Question for those of you getting 6-7k off msrp
Thread Starter
Senior Member
Joined: Jul 2011
Posts: 253
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From: Newport Beach, Sunny CA
Audi S4
Question for those of you getting 6-7k off msrp
I have a question for those of you who are getting 6-7k off MSRP..how is that possible.
I went to Edmunds and fully loaded a C400 to
msrp of 62,530
and it says the true market value is 60,831 and the invoice is 58,219
which would mean the invoice is 4311 under msrp. Is there a dealer kickback that is large or is Edmunds wrong. any other dealer incentives that MB gives them? How is it possible to get 6-7k off? Some even say 5 off which is still a big difference.
thx,
f
I went to Edmunds and fully loaded a C400 to
msrp of 62,530
and it says the true market value is 60,831 and the invoice is 58,219
which would mean the invoice is 4311 under msrp. Is there a dealer kickback that is large or is Edmunds wrong. any other dealer incentives that MB gives them? How is it possible to get 6-7k off? Some even say 5 off which is still a big difference.
thx,
f
Member
Joined: Aug 2014
Posts: 85
Likes: 0
From: Los Angeles
GLK250
There is hidden dealer cash. Last month it was up to $3k in high-volume markets. From the new November offers, it seems to still be the same amount. So $6k off is essentially invoice price minus the $3k incentives.
FYI, Edmunds invoice price is wrong if you take it at face value. If you read their fine print, they specifically exclude regional advertising fee, which add $700-$800 to the actual dealer invoice. So on that MSRP of $62530, the real invoice is around $59k, and subtract the $3k incentive gets you to $56k.
From there, there is a certain percentage of dealer holdback that allows dealers to go even lower and still turn a profit. While the actual percentage or mechanics of this is not clearly known publicly, there is enough extra profit there for dealers to go at least 2.5% of MSRP further. So take that $56k and subtract another $500 gets you down to $55.5k - or $7k below MSRP, and the dealer still has made at least $1k (most likely more) gross profit on the car. Of course, that still leaves operating costs & commissions the dealer needs to cover, but depending on market competition & state of his inventory, the general manager may find that it's a price point he can sell the car at and still turn a profit.
FYI, Edmunds invoice price is wrong if you take it at face value. If you read their fine print, they specifically exclude regional advertising fee, which add $700-$800 to the actual dealer invoice. So on that MSRP of $62530, the real invoice is around $59k, and subtract the $3k incentive gets you to $56k.
From there, there is a certain percentage of dealer holdback that allows dealers to go even lower and still turn a profit. While the actual percentage or mechanics of this is not clearly known publicly, there is enough extra profit there for dealers to go at least 2.5% of MSRP further. So take that $56k and subtract another $500 gets you down to $55.5k - or $7k below MSRP, and the dealer still has made at least $1k (most likely more) gross profit on the car. Of course, that still leaves operating costs & commissions the dealer needs to cover, but depending on market competition & state of his inventory, the general manager may find that it's a price point he can sell the car at and still turn a profit.
Last edited by alexkhane; Nov 2, 2014 at 04:33 PM.
Thread Starter
Senior Member
Joined: Jul 2011
Posts: 253
Likes: 0
From: Newport Beach, Sunny CA
Audi S4
There is hidden dealer cash. Last month it was up to $3k in high-volume markets. From the new November offers, it seems to still be the same amount. So $6k off is essentially invoice price minus the $3k incentives.
FYI, Edmunds invoice price is wrong if you take it at face value. If you read their fine print, they specifically exclude regional advertising fee, which add $700-$800 to the actual dealer invoice. So on that MSRP of $62530, the real invoice is around $59k, and subtract the $3k incentive gets you to $56k.
