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Negotiating price when placing order

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Negotiating price when placing order

 
Old 08-03-2018, 04:27 PM
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Negotiating price when placing order

I sent a build I wanted to the sales manager at my local dealer, and he placed the order with Mercedes right away, even before I went there to talk with them. However they then brushed me off regarding determining price, saying it might change since no E450's have been released yet, and are unwilling to negotiate until they actually receive the car. This leaves me with little leverage and I feel I am getting played. It appears from the previous thread on ordering that people are getting a firm price commitment and a signed contract when placing their order. Is this coorect?

Last edited by allfortheunion; 08-04-2018 at 05:07 PM.
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Old 08-03-2018, 04:54 PM
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Originally Posted by allfortheunion View Post
I sent a build I wanted to the sales manager at my local dealer, and he placed the order with Mercedes right away, even before I went there to talk with them. However they then brushed me off regarding determining price, saying it might change since no E450's have been released yet, are are unwilling to negotiate until they actually receive the car. This leaves me with little leverage and I feel I am getting played. It appears from the previous thread on ordering that people are getting a firm price commitment and a signed contract when placing their order. Is this coorect?
Your dealer is right that the car hasn't been released and pricing is still subject to change. He has little to no control over that final Invoice MSRP for your built car. But he does control how much off MSRP he's willing to give you on delivery. That shouldn't be a mystery left until the car arrives. You should ask him what percentage off MSRP you'll be getting whenever the car arrives at the price Mercedes sets for it at release.
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Old 08-03-2018, 06:44 PM
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Most of our cars are custom order and most of the time there is no price available, yet it's critical to set a discount at the time of order. If you try to start negotiating near the time of delivery, the dealer has the leverage. Most customers just want the wait to be over and will pay more to get the car.
We typically set a percentage discount if no price is known. Easy and only an email confirmation is needed...
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Old 08-03-2018, 09:16 PM
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Originally Posted by Wolfman View Post
Most of our cars are custom order and most of the time there is no price available, yet it's critical to set a discount at the time of order. If you try to start negotiating near the time of delivery, the dealer has the leverage. Most customers just want the wait to be over and will pay more to get the car.
We typically set a percentage discount if no price is known. Easy and only an email confirmation is needed...
Exactly what I was trying to say, but I think you said it better!

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Old 08-04-2018, 08:08 AM
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On all of the MB sales contracts I enter into none have pricing established. What I have in the contract is a non penalty cancellation provision for any reason and a 3 day extended evaluation period before final close. At delivery time the dealer is just as anxious to close the deal as the buyer is. That is when the real negotiation begins. The buyer must be willing to walk away from a deal. Though I've dealt with the same dealer for decades, I've walked away from 3 deals in the past 4 years - a W212, C292, R231.
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Old 08-04-2018, 08:37 AM
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Originally Posted by ua549 View Post
On all of the MB sales contracts I enter into none have pricing established. What I have in the contract is a non penalty cancellation provision for any reason and a 3 day extended evaluation period before final close. At delivery time the dealer is just as anxious to close the deal as the buyer is. That is when the real negotiation begins. The buyer must be willing to walk away from a deal. Though I've dealt with the same dealer for decades, I've walked away from 3 deals in the past 4 years - a W212, C292, R231.
I'm surprised to see you say this after you've dealt with your dealer for so many years. My deal is simple. I get a beyond incredible standard discount off MSRP for ANY Mercedes I want to buy. It doesn't matter if it's custom ordered or off the lot. The discount applies in all situations. Since my cars are paid for at delivery (not financed or leased), the only negotiation I have to deal with is my trade value, though I'm provided a general trade value up front, pending the actual date the deal closes. This makes a MB car, the most stress free car buying experience imaginable. And it's one I wouldn't give up, which keeps my coming back every 3 or so years for a new Mercedes.

