Steven Jacobian

Hi all,


I am giving some serious thoughts to purchasing a GLC300 4MATIC.
There are good threads on price negotiation in general for C class.
But since GLC's debut is novel in itself, I am thinking how price negotiation for the month of December would evolve.
Despite some critics' claim GLC would be a "soccer mom" car, youngsters who adore CUV are eager to launch emails and do the whole Edmunds research drill to get the GLC they want.


I am curious what you guys think... anything from price sensitivity to dealer strategy.


If this model is truly targeting for some mid-aged or soccer mom consumer class, I assume they wouldn't be as price sensitive to gaps like from 43k to 47k. So my thought is that dealers may have mentality set up looking at 12-7% MSRP off rather than the usual 9-13% MSRP off when dealing with more MB passionate research-driven players. So resulting in more stubborn overall regional dealer MSRP off rate.


My other thought on another negative impact on price negotiation of GLC being a very new model is that it is labeled a hot item. Since it replaces GLK, I assume GLK in-stock prices would plummet. Also, maybe some dealers worry DMS(diminishing manufacturer source) issues on parts for GLK. Being hot item may give less room for smart consumers to maneuver at the negotiation table, giving the extra room for salesperson to say "this is really hot, everything is new, crystalized with C class interior, everybody wants it. we can't really make it go down further, sir".. type of rhetoric.
Also, I have done some elementary pricing and option package analysis, and it looks like the game changers in each price interval are the usual Burmester SSS, Panorama roof (e.g. overtly priced targeting those who really want it pay the price), and three packages (i.e. multimedia or sports or night).
In all this, I do find maybe ordering instead of picking up from the lot may be better for GLC, because I find the three packages and what combinations these can produce quite challenging in satisfying a particular individual's taste (this is not necessary true in C class).


In any case, your input or thoughts would be welcomed here. Please do share!

tron786

Wow. Quite a dissertation you have presented.
Newly launched vehicles will always be difficult to negotiate down on but considering the state of the economy, you never know.

rbrylaw

While your thoughts are interesting, I don't think MB is targeting any specific audience and I think you'll find the GLC buyer is simply someone wanting the versatility of a SUV, wrapped in C Class size and clothing. We just got our GLC. We're not middle aged soccer moms, but it's just fine if a Soccer Mom wants to have one herself!

As to discounts, it is a hot car right now, but that doesn't mean dealers won't be willing to negotiate. We got a great deal on ours. MB ate 5 of the 7 remaining lease payments on our 2012 E350 Coupe. The dealer ate the remaining 2 payments. We got 10% off MSRP, nano window tint and all season floor mats in the deal.

dieseldoc

If you are a physician and a member ad the AMA you can get a discount on all MB cars.

awjenni

Rbrylaw,

If I may ask, you said 10% off of MSRP... were those 7 forgiven lease payments a part of the 10%? Or, was it a 10% discount AND a great break on the lease.

I am interested in a new GLC and if 10% off of MSRP is a reasonable possibility, I'd do it today.

Thanks

Al

rbrylaw

The 10% was on top of the lease payment forgiveness. But remember, the car I traded in was a Mercedes E350 Coupe and there is a 5 month lease ahead deal on the GLC (at least there was in November when we purchased the car). The dealer gave me the discount plus the remaining 2 lease payments.

Steven Jacobian

@rbrylaw
Thanks for sharing your personal experience. I think you got a very decent deal with the 10% off from MSRP + the lease deal. I am not trading a vehicle nor understand the lease deal in depth, but I don't know how this whole package would translate into what % of MSRP off as a whole. As for the nano tint and all-season floor mats, they are nice. Some try to rope in a third key I think as a usual dealer throw-in, so the usual would be window tints + floor mats + third key.


The economy is picking up for sure with the new indicators coming out, so I am not sure how much dealers would buzz for any hard push. But, I think the class story still works, which is let them compete. Competition is key I believe and leaving the communication over email as records rather than phone verbal messages.


Just wondering for anyone else, do dealers ever come pick you up for the sole purpose of sales? I think this would be rare, but I actually work in the city and wonder whether dealers about 15-30miles would come pick up. This has been the case for some other luxury car brand dealerships. Not sure if anybody has this experience...

Steven Jacobian

@rbrylaw, you must have gotten a very decent deal. To be quite hoenst with you, I am not sure how the lease deal you got would translate into MSRP % on top of your 10% off MSRP deal, but it sounds great.


As to the usual dealer throw-ins, I think the standard is third-key, all season floor mats, and nano tints. I mean, the retail for tint is about 350-500$ depending on the material and shop, third key is probably retail priced at 79-90$, and the all-season floor mat is about 80-100$, so we are looking at market value of about 550-600$, and I think this is standard.


Some questions in general I have is would a dealership dealer ever come pick you up for the sole purpose of sales? I work in the city, so wonder if a dealer, say about 15-30mi would come pick you up on any given day...

rbrylaw

I didn't lease either of the new MB cars we bought in the last month. We bought them outright.

My dealer would certainly be happy to pick me up if I needed them to. They just happen to be located very conveniently from my office and home.

DBV

10% off is a great deal. Surprised Mercedes would that on a brand new car already. Even though I like good deals, I wish they would try and stick closer to MSRP. If they start out being that aggressive already, really hurts the resale values.

I know one of our local dealers is selling these close to MSRP.

rbrylaw

Good for dealers who can extract more money from your pocket. But the reality is all they're doing is using "it's a new and hot model" to avoid giving a reasonable (not out of line) discount. 10% off MSRP, even for a new model is not unreasonable.

