New Car Dealer Inventory
10-09-2021, 10:45 AM
#1
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New Car Dealer Inventory
With all the news about supply chain woes, out of curiosity I just checked my local dealer's (Mercedes Benz on Fredericksburg) webpage. They have 4 new cars on the lot,....4. 
Of those 4, 2 are 2022 GLEs. Definitely not a buyers market at the moment.
Looks like they are being forced to become a used Mercedes dealer to survive. They have 139 late model cars, 51 of which are Mercedes.
Yikes!
Of those 4, 2 are 2022 GLEs. Definitely not a buyers market at the moment.
Looks like they are being forced to become a used Mercedes dealer to survive. They have 139 late model cars, 51 of which are Mercedes.
Yikes!
10-09-2021, 11:03 AM
#2
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Our dealer had 2 and all their allocations until March have been pre-sold. Crazy times…
10-09-2021, 03:14 PM
#3
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Going for the A service on my 2021 GLE350 in a week and anxious to ask my rep what their allocations look like. So thrilled that I ordered mine 6/1/20 and picked it up 10/20/20-- the same day as lease expiration on my 2018! Talk about cutting it close. At that point, rep told me that they would discount no more than $1000 but he would honor the deal he made with me in January 2020. I don't know whether they are now MSRP or "market rate adjustment."
10-09-2021, 06:39 PM
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My local dealer has one GLE450 (stripper spec) in inventory, with most of their cars of course being sold before they hit the lot, all with various different markups for first-time customers. In total they have probably 3 new cars, and their showroom is half new, half used. Definitely not a good time to buy, very grateful to have a good relationship with my GM and to have gotten our GLE when we did otherwise we would have simply waited out the market.
10-09-2021, 07:11 PM
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My local dealer has one GLE450 (stripper spec) in inventory, with most of their cars of course being sold before they hit the lot, all with various different markups for first-time customers. In total they have probably 3 new cars, and their showroom is half new, half used. Definitely not a good time to buy, very grateful to have a good relationship with my GM and to have gotten our GLE when we did otherwise we would have simply waited out the market.
They don’t even have a demo car for people to try out.
But there is nothing I can think of right now to replace it with.
Sobering statistic from our Mercedes Me app…
Total driving time: 6 days, 16 hours
10-09-2021, 07:39 PM
#6
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Wait a month or two and it will get plenty of use in the following 4-5 month...then get rid of it in April. (With supply chain constraints for the forceable future, you would want to preserve those others you have).
10-09-2021, 07:56 PM
#7
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we have been contemplating to get rid of our GLE as we are just not using it much. A little over 5k miles in 18 months and our dealer would love to get it.
They don’t even have a demo car for people to try out.
But there is nothing I can think of right now to replace it with.
Sobering statistic from our Mercedes Me app…
Total driving time: 6 days, 16 hours
They don’t even have a demo car for people to try out.
But there is nothing I can think of right now to replace it with.
Sobering statistic from our Mercedes Me app…
Total driving time: 6 days, 16 hours
I'm in a similar predicament with my CLS, with partial work at home, and using my boss' S-Class for work trips, I'm thinking of trading it in and replacing the Z4 together with one vehicle despite how much I love it, so right now I'm waiting on the next SL, otherwise I may get an AMG GT, I need to get a great V8 before they become extinct!
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10-10-2021, 09:32 AM
#8
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MB is taking it on the chin, the shins and elsewhere. USA results:
BMW brand up Q3 and YTD, 2021 vs 2020
MB brand down Q3 and YTD up less than BMW
BMW unit volume 13% ahead of MB YTD 2021
Excludes Mini for BMW and vans (Sprinter) for MB.
If MB’s new launch “challenges” and overall (un)reliability are widely recognized by consumers, and if the EV transition strategy doesn’t work, MB will trade places with Tesla for the title of cute, small and relatively insignificant carmaker.
BMW brand up Q3 and YTD, 2021 vs 2020
MB brand down Q3 and YTD up less than BMW
BMW unit volume 13% ahead of MB YTD 2021
Excludes Mini for BMW and vans (Sprinter) for MB.
