Miles before a new car is sold...
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MBWorld Fanatic!
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From: Long Island, NY
2004 E320
Miles before a new car is sold...
Authorized MB dealer.
I've seen this before, where a new car has higher mileage than you would expect from a demo, used for short rides.
The latest W212 Carfax I looked at has the car driven 4000 miles in 2 1/2 mo, before it was sold to the first registered owner. That's like 2 round trips from NY to Florida. What's up with that?
Now, to my real question. If the car had an msrp of $74k, what would you think the selling price to the first new owner would be?
I've seen this before, where a new car has higher mileage than you would expect from a demo, used for short rides.
The latest W212 Carfax I looked at has the car driven 4000 miles in 2 1/2 mo, before it was sold to the first registered owner. That's like 2 round trips from NY to Florida. What's up with that?
Now, to my real question. If the car had an msrp of $74k, what would you think the selling price to the first new owner would be?
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Joined: Jun 2014
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From: Ontario, Canada
E350 4M (2012), C300 4M Sport (2009)
Authorized MB dealer.
I've seen this before, where a new car has higher mileage than you would expect from a demo, used for short rides.
The latest W212 Carfax I looked at has the car driven 4000 miles in 2 1/2 mo, before it was sold to the first registered owner. That's like 2 round trips from NY to Florida. What's up with that?
Now, to my real question. If the car had an msrp of $74k, what would you think the selling price to the first new owner would be?
I've seen this before, where a new car has higher mileage than you would expect from a demo, used for short rides.
The latest W212 Carfax I looked at has the car driven 4000 miles in 2 1/2 mo, before it was sold to the first registered owner. That's like 2 round trips from NY to Florida. What's up with that?
Now, to my real question. If the car had an msrp of $74k, what would you think the selling price to the first new owner would be?
In my travels, one thing I learnt is that the dealer's first pitch is to show how much discount you are getting from price of new - that's the trap you want to avoid. It's a used car and is being sold as such (look at the dealer's quote - against "Status" it will say "Used"). It's unreasonable to compare it against a brand new car's pricing - your first year depreciation has already kicked in.
The only advantage is the new car lease/finance offerings on this - which in most cases is a bit of a wash when you do the math.
Last edited by Haffster; Mar 25, 2015 at 08:11 PM.
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From: OKC, OK
2022 GLE 450;
I used to work for Ford Credit and conduct inventory on dealers floorplan. There are a lot of 'demo' cars checked out to various people using them as daily drivers. IE: Dealers wife, mother in law, football coaches for the local university (in exchange for tickets), could be used for double duty as a loaner car for customers in the service dept. I've seen the local dealers wife driving a new Range Rover with dealer tags. His kid had a new Audi but I never noticed if it had dealer tags or not.
Barry Switzer drove a white Lincoln Town Car with dealer tags and seemed to change cars every 6 months. Bob Stoops seems to go through 7 series BMWs fairly often.
So miles are not just from a random customer trying out a car for a 15 minute drive.
Barry Switzer drove a white Lincoln Town Car with dealer tags and seemed to change cars every 6 months. Bob Stoops seems to go through 7 series BMWs fairly often.
So miles are not just from a random customer trying out a car for a 15 minute drive.
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Joined: Jun 2014
Posts: 120
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From: Ontario, Canada
E350 4M (2012), C300 4M Sport (2009)
I used to work for Ford Credit and conduct inventory on dealers floorplan. There are a lot of 'demo' cars checked out to various people using them as daily drivers. IE: Dealers wife, mother in law, football coaches for the local university (in exchange for tickets), could be used for double duty as a loaner car for customers in the service dept. I've seen the local dealers wife driving a new Range Rover with dealer tags. His kid had a new Audi but I never noticed if it had dealer tags or not.
Barry Switzer drove a white Lincoln Town Car with dealer tags and seemed to change cars every 6 months. Bob Stoops seems to go through 7 series BMWs fairly often.
So miles are not just from a random customer trying out a car for a 15 minute drive.
Barry Switzer drove a white Lincoln Town Car with dealer tags and seemed to change cars every 6 months. Bob Stoops seems to go through 7 series BMWs fairly often.
So miles are not just from a random customer trying out a car for a 15 minute drive.
And the suburban duty includes driving lessons for his teens. Ouch.
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From: Las Vegas
2012 E350 sedan
Can't attest to wether demos are good or bad but they always sell for less
The public perception (true or false) is that demos have been mechanically abused to some extent. It is highly likely that their paint finish was abused due to multiple washes per week. particularly if the dealer uses an automated washer. The car may also have been waxed with an electronic buffer multiple times (look for swirl marks). When sold as CPO used cars, demos/loaners are always cheaper than virtually identical 1 owner CPO cars. Six months ago I bought my E350 2 year old CPO with 10K miles for $34K and could have gotten similar deals elsewhere in SoCal. Compare that to what they are offering for that "almost new" E350.
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Joined: Jun 2014
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From: Ontario, Canada
E350 4M (2012), C300 4M Sport (2009)
The public perception (true or false) is that demos have been mechanically abused to some extent. It is highly likely that their paint finish was abused due to multiple washes per week. particularly if the dealer uses an automated washer. The car may also have been waxed with an electronic buffer multiple times (look for swirl marks). When sold as CPO used cars, demos/loaners are always cheaper than virtually identical 1 owner CPO cars. Six months ago I bought my E350 2 year old CPO with 10K miles for $34K and could have gotten similar deals elsewhere in SoCal. Compare that to what they are offering for that "almost new" E350.
