greynlds

Quite honestly, knowing I got screwed by a dealer with no ethics would bother me a LOT more than knowing that someone else will end up buying it for the same or more. IF (and that's a big if) I was ultimately OK with the idea of paying $40K (or whatever the amount is) over MSRP, I would still tell that dealer to stick it and buy from another dealer. Yes, the dealer will still ultimately sell the car and the salesperson will still get their commission, but I won't work with a dealership with no ethics (and yes, I realize that's a bit redundant, but some are obviously much worse than others). What happens if/when there's a service issue? Will they try to screw the customer over on that too?

It's certainly true that some would be willing to pay a $220K sticker for a G, but certainly not all of us. IMHO, having owned 3 (granted all prior to the 2019 model, the newest being a 2017 G63), they just aren't THAT special. I never owned a 2019+ G, but I did look several over at the dealership shortly after they first came out and IMHO there are some aspects that are quite honestly really nice improvements, but some that are a step in the wrong direction.

But the bottom line for me is that unless you literally have tons of money to burn (and if you do, that's great), paying significantly over MSRP isn't a smart move as you'll never see that money again if you keep the car more than a year or so.

streborx

I've read too many heartbreaking accounts from people who think they've pulled off the car heist of the century by getting a dealer to write-up a G order at MSRP. As others (and I) have opined elsewhere on this forum, this costs the dealer nothing and commits him to nothing. IMHO, a buyer should ask specifically about the dealer's intended markup, negotiate it, and have it specifically included in the buyer's agreement. When the car arrives, you can always change your mind and let the dealer sell it to someone else. It will be more difficult (maybe not impossible) for the dealer to increase an already negotiated and agreed on ADM that is explicitly itemized in the buyer's agreement, than if such was never discussed (it will be your fault for not asking). In fact, I suspect some dealers might even refuse committing to an up front negotiated ADM, and this should clue you in on what you can expect on delivery.
However, others are certain to disagree with this, are certainly entitled to their opinions and should continue to seek out MSRP deals in a market where such are just not happening.

ALFAitalia

Would not even be legal here.....the contract is solid at placement or order....so when that order form is signed and deposit paid,....that's it....even if the MRSP went up before delivery you pay the price on the order form.......as it should be IMO.

greynlds

It really shouldn't be on the buyer to have asked about ADM when putting in an order 1.5 years ago before all this craziness started. When you say writing up an order at MSRP and then changing the rules later costs the dealer nothing, I would disagree as bad feelings can cost these dealers a lot in the long term when they lose customers over it. The supply / demand ratio will change sooner or later and these sleazy tactics will not be forgotten by many. While the G isn't a high production vehicle with 100's of thousands built per year, it also isn't a true low production vehicle with less than 1000 per year either.

As @ALFAitalia wrote, an agreement signed by both parties should mean something. If the dealer wants to be able to negotiate a higher price later, then it's their responsibility to spell that out in the agreement before both parties sign it. The buyer has a reasonable expectation that the paperwork they signed reflects what they will actual pay when the order comes in unless there's fine print on the agreement that states otherwise. Note that I'm not claiming that legal action would be successful, just how it SHOULD be.

streborx

I agree completely. Most of us work in professions where such business tactics would be laughable if not down-right illegal. Most dealerships don't care about bad reviews or angry customers -- they know some customers will be pissed no matter what, so they let them be pissed no matter the reason. The free espressos in the customer lounge are supposed to promote good customer relations.

3.Pointed.Czar

Im by no means a legal expert, but I thought once you exchanged money (even $1) and agreed on something; that in itself is a contract no?
Honestly Im just glad Im not in the American market as it seems like they are just sh***ing on their long time/regular customers in order to make a quick buck with these ADM's.
Dont bite the hand that feeds you.

streborx

IMO dealers try to maneuver around "MSRP", which is the retail price suggested by the manufacturer (MBAG). Walk onto any car lot and every new vehicle has a window sticker with an MSRP (which is required by federal law in the U.S.). The MSRP does not constitute an offer to sell -- it's merely comprises an arbitrary starting point at which a sales price negotiation might commence. A dealer that draws up a buyer's agreement that lists MSRP might argue that a price was never negotiated and thus an offer was never extended and so acceptance of the offer (even if a deposit was paid) never occurred -- and so no contract exists.
It's a dirty business but dealers get away with it 'cause they can.

places

Hence the word "suggested".

dcarrer0

I concur, option #5!

fabbrisd1

To be helpful .. and "I don't have a dog in this hunt"..

