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Old Sep 28, 2022 | 07:56 AM
  #26  
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Originally Posted by Aggie57
MSRP = Manufacturers Suggested Retail Price. Hardly socialism.
I Didn’t say it (MSRP) was socialism. I specifically stated that it was more aligned. As, a suggested retail price. which almost alway affects the selling price of vehicles in the United States for years is hardly a term associated with Capitalism.
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Old Sep 30, 2022 | 10:46 PM
  #27  
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It’s good to know that there are still dealers who are not blinded by greed… found one in an unlikely area with a “just off the boat/arrived” nicely optioned 63S and even got it for a small discount because it’s missing an option that was desired. Timing (end of month), size of the dealer and location are everything. Sick of the smalller guys gouging and missing the big picture. Dealt with too many recently and soon enough those slimy sales managers will out on the corner with a tin cup and their dog begging for change (for you to buy) and I will gladly lift my leg for them. 😂

It is past time to remind them that the customer is king!

Last edited by Vyper340vb; Sep 30, 2022 at 10:48 PM.
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Old Sep 30, 2022 | 11:13 PM
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Originally Posted by Vyper340vb
It’s good to know that there are still dealers who are not blinded by greed… found one in an unlikely area with a “just off the boat/arrived” nicely optioned 63S and even got it for a small discount because it’s missing an option that was desired. Timing (end of month), size of the dealer and location are everything. Sick of the smalller guys gouging and missing the big picture. Dealt with too many recently and soon enough those slimy sales managers will out on the corner with a tin cup and their dog begging for change (for you to buy) and I will gladly lift my leg for them. 😂
It is past time to remind them that the customer is king!
So true, except for the part about small Dealers. It seems to be the large car markets and mega Dealers doing the most gouging…SoCal, East Coast, etc. Fletcher Jones is the largest Mercedes Dealer in the US and in many locations has been reported charging big Admin fees. I guess it varies some by location.
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Old Oct 1, 2022 | 12:07 AM
  #29  
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In my case it’s a large national group - AutoNation who owns Mercedes-Benz South Bay and in the same neck of the woods. I was in West Covina the other day and they had many many GLE AMG 63’s and still asking ridiculous ADM. I got the impression any good negotiation would nullify it but it would be spirited
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Old Oct 1, 2022 | 02:02 PM
  #30  
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Originally Posted by Pappachoppers
I Didn’t say it (MSRP) was socialism. I specifically stated that it was more aligned. As, a suggested retail price. which almost alway affects the selling price of vehicles in the United States for years is hardly a term associated with Capitalism.
This is a non-sensical statement. Feels like an attempt to bring politics into the conversation. No product can be brought to market without a price guidance. Manufacturers create upper price (MSRP) and lower price (MAP) suggestions/limitations which is well within the rights of the manufacturer (per anti-trust laws). Based on market forces, the manufacturer/seller can adjust this.
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Old Oct 1, 2022 | 02:20 PM
  #31  
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Higher inventory works against ADM. It will be interesting to see if dealers will try to maintain a lower inventory on purpose to maximize margins. This seems contrary to the current allocation model though but this is the way Mercedes would like to go.

MB is changing the dealer model to an agency model in other countries. Germany is such an example. Dealers do not own their inventory anymore; only Mercedes does. No more flooring costs but also less incentive to move metal...
https://europe.autonews.com/automake...ew-sales-model

Last edited by Wolfman; Oct 1, 2022 at 02:33 PM.
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Old Oct 1, 2022 | 02:59 PM
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What I don't fully understand is the fact that there are still SO MANY new cars out there on the road. Obviously, people are buying cars daily.....and maybe need a new car, or are simply 'ready' to buy new......but still I ask why so many DO pay these costs??
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Old Oct 1, 2022 | 04:18 PM
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Originally Posted by Wolfman
Higher inventory works against ADM. It will be interesting to see if dealers will try to maintain a lower inventory on purpose to maximize margins. This seems contrary to the current allocation model though but this is the way Mercedes would like to go.

MB is changing the dealer model to an agency model in other countries. Germany is such an example. Dealers do not own their inventory anymore; only Mercedes does. No more flooring costs but also less incentive to move metal...
https://europe.autonews.com/automake...ew-sales-model
Manufacturers have used a 70 days supply as a target for decades, balancing supply with demand and sufficient inventory on lots.

Now they have found that buyers are willing to order and wait, so the Industry seems to be lowering their "days supply" to 30 - 40 days.

​​​​​Germany is okay with factory ownership of dealers and inventories, but the US has franchise protection (personal property).
Porsche tried bypassing dealers' franchises in the early 80s, but failed. Court rulings.
The result of that was several States passed laws requiring manufacturers to have actual Dealership locations in the states where they do business. Right now this is affecting Tesla.

