CLS Coupe (C219) Discuss the CLS Coupe.

dealer mark-up

Old Jan 11, 2005 | 02:21 PM
  #1  
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dealer mark-up

Are any of the dealers charging a "mark-up" over MSRP on the CLS?
Or does MB prohibit dealers from doing this??
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Old Jan 11, 2005 | 02:27 PM
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im sure we may see this. did u see the acution on ebay that went for 15k just for the someones spot to buy the car!?! my dealer had an SL55 earlier last year, on the sticker was a 40k "Fair Market Mark-Up" posted on the car, so they can do this if they want. They have an SL65 right now with a 30k "Fair Market Mark-Up" which takes the price to like 210k, maybe next year ill do that...
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Old Jan 11, 2005 | 02:57 PM
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Who determins "FAIR mark-up"
They already make a profit from wholesale to MSRP. That is my definition of fair! :p
When a dealer charges a mark-up it makes me think "what else are they gouging me on"??
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Old Jan 11, 2005 | 05:01 PM
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supply and demand...
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Old Jan 11, 2005 | 06:23 PM
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Originally Posted by adam76
supply and demand...
True, then the manufacturer usually raises MSRP which is determined to be the value. When dealers do this they loose customer loyalty and goodwill, so what is that worth? Remember for each bad experience someone has they tell at least eight other people.
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Old Jan 11, 2005 | 06:40 PM
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I believe MB dealers in the US are prohibited from adding additional mark up to new cars.

However, this doesn't stop them from doing something like selling the car and then buying it back (on paper) so that it is used... at which point they can sell it at whatever price it will fetch. Or adding additional extras that are not required, to pad the price.

-s-
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Old Jan 11, 2005 | 11:20 PM
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I refuse to give my business to dealers that deal in this practice, regardless of what car I'm buying and what car is being marked up. If I EVER see ANY car with a markup above sticker, I will never buy a car from that dealer. Period. I guess it's an ethics thing for me, and there are plenty of great dealers out there that never gouge customers, regardless of how wealthy they might be. For those in Texas, Ewing Autohaus in Plano is one of the few 'good guys' I know of in the state.
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Old Jan 13, 2005 | 02:49 AM
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Originally Posted by bm75204
I refuse to give my business to dealers that deal in this practice, regardless of what car I'm buying and what car is being marked up. If I EVER see ANY car with a markup above sticker, I will never buy a car from that dealer. Period. I guess it's an ethics thing for me, and there are plenty of great dealers out there that never gouge customers, regardless of how wealthy they might be. For those in Texas, Ewing Autohaus in Plano is one of the few 'good guys' I know of in the state.
I understand your frustration against those authorized Mercedes dealerships who gouge their customers because I also never deal with them. However, what do you do when all those good Mercedes dealers throughout the country have a waiting list of 2 years for a car you want? Do you just wait for 2 years to get your car, ask them to please move you up even though that is not fair to those who have been in the waiting list for a long time, or pay a small and fair premium to an independent dealership or individual who has a car coming instead of paying the huge premiums that some of the large authorized Mercedes dealerships charge nowadays?

Last edited by NelsonExotics; Jan 13, 2005 at 03:01 AM.
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Old Jan 13, 2005 | 02:58 AM
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Originally Posted by adam76
im sure we may see this. did u see the acution on ebay that went for 15k just for the someones spot to buy the car!?! my dealer had an SL55 earlier last year, on the sticker was a 40k "Fair Market Mark-Up" posted on the car, so they can do this if they want. They have an SL65 right now with a 30k "Fair Market Mark-Up" which takes the price to like 210k, maybe next year ill do that...
unfortunately the idiot only bought a piece of paper for $15k which guarentees nothing. he should've dealt directly with the dealership instead of the guy holding the order slip since there's a good chance that guy would've never gotten his hands on the car anyway. dealerships are already taking bids on the CLS. highest offer to the dealership, takes the order. i also replied to that ebay post. didn't see this one. you can read what my uncle did a few years ago. think it was a 2000 CL500.
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Old Jan 13, 2005 | 03:19 AM
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Originally Posted by mbny
unfortunately the idiot only bought a piece of paper for $15k which guarentees nothing. he should've dealt directly with the dealership instead of the guy holding the order slip since there's a good chance that guy would've never gotten his hands on the car anyway. dealerships are already taking bids on the CLS. highest offer to the dealership, takes the order. i also replied to that ebay post. didn't see this one. you can read what my uncle did a few years ago. think it was a 2000 CL500.
You are right in a way. If this is the first time that the seller is doing this, there is a good chance that he might get screwed if he doesn't know the Mercedes dealership that he's dealing with. Most Mercedes dealers will certainly sell the car for a premium but there are always a few good dealers who also sell them at MSRP and honor their contracts. However, if the seller on Ebay is reputable and has done those kind of sales in the past, it should be a smooth transaction.

