I am currently negotiating the price on a GLE and have been calling around. My curiosity is can dealers know or see what other dealers I am calling? In other words, if I send them my specific build is there anyway for them to see that that specific car was built the same way by another dealer and therefore they “may know” that I have called that other dealer?
Or do most just call the dealer, see how much they get off the car, and then turn it into a percentage. Then whatever dealer gave them the most off they ask for that percentage off when they send them their specific build? I done it both ways and seemed to have better results with giving them a specific build.
Or, how do you do it?

Thanks!

 

I went with a specific build and shopped around. The two local dealers I believe were in bed with one another; a dealer in Nashville gave me a HUGE discount compared to the local guys

Worked out great going put of state

D

 

I've often wondered what a dealer would do in terms of discount off of the build price / MSRP for a new factory order vehicle. I always presumed they'd prefer to sell a vehicle they already have in their inventory.

If you don't mind saying, what were the local dealers offering off of the build price, and what did the Nashville dealer offer, percentage-wise?

 

Negotiation power is based on many factors, how good the local market is, current inventory levels, future allocations and how competitive specific dealers are with one another. Cars on the floor cost the dealer money so the motivation if much higher to move metal.
I have not seen any improvement on custom order cars when not local, rather the opposite. Our local dealer has always come in lowest on a custom ordered car from the get-go, even on first sales on new models.
Non-local sales are good for dealers when they want to get rid of a car that doesn’t move, but hurts them otherwise as the dealer makes a good amount of money from servicing the cars which they will not see when shipping the car off.

A good relationship is key but as a buyer you always have to know what terms you are looking for. Knowing the financing terms is as important as discounts on the car. Mercedes uses a profit sharing model and split the markup on the terms (70% dealer, 30% MBFS).
If you can’t hit the desired percentage, go for soft benefits like pre-paid maintenance, etc.
The other thing is to ask for incentives. If no trunk money there are fleet discounts for many models. You don’t need to have a fleet and this money is there for the asking. Some of these discounts are significant. The dealer will give you MB money and make you feel that you negotiated well

 

Wow, what a thoughtful and in depth answer from someone clearly with some inside knowledge. Thank you so much.

When I first asked the percent range, I was more curious where dealers might go, from stingy to generous. I realize there are many factors that influence how far a dealer will deal, and even those may change day to day, month to month. But I had no idea that the MB dealers got such a large percentage of the financing profits. This explains why when I was recently buying the GLE, the dealer pushed the Mercedes-Benz lease so hard when I already had outside financing available and could purchase. I used this to my advantage then, it seems, by getting a very good cap reduction cost on the lease, even though the money factor was high. I then converted to a standard sale and kept the "low" price. I guess the dealer was hoping to make significant money on the financing. I'm sure they still made money on me, as I'm an amateur and they are pros. But I like to think I saved a few bucks anyway.

You could start an entire thread on inside knowledge of dealership negotiations. We'd eat it up here on this forum I'm sure.

 

Wolfman gave a good answer. From what I have seen posted here, discounts seem to run from 3-7%, with some on either side of that range. Being an MBCA member for a year or more gets you another $500.

 

Thanks
Just a little more specific info...

There are no incentives for February but you can get $500 fleet discount. Not much but free for the asking. I also recommend visiting dealer or MBUSA events or visit a MB pop-up store. Those will typically get you $500-$1000 off and good up to 6 months but will not work in conjunction with fleet discounts. Always grab discounts like MBCA as Greg mentioned; those can stack.

Any dealer you have a relationship with should give you invoice pricing on any GLE. They will be stingier on the 580 and to be AMG models but that's is not much of a discount. 10% on a GLE should be no problem, 350 for sure, 450 still doable.
The 450 is actually cheaper to lease than the 350 (a reversal from the past) and Tier 1 rate is 0.00131 for the 350 and .00125 for the 450. Both not great rates like the GLC300 at 0.00062 (AWD). Residual is decent and the same on both and never negotiable (set by MBFS every 60 days). The 580 has worse rates but is still much better than the GLE 63 will be. Residual btw. has a much bigger impact on the payment than MF.

In my case, I got a touch over 12% off incl. a $1k cert. I had left. 10.5% on a 350. Would have 10% plus incentives on a 450 or 580. But that's due to a great relationship with dealer.

On a lease, my recommendation is to never be seduced by a low monthly rate. In fact, don't even worry about it. Always work the price on the car first. Then work all incentives. Then work the lease rate. You can also try to work on fees but I found that to be less critical. Never put a trade-in on a lease and never put down a cash payment to reduce the rate. Always have the dealer give you a screen shot or print out of the lease work sheet. This will show all fees, incentives, Money factor, residual, net cap cost, etc.
A good deal on these terms will get you a good monthly rate
If you trade-in, have the trade-in cashed out. No cash down because if you total the car, you loose the money and MBFS gets it instead.

 

Ideally, mbworld.org could benefit from a sticky lease thread with posts of the latest monthly terms and where people can share their lease and financing deals. Knowledge is power!
Bimmerpost has that on their site and this helps many people be well equipped for a good negotiation on their next car.

 

This is indeed really interesting, and deserves a sticky.

​​​​​​For example, in my recent transaction, the dealer offered a money factor equivalent to 5%. That was too high, of course, when money can be borrowed at slightly less than 3%. I knew that the residual is fixed, but I had no idea that the money factor is negotiable. As I mentioned, ultimately I financed through an excellent credit union.