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From: Las Vegas
2012 E350 sedan
Sorry, I was not clear. Mine was a one-owner CPO, not a demo/loaner
I would wholeheartedly agree with that - theoretically, a slightly used car under the care of dealer is not a bad option. The question is the right price - dealers (at least here in Canada) ask too much for these, in my opinion and the gap between that and price of new is so narrow, you may as well buy new. But the situation you describe is excellent - priced right, I would go for a demo any day.
The number of off lease late model low mileage E350s in many metro areas in the US seriously depresses their market value. At almost half off MSRP, a new E350 seemed financially foolish.
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From: Long Island, NY
2004 E320
Thanks for the responses guys, very informative!
I should have mentioned in the op that the car is a 2012 E550, with now 34k miles on it. It is a CPO and being sold by the same MB dealer that sold it to the "first" owner.
Pretty good options, including Prem Pkg 2, Airmatic, pano roof and Driver Assistance Package. Black on black with black Ash interior wood trim.
I posted the question because I feel the asking price is too high, $46k. So, I wanted to get a feeling for what it actually sold for originally. As I mentioned, this is the first time I've seen a Carfax with that high "demo" miles.
Thoughts on what I should offer/pay for this car. Dealer has had it for sale for 2 months.
I should have mentioned in the op that the car is a 2012 E550, with now 34k miles on it. It is a CPO and being sold by the same MB dealer that sold it to the "first" owner.
Pretty good options, including Prem Pkg 2, Airmatic, pano roof and Driver Assistance Package. Black on black with black Ash interior wood trim.
I posted the question because I feel the asking price is too high, $46k. So, I wanted to get a feeling for what it actually sold for originally. As I mentioned, this is the first time I've seen a Carfax with that high "demo" miles.
Thoughts on what I should offer/pay for this car. Dealer has had it for sale for 2 months.
Last edited by starbrite; Mar 26, 2015 at 03:11 PM. Reason: added info
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From: West Central Florida
2011 E550 P2 4M Sedan
I'd agree that price is too high. A fair price is about $42k or so since it is a CPO. Would be great to get for just under $40k. But with used you always have to balance what you want with when you need it and how much you are willing to pay. Usually one of those three drives the ultimate decision.
I don't think I've ever seen a good deal on a demo car. Dealer is the one absorbing the 'cost of use' during the demo time so they want to reduce the loss. In comparison a used car is mostly cost plus profit for them since they got it at auction or trade in. A used car shopper is not normally looking to pay that close to new car prices. Their target customer for a demo is typically someone who is looking at new cars but is interested in a deal.
I don't think I've ever seen a good deal on a demo car. Dealer is the one absorbing the 'cost of use' during the demo time so they want to reduce the loss. In comparison a used car is mostly cost plus profit for them since they got it at auction or trade in. A used car shopper is not normally looking to pay that close to new car prices. Their target customer for a demo is typically someone who is looking at new cars but is interested in a deal.
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From: Long Island, NY
2004 E320
Yes, it really is amazing. That's certainly a reason for not wanting to over pay. The downside liability is just to great.
Btw, how did you arrive at $57,599.75 in your above post ?
Btw, how did you arrive at $57,599.75 in your above post ?
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Thread Starter
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From: Long Island, NY
2004 E320
Based on post #7, you're probably right.
Thanks. The car is not local, so I'll have someone look at it for me.
Thanks. The car is not local, so I'll have someone look at it for me.
Last edited by starbrite; Mar 28, 2015 at 01:07 PM.
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From: Long Island, NY
2004 E320
Well, before I had a chance to have my brother in law look at the car, the dealer sold it to another MB dealer 40 miles further away. They're asking exactly the same price, however the car is no longer CPO. Is that something that's normally lost when sold to another dealer?
Interesting that they would sell to another dealer, rather than lowering the price. I'd really be curious as to what price they sold it for. Any educated guesses?
Interesting that they would sell to another dealer, rather than lowering the price. I'd really be curious as to what price they sold it for. Any educated guesses?
Last edited by starbrite; Apr 3, 2015 at 12:51 PM.
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Dealers will often trade cars with other dealers or move them within their own network of stores. If they hold onto the car for too long then they have to go through the registration process, pay tax and take it into inventory. It's the "pay tax" part they are not fond of.
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From: Long Island, NY
2004 E320
Ahhh, I was not aware of that. Thanks.
They bought the car from MB Financial on Jan 5th, so almost 3 months when they sold it on March 30th.
They bought the car from MB Financial on Jan 5th, so almost 3 months when they sold it on March 30th.
Last edited by starbrite; Apr 3, 2015 at 03:43 PM.
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From: Long Island, NY
2004 E320
It turns out that the other dealership is the same owner and they have a "HOT PROSPECT" potential buyer. So, not a sale, just a change in location.
Interestingly, because the other dealership is in another state, they have to re cpo the car because of different requirements. I never knew that (if true). My feeling though is that they just have to do a safety/emissions inspection.
Edit : Turns out the car was sold on 3/31.
Interestingly, because the other dealership is in another state, they have to re cpo the car because of different requirements. I never knew that (if true). My feeling though is that they just have to do a safety/emissions inspection.
Edit : Turns out the car was sold on 3/31.
Last edited by starbrite; Apr 7, 2015 at 01:20 PM.
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Dealers will often trade cars with other dealers or move them within their own network of stores. If they hold onto the car for too long then they have to go through the registration process, pay tax and take it into inventory. It's the "pay tax" part they are not fond of.
Owned dealerships for decades in many states and never saw a location where you would ever need to register and pay tax on a used vehicle because of time in inventory. In many states you do pay a yearly inventory tax on your vehicles new and used but that happens regardless of time in inventory.
As in any other business, the key to profits is turning dollars and therefore inventory. Many dealers do have a policy of turning cars in sixty- ninety days simply to replace a depreciating non-selling asset for one that may sell.
