unpollo2

I know it's a new model but there are plenty for sale on the lots around 100 in USA and you can order one exactly to spec if you don't mind waiting 4 months.

I looked at BMW i8 and they were MSRP for 6 months now with over 50+ on lots they are discounting 10k

Any advice? I expect they would discount for cars sitting on the lot.

California John

I haven't seen any discounts anywhere. The dealerships can afford to hold tight at list or a premium above list. There are just not enough cars for the numbers of buyers. The dealers know that if you don't buy it at their price somebody else will.

Vic55

It all depends on the market, allocation, demand for the car in the region ... etc.

East Coast should yield more deals as the winter months pull up and the car is less usable. California still has excessive asking prices on Edition 1 cars (dealer dependent of course).

There is about 6.5% in the car from invoice to MSRP (sans holdback) so I would work pricing based on this. As for cars on the lot- it all depends on how long they want to wait for the one buyer who will pay more vs getting rid of a flooring cost.

CAracer

I was able to negotiate $4000 off of MSRP , two year prepaid maintenance and window tinting to complete the deal. My trade in value wasn't bad either.

That was about three months ago.

I felt that I got a pretty good deal.

jcfay

Hi - can you please explain more about this? So there's a 6.5% margin, but how does the "holdback" play in (and what is it exactly)? Is it additional markup or what? And how do you think the "flooring cost" fits in? Thx

Vic55

Its not an absolute but it works like this:

Between MSRP and Invoice is about 6%... then behind or below the invoice is an additional percentage allocated called holdback. This is not published on the net and the percentage usually is determined on the dealer support, is it an AutoHaus dealer (upgraded facilities), and CSI. There might be more factors but I think those are the main ones. So most stores have the max in holdback plus the front end which is circa 11.5%

Flooring is separate of this. This is usually a line of credit that the store has thru a bank to pay for all the units that sit on their lot. Beyond a certain time flooring can get costly so that's why I mentioned that the dealer might not want to pay interest on a more expensive unit that just sits and instead, move it for less.

jcfay

Thanks Vic - appreciate it. So it sounds like some dealers might be willing to get to close to 10% off MSRP, depending on their situation, etc. It also sounds like 6% is a reasonable benchmark for minimum discount, if that still leaves the holdback for the dealer. Correct?

Wolfman

10% is wishful thinking; 6% may be reasonable if cars don't sell but also highly unlikely. As stated that might vary regionally but in the upper midwest there are only 2 new cars available in a 500 mile radius.

Our dealers swapping cars from other regions, so discounts are small, if any, as color/options have priority over discount.

Also, all GTS's are MY16, so no huge rush to push them out the door before year-end. I am sure this will improve in spring with lower-priced GT models rolling out the door

Good luck...

Vic55

As Wolfman alluded to above; 10% is a wish but its not impossible. These are still rather hot cars compared to E and C classes and they are first gen too. If the percentage to discount is meaningful to you then a few more months is a good period to wait. Like I had mentioned originally its a market driven thing so you could get lucky.

unpollo2

Anyone lease these things? It would be a good way to hedge against depreciation. Put the least amount down, rates should be 3% with good credit, and get the highest residual values possible after 3 years.

Vic55

No, I cashed out.

And the only leasing agent is MBFS and their lowest money factor is .00190 or 4.56% so there is no real hedging going on unless you are using creativity via an accountant. Also MBFS packs their residuals so you get trapped for the term since the buyout is higher coupled with a heaver money factor.

But yes you can lease.

unpollo2

interest rate isn't great but if you are doing a short lease say 2-3 years it won't really matter

the biggest factor is the residual, assuming you don't want to buy it at the end of the lease, you would want it high as possible.

looking at AMG depreciation threads they say 3 years the price is 50% that's just crazy bad. if the lease had the value at 70% in 3 years you're winning.

just have to see what they calculate it at

Vic55

I have never seen a 70% residual via MBFS for 3 years let alone 2 ... the AMG's are always pushed down a bit lower than their more largely produced sister cars (std classes but this car doesn't have that). IIRC the 3 year lease on the GTS at 7500 miles (their lowest offering) was 55 or 56% which could be ok but since the car hasn't hit its 3 year life cycle yet we wont know. There is supposition and I would hope it would retain 60% of its value 3 years from now. That's what residual insurance is for (Lender) though if the cars tank.

abcut973

Highest residual I saw was for the E63S at 60% at some point for a 3years lease/10k miles a year.
So yeah leasing an AMG sucks unless you manage to get a significant cap cost reduction by MSDs or discounted selling price.

Back on topic 6% off is not too bad for a "new" flagship model.

Flowmacks

I think I'm going to pull the trigger on an order here Vic.

Anyone have a dealer recommendation in the ATL? I'm new to MB.

abcut973

RBM of Atlanta where i bought my C63 BS. Ask for Colin. He is one of the sales director. Pretty easy to deal with. They do have 1 or 2 gts in stock.
GL

Flowmacks

Will do. Thx!

abcut973

No pb.
Are you on rennlist? Your username is familiar...

Vic55

Hey bro was just out of town and saw this- it looks like you got a good place to go to.

Are you going to lease? If so I have a cool trick for you.

unpollo2

Georgia leases now require you to pay all 7% sales tax up front regardless of length of lease.

They also used to double sales tax if you chose to buy out the lease at the end, but I'm not sure if they amended that yet.

California John

Vic 55 said:

Hey bro was just out of town and saw this- it looks like you got a good place to go to.

Are you going to lease? If so I have a cool trick for you.

What is the cool trick?

Flowmacks

They still do. Leasing is pretty much dead in Georgia.

Lots of Montana plates showing up.......

Flowmacks

Yep. The force is getting strong over here though.

stmiami

I'm looking to lease a GTS as well...what's the cool trick?

NewportSLS

The cool trick is there are 97 GT's on AutoTrader that's nobody wants. Get you negotiating panties on and cut an F'IN deal! Winter is coming Burrrrrrr.

http://www.autotrader.com/cars-for-s...ear=1981&Log=0