MSRP Discount
12-10-2021, 12:27 AM
#76
Newbie
Join Date: Aug 2011
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
2011 GL450
let’s try this again properly. Mind sharing what dealer? I’m seeing $5k-$7k+ avg in SOCAL
12-10-2021, 01:23 AM
#77
Senior Member
I have one dealer telling me they are marking up the 22 GLE450 by $7500... But this is what he says about that when I balked? Just so you’re aware, it’s a true Market Adjustment, and it will stay with the car through its depreciation. Even KBB and Manheim have factored in these adjustments, and for EVERY manufacturer. Is this true? In any event my main dealer is selling me one without such a mark up.
12-10-2021, 07:11 AM
#78
I have one dealer telling me they are marking up the 22 GLE450 by $7500... But this is what he says about that when I balked? Just so you’re aware, it’s a true Market Adjustment, and it will stay with the car through its depreciation. Even KBB and Manheim have factored in these adjustments, and for EVERY manufacturer. Is this true? In any event my main dealer is selling me one without such a mark up.
12-10-2021, 09:31 AM
#79
Super Member
Join Date: Dec 2021
Location: Ohio
Posts: 918
Received 361 Likes
on
257 Posts
'16 C450, '21 Dad Wagon Pilot, '22 Wrangler 4xe
I have one dealer telling me they are marking up the 22 GLE450 by $7500... But this is what he says about that when I balked? Just so you’re aware, it’s a true Market Adjustment, and it will stay with the car through its depreciation. Even KBB and Manheim have factored in these adjustments, and for EVERY manufacturer. Is this true? In any event my main dealer is selling me one without such a mark up.
12-10-2021, 09:39 AM
#80
Super Member
Join Date: Dec 2021
Location: Ohio
Posts: 918
Received 361 Likes
on
257 Posts
'16 C450, '21 Dad Wagon Pilot, '22 Wrangler 4xe
MBUSA per se does not mark up over MSRP. Pricing is set by individual dealers who may choose to discount, sell at list or mark up over list. All determined by what the market will bear. My dealer sold a G wagon for $50K over list. Would have been more if it had been an AMG. Somebody was willing to pay it and, as I remarked to my rep (who did not sell the vehicle), somebody on the sales staff is going to have a great vacation. But he pointed out that they would much prefer to have a steady stream of vehicles and deal with lower margins and higher volume than be constrained. Particularly in high end vehicles, transactions are relational. They want repeat business and do not want to irritate their customers to the extent that when supplies do return to normal, the customer is left with a bad taste over prior dealer policies. For that reason, there are dealers who in this market-- and not just MB dealers-- are selling at list taking a much longer view of business rather than the short-sighted command over list. Then there are dealers in such affluent markets where $10K, $25K, etc markups really mean nothing to the buyer. I am just so thankful that I ordered my car in June 2020 and it arrived Oct 2020. By Oct 2020 my dealer was discounting GLE's by $1000 tops. But because he committed a price to me, because I am a repeat customer and because I already started talking about the next car as soon as he put the order into Netstar, he honored the price at slightly below invoice.
The following users liked this post:
CincyMBGuy (12-10-2021)
12-12-2021, 03:37 PM
#82
MBWorld Fanatic!
It's a weird world we're in now. No cars available with a strong market burning holes in people's pockets. My dealership held off for a long time on marking vehicles up but we were left without any GLE and GLS models from mostly West coast buyers looking for a deal. Since then we've adjusted to the market but as of today have only a GLE 350 as our sole new car. The buyers are still out there. In just this month I have one car going out for $100k over sticker and another for $50k over.
The following 2 users liked this post by Elvisfan0108:
CincyMBGuy (12-13-2021),
Ron.s (12-12-2021)
12-13-2021, 05:22 AM
#84
Super Member
12-13-2021, 06:34 AM
#85
MBWorld Fanatic!
