W205 Discount challenge!
10-13-2014, 01:36 PM
#126
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GLK250
By my calculations, $699 for C400 still requires an MF of 0.00195, which is what I thought the best possible standard MF was, instead of the 0.00170 that was quoted.
10-13-2014, 01:56 PM
#127
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Ok, so another case of 6% invoice.
If you calculate MSRP of $54735 under the 7% formula, you get invoice of $50969, so the final price you got is $158 under the 7% invoice. Last I heard, MB holdback is 1% of MSRP, so either:
1) Invoice for C-Class has increased to 6% off of MSRP and holdback's increased from 1% (or volume bonus is high enough) to allow dealers to sell at nearly 2% below invoice and still make profit, or
2) Invoice is still 7% off of MSRP, but MB has changed it's policy and told managers to pad invoice at 1%. The manager in turn pass along this inflated invoice to their sales force, and then are accepting 'below invoice' deals that don't really dig into their profits as much as it might seem.
Maybe I'm being too suspicious, but I suspect it's option #2. If you don't mind me asking, is your relative a part of sales or management?
Also, is the 0.00170 MF with Autopay? Last I heard the Tier1+ standard MF is 0.00195 with possibly a 0.00015 bonus for certain markets. If it's now 0.00170 straight up, you could reduce that with MSDs and get the MF down to 0.00100, which would mean the $3k and 2% residual difference between the C300 and C400 would only end up costing ~$25 a month.
If you calculate MSRP of $54735 under the 7% formula, you get invoice of $50969, so the final price you got is $158 under the 7% invoice. Last I heard, MB holdback is 1% of MSRP, so either:
1) Invoice for C-Class has increased to 6% off of MSRP and holdback's increased from 1% (or volume bonus is high enough) to allow dealers to sell at nearly 2% below invoice and still make profit, or
2) Invoice is still 7% off of MSRP, but MB has changed it's policy and told managers to pad invoice at 1%. The manager in turn pass along this inflated invoice to their sales force, and then are accepting 'below invoice' deals that don't really dig into their profits as much as it might seem.
Maybe I'm being too suspicious, but I suspect it's option #2. If you don't mind me asking, is your relative a part of sales or management?
Also, is the 0.00170 MF with Autopay? Last I heard the Tier1+ standard MF is 0.00195 with possibly a 0.00015 bonus for certain markets. If it's now 0.00170 straight up, you could reduce that with MSDs and get the MF down to 0.00100, which would mean the $3k and 2% residual difference between the C300 and C400 would only end up costing ~$25 a month.
The 170 MF is with autopay (sorry forgot to include deeper details) and yes the best credit. I am 785 or so in that dept.
To the person under me, that price includes NJ 7% sales tax.
Not trading anything in... no negative equity of any kind.
Also, it was $689 / month, NOT $699. I will edit original post.
10-13-2014, 02:46 PM
#128
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Maybe they increased holdback then, or management & MBUSA is fudging with the software. I just got a quote from my local dealer: $41785 MSRP, $6175 discount, final price $35610. Accounting for the $3k incentive, that's 0.75% below the '7% invoice', which is within the 1% holdback. Using the '6% invoice' it's 1.73% below. And California has a cap on doc fees so dealers can't recoup lost profit from that.
10-13-2014, 03:01 PM
#129
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Maybe they increased holdback then, or management & MBUSA is fudging with the software. I just got a quote from my local dealer: $41785 MSRP, $6175 discount, final price $35610. Accounting for the $3k incentive, that's 0.75% below the '7% invoice', which is within the 1% holdback. Using the '6% invoice' it's 1.73% below. And California has a cap on doc fees so dealers can't recoup lost profit from that.
10-13-2014, 03:11 PM
#130
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Just got a straight up quote that's independent of method of payment. Leasing or financing doesn't have any impact on the purchase price (or it shouldn't anyways, unless dealer is trying to pad profits with hidden markups to APR/MF/Acq fee).