If MB’s new launch “challenges” and overall (un)reliability are widely recognized by consumers, and if the EV transition strategy doesn’t work, MB will trade places with Tesla for the title of cute, small and relatively insignificant carmaker.
Last edited by chassis; 10-10-2021 at 09:46 AM.
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10-10-2021, 11:04 AM
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MB is taking it on the chin, the shins and elsewhere. USA results:
BMW brand up Q3 and YTD, 2021 vs 2020
MB brand down Q3 and YTD up less than BMW
BMW unit volume 13% ahead of MB YTD 2021
Excludes Mini for BMW and vans (Sprinter) for MB.
If MB’s new launch “challenges” and overall (un)reliability are widely recognized by consumers, and if the EV transition strategy doesn’t work, MB will trade places with Tesla for the title of cute, small and relatively insignificant carmaker.
BMW brand up Q3 and YTD, 2021 vs 2020
MB brand down Q3 and YTD up less than BMW
BMW unit volume 13% ahead of MB YTD 2021
Excludes Mini for BMW and vans (Sprinter) for MB.
If MB’s new launch “challenges” and overall (un)reliability are widely recognized by consumers, and if the EV transition strategy doesn’t work, MB will trade places with Tesla for the title of cute, small and relatively insignificant carmaker.
As for sales, this year is more so an anomaly again just like last year, sales numbers between brands are going to be widely different based on how they handle the chip shortage. For example, for the first time ever even Toyota has surpassed GM as leader in US sales, this being a first in 70+ years of GM's reign, all due to the chip shortage causing plants to idle and demand to be unfulfilled with low supply.
Its been known in the industry that BMW has been much better at managing and gaining access to more chips over the last two quarters and has been able to supply dealers with a greater amount of cars compared to MB and Audi (who also experienced a 14% drop versus Q3 2020) and have had empty lots while BMW has had cars available to sell to their customers on the same day, they even have the largest nationwide inventory in the compact luxury sedan and SUV class (reported by Car and Driver/Ward's Auto) for the 3-series and X3, two of the largest segments.
Its even evident in MB's sales figures which models specifically have been hit, such as GLA versus GLB sales. Normally the two are typically steady with each other and have similar sales numbers, however look at Q3, and you'll see more than quadruple the sales for GLB than GLA, this is because the GLA was on production pause at the Rastatt plant. The GLC suffered a similar fate with the production halts and cuts at the Bremen plant. BMW on the other hand has not had any significant plant halts, especially in regards to their Spartanburg SUV plant.
The fact that were seeing markups on cars such as A-Class' and GLA's shows us if anything that MB is fine at the moment, and the demand is still strong, its simply the supply that will need to be met and of course whenever this chip shortage does improve, will be able to and hopefully things can return back to normal.
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chassis (10-10-2021)
10-10-2021, 12:47 PM
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Good stuff js_cls.
Audi USA took the middle path in Q3. Better than MB Q3 and YTD, worse than BMW for the same period.
BMW and VW are managing their businesses better than MB. To me this is clear. Many carmakers are running their businesses better than MB.
Tesla is the one to watch. I'm not an EV zealot; I will probably be one of the last men standing pumping liquid petroleum distillate into my tank. Simply look at Tesla's market share growth. Tesla has MB running scared in my view.
Audi USA took the middle path in Q3. Better than MB Q3 and YTD, worse than BMW for the same period.
BMW and VW are managing their businesses better than MB. To me this is clear. Many carmakers are running their businesses better than MB.
Tesla is the one to watch. I'm not an EV zealot; I will probably be one of the last men standing pumping liquid petroleum distillate into my tank. Simply look at Tesla's market share growth. Tesla has MB running scared in my view.
10-10-2021, 01:15 PM
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). While I myself would not purchase a Tesla I do appreciate many things about them, as well as hate many other aspects, and like how they bring new ideas to the table. That being said, it'd be foolish to think that only MB is at risk from the force that is Tesla, the Germans whether it be VAG or BMW should all be running scared, some more so than others.I always like to bring up this article as I find it pretty interesting. Bloomberg did a survey at the end of 2019 with 5,000 Model 3 owners, and one section of the articles focuses on trade ins. No shock here that the number one traded in vehicle was the Prius, as Toyota has fallen behind, but number two was the BMW 3-Series, with the next luxury car taking up the tenth space on the list, being the Audi A4. The article is now two years old, but I wouldn't be surprised if the results remained similar, especially for the case of the Model Y.
