Timmay

I live in Vancouver, Canada and recently put down a deposit for our new GLE53, which had a $5K deposit which was expected, but later, after all the paperwork was done, they sprung on me an additional $15K deposit that was due to be paid within 3 business days, that is part of some sort of Anti-export deterrent. I will get the $15K back after I have driven the new GLE 4,000 KM. This means end of the year 2021 if I drive a lot.

Has anybody else heard of this? Apparently the Canadian GLEs have some EU tech that is disabled or not available in the US and is in high demand. not sure what he was referring too, but I would find this sketchy if it were not from a large Mercedes dealership.

They mentioned the security deposit is only for cash purchases, and not needed for lease or financed vehicles. Not sure what to think. Is this a thing and is it the same across Canada, or in other countries?

Timmay

Ok after a quick google, it appears to be a thing.
https://www.mercedescla.org/threads/...reement.11028/

Still seems a bit strange, but oh well.

marchgroupinc

I think it is discretionary. I was told by a MB Dealer in Brampton I would have to give a $50,000 bond to order a GLS when I was shopping around. I eventually ordered from my local London ON dealer and had nothing requested like that. I was aware it was a condition on the bill of sale no to export the GLS. Both of these Ontario MB dealers are franchised. I wonder if the corporate stores are more lenient. You are in a market where export to China is more prevalent same as GTA. Canadian base prices are low compared to USA and other countries when you calculate the exchange rate etc. so it is a problem for them. You have already signed a bill of sale?- if so tell them forget it there is nothing they can do now, but add you have no intention of selling or exporting it. I would be asking Mercedes Canada before agreeing to this or look for a better option.

decorily

This has been mentioned in a recent thread. ...I think thread was about LED headlights and the difference between US and European systems.

Seems crazy to me and unenforceable!

marchgroupinc

The Canadian Vehicles have metric values standard and LH drive which is better for that market. Our LED lighting is the same as the US although Canadian regulations allow the enhancements of the system but are not activated here for some reason.

Timmay

Thanks guys! I feel better now that this is expected.

tery

All the MB dealer in Vancouver does that once they suspect you might export the car to Asia.

two years ago when I was taking delivery of GLE43 I seen they declined a guy buying GLS550.

nsoltz

I bought a C280 in the 1990's from a small MB dealer near the New England community where I lived then. Several months afterwards, one morning a fleet of car carriers showed up and took away every MB on the lot. Seems the dealer was back-dooring cars to Saudi Arabia. I would have no doubt that MB Canada would be concerned about exporting vehicles because very likely it has happened.

digital_b

its simple math. its a lot easier and cheaper to buy from Canada and ship overseas than it is to pay the local taxes on the same vehicles in a lot of Asian and European countries.

superswiss

Interesting. This must be a real problem in Canada. There are no-export restrictions on car sales, here in the USA as well, but the legality of blocking it is questionable. They make you sign a waver stating that you are not exporting the car within a certain amount of time, but legally they can't really block it. I suppose they would have a way to come after you since you are in violation of the waver, but what if you all the sudden end up relocating to another country. However, I have heard that corporate comes down hard on dealerships that are found to have sold cars to someone that they could reasonably suspect the car was bought to be exported. Even worse if the dealership is doing it knowingly. So it's in the interest of the dealerships to protect themselves. I don't think the deposit comes as a requirement from corporate, but rather something that some dealerships are doing to protect themselves.

stealth.pilot

I had a similar issue last year. I was looking at buying a press car from a New Jersey dealer, and they refused to sell it to me because they thought I was going to export it. To be honest it felt a bit discriminatory because I am a minority. The car was listed on Autotrader so clearly they were willing to sell it, but not to me.

I would check if they have these deposits on all customers or if they singled you out. I bet you it is discriminatory because if they asked all their customers to place a $16,000 deposit their business would probably collapse. I doubt all dealers are doing this. I ended up buying a used GLE with 800 miles on it from another dealer, and the car has been perfect. I wrote a letter to mercedes about the practices of the first dealer but never got a response.

Timmay

For my purchase, the waiver I signed was a simple one.Looks like the dealership is going to the bank if the vehicle does not show back up after 4K KM for inspection, but no other penalties except the service lien (what is that anyhow?)

Timmay

I think I am in the minority here. I'm paying for a $125K GLE ($142K after taxes) as a cash order. They said if I were to opt for their leasing, or financial services then the export control waiver would not be necessary since they know the vehicle will stay within the country during the duration of the said financial obligation.

BACnMercedes

I decided to finance at the end and went through MB to get the financing. I still had to sign the export waiver. But nothing is keeping me from paying off the loan tomorrow, selling it to whomever I want and then they do whatever that want with it. I really don’t understand the waiver thing either though.

marchgroupinc

That $1 service lien entitles them to reposes the car unless you pay the $1, so its actually useless if you actually go to court over this. In Canada "Mechanics liens" take priority over the bank lien. If you are OK with all this (I would not) ensure they discharge that lien when the time period is up. If you have lots of cash and don't mind the deposit I would check to see if that dealer is financially stable because in a worse case scenario they go bankrupt and you loose the deposit. If you have no other choice and want the car why not give a Letter of Credit, that way the money stays in your bank unless the money is called upon as due by the dealer who will have to provide proof that it is due.

stealth.pilot

Did you pay the $15k deposit?

Timmay

Yes, 5k factory order deposit and 15K security deposit has been paid in full. There is no risk of them going out of business as it is one of the largest MB dealers in the lower mainland, so just need to wait it out. I was surprised but not mad.. will play their game.

petee1997

I have a 21 MB GLE53. There was no talk of additional deposit, or signing a waiver. I live in Ontario. The dealership where I bought my GLE has restrictions on G Wag only, They will make sure the car is for you, no extra deposit. They normally sell these vehicles to their existing customer base since the vehicles are limited supply. I doubt there is a supply issue with the GLE53.

stealth.pilot

Did you finance the deposit or did you just put $15k of your capital out of action?

FDTwins

I purchased my GLE450 through Mercedes on Boundary Burnaby last year in March, I had also deposited 9.5K security which I can get it back in full on my first service. I am going in for my first service later this month, so I shall see my full deposit back by then. Apparently. some of these SUV models (E and S class) are very popular in China, it was very expensive over there and limited as well. I guess MB is trying to stop this exporting and importing into other market strategy.

Williemv

I was never asked for any export deposit, matter of fact I only put down two grand for two GLE 53 coupes. Maybe it's the five or six months wait that dissuades many exporters. Twenty years ago I would never wait this long for an automobile. With age comes patience.

Timmay

Financing the deposit was not an option. Had to be wired before they would proceed with placing the order. I am OK with paying it, but I wanted to do that AFTER the vehicle arrived, and not before. That is a long time to have the money out of action. I never pushed too hard - just wanted to get the order underway.