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Is Mercedes Overcharging for the C-Class?

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Old 08-18-2014, 07:47 PM
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Is Mercedes Overcharging for the C-Class?



Seriously, is Mercedes shooting itself in the foot by outpricing most buyers from its best seller?



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Old 08-18-2014, 08:09 PM
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I believe so, especially for the C400 4M. But let the market decide. Right now, I don't see myself jumping in on a new C400 because its $59K MSRP. Maybe a couple of years from now, when the car gets the new I6 engine and perhaps more standard equipment, the value for the price equation might look better. That's my opinion at least.
Old 08-18-2014, 08:11 PM
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2017 E300
I think the C300 is still pretty accessible to most people who are looking at a C class. The c400 seems like a bit out of reach. I think in generally, the C300 is priced about $1500 over
Old 08-18-2014, 08:15 PM
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Given that my BIL bought a new '13 E3504matic with AMG package for $53K last year I would say that the W205 is overpriced.
Old 08-18-2014, 09:38 PM
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2015 C400 4matic W205
Originally Posted by MBNUT1
Given that my BIL bought a new '13 E3504matic with AMG package for $53K last year I would say that the W205 is overpriced.
Amazing....the E350 in Canada starts at 66,800! What a huge difference, even with the exchange.

Just my opinion but I think the size, quality and class of the W205 is way better than the W204. The W205 is bigger than some previous generation E classes. It makes sense to me that it is more expensive than previous models. I'm sure MB has done their homework and they expect that some people who were in the market for a C class will have to settle for a CLA, but at least people have that option now. There is also exclusivity at a higher price point.
Old 08-18-2014, 11:11 PM
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no...the c class isn't an entry level model anymore...the interior/options closely match the s class...it is almost the same size as the current gen E claass
Old 08-18-2014, 11:20 PM
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This is no longer the entry level C class as in years past...that distinction belongs to the CLA. I wasn't really surprised as they clearly made it known that the new C would be a definite upgrade from the previous C and even more so from the CLA. After seeing it in-person...I would have to agree. So with that in mind it's "overpriced" compared to what?
Old 08-18-2014, 11:21 PM
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i don't think the c class is over priced. not one bit. this c class is much better than the past c class. the c400 comes with so much standard stuff which makes it worth the 48.

when they come out with a non 4 matic its going to be about 2 thousand dollars cheaper for those who don't want it.

no way in heck will the c63 be 70 when the current one is 61. i don't se that happening. especially if they want to compete with the m3/m4
Old 08-19-2014, 10:22 AM
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Well, its just the optional extras that are either too expensive or should have been standard. Especially here in South Africa.
Old 08-19-2014, 11:03 AM
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No they aren't. You get what you pay for, huge upgrade over the previous car and unfortunately standard 4Matic until early next year. The C400 is 49K, not 59K.

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Old 08-19-2014, 11:04 AM
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Originally Posted by C400Driver
no...the c class isn't an entry level model anymore...the interior/options closely match the s class...it is almost the same size as the current gen E claass

Drove one today, I was hoping that it would be larger, it actually looks and feels smaller than my current C250.
I too thought it would be almost the same size as the E. No way at all.
Old 08-19-2014, 11:07 AM
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Why would you expect it to be the size of the E-Class? The extra room went into the back seat of the new C.

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Old 08-19-2014, 11:14 AM
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No they are not overcharging. Benz was giving away the W204 in the US with wafer thin margins. The US gets the cheapest Benz cars in the world other than Saudi Arabia where you can order a Porsche without airbags.

If you don't want a car stripped down to a sticker price then you have to pay. Members frequently complain that the ROW gets this & that on Benz cars & the US does not. Well if you want it all you must pay for it.
Old 08-19-2014, 11:57 AM
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Originally Posted by mikefili
Drove one today, I was hoping that it would be larger, it actually looks and feels smaller than my current C250.
I too thought it would be almost the same size as the E. No way at all.
2015 C class

DIMENSIONS:
Wheelbase: 111.8 in
Length: 184.5 in
Width: 71.3 in Height: 56.8 in
Curb weight (C/D est): 3650 lb

Last Gen 2008 C Class

WIDTH(69.7 in.) HEIGHT (56.3 in.)
LENGTH(182.3 in.) WHEEL BASE (108.7 in)

Last gen 2007 E class

DIMENSIONS:
Wheelbase: 112.4 in
Length: 190.3-192.3 in
Width: 71.7 in
Height: 58.4-59.3 in
Curb weight: 3750-4400 lb

I beg to differ the c class looks that much smaller....and I have official specs not the eye/butt dyno to prove that...definitely bigger then your old C

Last edited by C400Driver; 08-19-2014 at 12:25 PM.
Old 08-19-2014, 12:49 PM
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Prices are set by marketing based on many market factors. You start with the 'factory cost' to produce the car and then add all your overhead costs.
You then decide what you can charge in a given market.
The perceived value, in the mind of the customer, sets certain price points.
e.g. Most potential customers would believe that the E Class is a higher value car so MB can charge more for the E Class. Form the starting point of 'factory cost' how much more does it cost to produce an E Class over the C?
There are about the same number of parts in both models and the assembly cost should be the same. There are some more expensive items in the E but they can't amount to much at cost. Yes, there is more metal in the larger car but how much additional cost is that? Does this make the E about $10K more expensive to build?
It is the 'perceived value' that makes the E sell for more.
Old 08-19-2014, 01:09 PM
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+1^ All things remaining equal, bigger cars achieve higher margin than smaller cars due to perceived value.