Originally Posted by Bloomberg
The following chart orders the survey’s trade-in results in a different way: as a proportion of a brand’s U.S. sales. It shows BMW to be the automaker with the most to lose—almost five times more vulnerable than Mercedes-Benz. One explanation is that the two brands, while both competing in the same price segments, target different definitions of “luxury.” Mercedes is built for comfort and class, while BMW is defined by its driving performance. Comfort and class are hard to measure; for performance, you take the car to the track.
The editors at Motor Trend magazine tested the Model 3 against the BMW 3 Series and found that the “Model 3 wins this competition because it has thoroughly rewritten the rules of what a compact sports sedan can be.” BBC’s Top Gear ran the Model 3 against BMW’s more expensive M3 at Thunderhill Raceway Park in California, where the Tesla won by 2 seconds. The magazine cover screamed, “Electric Beats Petrol! Tesla Model 3 Outguns BMW M3.”
The editors at Motor Trend magazine tested the Model 3 against the BMW 3 Series and found that the “Model 3 wins this competition because it has thoroughly rewritten the rules of what a compact sports sedan can be.” BBC’s Top Gear ran the Model 3 against BMW’s more expensive M3 at Thunderhill Raceway Park in California, where the Tesla won by 2 seconds. The magazine cover screamed, “Electric Beats Petrol! Tesla Model 3 Outguns BMW M3.”
10-10-2021, 01:44 PM
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Yes this is trotted out alot in Tesla discussions.
Tesla is finding a gap in the market and winning. They aren't strictly luxury, as can be seen by the trade-in-to-Tesla data. But in my view they have aspirations, and more importantly ability, to go upmarket. This has MB shivering in their Trachten.
To be clear, I may never buy a Tesla. I really don't care about their cars or their company. I'm responding to the unit sale and market share gains. It's just business.
Tesla is finding a gap in the market and winning. They aren't strictly luxury, as can be seen by the trade-in-to-Tesla data. But in my view they have aspirations, and more importantly ability, to go upmarket. This has MB shivering in their Trachten.
To be clear, I may never buy a Tesla. I really don't care about their cars or their company. I'm responding to the unit sale and market share gains. It's just business.
10-10-2021, 01:48 PM
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Yes this is trotted out alot in Tesla discussions.
Tesla is finding a gap in the market and winning. They aren't strictly luxury, as can be seen by the trade-in-to-Tesla data. But in my view they have aspirations, and more importantly ability, to go upmarket. This has MB shivering in their Trachten.
To be clear, I may never buy a Tesla. I really don't care about their cars or their company. I'm responding to the unit sale and market share gains. It's just business.
Tesla is finding a gap in the market and winning. They aren't strictly luxury, as can be seen by the trade-in-to-Tesla data. But in my view they have aspirations, and more importantly ability, to go upmarket. This has MB shivering in their Trachten.
To be clear, I may never buy a Tesla. I really don't care about their cars or their company. I'm responding to the unit sale and market share gains. It's just business.
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chassis (10-10-2021)
10-10-2021, 02:07 PM
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Oh I understand, Tesla is definitely a growing and unstoppable force especially in the current market, even if I myself don't want one. I see them easily continuing their growth, as younger generations easily are aspiring to vehicles like Tesla's rather than vehicles like BMW, MB, or Audi, and because of that, as we have seen, the rules and future of "luxury" are being re-written.
10-10-2021, 07:38 PM
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10-10-2021, 07:46 PM
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People still buy Land Rovers despite the image they provide and the company is still doing quite possibly the best they have in years. I've said it before but if the transition to Daimler-Chrysler didn't kill MB when they were at their worst, its very likely their current challenges won't either.
As for sales, this year is more so an anomaly again just like last year, sales numbers between brands are going to be widely different based on how they handle the chip shortage. For example, for the first time ever even Toyota has surpassed GM as leader in US sales, this being a first in 70+ years of GM's reign, all due to the chip shortage causing plants to idle and demand to be unfulfilled with low supply.