1. If you were able to Deposit on a 2021 G63 in September for Nov/Dec delivery - I expect that "find" was Out-Of-Area - right ?
Am I wrong and you have face-to-face w/local Dealer ?

2. If you "found" this G63 Out-Of-Area" in Sept - at that time Metro ADM was sitting about $60K

3. "This week's" Metro ADM is "about" +$85K - next week I expect Metro ADM to be "about" +$100K.

4. Every Mercedes Spec/Build Sheet pulled down from NetStar has the Mercedes comment at the bottom: "Pricing is subject to change. Mercedes-Benz reserves the right to make changes without notification."
"Most" Mercedes Dealer's use that NetStar Spec/Build sheet as part of the Initial Signoff

Deezwho

Agree with all of the above. Out of area dealer much more likely to demand ADM since they wont have the chance to make up the money on the service side.

The MBUSA website now even says:
"Due to a worldwide shortage, semiconductor chips that are typically present in our vehicles are limited in supply. This has changed the availability of certain features. Vehicle pricing will vary and depends on the availability of certain features. Please verify with your dealer whether any feature is available in a particular vehicle. To learn more, please see your dealer." (Bold is my emphasis)

3.Pointed.Czar

Ive purchased many vehicles, I understand all of this... Im referring to the part where OP and his dealership already agreed to sell him the car at MSRP and taken a $5000 deposit which should form a contract (again if Im not mistaken, if there is a lawyer here Id love an explanation).

Its one thing to have the ADM on the sticker to begin with or disclose it to the customer when he's placing the deposit or declare that it will be subject to market price once it arrives. But OP made it sound like they agreed on MSRP and that agreement is what he put a deposit down on.

streborx

I think dealers consider buyer agreements as contracts of adhesion (aka, take it or leave it contract). This is like buying airfare from an airline - you pay money, get a ticket that entitles you to fly to a destination, but the carrier can still decide whether or not to honor the ticket, or can change its terms and conditions.
Nothing's final until you have the pink slip and are driving away.

Theatrix1

You've introduced an aspect to the thread which unfortunately only complicates the discussion. Cultural and market differences between various countries will impact the outcome of this situation differently. I'm originally from Europe, born and raised. Integrity and concern for client loyalty is still a factor to a higher degree due to market availability in many other countries. Here in the US, integrity erodes due to greed and a plentiful supply of customers. In the US, we are multiple generations into believing our exceptionalism and entitlement. This of course will rub some the wrong way, probably because you have zero idea of other cultures outside of the US. This is not meant to be negative, just happens to be factual. A society which has experienced success to a greater degree, longer than most cultures on the planet has consequences. The ADM issue is a symptom of our success however I'm certain no one cares about my philosophical views, just as the dealers do not care if someone walks after being hit with a $40k markup. Why would they if the market will command an even higher markup. This dealer may actually feel that they were compromising by only asking for $40k.

greynlds

Yeah, "we're doing you a favor by asking for only $40K more than what we agreed to when the order was placed - you should be thanking us for being so generous." Even though I've never lived outside the USA, I completely agree with what you wrote - not offended in the least.

3.Pointed.Czar

I lived in the Middle East for almost a decade, in Europe for a couple years and Im actually Canadian, but ok whatever you say lol.

As for the part where you're saying they did OP a favour, that is laughable. Like I mentioned above, pretty much everything is inflated at the moment. Once prices stabilize and the chip shortage ends, then what? All these dealers that are throwing customer service out the window now will regret it later when buyers will have power again and wont be putting up with their current BS. Its very short-sighted.
My dealer on the other hand, is choosing to prioritize my long term business and honour MSRP for the G given it will be my 7th car with the same dealership but then again it seems Canadian dealers have stricter regulations that wont allow for ADM's to easily be charged.

Theatrix1

Dealers in this country have been charging ADM to some degree or another for every high-end vehicle long before the chip shortage. Not difficult to understand the supply/demand argument which is exacerbated by a larger buying audience. If the market is adding $100k and this individual is being offered a $40k ADM, to me this appears to be a compromise.
I understood that you lived outside the US. My comment was directed towards the greater general audience.

Deezwho

There are 2 separate issues here.

charging over MSRP is not a new concept. It’s a free market. A couple of years ago you could negotiate a car price below MSRP now you negotiate to get it for “only” MSRP.