Wait till next time! So do you hire out for consulting services?😆

 

I am being offered a 10% discount off MSRP. I also have USAA which is another $500 off. Should I be asking for a fleet discount and what is MBCA discount?

 

Floridaman100 you can use a fleet discount at the end (if you qualify) of negotiating and usually on top whatever you have negotiated unless the dealer has used some special discount in the pricing. I don’t think USAA and a fleet discount can be stacked though.
MBCA discount is the Mercedes Benz Club of America. You have to pay to be a member (right?) and after a year you can use their discount.
What type are you getting a 10% discount on? (350, 450, 580?)

I’m 5 dealers in on my 580 negotiating and the best I have so far is 2.7%. My local dealer NEVER gives me the best rate first and I have purchased about 8-9 cars with them in the last 15 years. I always have to find a better rate and make them match it.
I will be purchasing this vehicle because I am not a fan of leases so thanks for all the input and I’ll be back at it on Monday trying to find a great deal.
And yes I do agree that cars on the lot get better pricing than an ordered car. But I can never find exactly what I want without having to pay some high price for options I do not want.

 

I am looking at the 350 and also have been looking at the X5 and total discount with BMW is 13.75% so in the end I can get an X5 with same features. The price out the door for both models is within a few hundred dollars. I have been struggling on which SUV to get. There are pros and cons to both. Super tough decision.

 

This is a fantastic discount, I would say one of the best deals seen around here.

 

It's getting about the right time to shop for Retired Service Loaner GLE's.. solid discount.. added 1Yr CPO Warranty on top of the balance of the Mercedes New Car Warranty.. especially helpful for those that plan to put miles on their Mercedes GLE.. oh, qualify for MB 1st Class Lease as well..

 

My GLE is the first brand-new vehicle I've bought since my '05 Mustang (man, I loved that car), largely because I love taking advantage of the significant discount on retired loaners. I've saved tens of thousands of dollars by purchasing retired loaners over newer vehicles. The downside is that you're at the mercy of whatever is available (which sometimes is a very basic model). But when you find one that is moderately equipped, it's hard to beat the deals you can get on a loaner.

 

Never had a loaner I’d want to own.

 

I think people abuse loaners, many times I've seen them driven poorly. Same with rentals.

 

I've had a couple, my dealer occasionally has an AMG in the fleet, plus they always have an S class or two.

 

I found that Truecar is very good for price shopping. I went on Truecar to identify cars in the right MSRP range and then got quotes via their platform. Some dealers were offering 4-5k off from the beginning while others were not offering any discount. Once you know who is willing to make an offer, you share quotes to generate a bit of a reverse auction. In the past I have been surprised with where this process ended up.

This approach works best on volume models. Better on non-AMG than AMG. On the GLE350 this would work very well. Harder on the 450 or 580 but even on those models you will get a solid discount if you shop around. PM me for the names of dealers I found more flexible on price.

 

I've owned two former loaners. One was very base (but it met my needs at a time when I needed to make a reasonably quick purchase), and the other had a few nice options. Never had to do anything other than regular maintenance on either. Maybe someone who owned them further down the line after I traded them in might have run into problems, but for the two or four years I owned them, both ran perfectly.

 

I would say that I've never had a loaner that came with all the options I would choose if I were ordering a car and money was no object. However, I've owned two former loaners that completely met my needs, drove great, were well-serviced and were reliable. At the price points I was shopping — $30K for the first and $40K for the second — I bought cars I liked far better (albeit with fewer bells and whistles) than if I had, for instance, bought a fully-loaded Kia.

 

I purchased a 2020 GLE 350 4Matic on Saturday. My GLE has the following options:

• Emerald Green Metallic
• Macchiata/Magma Grey Leather
• Natural Grain Brown Walnut Trim
• MBUX Technology Package
• Drivers Assistance Package Plus
• Parking Assistance Package
• Exterior Lighting Package (LED Intelligent Light System, Adaptive High Beam Assist)\
• Warmth and Comfort Package
• 3rd Row Seat Package
• Premium Package
• Power Passenger Seat w/Memory
• MB-Tex Upper Dash and Door Trim
• Power Rear Side Window Blinds
• Multicontour Front Seats with Massage (worth every penny)
• Heated and Ventilated Front Seats
• Power Tilt/Sliding Panorama Roof
• Heated Steering Wheel
• 20" 10-Spoke Wheels
• Trailer Hitch
• 4-Zone Automatic Climate Control
• Burmester Surround Sound System
• Heated Rear Seats
• Door Handle Inserts, Chrome
• Load Sill Guard, Chrome
• Wheel Locking Bolts

MSRP was $77440, the price I negotiated was $70899.63 (including Freight Handling & Delivery) -- ~8.5% off MSRP. To that price, you then have to add the dealer processing fee and state/local TTL fees.

 

Thank you for your generosity in revealing the great price you negotiated! May I ask was that on an inventory car or a vehicle you ordered?

 

Inventory, would have Not got that had I ordered. Fortunately that’s what I wanted.

 

That’s pretty good. I can’t get past 2.7% on a 580. Next week when I get back from vacation I’m going to ramp things up a little in finding a deal. My dealer also called me this week and said she had a 53 available if I wanted it. It was still able to be customized and it would get here before the 580 I supposedly have money down on. I just don’t think I can give up a 580 for a 53.