Its been known in the industry that BMW has been much better at managing and gaining access to more chips over the last two quarters and has been able to supply dealers with a greater amount of cars compared to MB and Audi (who also experienced a 14% drop versus Q3 2020) and have had empty lots while BMW has had cars available to sell to their customers on the same day, they even have the largest nationwide inventory in the compact luxury sedan and SUV class (reported by Car and Driver/Ward's Auto) for the 3-series and X3, two of the largest segments.
Its even evident in MB's sales figures which models specifically have been hit, such as GLA versus GLB sales. Normally the two are typically steady with each other and have similar sales numbers, however look at Q3, and you'll see more than quadruple the sales for GLB than GLA, this is because the GLA was on production pause at the Rastatt plant. The GLC suffered a similar fate with the production halts and cuts at the Bremen plant. BMW on the other hand has not had any significant plant halts, especially in regards to their Spartanburg SUV plant.
The fact that were seeing markups on cars such as A-Class' and GLA's shows us if anything that MB is fine at the moment, and the demand is still strong, its simply the supply that will need to be met and of course whenever this chip shortage does improve, will be able to and hopefully things can return back to normal.
As for sales, this year is more so an anomaly again just like last year, sales numbers between brands are going to be widely different based on how they handle the chip shortage. For example, for the first time ever even Toyota has surpassed GM as leader in US sales, this being a first in 70+ years of GM's reign, all due to the chip shortage causing plants to idle and demand to be unfulfilled with low supply.
Its been known in the industry that BMW has been much better at managing and gaining access to more chips over the last two quarters and has been able to supply dealers with a greater amount of cars compared to MB and Audi (who also experienced a 14% drop versus Q3 2020) and have had empty lots while BMW has had cars available to sell to their customers on the same day, they even have the largest nationwide inventory in the compact luxury sedan and SUV class (reported by Car and Driver/Ward's Auto) for the 3-series and X3, two of the largest segments.
Its even evident in MB's sales figures which models specifically have been hit, such as GLA versus GLB sales. Normally the two are typically steady with each other and have similar sales numbers, however look at Q3, and you'll see more than quadruple the sales for GLB than GLA, this is because the GLA was on production pause at the Rastatt plant. The GLC suffered a similar fate with the production halts and cuts at the Bremen plant. BMW on the other hand has not had any significant plant halts, especially in regards to their Spartanburg SUV plant.
The fact that were seeing markups on cars such as A-Class' and GLA's shows us if anything that MB is fine at the moment, and the demand is still strong, its simply the supply that will need to be met and of course whenever this chip shortage does improve, will be able to and hopefully things can return back to normal.
Mercedes at this point sells every car they make but are extremely supply handicapped. BMW with its better supply management just pushes out cars for record volume but doesn't maximize revenue per car. I was able to get a friend a nicely spec'd X3 a few months a go at 15% off while the comparable GLC was selling for list plus the mandatory dealer-added clear bra & enviroguard. They don't sell a single car at list without add-ons or ADM.
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js_cls (10-10-2021)
10-10-2021, 09:09 PM
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Strangely enough our M8 comp. is our primary winter car. Just like the E63s before, with dedicated snows these are better than the GLE with All-Season tires, provided the snow isn't too deep. I like the GLE and the utility is fantastic when dealing with anything big, but I am thinking a hatchback will do the job with the occasional van rental. I am thinking Plaid right now if I can convince my wife to give the Model S another try. Still a shi*box, but a seriously quick one
Last edited by js_cls; 10-10-2021 at 09:11 PM.
10-12-2021, 05:28 PM
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To me, Tesla ocupies the same space as Jeep in terms of luxury vehicles. It's tough to argue they're luxury when their customer service is so hit or miss, their build quality and reliability is iffy, and the deatails like clicky air vents and nice stiching isn't there, but they are intensely desirable cars. I know many people that bought $65,000 Jeep Grand Cherokee Summit's over similarly priced Mercedes GLEs for reasons that are beyond me. And I know many peole that got Tesla Model 3s or Ss instead of a Lexus GS, BMW 3 or 5, Mercedes E or C, etc. I would not do that right now, but for them, the brand had the right desirability.
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chassis (10-12-2021)