I do agree though that $15k over the MSRP is waaaaay too much for that car. I'm not saying that the CLS 500 is not worth that much if you have the money, but that owner better be ready to take a deep loss when he tries to resell his car. I hope he knows what he's gotten into because many new buyers on Ebay don't really know how this process works.

P.S. Could you please provide the link so we can all read what your uncle did regarding his 2000 CL500?

Last edited by NelsonExotics; Jan 13, 2005 at 03:22 AM.
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Old Jan 13, 2005 | 12:28 PM
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I completely understand the supply and demand school of thought with this, but we all have the right to choose which dealerships we work with and can base that choice on how dealers treat their customers. To me, markups fall under that category, and to each his own. All I care about right now is the ticking clock getting closer and closer to CLS deliveries for all of us (and at sticker, damn it. ) !
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Old Jan 13, 2005 | 01:16 PM
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im going to ask my dealer for maybe a grand off sticker. true they got me this time on the sale, but if they want to maintain owner loyalty to their dealership, i think they should work with me, it is the second benz i got from them in less then 3 years...
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Old Jan 13, 2005 | 03:55 PM
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Originally Posted by NelsonExotics
what do you do when all those good Mercedes dealers throughout the country have a waiting list of 2 years for a car you want? Do you just wait for 2 years to get your car, ask them to please move you up even though that is not fair to those who have been in the waiting list for a long time, or pay a small and fair premium to an independent dealership or individual who has a car coming instead of paying the huge premiums that some of the large authorized Mercedes dealerships charge nowadays?
I'll bet you can deal w/ some of the people in line if you offer them a premium to trade spots (with the dealers approval). Win-win situation. Everyone is happy and the dealer has not lost any goodwill by being fair to others in line. :p
So the dealer looses a few bucks on the deal by not accepting the premium, but just think of the money they spend every day on advertising what great people they are.

Last edited by Natalie; Jan 13, 2005 at 03:57 PM.
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Old Jan 13, 2005 | 04:06 PM
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Originally Posted by Natalie
I'll bet you can deal w/ some of the people in line if you offer them a premium to trade spots (with the dealers approval). Win-win situation. Everyone is happy and the dealer has not lost any goodwill by being fair to others in line. :p
So the dealer looses a few bucks on the deal by not accepting the premium, but just think of the money they spend every day on advertising what great people they are.
I agree with you Natalie. I don't see why those who have been waiting in line for years to get a car shouldn't be compensated if they pass their number on the line to someone who is willing to pay a premium. However, I don't agree with those who ask for more than a premium... usually a premium, an arm and a leg! And like you said, as long as the MB dealer sells it at MSRP and the person who paid the premium paid something reasonable, not necessarily "fair market value", it's a win win situation for everyone
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Old Jan 13, 2005 | 09:03 PM
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Originally Posted by Natalie
Are any of the dealers charging a "mark-up" over MSRP on the CLS?
Or does MB prohibit dealers from doing this??
Why would anybody pay over MSRP for a CLS (or for any car)? There's nothing special about the CLS. It's simply an new body style.

I don't get it. These cars are going to be the mercedes bread and butter sedan much like the E-class. It's nice, but don't pay a premium for it. MB already screws us enough. Don't get screwed by the dealer also.
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Old Jan 13, 2005 | 09:23 PM
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Originally Posted by WIldcat465
Why would anybody pay over MSRP for a CLS (or for any car)? There's nothing special about the CLS. It's simply an new body style.

