Hey fellas,

This is the first time I plan to buy Mercedes car (E500 sedan) and need a guide from owner who can share some experience about the price and about the car itself. The car I want is E500 sedan w/ appearance/sport package+moonroof+entertainment package, +DVD Navigation (if I buy 2004). Nothing fancy. Following are my questions, I apologized if it's a bit too long, but I'm new to European car and would like to have one ASAP!.

Questions:
1. PRICE.
Anyone just purchased 2003-2004 E500? What is the price that the dealer gave you? 1/2/2004, I was at Mercedes dealer in San Jose, CA. The dealer here has 2004 E500 w/ features above (appearance, entertainment, moonroof package + Navigation). The car was stickered at $62,800.00. I gave the salesguy an offer of $57K to buy it outright (the salesguy pretends to say it is impossible to sell at that price, but he also right away handshake me and have me promised that I'll buy the car outright if the price is agreed by his Manager).

After few minutes, he came back and told me that he's able to sell the car at $59K (I am pretty sure that he can sell at $57k from the way he talked, but he's trying to have me going up). So since, I was thinking to browse around to find better deal, I convinced this guy that I'll come back later and talk with him. He trust me and he let me go. Now, at least I know that the dealer can sell the car around $57k.

Anybody here can advise me if $57k is a good price OR if I can get better deal for this car?? What price did you guys get?? I am not a rich person, so, I want to get this car at the best price.... Please help..... Anybody here can give me reference a good salesman who can work with me (dealer in Bay Area?)?

2. How significant the differences between 2003 and 2004 E500?
What is reasonable/best price for 2003 E500 now w/ mileage below 10000? Should I buy 2003 or 2004?

3. I also consider 2004 BMW 545i. It's a great car too. Tell me why I should buy E500 compared to 545i (please be neutral, no bias please..).

Thanks a lot in advanced.....................

J.J.

 

check your PM.

 

$59K is probably around the invoice price for the car (invoice is about 7% under MSRP). So I would be surprised if you could get $57K, because that would be around $2K under invoice, which I've heard is not happening for E500 (especially with appearance pkg) since E500 production has been cut back.

Please post and let us know if you get the car for $57K...

 

Whats the significance of 57K? Since 57K is below invoice why would they sell something for less than they paid for it - the key is to be educated about prices and they know your a qualified buyer - then they will give you their best price since they know you will go to another dealer.

 

Many dealers sell cars under invoice, it is more complicated than just simple profit. Dealers get a bonus from MB called the "holdback" (which can be upto 4%) plus the allocation of cars they get for the next year depends on how many cars they sell the previous year, etc. so you do hear a lot about cars being sold $1K or $2K under invoice, but typically E320, not E500.

 

The hold backs your refering too are usually placed on cars at the end of the year.... So I can see a 2003 going for under invoice but not an 04....

I just ordered a 2004 e500 for a $1000.00 over dealer invoice... The car will have the appearance pkg (formaly sport pkg) and the premium pkg... The price BEFORE tax and lic will be $59,587 (this price also includes the gas guzzler tax)..... I guess I did O.K... I personally think your dreaming if you think you'll see 2k under invoice for any 04. The hardest part is finding the car you want with color and options. Good luck on your hunt and keep us posted.

 

MB holdback is 3% of MSRP (excluding destination). There is roughly a 14% profit on MB cars (7% front end, and 7% back end).

 

HELL ONA HARLEY - it is not unlikely to get an '04 for under invoice (I got an '04 E320 for $600 under invoice in the beginning of December). Holdbacks are paid regardless of the time of the year.

 

The main differences I know of is the 04s have the 7 speed transmission (great reviews B.T.W) and active cornering headlights.... Oh, and of coarse a lot less bugs...most (I hope) have been worked out....

 

Hmmm. Thats interesting... most hold backs I see don't appear until the manufacturer feels it necessary to do so ie, Slow sales or new models coming... (but hey, what do I know). As stated by abhansali, it seems the e500 is another breed compaired to the 320.... They seem (e320) to be more available so maybe this explains your great deal.... Just wondering, why are you getting the 500 if you already have the 320????

 

i'm not getting an E500... not sure what gave you that idea :-)

 

Sorry, I guess I need to start reading who is responding.... Thought your post was from lpolo..

 

OK Guys, here is the reply I got from the sales person after offering him $57k (he's asking $59k).... What does it mean?? I have to check again if the car has PREMIUM PKG. But I do know that it does have sunroof, but no keyless go (do we ever need this??)


QUOTE:::::
Thanks so much for your email. I surely would have loved to wrap up that car deal yesterday since that was the one sale that kept me from my yearly goal....yes, I was right down to the wire and I felt that if you could have gotten back here, there was hope we could all come to an agreement.

The main thing is that you are still in the market and I WOULD REALLY APPRECIATE THE OPPORTUNITY TO BE THE ONE WHO SELLS YOU THE NEW BENZ..... so let's please stay in touch and we'll pick this up again.

 

"MB holdback is 3% of MSRP (excluding destination). There is roughly a 14% profit on MB cars (7% front end, and 7% back end)."

I guess I do not understand. 3% holdback plus 7% markup = 10%. Where does the other 4% come from?

 

I just purchased an E500 last week and paid $500 over invoice. That's the lowest I cound find on a 2004 E500. I doubt any Bay Area dealers will go under invoice for an '04 E500.

You can definitely find under invoice deals on the E320, just not the E500.

 

pfphipps - the remaining 4% of the "back-end" profit comes from dealer bonuses and the like. The exact amount varies by dealer (it's based on volume, and many other variables).

 

Hey kyee...What dealership did you manage that deal at????

 

It sounds like your $57K price disappeared since he's not as motivated as before.

 

I just picked up a 03 E500 From RAB motors in Marin, Ca for 50,150.00, it came out to around 55 out the door. It had 10k miles on it, & starmarked. It has the premium sound, 6 disc changer , etc. Its what I was looking for color wise (black with charcoal). Im happy so far but to be honest I have only driven it about 50 miles. Im not sure how good of a price that is, but when I walked in they wanted 54k for it. The only bad experience I had was that after leaving the dealer and driving a few other cars, the mercedes salesman called me and wanted to know if I wanted to drive it again or if I had any questions. I asked him if it had heated seats (couldnt remember after driving 4 different cars that day) and he said it did. Imagine my suprise when I got the car home and realized it DIDNT have heated seats. Im not going to blame the salesman, he was new and probably didnt know any better, but It still bum's me out a little. I live in northern california where its cold in the winter and it would be nice to have the heated seat option.