From there, there is a certain percentage of dealer holdback that allows dealers to go even lower and still turn a profit. While the actual percentage or mechanics of this is not clearly known publicly, there is enough extra profit there for dealers to go at least 2.5% of MSRP further. So take that $56k and subtract another $500 gets you down to $55.5k - or $7k below MSRP, and the dealer still has made at least $1k (most likely more) gross profit on the car. Of course, that still leaves operating costs & commissions the dealer needs to cover, but depending on market competition & state of his inventory, the general manager may find that it's a price point he can sell the car at and still turn a profit.
FYI, Edmunds invoice price is wrong if you take it at face value. If you read their fine print, they specifically exclude regional advertising fee, which add $700-$800 to the actual dealer invoice. So on that MSRP of $62530, the real invoice is around $59k, and subtract the $3k incentive gets you to $56k.
From there, there is a certain percentage of dealer holdback that allows dealers to go even lower and still turn a profit. While the actual percentage or mechanics of this is not clearly known publicly, there is enough extra profit there for dealers to go at least 2.5% of MSRP further. So take that $56k and subtract another $500 gets you down to $55.5k - or $7k below MSRP, and the dealer still has made at least $1k (most likely more) gross profit on the car. Of course, that still leaves operating costs & commissions the dealer needs to cover, but depending on market competition & state of his inventory, the general manager may find that it's a price point he can sell the car at and still turn a profit.
Great. thanks for your response. I'm wondering where we find out that regional fee.
Member
Joined: Aug 2014
Posts: 85
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From: Los Angeles
GLK250
Invoice = (MSRP - $925 destination) * 0.93 + $925 destination + regional ad fee
In California (at least Southern CA) it's $740, and possibly for the entire southwest region. Northwest seems to be only $700, and I've seen $840 for NJ and possibly the rest of the northeast region.
Member
Joined: Aug 2014
Posts: 199
Likes: 2
From: Midwest
2015 C 300
You can just ask your dealer for the invoice price on your car, then work out the math.
Invoice = (MSRP - $925 destination) * 0.93 + $925 destination + regional ad fee
In California (at least Southern CA) it's $740, and possibly for the entire southwest region. Northwest seems to be only $700, and I've seen $840 for NJ and possibly the rest of the northeast region.
Invoice = (MSRP - $925 destination) * 0.93 + $925 destination + regional ad fee
In California (at least Southern CA) it's $740, and possibly for the entire southwest region. Northwest seems to be only $700, and I've seen $840 for NJ and possibly the rest of the northeast region.
Member
Joined: Aug 2014
Posts: 85
Likes: 0
From: Los Angeles
GLK250
If I've got the post you're referring to correctly, the person said he intially got a 10% discount, which corresponds to invoice minus $3000. If he was able to apply the USAA discount on top of the $3000, rather than in place of, then it's just a well deserved perk of being a family member of the military.
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From: Philadelphia area
2014 E250 4Matic, GLE 300 BT
Discount from MSRP
I was looking for a used Mercedes diesel, but really liked the new E250. Consider waiting until some used cars were available, but the dealer told me that "I might be surprised by what they could do". List was about $62K, for a 2014 E250 4Matic. Their first offer - which they didn't budge from - was $12K (or about 20%) off list. The supposed reason was making room for the 2015's. I'm very pleased with the deal and the car!
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Member
Joined: Aug 2014
Posts: 85
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From: Los Angeles
GLK250
I was looking for a used Mercedes diesel, but really liked the new E250. Consider waiting until some used cars were available, but the dealer told me that "I might be surprised by what they could do". List was about $62K, for a 2014 E250 4Matic. Their first offer - which they didn't budge from - was $12K (or about 20%) off list. The supposed reason was making room for the 2015's. I'm very pleased with the deal and the car!
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Member
Joined: Aug 2014
Posts: 85
Likes: 0
From: Los Angeles
GLK250
Was able to get my hands on a few actual dealer purchase orders. It seems that the regional fee isn't so regional after all - it looks like it's $740 for all of US. $700 of that is included as part of the dealer net price for the base car, and $40 is attributed to 'Customer Ownership Training Charge.'