Join Date: May 2018
Location: Boise
Posts: 3,377
Received 1,032 Likes
on
700 Posts
2024 GMC Canyon Denali..... 2018 Audi SQ5
Go to the G Class Forum if you want to see some ridiculous deals. When the G Wagon was dropped there was a panic with buyers willing to pay $100k or more over MSRP & used going for way over original MSRP. Driving a clunky vehicle for the Status Symbol and bragging rights is apparently very important in some neighborhoods. 
12-13-2021, 02:25 PM
#87
Senior Member
Dealers are going to try and hold onto these ,IMHO , ridiculously absurd markups for as long as they can. Then as inventories increase one dealer will begin lowering his prices. The dealer in the next town will see that he too can no longer get these huge markups and he is losing some business to his nearby competitor. He too will lower his prices. Shortly there after people on this forum will be boasting about how great a DISCOUNT they got, and the car buying world will be back to normal until the next crisis. As a firm believer in Economics 101, do you honestly believe anyone trading in a vehicle that they paid a crazy high price for will get a crazy high trade in price when the dealer is deeply discounting his brand new cars? If you bought a stock at an all time high doesn’t make it worth more when you sell it.
If you don’t desperately need a new car right now, it may serve you well to wait a least a few months.
If you don’t desperately need a new car right now, it may serve you well to wait a least a few months.
The following 4 users liked this post by Bryce1023:
12-13-2021, 04:12 PM
#88
Senior Member
Join Date: Feb 2013
Location: Southwest Michigan
Posts: 460
Received 210 Likes
on
137 Posts
2021 GLE450
12-13-2021, 05:43 PM
#90
MBWorld Fanatic!
Join Date: Oct 2009
Location: Colorado
Posts: 4,912
Received 1,627 Likes
on
1,198 Posts
'21 AMG53 wDPP & ARC, 19 GLC300 - Former- 10&14 ML BlueTecs, 20 GLE450 E-ABC, 15 Cayenne D, 17 Macan
Dealers are going to try and hold onto these ,IMHO , ridiculously absurd markups for as long as they can. Then as inventories increase one dealer will begin lowering his prices. The dealer in the next town will see that he too can no longer get these huge markups and he is losing some business to his nearby competitor. He too will lower his prices. Shortly there after people on this forum will be boasting about how great a DISCOUNT they got, and the car buying world will be back to normal until the next crisis. As a firm believer in Economics 101, do you honestly believe anyone trading in a vehicle that they paid a crazy high price for will get a crazy high trade in price when the dealer is deeply discounting his brand new cars? If you bought a stock at an all time high doesn’t make it worth more when you sell it.
If you don’t desperately need a new car right now, it may serve you well to wait a least a few months.
If you don’t desperately need a new car right now, it may serve you well to wait a least a few months.
Chip shortage continues for another year or so. Auto manufacturers designing new chips to solve their shortages, shutting down production lines. Chip manufacturers building new fabs, probably 1-2 years to complete.
Dealers with 100 - 200 employees, trying to remain somewhat profitable to support them, 15 cars on the lot. They could lay off their employees, but they don't want to do that.
Rock and a hard place.
The following users liked this post:
Ron.s (12-13-2021)
12-13-2021, 08:13 PM
#91
Super Member
However, depending on the dealer selling price it still could make financial sense to buy now if you have a trade in. For example, in 2020 a GLE with an MSRP of $75K could be purchased for ~$70K (~7% discount off MSRP, which is a good deal). In this example assume you have a late model trade in that the dealer would buy for $20K. Bottom line, you write a check for $50K. Today, maybe you can get a $5K premium for that same trade in ($25K vice $20K), and you find a dealer willing to sell a GLE at MSRP ($75K). You still write a check for $50K, and you got the same good deal.
When supply/demand returns to normal, the premium on used cars will go away, and so will dealer markups over MSRP. Any amount you pay over MSRP now for a new GLE, you will loose to depreciation when supply/demand returns to normal in a year or two. It is a seller's market right now, so buyer beware....my 2 cents.