Maybe we got great deals because we've been incredibly loyal to this dealer for many years and they want to keep us. But I got 13% off MSRP (plus lease payment forgiveness) on the C300 Sport we bought a month ago and of course the deal we got on the GLC.

DBV

Yeah - I agree with you too and always get good deals. My point is just price the car accordingly and you don't have to get good deals and then would not kill resale value so much.

Check out the Porsche Macan, which holds its value really well, as there are not good deals on that. Even my GL350 holds it value well, as there are not as good of deals on that either.

We always buy, so if it nice to hold some value, where as if I would lease would care less.

e92miami

When the 205 C Class came out they were offering huge discounts. I don't see how a great economy will change that much, the economy wasn't bad 14 months ago either when I got it.

BILLM982

Thanks for the info being posted. As a first time MB owner it is nice to know what other people are getting. The GLC I ordered MSRP is $58,995 with an invoice price of $54,924. As my car will not be delivered until early February we have had preliminary talks about pricing. The dealer has offered a price reduction of just over 5% at $55,924 + fees. I have told him we will talk more. And yes I heard the line you know this is a brand new model. Good deal, bad deal?
When I run the numbers I have found online to find actual cost I see the margin between Cost and MSRP to be around 8%. I don't see more than that. At the same time I have read here deals of better than 8% off MSRP.
My question, and I appreciate the help, is there that much factory support to the dealer where they can sell the GLC at under cost?
Lastly, in the 21 new cars I have purchased since 1963, mats and cargo liner were in almost all cases a throw in by the dealer to sweeten the pot. What items are commonplace with MB Dealers?

rbrylaw

Dealers make their money on moving cars, not so much by the actual sales price of the individual cars. The more cars they sell, the more incentives they get and the more product they are allotted to sell. There's simply no reason you can't get 10% off MSRP. I wouldn't settle for anything less than 8%.

As to freebies, we got All Season Mats and Nano-Ceramic Window Tint. I didn't ask for a cargo liner. I kind of doubt they'd have thrown that in on top of everything else. But there's not harm in asking for one.

I also got a really good price on the tire and wheel insurance for 60 months (even if I need to replace the tires during that time, the insurance transfers to the new tires). And I wound up extending the manufacturer warranty, but not via my dealer. This type of coverage is regulated in the state of Florida, so based on the positive reviews from many here on the forum, I bought the extended warranty from Marc Rose at WiSimonson in California. I saved hundreds of dollars from him.

Steven Jacobian

@rbrylaw, I agree with you on the percentage of discounts. 8% would be considered minimum and 10%, I would consider a decent deal.

As for the extended warranty, I am not sure for a new MB purchase, whether an extended warranty on top of the default factory warranty would be really necessary. Any thoughts?

In terms of the sales, I think most dealerships would appreciate the service and maintenance relationship you plan to have in the future. For luxury brans like MB, the billables on customers from service are quite lucrative, and someone say living in NJ, you can choose one shop from another for your future maintenance needs. I think clarifying that you look forward to have a sustainable and long-term relationship with service guys from the dealership you purchase really helps both getting the discounts and throw-ins but also just general needs in future. Just 2 cent.

rbrylaw

I completely agree that building a long term, mutually beneficial relationship with a dealer makes all the difference. We've bought and had serviced more MB cars from the same dealer over the last 20 years, that I'm sure this significantly influences why our dealer goes the extra step to take really good care of us. From initial sale through servicing our cars for the long haul.

On your question of extended warranty. For most people, no, an extended warranty would not be a wise investment. I'm not completely sure it was for us. But my reason for getting it this time was based on the fact we've typically leased our cars the last 10 years or so. I honestly HATE leasing my car. I know it can make the car payment lower, but for the same reasons I don't rent my home, I always feel disconnected from a car someone else owns. This time around, we paid cash for both cars. Our intention, and we'll see if we can do it, is to keep the cars well beyond the initial 4 year warranty. If we can manage to do so, the investment in the extended warranty will have been a good purchase. We extended the warranty from 4 years 50,000 miles, to 6 years 75,000 miles. We don't put that many miles on our cars (the 4 year old leased E350 Coupes we traded had 17,000 miles each on them - after 4 years). And while in Florida, the coverage for the extra two years would have been $2,200, we bought the coverage in California from Mercedes for $1450. That's a significant savings and in order to get that deal, the coverage had to be purchased within the first 30 days of purchase.

lilming

Wow, I'm glad I stumbled upon this post. I was looking at a $55k build this last weekend and the dealer wouldn't budge. He said the car was hot and selling like crazy. I was ready to accept msrp but he did offer $500 off in the end. Didn't place an order as I wanted to do some research first. Should I go back and try to get 8%? This does not include taxes and fees right? I'm in Northern California if that makes a difference.

rbrylaw

If your dealer is unable or unwilling to negotiate, I'd go to the next dealer and see if they want your business. $500 off MSRP is ridiculous, tbh.

rkeli

I just bought my GLC this weekend and got 11% off MSRP

William Kayen

What dealer and where please?

reddemon73

Hello all. I am also in the market for the new GLC. If you are getting 8+ percent off MSRP, please share the information with members here. Much appreciated.

rbrylaw

What information were you looking for that will help you? I can tell you how much off I got, plus dealer throw-ins, but I'm not sure how that will help you. I'm in Tampa, FL. Are you near Tampa?

reddemon73

Yes,
Please share your deal info and send over CA for me. My last car was purchased was out of state.

rbrylaw

My deal was pretty simple:

I had 7 lease payments of $750/month left on the E350 Coupe
MBUSA ate 5 of them
The dealer at the remaining two
10% off MSRP
Free Nano-Ceramic Tint
Free All Season Floor Mats