MB's Export Worries
I was further advised that for all cash deals on SUV's, MB places a Lien on the Title for 1 year to prevent it from being exported. I guess they really do not want to sell me a car.
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Last edited by Chasvs; Dec 30, 2013 at 11:53 AM.
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If you are buying cash and if you are not clearly white american, some dealers get nervous.
MB Corp fines US dealers that are caught participating (or being conduits) in such schemes.
I bough an ML 3504W today and had to sign a promise not to resell within 1 year (international only) at the penalty of being charged upto 7500 should the dealer be dinged by MB corporate. No title lien as a cash buyer though.
MB Corp fines US dealers that are caught participating (or being conduits) in such schemes.
I bough an ML 3504W today and had to sign a promise not to resell within 1 year (international only) at the penalty of being charged upto 7500 should the dealer be dinged by MB corporate. No title lien as a cash buyer though.
The "title lien" on financed vehicles is removed when paid - so I am told roguhyl 35% of the current model year vehicles re-exported last year were originally financed - then paid off quickly - that means 65% were originally "cash" purchase.
Most re-exports are by/and/large special "orders" for specific model (tight in availability) - in specific colors - with specific options - where intl buyer is willing to pay a bit above and beyond "retail" in his destination country - and common in his country to pay cash - because that model there is hot/hard-to-get any - so more a availability issue.
"Dealer 1yr lien" is somewhat different legal process - determined by state in specific l;egal verbage for that state - which puts a "timed" lien, sortoff o countdown clock - that automatically expires in 1yr.
Yes - penalty is a Mercedes dealer charge-back - happens two ways - one a direct dollar charge back for the specific vehicle - then the chargeback/re-export counts as a potential black mark dealer goals with MB to qualifying for hold-back/hold-back-bonus each quarter and annual.
The "small" dealer stands the most to loose - since some "accidental" re-export can be excused based on higher large dealer volume.
Last October/November some larger dealers were surprised when they had 10-15 re-exports for a month - bordering on major hold-back loss - where a "small" dealer one re-export could risk $35K profit loss.
This current calendar year - small dealers can be "forgiven" for one/two accidental re-export occurrences if buyer was within their market territory - a bit more forgiving in that sense.
Title in hand you can choose to eBay or Craiglist in a West/East Coast metro market.
If you are in that business and make $5K moving a car out of the US - the question becomes how many cars you can move a month for total money - not the windfall on a single car.
Kindoff amazing actually - on new/new this continues to be a issue for wold-market scarce models - however, rent model 1-2 yrs old - with ultra- low mileage - and after US depreciation hit for even the best features models - even at "value" of those key vehicles - the re-export market for those becomes zero...





