IrishDave

I'm thinking about ordering a 2016, but I've never done that before - always gotten something off the lot (this will also be my first MB). Can anyone help out a newbie with a few questions on how it works?

-Do you negotiate a price before actually placing the order? I typically shop multiple dealers to get the best deal; can you do the same thing when ordering?

-Anyone have any insight into how much of a discount you can get through ordering vs. buying off the lot? I'm sure it varies by circumstance, but can I generally expect to get less of a discount if I order?

-When it arrives, I assume you have the ability to turn it down if there are issues?

If it makes a difference, I'll be buying it outright (not leasing).

Thanks for any tips to help me not look like an idiot...

Steve71

Hi IrishDave. It might help to know where you live to get the best comparison. I'm in Canada, but I suspect my experience will be similar in many jurisdictions.

I ordered a 2016 in May of 2015. They didn't even have prices yet. I went in with the 2015 invoice cost and recommendations from Unhaggle (one of the Canadian invoice cost suppliers). Unhaggle in Canada recommends a range of acceptable prices above invoice (they don't seem to discount as much in Canada as the US). I used that info plus I suggested that by ordering from the factory I minimized the dealer's carrying costs and minimized their holdback (ie maximized their cash flow). I had no other leverage other than I could go elsewhere. Once I decided, I put down a small ($1000) down-payment with the verbal agreement that I would take the car when delivered as long as the MSRP didn't jump significantly (remember, we didn't have list prices for 2016's in May). MSRP went up by $800, so that wasn't an issue.

So, yes, you can negotiate a discount on a factory order. And yes, you can take this approach to any number of dealers to get your best price. If you don't want to do it yourself, there are organizations that will negotiate on your behalf.

I got a 5% discount from MSRP on next year's model (paying cash). I suspect that's less than if they have lots of them on the lot. I also suspect discounts will vary by jurisdiction and region. Check TrueCar if you're in the US and see what others on this forum have done. There are several threads that talk about discounts.

Not sure about the "issues" question. Maybe others in the forum can help you there.

Good luck... and have fun negotiating.

rbrylaw

Steve71 gave you a great response!

• Yes, you can negotiate the price at time of order.
• You're not under obligation to purchase the car when it arrives if you don't like it, but you may be asked to put a deposit down to order one, so see if they'll refund that if you don't purchase.
• The advantage of ordering over getting one off the lot is to get exactly what you want without compromise.

LAC300

If you don't need to get exactly what you want, if you have a local dealer with a large inventory, you should be able to get something close, and especially if it's a MY15 you should be able to get a much better deal. The dealer will make money on both transactions, but a car sitting on their lot is costing them money every day in interest, and every day a 15 gets harder for them to sell with the 16's arriving. You should be able to save a lot of money on what will be almost exactly what you want.

It's a matter of preference, some people take the view that if they're spending so much $ on a car it should be exactly what they want, others are happy to make a sacrifice on an option or two in order to save some cash.

IrishDave

Very helpful! That's exactly what I'm wrestling with - ordering to get exactly what I want vs. taking something close enough that's on the lot. Scanning inventory at my nearby dealerships hasn't turned up a lot of cars that are close to my ideal specs, so I might just go ahead and order one.

obbob

Usually you can expect less of a discount for order cars, especially since the dealership probably has a ton of C class on the lot.

If there is a C class they have on the lot that fits your needs, say you are very picky and want to order a config that they do not have in stock. Negotiate that for a bit, and then say "okay so how much better price can you give for this one right here on the lot?"

This will in a way "reset" the negotiation process but now the starting price from the dealer's end will be much better than what they would have initially offered.