In many markets around the world (SA is an example) Benz products, due to brand strength & perceived value, fetch a premium over a similar BMW or Audi.

The US is an extremely competitive market with an expectation of everything at a Walmart price. Other markets (e.g. in Asia) react quite differently & are prepared to pay for perceived & real quality.

Benz can't continue to give vehicles away in the US. The next generation E Class will show a price rise that properly distances it from the W205.

Another issue is the very high cost of semi skilled labour in the US. Tuscaloosa is not a cheap assembly point vs other world plants for the labour component.
Old 08-19-2014, 02:28 PM
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I was getting my car serviced Saturday and saw the new C up close. They had six or seven on the lot (C300 4matic) and all were above $50,000. Yes, that is about a 15% jump from the 2014 and I think that they are pushing it. I had a 2010 C300, which was about $40,000. The new one may be packed with features but this still looks like a small car- the interior feels smaller than the predecessor. I wish them all the luck but I believe it is over priced, because at the end of the day it is about affordability. Maybe it will be subsidized with generous lease programs?
Old 08-19-2014, 04:36 PM
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have to pay to play
Old 08-19-2014, 05:01 PM
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Originally Posted by hyperion667
have to pay to play
which is great...now i wont see a million and one Toyota C classes on the road!
Old 08-19-2014, 05:14 PM
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IDG the issue

I don't understand all of the complaints....

BMW did this and so did Audi. Mercedes had to be next.

The bmw 335i (F30) is so much bigger than the e92 335. Every luxury manufacturer is doing the up sizing and moving their entry level sedans to middle size/tier. The A4 is larger, the 3 series is larger, what do you expect? Each of these manufacturers put a nice size price tag to the up-sizing of their cars and yet, there are a ton of new 3 series on the road. A fully optioned out 335i is $60k. Again, someone cross shopping brands at the same luxury level, BMW, MB, Audi, looking for a 300hp+ will be paying around high $50 to $60k. The MB has a better interior than all of it's competitors and the c400 engine seems like it will be a blast. Audi S4 performance without the price tag.

How much are you willing to pay for a luxury car with 329hp + 354tq with all wheel drive/RWD? If you guys are having gripe about price then get a cla or gla as next car.

Last edited by DameMD; 08-19-2014 at 05:17 PM.
Old 08-19-2014, 07:30 PM
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I for one think it's a beautiful car; not been in one,; never been in one actually LOL....
but it sure looks great in all the pictures; very posh photo's, I could see this selling very well; despite the price....people want to drive Mercedes Benz cars
Old 08-19-2014, 07:32 PM
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Originally Posted by DameMD
How much are you willing to pay for a luxury car with 329hp + 354tq with all wheel drive/RWD? If you guys are having gripe about price then get a cla or gla as next car.
Agreed! I dont know what these guys are comparing the C class to but if they were to build a 335i Xdrive and option it similar to the C class they will see that the C class is cheaper.

I built both cars with all the toys I would want and and they both came out to $65k...

Keep in mind that the C class I built had options that the 335 does not offer.
Pano Roof, Airmatic, Multicolor Ambient Lighting, Power Rear sunshades, Airbalance, World class interior, as well as all the safety features that Mercedes has and BMW doesn't.

After removing Airmatic, Pano roof, and Airbalance, the C class is actually cheaper than the 3 Series by more than $4k and the C class still has more features.
Old 08-19-2014, 08:51 PM
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We will see what happens with the sales. I am just giving you my opinion - I am not rushing out to get a C400 4M at this price (57-59K for my build, and that's with no sunroof) to replace my W204 C3004M. Perhaps a few model years from now, with the new I6 engine and some of the features that are options now moving to be standard (like the lighting package), it will look like a better value. The costs on electronics and software in cars is falling, you just can't charge for those kinds of features going forward. Lesser asian cars are getting those kinds of features for a lot less - yes I know they aren't Benz's, but the US is still a very competitive market with alot of choices.
Old 08-19-2014, 09:46 PM
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The only real reason that Benz is going to inline engines is that they are cheaper to build than quadcam V's

With safety regs now insisting on higher frontal area on vehicles they no longer need V's for lower hood lines.
Old 08-19-2014, 10:22 PM
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When the new S was introduced, the price didn't go up 15-20%. I understand about market segmentation and making room for the CLA, but when the new E is only $6,000 more than the C, I'm going with the E.


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