The pandemic has affected, and will continue to affect, many industries. These effects are far from over.
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Old Oct 1, 2022 | 04:37 PM
  #34  
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I get it there are supply chain issues, but when I was buying my car, the available inventory didn’t align with the stupid ADM; the dealers were just being greedy.

I was shopping around for a few months and there are three MB dealers within driving distance of me, all owned by the same dealer. There was one GLE I was eye balling and I started the process. This dealer, at the time, had 7 GLE 53’s on their lot. I was working directly with their “internet sales manager,” and of course we went through the usual nonsense. They wanted $7k over MSRP. I laughed, but he knew I was a serious buyer. I offered MSRP and held my ground. After two weeks of negotiations he finally came clean and said he wanted to offer that but the GM and greedy owner overruled him. I expanded by search and found a dealer 100 miles away that offered MSRP. The car I wanted to buy is still sitting on their lot three months later…

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Old Oct 1, 2022 | 05:06 PM
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Originally Posted by hyperion667
What I don't fully understand is the fact that there are still SO MANY new cars out there on the road. Obviously, people are buying cars daily.....and maybe need a new car, or are simply 'ready' to buy new......but still I ask why so many DO pay these costs??
Because there really aren't that many cars for sale. Customer was telling me he was trying to buy a Camry. Nothing new available. He found a used one that was as much as a new one. If you want a specific car and your options are limited price goes up.
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Old Oct 1, 2022 | 05:10 PM
  #36  
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Originally Posted by Wolfman
Higher inventory works against ADM. It will be interesting to see if dealers will try to maintain a lower inventory on purpose to maximize margins. This seems contrary to the current allocation model though but this is the way Mercedes would like to go.

MB is changing the dealer model to an agency model in other countries. Germany is such an example. Dealers do not own their inventory anymore; only Mercedes does. No more flooring costs but also less incentive to move metal...
https://europe.autonews.com/automake...ew-sales-model
Dealers have little say in inventory levels. MBUSA mandates what inventory dealers get and the turn rate you need in order to get new inventory. MBUSA is also on record as saying they want to move from high volume to high profitability. High volume means subsidies. Rebates "trunk money" below market APR. All this cost MBUSA money. They like the way things are right now. Their profits are up.
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Old Oct 1, 2022 | 08:33 PM
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mikapen and Frenetic; please consider ending your back and forth. Really no point. We are all MB bros here.
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Old Oct 2, 2022 | 12:56 AM
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Thank you moderators!
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Old Oct 2, 2022 | 11:28 AM
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BTW - I had THREE different dealers in three different states yesterday and got them all to MSRP with one conversation. All had at least a $10k markup. Was direct and succinct offering cash, today but only at MSRP plus tax, title and registration (no BS fees). All came back with 👍, and I had my choice. One even went below MSRP because it was missing HUD, an option I wanted. Naturally there are still dealers out there that are hanging on to their greed model but they will soon come around are continue to lose out on customers and the money they need to survive.

Times are a changing! Feel free to message me if dealer names are desired.


btw - to the post about “days of supply”, while it’s partially true it is not ever the real goal of any of the manufacturers to have inventory because it is a “waste” and costs money that reduces profit. The goal is and has always been to reduce inventory even though zero is not attainable when the customer wants its when they want it. The customer drives the model and their business, NOT the other way around. Any real attempt to change this results in an opportunity for the competition to gain market share. It’s the immutable law of the customer supplier relationship. The pandemic drove many issues which is not for debate here but it certainly created an unnatural ripple that has resonated. Make no mistake, the slow moving process of vehicle design, manufacture and delivery combined with the multitude of reasons from the pandemic caused what we all are feeling but that curve is changing as it always does. Change is inevitable and the speed of it only increases over time.

Last edited by Vyper340vb; Oct 2, 2022 at 12:10 PM.
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Old Oct 2, 2022 | 11:54 AM
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Originally Posted by Vyper340vb
BTW - I have THREE different dealers yesterday and got them all to MSRP with one conversation. All had at least a $10k markup. Was direct and succinct offering cash, today but only at MSRP plus tax, title and registration (no BS fees). All came back with 👍, and I had my choice. One even went below MSRP because it was missing HUD, an option I wanted.

Times are a changing!

btw - to the post about “days of supply”, while it’s partially true it is not ever the real goal of any of the manufacturers to have inventory because it is a “waste” and costs money that reduces profit. The goal is and has always been to reduce inventory even though zero is not attainable when the customer wants its when they want it. The customer drives the model and their business, NOT the other way around. Any real attempt to change this results in an opportunity for the competition to gain market share. It’s the immutable law of the customer supplier relationship. The pandemic drove many issues which is not for debate here but it certainly created an unnatural ripple that has resonated. Make no mistake, the slow moving process of vehicle design, manufacture and delivery combined with the multitude of reasons from the pandemic caused what we all at feeling but that curve is changing as it always does. Change is inevitable and the speed of it only increases over time.
One of the best posts in a long while on this site.
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