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Old 08-04-2018, 03:17 PM
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Originally Posted by allfortheunion View Post
I sent a build I wanted to the sales manager at my local dealer, and he placed the order with Mercedes right away, even before I went there to talk with them. However they then brushed me off regarding determining price, saying it might change since no E450's have been released yet, are are unwilling to negotiate until they actually receive the car. This leaves me with little leverage and I feel I am getting played. It appears from the previous thread on ordering that people are getting a firm price commitment and a signed contract when placing their order. Is this coorect?
I am so glad that you asked this question, I am going through the same thing in Baltimore. I was figuring that the game was to have the car there that I want and then go up on the verbal price because I can't get a confirmation on that to save my life.
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Old 08-04-2018, 04:02 PM
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Originally Posted by rbrylaw View Post
Exactly what I was trying to say, but I think you said it better!
You said it well! I scrolled by and overlooked it. Posting on an iPhone isnít ideal
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Old 08-04-2018, 04:15 PM
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Originally Posted by ua549 View Post
On all of the MB sales contracts I enter into none have pricing established. What I have in the contract is a non penalty cancellation provision for any reason and a 3 day extended evaluation period before final close. At delivery time the dealer is just as anxious to close the deal as the buyer is. That is when the real negotiation begins. The buyer must be willing to walk away from a deal. Though I've dealt with the same dealer for decades, I've walked away from 3 deals in the past 4 years - a W212, C292, R231.
I like things settled beforehand but will negotiate the actual deal. We used to buy these cars but have switched to leasing as tech moves so fast that we like to have cars swapped every two years or so.
Typically itís trunk money, specials and MF

That said, itís easy to walk away on most cars but our last SL took over 6 months from order (facelift model). Wife was without convertible until August and there was only one like our config in the country.
Summers are short here and it could have been a better deal or the risk on a very unhappy partner
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Old 08-04-2018, 07:03 PM
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Originally Posted by rbrylaw View Post
I'm surprised to see you say this after you've dealt with your dealer for so many years. My deal is simple. I get a beyond incredible standard discount off MSRP for ANY Mercedes I want to buy. It doesn't matter if it's custom ordered or off the lot. The discount applies in all situations. Since my cars are paid for at delivery (not financed or leased), the only negotiation I have to deal with is my trade value, though I'm provided a general trade value up front, pending the actual date the deal closes. This makes a MB car, the most stress free car buying experience imaginable. And it's one I wouldn't give up, which keeps my coming back every 3 or so years for a new Mercedes.
I always custom an order from the factory, never have a trade in (it's a huge profit center for dealers) and always pay cash (real cash).
The dealer has no ides what the margin will be on a new model before it is priced. I don't play the "under invoice" game because all manufacturers keep invoice prices high while offering dealer incentives/rebates amounting to thousands of dollars per vehicle. My dealer knows me well always deals straight with me.

Last edited by ua549; 08-04-2018 at 07:05 PM.
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Old 08-08-2018, 07:19 PM
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What is a good discount on an ordered 2019 E450 in terms of percentage off MSRP?

Last edited by mcsmcs1; 08-08-2018 at 07:22 PM.
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Old 08-08-2018, 09:47 PM
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Originally Posted by mcsmcs1 View Post
What is a good discount on an ordered 2019 E450 in terms of percentage off MSRP?
I'm in the same boat. I had one dealer quote me a price of 7% off MSRP for a ~$74k MSRP build but that was including a fleet discount yet to be determined but something that is currently $1500 on a 2018 E-class sedan. Assuming the same fleet discount, then he is really offering me a 5% off MSRP and I could use some advice as to what is a bad deal, a reasonable deal, or a good deal for an ordered vehicle.
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Old 08-09-2018, 07:42 AM
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Originally Posted by Steve2018 View Post
I'm in the same boat. I had one dealer quote me a price of 7% off MSRP for a ~$74k MSRP build but that was including a fleet discount yet to be determined but something that is currently $1500 on a 2018 E-class sedan. Assuming the same fleet discount, then he is really offering me a 5% off MSRP and I could use some advice as to what is a bad deal, a reasonable deal, or a good deal for an ordered vehicle.
NEVER take into account discounts like fleet discounts. It's the oldest sales trick in the book. It doesn't impact their margin at all.
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Old 08-11-2018, 08:41 PM
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We got 10% off MSRP on a 72K E300 P3 build, our first MB and first time dealing with that dealer. Great experience as far as making a deal, and they even gave us max value for our trade. From what I hear, 10-11% is the norm and some higher end models can net even more.
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Old 08-11-2018, 09:11 PM
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Originally Posted by NFAREVIEW View Post
We got 10% off MSRP on a 72K E300 P3 build, our first MB and first time dealing with that dealer. Great experience as far as making a deal, and they even gave us max value for our trade. From what I hear, 10-11% is the norm and some higher end models can net even more.
I’ve spoken with all 5 dealers in the Phoenix area and not one has offered more than I could get using European delivery (7%). Not even close.
This is for a well loaded E450.
2 of the dealers are Penske owned.
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Old 08-12-2018, 09:43 AM
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The DOG are out with the prices for the 2019 E450. You can configure your car and the MSRP. With that information, the dealer should be able to tell you your price.

