer Sales Managers (both low and high volume operations) within 250 miles of home base and asked them to quote a new vehicle.
Several responded via email/phone with similar proposals ranging from 3% to 4.5% off the 56965 MSRP. At -4.5% the cost would be 54401.

Both Edmunds and True Car show the following cost structure.......
MSRP 56965
MARKET AVERAGE 54273
DEALER INVOICE 53740
DEALER COST 51911

Question......is 4.5% off MSRP truly a good deal? Am I missing something?

PS....two of the dealers were instantly disqualified by making belligerent acomments......"we don't do bidding wars" and "if you're shopping around we don't care to offer a quote." I found their manner both puzzling and amusing!
 

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Don - Founding Member #4
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PS....two of the dealers were instantly disqualified by making belligerent acomments......"we don't do bidding wars" and "if you're shopping around we don't care to offer a quote." I found their manner both puzzling and amusing!
:confused:Their comments would have irked me, but I do admire their honesty. Chances are a "in person" visit would have yielded a competitive offer and a more polite response. Good luck with your negotiations.
 

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Founding Member
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New cars are always hard to negotiate, I remember when the r171 first came out, there were little to no discounts. I end up doing 'Euro Delivery' for the 7% discount and I wanted the experience. If you are not in a rush, I would wait. From what I can see, the new r172 isn't selling as well. I remember it was rare to see a r171 on the showroom floor when it came out. I am seeing the same r172 parked outside for months here.
 
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Premium Member
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I can understand them declining your request if their businesses can make enough money without having to offer discounted vehicles by email.

It may be that they only have fixed ration of vehicles due to finance limitations or perhaps supply limits from MB. So their goal will be to maximise the margin for each vehicle. Whereas a large dealer in a major connurbation will aim to shift as many units as possible even if each one has a lower margin.

The other factor is if they are meeting their sales targets, I've found some dealers will drop prices near a quarter end if they are struggling to shift enough units.

Also, some dealers take a gamble and pre-order vehicles when a manufacturer offers cheap production slots (usually auctioned), they then drop the price as they get closer to the time that they have to actually fork out the cash. That's how we got a huge discount on our Volvo XC60, the dealer wanted to avoid paying for a car with no buyer.

It sounds like 4.5% is probably the true benchmark price if several have offered that. You could probably get your local dealer to match that in the hope that they would get your custom for servicing the vehicle.

The other ploy is to have a final throw of the dice and give them a call to say thanks for the offer, let them give you 10-15 mins of sales spin, then tell they can have your cash if they can do 54000. Most will say no, but some will see the dollars in their mind's eye and want to grab it before it vanishes.

Out of interest did all 12 reply?
 

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Sadly Gregg has passed away
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2,432 Posts
Discussion Starter #6
Gregg - is this for an R172 or the ML?
John...this is for a new ML...I probably should have been more specific. I hear a lot of tribal info revolvong around low margins on new cars, but I'm not sure if it has any gravity. A good friend who sells Cadillacs told me they were operating on a 7% margin (MSRP - 7%).

I believe manufacturers try to cloud the issue with holdbacks, dealer incentives, etc. I understand a dealer has to make a reasonable profit, but I would think an ordered vehicle would have less overhead. I will take the best offer to my local dealer for a match or beat conversation....then order.
 

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Premium Member 2013 SLK250
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Special order can get you a better price as richard leeds mention in his post the dealer gets the money from you before they have to pay for the car and cuts their overhead cost. This has worked for me in the past.

I saw something in the past week that the M was in short supply. If that is ture dealers will discount less. In figuring the price look for rebates, special pricing, and hidden rebates to dealer, dealer support from factory. These come off MSRP first and then and discount the dealer will add on. By the way the MB dealer will get a 3% of the MSRP from MB for each car sold, this called holdback in the trade.

Edmunds is a good place for info and use this when working with a sales person, have printouts with you and do not hid your info as to cost and other pricing info.

By the way if you been a member of Mercedes Benz Club of America for 12 months or more you could $1,000 off the price.
 

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Premium Member 2006 SLK350
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It costs them nothing to be courteous. I found one dealer here in Ottawa (Olgilvie on St Laurent) to be absolutely useless. They had one SLK in stock, but the owner's sister had it - and they would call me the next time she brings it in! Never did call.

I would imagine the overhead of an MB dealership might be higher than say GM on a per sq ft basis.

Quoting MSRP - % is something new to me...
Best of luck in any case..
 

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Premium Member 2012 SLK350
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I got my 2012 SLK 350 for Invoice (7% off MSRP) when I ordered the car in mid March. That was before the prcing had even been set for the car. I got the M-B Club of America $1,000 discount on top of that.

I do all my new car purchasing by emailing the dealers and telling them I'll buy the car from the dealer that quotes the best price. I try to start with the new car sales manager if possible to cut out some of the go-around.
 
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