I don't get it. These cars are going to be the mercedes bread and butter sedan much like the E-class. It's nice, but don't pay a premium for it. MB already screws us enough. Don't get screwed by the dealer also.
Regardless of the make, regardless of model, there are people who want (need) to be first on the block with the latest and greatest. Some dealers who bask in the "wonderful" reputation of car selling will "rise" to the occasion and rape you without even a kiss. As long as there is a buyer, there will always be a seller, regardless of the cost or value.
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Old Jan 14, 2005 | 08:28 PM
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on the ebay thing...some of you make it seem as though the seller did something wrong by selling his spot. he didn't sell it at a fixed price or anything. he started the bidding at $100 and probably expected to make a couple grand. i'm sure he was quite excited when it hit the $15k mark and the auction ended.

and i'm sure the buyer isn't some person who lives paycheck to paycheck. some people have the cash to spend and don't care about resale value, sticker price, etc. just look at how much money people put into cars these days just to make them one of a kind.

and this car is indeed special i think. i'm not a mercedes fan but this one really attracted my attention. sure, it may become a car you see more often in a few years, but the shape is timeless and i know MB is going to see their sales shoot up.

as for dealers overcharging for this car: they can only do it if there are buyers out there willing to pay the premium, right? if u want a car right now, you have to pay....otherwise, get in line with everyone else and wait it out. i dont think any of us can determine what a "fair premium" is.
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Old Jan 14, 2005 | 09:39 PM
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Why pay extra to get a buggy 1st year car?

I don't get it. 1st year cars ALWAYS have more problems than subsequent years. Why would you pay extra for that privilege?

Just my 2 cents....


CZ
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Old Jan 15, 2005 | 02:40 PM
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i dont think many people care about buying one of the first cars of a new model year anymore. you may or may not have problems, but you've got a warranty backing you up.

its all about being one of the first...at any cost if you got in too late.


Originally Posted by czachari
I don't get it. 1st year cars ALWAYS have more problems than subsequent years. Why would you pay extra for that privilege?

Just my 2 cents....


CZ
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Old Jan 15, 2005 | 09:10 PM
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Its that extra little excitment of eyes looking at you while you drive a car that is one of the first on the road. personally, I get a kick when people look when Im on the highway. The feeling of other drivers (specially good looking females) looking and goucking at your car while you drive is equal or sometimes even better than F****ing. Just a person opinion. I love the attention. Its worth the mark up because it makes me happy,

Happiness in this day and age is not cheap.
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Old Jan 16, 2005 | 11:39 PM
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The rest of the story

In the past I have noted that those EBay sellers who sell their place in line for an unreasobable premium end up relisting the same auction. Half the time the buyer backs out claiming he thought he was bidding on the whole car and the other half usually are to "sunglasses" bidders who have 0 feedback that are not serious anyway. On the other hand some of the sellers making these offers are misleading in what they promise. They claim they are first in line and will have the car in hand by a certain date and yet those claims are not always supportable in fact. Once they get that initial deposit it is usually up to the buyer to work directly with the dealer and the EBay seller has no way to bind the dealer when the dealer all of a sudden notes there has been a "delay." On top of that some dealers have written into the fine print that they have final say so on assignments of the purchase agreement so if they opt not to sell to the third party ebay bidder the buyer of the "place in line" is out of luck.

Last edited by northbenz; Jan 16, 2005 at 11:43 PM.
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Old Jan 18, 2005 | 12:36 AM
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Originally Posted by northbenz
In the past I have noted that those EBay sellers who sell their place in line for an unreasobable premium end up relisting the same auction. Half the time the buyer backs out claiming he thought he was bidding on the whole car and the other half usually are to "sunglasses" bidders who have 0 feedback that are not serious anyway. On the other hand some of the sellers making these offers are misleading in what they promise. They claim they are first in line and will have the car in hand by a certain date and yet those claims are not always supportable in fact. Once they get that initial deposit it is usually up to the buyer to work directly with the dealer and the EBay seller has no way to bind the dealer when the dealer all of a sudden notes there has been a "delay." On top of that some dealers have written into the fine print that they have final say so on assignments of the purchase agreement so if they opt not to sell to the third party ebay bidder the buyer of the "place in line" is out of luck.
You are correct in a way but even though that happens very often, there are still some honest sellers on Ebay who do complete their allocation sales. I won't provide any links because I don't want the webmaster to think that I'm advertising in this forum, but feel free to look at some of the current CLS auctions on Ebay and you will see that there are at least 2 reliable sellers selling a first delivery car. I could go on and on about this topic and our reputation but I cannot because I haven't signed up as an advertiser yet. When I do, you can rest assured that you will hear all about it
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