Side Topic: "Deals"
12-31-2013, 02:53 PM
#1
Senior Member
Thread Starter
Side Topic: "Deals"
good for anyone who has enjoyed a hefty price cut off the sticker on a new e350.
that being said, is anyone else wondering if these "deals" alongside the never-ending holiday sales drives are just deflation starting to take effect? one would think that gas/fuel price decreases plus ZIRP plus modest house price gains would be enough to drive auto sales - but that is apparently not enough to create the demand the mfgr's are targeting.
do we think dealers are going to keep moving cars in 2014 by removing the current sales incentives? if they did, why wouldn't consumers just keep waiting until the incentives returned?
i mean, there's only so much internal cost cutting (read: screwing over the workforce and the environment) that corporations can do to keep profit margins looking pretty. eventually they need new sales and new market expansion. i wonder if we will see continued price declines to meet demand.
that being said, is anyone else wondering if these "deals" alongside the never-ending holiday sales drives are just deflation starting to take effect? one would think that gas/fuel price decreases plus ZIRP plus modest house price gains would be enough to drive auto sales - but that is apparently not enough to create the demand the mfgr's are targeting.
do we think dealers are going to keep moving cars in 2014 by removing the current sales incentives? if they did, why wouldn't consumers just keep waiting until the incentives returned?
i mean, there's only so much internal cost cutting (read: screwing over the workforce and the environment) that corporations can do to keep profit margins looking pretty. eventually they need new sales and new market expansion. i wonder if we will see continued price declines to meet demand.
12-31-2013, 05:49 PM
#2
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Join Date: Sep 2013
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2014 E350 Wagon
If you read anything about the industry you'd know that as a whole they had a spectacular year in terms of sales and there really is no need to speculate on their collapse just yet. Even used car markets are stronger today than they were a year ago.
You are looking at one car from one manufacturer and making general statements about and industry which are simply wrong. The E-class is MBs most profitable vehicle manufactured so there is so much money to cut back from it's not even funny. Manufacturers also look at way more than per unit profit in a given month. They have long term projections quotas and goals as well as long term contracts with suppliers that neither you nor I know anything about.
All I'm trying to say is that the big discounts and deals you see on the E-class at the moment is in no way any indication how the industry is doing as a whole and it's not even an indication on how MB or even the E-class is doing.
As far as I can tell MB had a blockbuster year and an extremely successful introduction of the new facelift E-class and the CLA as well as the S-class. As for the rest of the automotive industry they haven't been doing too bad either, maybe with the exception of VWoA whose sales, while higher than last year's, haven't matched the growth of the industry as a whole. Toyota is also losing ground to Ford thanks to the fantastic Fusion sales that Ford has produced.
You are looking at one car from one manufacturer and making general statements about and industry which are simply wrong. The E-class is MBs most profitable vehicle manufactured so there is so much money to cut back from it's not even funny. Manufacturers also look at way more than per unit profit in a given month. They have long term projections quotas and goals as well as long term contracts with suppliers that neither you nor I know anything about.
All I'm trying to say is that the big discounts and deals you see on the E-class at the moment is in no way any indication how the industry is doing as a whole and it's not even an indication on how MB or even the E-class is doing.
As far as I can tell MB had a blockbuster year and an extremely successful introduction of the new facelift E-class and the CLA as well as the S-class. As for the rest of the automotive industry they haven't been doing too bad either, maybe with the exception of VWoA whose sales, while higher than last year's, haven't matched the growth of the industry as a whole. Toyota is also losing ground to Ford thanks to the fantastic Fusion sales that Ford has produced.
12-31-2013, 06:40 PM
#3
Senior Member
Thread Starter
gregtr, what do you think the reason is, for the price adjustments? the 2014 e-class is hardly a closeout model about to be replaced. if they need to adjust based on projections, doesn't this signal weak actual demand? and do you think that sale prices will increase after tomorrow's new year? will the potential buyers tracking sales data still be interested, if they do rise?
this is not unique to the auto industry either, and the e350 is hardly the only vehicle that is highly incentivized to move.
this is not unique to the auto industry either, and the e350 is hardly the only vehicle that is highly incentivized to move.
01-01-2014, 02:40 PM
#4
Super Member
I am simple quoting my CA from MB and BMW
Q4 of 2014, is an interesting year as BMW and MBZ are overloaded with cars originally allocated for East Coast. Corporate has shifted the cars to West Coast to be blown out as deals. Typical volume dealership here is offered with a half a million dollar bonus if they hit the target.
US market is strong in 2014 so we are getting some of the allocations originally intended for Europe.
Q4 of 2014, is an interesting year as BMW and MBZ are overloaded with cars originally allocated for East Coast. Corporate has shifted the cars to West Coast to be blown out as deals. Typical volume dealership here is offered with a half a million dollar bonus if they hit the target.
US market is strong in 2014 so we are getting some of the allocations originally intended for Europe.
01-01-2014, 02:49 PM
#5
Senior Member
Thread Starter
wow, thanks for the input! that is interesting. i take that as the european market is headed into recession, and the projected demand on the east coast usa is falling short. so they shifted their overstock to the bay area and los angeles as flash sales where purchasing power is still strong.
