Mr Snappy

Bad news and Good news...

Kansas City is a weird market, we only have two MB dealerships, and they are owned by the same people. We don't really have any competition here and the dealer loves it. Same for the BMW dealership.

So this morning, I tried to do the deal. After the salesman blowing smoke up my behind about how desperate they were to get rid of these 2011's with the vastly superior 2012's coming in, I had assumed I could get close to some of the other deals that folks on this forum have been posting.

To keep it short, no. At the end of the day, the offered to sell the car to me for $1000 OVER invoice (their bottom line) and they way low-balled me on the trade. And yes, I do understand how they bid used cars and was not unrealistic with what it was worth....they simply low-balled me CRAZY LOW.

So when I rejected all this and they refused to talk further, I asked the sales dude what has changed? He told me the new car manager was affraid he would run out of E350's before the 2012's arrived and was confident that people would not wait and would absolutely have to have a E350. Therefore, he wasn't going to let it go without maximum profit.

Gents, I have been buying new cars for over 20 years, and this was a first. I have never had a dealer tell me he was concerned his lot would be empty so therefore was tanking the deal.

I'm not mad, I love my CTS and in many ways its better than the current E350...I just am a car junkie and wanted a trade.

The good news is that now I can focus on getting a 2012. I can get it exactly the way I want it and fly somewhere to pick it up if necesary...So you can expect to see me around for awhile

EmE247

Think it might be worth the flight somewhere not to far from you to pull the deal at some other dealership. Might cost you a few hundred in the one way ticket and a drive back, but you can definitely save thousands of dollars and enjoy a nice cruise back.

With the 2012's coming out, you should be able to get a killer deal on a 2011. I think I got somewhere near 8-9K under invoice on my car last November and I seen a couple even lower than that here on the forums recently. I think you will probably be able to save even more than that with the release of the 2012s.

SolidGranite

That really is bizarre behavior by a dealership. Good luck in finding your 2012 and I think you'll be quite happy with the decision! Also, remember while the discounts on 2011s are currently deep the 2012 models will have considerably higher resale value down the road.

Imothph

Aside from my new E350, I've ordered my last two new vehicles and actually did order the BMW 535i I wanted this time (except the dealer screwed it up). Im 100% in favor of ordering a car, only the Conquest cash and the fact the dealer had exactly what I was looking for made my deal possible without ordering. I passed up three other Mercedes they offered / could get because the options were off here or there, then this silver one showed up - perfect match. This is too much $$$ to spend getting something that's not quite right.

I told my dealer upfront that whatever the deal on a 2011, this close to the 2012s, it would have to be a deal only a moron would refuse. The fact that I have 5 MB dealers in the state helped I'm sure.

park423

It makes sense because "we" know about the new 2012's and all the new advantages, but there are plenty (probably majority) of potential E350 buyers that have no idea about the enhanced 2012 and the dealers are certainly not going to tell them about it. They will flash a decent deal and the "normal" buyer will jump at it thinking they are getting a great deal, plus MB will probably offer 2-year lease deals on the E350 and sales will tell anyone looking for a 2012 to lease a 2011, wait 2 years will they work out the bugs and then lease a 2013 when the lease runs out. The BIG deals will not be available until the 2012's are on the lot or you need to find a car that's been sitting on the lot for 3-4 months.

Mr Snappy

Well, one aspect of the deal was going to be sweet, my credit union called and offered me 3.95% for up to 84 months...pretty good for not being an offered incentive by a car company!

220S

That's like 7 years. Wouldn't it be better to get a lower interest over a 48 month max? I also think MB Financial offers lower rates

It was 1.9 from MB Finance back in 2009 when they were running year end (and model end) deals. I'm guessing they'll be offering big incentives once the 2012s are coming into inventory.

But don't listen to me, I've never financed a car. But they did offer a low rate when I bought mine. YMMV.

park423

Agree with ^
When I got my car, the deal was 1.9% for up to 60 months from MB Financial, I would think you can get better than the 3.95% for 84 months from MB Financial, so long as you have very good credit.

220S

I think the credit score cut off for MB Finance is something really low like 650.

I was going to take the 1.9 when I got my car but if I had put the money in the bank I would have gotten less interest than 1.9, so I just didn't feel like giving MB my money. Plus I have a habit of forgetting to mail my bills and therefore have to keep any payments limited to phone and utilities only. And I hate credit and I hate debt of any kind.

With interest rates so low it's kinda crazy to be giving our money to the banks. I get only around 1.5% on a special access bank account and even less than that on a daily use account. And then they go out and collect almost 4% on a car loan for 84 months. That's a crime. Wait, maybe I should be a banker and be able to rob without penalties.

Mr Snappy

They just offered that, I would not finance a car that long. The rate was good UP TO 84 months...or anything less.

1.9% is a manufacturer incentive, not a bank rate. The way those work is you usually get that or cash off.

Mr Snappy

Your rate was not them being agressive, it was an incentive where the eat part of the cost of the loan on their end. Currently, MB is also offering 3.9% for 60 months, so about the same unless you wanted to go out further.

You always secure an approval somewhere else before you walk into a dealer. You can always go with the dealer if they give you better numbers, but you hold the ace in the situation.

Mr Snappy

WOW...you must be a young man. In the 80's, car loans could run 18%-20% for people with GOOD credit. Complaining about 4% is really bizarre. Not saying I like to pay with credit, but somethings it makes sense. Remember, credit is just a tool, nothing more, nothing less.

220S

I'm not talking about the 1980s. I'm talking about today. Interest rates have come way down, but the disparity of interest on your own money and the rate of borrowing money is still there. And if one institution offers a lot less than 4% then why not take it instead? Doesn't the difference of 2% add up over time.

btw, yes, the 1.9 was an incentive from MB, but the point being is why not try to get the least interest rate on borrowing money whether it's in the form of cash or a car? Unless you are planning on more loans from your bank and just want to get a relationship going.

I'm no finance person, but I just always feel it's good to watch the cost of doing things, no matter what it is.

Anyway, as I said I don't know much about finance. I did borrow for real estate in the past but that's all paid off now, so I'm no longer in the credit market. I don't keep up with it except I know that my bank will use my money now and not give me a lot back for doing so... I got more return in the 1980s....