The bigger issue is the lack of ethics on the part of this dealer. I think most people would balk if someone pulled this crap during a home purchase or business purchase, but we have come to expect nothing less than complete sleaze from car dealers so no one is terribly shocked or surprised to hear this and countless other similar stories in the last few months.

fabbrisd1

No dog to hunt here.

This past September:

1. If someone walked into their Local Dealer - and that Dealer said "hey - I just got notice I have a extra 2021 end-of-year G63 - and hey I will sell it to you for MSRP with deposit today" is one thing.

2. If someone was "shopping the US" - and "thought" he "found" a end-of-year G63 at MSRP on a internet/email deal - either did not pay attention to the "Mercedes-Benz reserves-the-right to change pricing" on the confirming spec sheet - OR - that Shopper already "knew" either that Salesman was stupid - and "knew" there would be ADM but Dealer left it open as to "how much"

3. Dealer is off-the-hook by refunding the Deposit - which is the "flip-side" to the Dealer's Benefit for the Dealer on Deposits being refundable to the Customer.

ThreeGs

Omg this is PAINFUL.

The OP has no choice and no recourse. It SUCKS, but it is what it is.

All of these responses are handwringing - none of it matters.

Pay ADM = you get your car
Don’t pay = no car, which might be his choice and is totally valid, but someone else will absolutely get the car at this ADM if not more.

And it also doesn’t help the guy to say “wouldn’t be an issue in Canada!” Totally irrelevant nonsense.

I 100,000% agree it’s crummy of a dealer to change the deal at delivery, but it’s what’s happening now and there IS NO RECOURSE because THEY have the car and the collective WE don’t.

That’s it.

Eply458

I had posted this exact scenario a month ago. I specd/ordered at MSRP, paid deposit, waited 1.5 years, got allocation for MY2021, car received ship assignment and BOOM $50k ADM.

I actually did speak to a lawyer friend etc, bottom line there is no recourse. The truck is still en route to port so I’m still trying to decide. But I’ve waited so long for this that I’m ultimately going to probably end up paying the ADM. They can turn around and sell it for more. I met with the owner of the dealership etc. unfortunately the demand for this is high that they don’t care

streborx

The G is a fun truck to drive, and if you're a cash buyer who can cough up the ADM without choking, go for it. But I'd never go into debt financing $50K -$100K of vapor. There are much better ways to dispose of money than giving it away to a car dealership.

drew138

Still think my original option is the correct approach so long as you are willing to potentially lose the G n the process. My dealer attempted the exact same thing when I took delivery of my 2019 and I held firm. Never asked for my $ back and showed up to take delivery with a check for MSRP. I was prepared to leave without my G63 but they reluctantly sold me the car at MSRP. To be clear, your dealer makes a nice profit on an MSRP sold car. Don't negotiate the ADM, continue to reiterate you understanding the ordered car was placed at MSRP and express your enthusiasm for getting the car. MOST people get mad and ask for their deposit back. That is what they want you to do. I have heard of another person attempting this strategy and the dealer just pre-emptively refunded the deposit and sold the car from under them so it is by no means flawless. But you can always ask them to commit to ordering one at MSPR if they refuse to sell you the one you ordered. These are worth the wait, but unclear if worth the premium. It's a pretty big ticket item. Good luck.

aparedes

Does the PO have your name on it? Mine did and it helped as I negotiated with the dealer. A PO with your name and written confirmation follow by the acceptance of a deposit I believe can be considered a contract, at least was the position I took as I had the same thing happened to me and it worked. I opted to allow the dealer to charge a portion of the ADM to have them feel they made something on it, otherwise the difference was so large that I felt likely they would take the risk and sold the car to someone else. ADM are going as high as 100K. You just need to determine how much you are willing to pay not to wait and stick to it. In my case the dealer knew I had grounds to pursue legal action and opted to sale me the car.

808g63

What ended up happening?


I ordered one and got a smaller slightly smaller markup upfront, I also negotiated free service for three years and they accepted. Its pure profit for the dealership and wrong to do this.

I would politely fight it. Get in front of the owner if you have to. I really think this should be solved from Mercedes Benz corporate. Let us know the result. The dealership should be focused on the long run and taking care of customers. You will never forget them regardless.

I also agree if you have a vin you have more leg to stand on.