Last edited by alexkhane; 10-13-2014 at 03:22 PM.
10-13-2014, 04:05 PM
#132
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As far as a print out, I do not have one (truecar.com lists invoice prices on options). The program he uses and I was looking at the screen as inputs for everything and then generates the numbers. Reynolds and Reynolds is used across a lot of major brands. I know a couple acura, lexus, and BMW dealerships that use them. They are not MB specific.
10-13-2014, 04:14 PM
#133
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2015 GLA45
This is a very interesting read! I am a Sales and Leasing Consultant at MB so hearing about what discounts are seen nationally is intriguing. Feel free to fire away with any questions that you guys have.
10-13-2014, 04:17 PM
#134
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GLK250
I was just curious as to what the payment was on a lease if you were doing one as your MSRP is 41-42K.. was just curious the difference in a car with a 10K higher MSRP.
As far as a print out, I do not have one (truecar.com lists invoice prices on options). The program he uses and I was looking at the screen as inputs for everything and then generates the numbers. Reynolds and Reynolds is used across a lot of major brands. I know a couple acura, lexus, and BMW dealerships that use them. They are not MB specific.
As far as a print out, I do not have one (truecar.com lists invoice prices on options). The program he uses and I was looking at the screen as inputs for everything and then generates the numbers. Reynolds and Reynolds is used across a lot of major brands. I know a couple acura, lexus, and BMW dealerships that use them. They are not MB specific.
With autopay, the car I got quoted would lease for $388 before taxes @ 36mo/15k. That's with all fees paid upfront instead of capitalized into the lease - so not an accurate comparison. Doc fees over here are capped at $80, so if I capitalized everything and add tax (9%), it's $463 per month, $463 due at signing.
Last edited by alexkhane; 10-13-2014 at 04:26 PM.
10-13-2014, 04:19 PM
#135
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GLK250
Can you tell us which region you're in? And confirm if your MY15 C-Class invoice is also 6% below MSRP excl Dest, or if it's 7%?
Last edited by alexkhane; 10-13-2014 at 04:29 PM.
10-13-2014, 04:34 PM
#136
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2015 GLA45
NW region, I will confirm all of that when I am back in the office tomorrow. In most cases(95%) our invoices are 5-6% across the board including dest.
10-13-2014, 05:04 PM
#137
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GLK250
Thanks! That would help a lot of us go into purchasing with more realistic expectations. As reference, online sources are reporting base C300 excl dest as MSRP of $40400 with invoice of $37572. Premium 1 is reported as MSRP of $2700 with invoice of $2511.
10-13-2014, 07:49 PM
#138
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2015 GLA45
P1 $1,971/$2,120
5.8% w/o Destination
10-13-2014, 08:06 PM
#139
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GLK250
Ok, so it looks like invoice for options is still 7% below MSRP, but the invoice for the base car has increased by quite a bit, to less than 5.3% below MSRP. Is that the case for other models, or only MY15, or only MY15 C-Class? Could I trouble you for the base car invoice on MY15 C400, MY14 E350, MY14 CLA250, and MY15 GLK350?
Also, the website builder has Premium Package for $2700 MSRP - is there a different, cheaper package that's only $2120?
Also, the website builder has Premium Package for $2700 MSRP - is there a different, cheaper package that's only $2120?
Last edited by alexkhane; 10-13-2014 at 08:15 PM.
10-13-2014, 09:42 PM
#140
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Ok, so it looks like invoice for options is still 7% below MSRP, but the invoice for the base car has increased by quite a bit, to less than 5.3% below MSRP. Is that the case for other models, or only MY15, or only MY15 C-Class? Could I trouble you for the base car invoice on MY15 C400, MY14 E350, MY14 CLA250, and MY15 GLK350?
Also, the website builder has Premium Package for $2700 MSRP - is there a different, cheaper package that's only $2120?
Also, the website builder has Premium Package for $2700 MSRP - is there a different, cheaper package that's only $2120?
