MSRP Discount












The Best of Mercedes & AMG




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.
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.