If you lease as I do, the only "unkown" are residuals and interest rate. The interest rate tends to be stable (over 3 months) and of course the residual decreases with time. The only variables are manufacturer incentives and dealer profit. As I lease I do not have a trade in.
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Old 08-13-2018, 05:08 AM
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Originally Posted by CaptainE View Post

Iíve spoken with all 5 dealers in the Phoenix area and not one has offered more than I could get using European delivery (7%). Not even close.
This is for a well loaded E450.
2 of the dealers are Penske owned.
Which one(s) did 7%? Scottsdale just offered me ~5%.

I can only imagine what they'll offer on an E53.
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Old 08-13-2018, 08:35 AM
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Originally Posted by lkfoster View Post
Which one(s) did 7%? Scottsdale just offered me ~5%.

I can only imagine what they'll offer on an E53.
Standard discount for Euro delivery on the AMG is 5%
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Old 08-14-2018, 12:36 AM
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Originally Posted by CaptainE View Post

Iíve spoken with all 5 dealers in the Phoenix area and not one has offered more than I could get using European delivery (7%). Not even close.
This is for a well loaded E450.
2 of the dealers are Penske owned.
You need to expand your search for bids beyond PHX to include Vegas and San Diego etc.
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Old 08-14-2018, 09:38 AM
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Originally Posted by mcsmcs1 View Post
You need to expand your search for bids beyond PHX to include Vegas and San Diego etc.
Why? Do you have something you want to tell us?

I am in Dallas today. I will be visiting a dealer here and I have already been to a Seattle dealer.
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Old 08-14-2018, 01:41 PM
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Originally Posted by CaptainE View Post


Why? Do you have something you want to tell us?

I am in Dallas today. I will be visiting a dealer here and I have already been to a Seattle dealer.
The advice is based on my experience of broadening the search for bids to a wider area, and contacting the internet sales managers, new car sales managers or general managers to bid on the order. You can do it all over email vs visiting each dealer in person which means you end up dealing with a salesman who now needs his commission protected. I think you ought to be able to strike a deal somewhere between 7-10% off by asking your best offers to compete with one another. If you get what you're looking for you can ask your local dealers to match so that you can keep your business local. Good luck.
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Old 08-14-2018, 01:53 PM
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Register on this site and get multiple dealers bidding against each other for your business: https://www.truecar.com/
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Old 08-14-2018, 02:02 PM
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Originally Posted by rbrylaw View Post
Register on this site and get multiple dealers bidding against each other for your business: https://www.truecar.com/
Very nice but doesnít work for the E450.
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Old 08-14-2018, 02:04 PM
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Originally Posted by mcsmcs1 View Post
The advice is based on my experience of broadening the search for bids to a wider area, and contacting the internet sales managers, new car sales managers or general managers to bid on the order. You can do it all over email vs visiting each dealer in person which means you end up dealing with a salesman who now needs his commission protected. I think you ought to be able to strike a deal somewhere between 7-10% off by asking your best offers to compete with one another. If you get what you're looking for you can ask your local dealers to match so that you can keep your business local. Good luck.

A few posts back, you asked what a good discount is.
Have you found any?
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Old 08-14-2018, 02:05 PM
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Originally Posted by CaptainE View Post

Very nice but doesnít work for the E450.
Curious why it won't work for the E450? Is it because it's not currently on dealer lots yet?
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