10-13-2014, 10:22 PM
#141
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GLK250
I think I've figured it out. I'm guessing it's due to MB's equivalent of BMW's MACO/Training - the cooperative advertising fee that's tacked on top of invoice, just like destination. So actual invoice is still 93% of MSRP, then you add $X (looks like $700 in your region) for the advertising fee, then $925 for destination, and you end up with the dealer's invoice price.
So if I'm right, since the E350 has MSRP of $51400, invoice excluding destination for your region should be $48502. And for C400, invoice would be $45889.
I think the advertising fee is $740 in California - that just makes the quote I got even better, as it's $4055 below invoice.
Last edited by alexkhane; 10-13-2014 at 10:35 PM.
10-14-2014, 08:01 AM
#142
Ok, so it looks like invoice for options is still 7% below MSRP, but the invoice for the base car has increased by quite a bit, to less than 5.3% below MSRP. Is that the case for other models, or only MY15, or only MY15 C-Class? Could I trouble you for the base car invoice on MY15 C400, MY14 E350, MY14 CLA250, and MY15 GLK350?
Also, the website builder has Premium Package for $2700 MSRP - is there a different, cheaper package that's only $2120?
Also, the website builder has Premium Package for $2700 MSRP - is there a different, cheaper package that's only $2120?
10-14-2014, 02:27 PM
#144
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In the UK, there is a respected broker claiming they can get you up to 15% off.
I am really tempted by all the extras I can get in this new C class and it will cost the same as I paid for my poverty spec E class 5 years ago
C200
AMG Line
Metallic paint
Panoramic roof
COMAND
Burmester
Reversing camera
Keyless entry/start and electric boot closing
ILS
360 camera
Ambient lighting
Memory seats
Dealer price - £36,000.
Broker price - £30,500
I am really tempted by all the extras I can get in this new C class and it will cost the same as I paid for my poverty spec E class 5 years ago
C200
AMG Line
Metallic paint
Panoramic roof
COMAND
Burmester
Reversing camera
Keyless entry/start and electric boot closing
ILS
360 camera
Ambient lighting
Memory seats
Dealer price - £36,000.
Broker price - £30,500
10-14-2014, 02:41 PM
#146
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2015 GLA45
Honestly I am shocked at the discounts people are claiming/getting. I just know that my invoice pricing is dead on. Most of the heavy discounts that people are seeing are in the California market.....which is very normal.
10-14-2014, 02:49 PM
#147
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GLK250
This is pretty much it. Who would've thought that you could get a W205 for $3-4k below invoice only a month after launch. If you're within driving distance of the Los Angeles area (or even a short flight) it might be worth it to find a dealer here and save an additional thousand or two.
10-14-2014, 02:54 PM
#148
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This is pretty much it. Who would've thought that you could get a W205 for $3-4k below invoice only a month after launch. If you're within driving distance of the Los Angeles area (or even a short flight) it might be worth it to find a dealer here and save an additional thousand or two.
There is a lot to be said for buying/owning locally but I also get the idea of saving another 1-2k.
10-14-2014, 03:03 PM
#149
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GLK250
I agree to an extent....of course because I am in sales. We pride ourselves in taking care of clients after the purchase. Every time after purchase my clients still have questions.....on the S and C I always offer a second delivery. An hour and a half is usually spent in total going over the setup of the new car.
There is a lot to be said for buying/owning locally but I also get the idea of saving another 1-2k.
There is a lot to be said for buying/owning locally but I also get the idea of saving another 1-2k.
Yeah, you get what you paid for. None of the bottom price dealers around here are particularly known for consistently great customer service. If you want the traditional Mercedes buying experience of feeling like you're buying a truly premium luxury car, LA isn't the best place for it. But it's fantastic for the internet commerce model where you do all your research beforehand from forums like this and other online sources and you simply need the dealer to just sell you the car.
Last edited by alexkhane; 10-14-2014 at 03:09 PM.
