BACnMercedes

I understand what and how the Mercedes Fleet Employee Prgram works but what I don't understand is why dealers are reluctant to use it. Most have quoted me below what the program is currently at or the month before prices. Do dealers somehow get a negative ding for using it? Do they have to cough up part of the money? What is it? I figured they would be eager to use it and get it right since it is free money coming from the manufacturer and helps the consumer. Or are dealers just using it and keeping part of the money in the deal?

BACnMercedes

I called MB's fleet program and spoke to a guy who was very helpful and knowledgeable. I think he might have answered my question by saying that some dealers use a lot of other incentives first and then they cannot stack the fleet discount on the end. Ok I get it, but with the dealers I've spoke with when negotiating, most have known about the fleet discount up front. He did stop short though of getting into a lot of the specifics and I'm still curious to know if using this discount negatively affects the dealer.

ua549

The info I've gotten over the years from dealer friends is that all discounts/incentives affect the dealer's bottom line one way or another.

mercedes.fan

If the dealers regular incentives can get you quoted lower than the fleet incentive why complain? In Sweden the fleet price is fixed and is usually lower than the price a private buyer would pay, but its only available for corporate buyers.

BACnMercedes

I’m not complaining just curious why they are reluctant to use. Case in point. When we ordered our car, the fleet discount was $1500 and it was factored into our negotiated price for the. Now its 3250 and I’ve asked for the additional 1750. They have been reluctant to give it and tried saying they would give us an additional 500 on our trade in and ignore the 1750.

mercedes.fan

Oh, well in Sweden the incentives for corporate is very good and the dealers are more than happy to use it. E200d with decent equipment (led headlights, widescreen, dead spot assist) goes for the equivalent of 35k USD.
But there is also fixed pricing for private buyers now, Mercedes in Sweden is the first to start with the fixed price thing so no bargaining, msrp is set lower though.

bimmer2benz

They are reluctant because there are very specific rules they have to follow when they engage in a fleet deal and additional processing. If they deviate from the rules or make a mistake in the processing, they risk not getting the payout from manufacturer. And no, they aren't using it without your knowledge. They couldn't even if they wanted to because of the reason stated above.

Egonvdv

35k USD for a Mercedes E Class?????

ua549

Entry level E200d is SEK 335.000,00 which is approximately USD 35.322,00 at today's exchange rate.
Link

BACnMercedes

35,322.00 USD. There I fixed it. Haha. But that sounds cheap!

mercedes.fan

Yes, and when doing corporate leasing you can deduct half the VAT so it becomes 10% cheaper additionally... And the base model in Sweden has pretty much everything you would want. Almost half new car sales in Sweden are to corporate buyers so the car makers are fighting for your business.

Egonvdv

I have a corporate lease:

car costs 65k eur on paper & I pay 950 eur per month over 3 years and 110.000km (and no; this does not include insurance.. nor petrol :-)