This past weekend on February 2nd, I finally took delivery of a 2018 S560 4matic through the Mercedes European Delivery (factory) program in Sindelfingen, outside of Stuttgart, Germany.

This is my second factory delivery and I spent a considerable amount of time researching and planning this. Information on the Mercedes European Delivery program is fairly limited online, especially compared to the BMW program that is covered extensively on various forums. As such, this write will contain a few elements:

I. Process of ordering and paying for a Euro Delivery car & It’s nuances

II. My Experience taking delivery at the factory

III. Comparison between pre-LCI and current S-class (compared to a similarly equipped 2014 S550)

THE CAR

2018 S560 4matic

Build Options:
197 Obsidian Black
514 Nut Brown/Black exclusive Nappa Leather
729 Black Poplar Wood Trim
L2D Wood/Leather Steering Wheel
P01 Premium 1 Package
321 AMG Line
RRM 20" AMG multispoke wheels
445 Warmth and Comfort Package
463 Head Up Display
997 Drive Assistance Package
735 Exclusive Trim

MSRP: $123,500 (with $995 destination waived)

I. ORDERING AND PAYING FOR A EURO DELIVERY MERCEDES

In September I walked into my local Mercedes dealership (literally blocks away) in Queens, New York and plopped down a sizeable deposit for a new S560 4matic. Dealerships will tell you that the European delivery discount is a standard 7% off MSRP+ options. To understand how dealerships are paid for the car so you can make an educated offer, here is how it works as per the Mercedes dealer guide for the program that can easily be found online with a quick Google search. Many dealerships do not understand the program sufficiently. They also see the workbook and paperwork and act like they are doing corporate taxes. The process is actually simple and straightforward. I suspect dealerships are also less inclined to assist because they get paid their commission on the day of the delivery, which in many cases is several months away. Furthermore, Mercedes is able to save quite a bit by not classifying the car as a new car export, rather you are exporting the car as a used car simply by picking it up at the factory and putting some miles on it. They gimmick the program as a brand loyalty experience but it really just comes down to money despite what they say.

A dealership gets paid 10% commission of the ED price, which is MSRP minus delivery charge ($995) minus 7% (or 5% for AMG's). They will offer you 7% (or 5%) off as well, but you should be able to negotiate more--usually up to an additional 3-4% off of MSRP. On top of all of this, it does not go against any dealership allocation, so it's purely extra money/sale for the dealership. The sale also counts towards any sales volume bonus for end of year, end of month, etc.

For example, lets say a new car's MSRP is $100k:
Set MSRP- $100,000
Set ED Price- $93,000
Set commission paid to dealership by corporate- $9,300 (Car invoice to dealership- $83,700)
Scenario 1: You, the buyer, accept the standard 7% off, so you pay $93,000 and dealership profits $9,300
Scenario 2: You, the buyer, negotiate 10% off, so you pay $90,000. Dealership profit: $90,000, that you pay - $83,700, what they pay = $6,300 profit for dealership

To figure all of this out, most sales reps have to open the workbook and run the numbers. It may sound silly, but many of them don't even bother. It is important you find yourself a knowledgeable sales rep. who preferably has done this in the past, or better yet, for him or herself. At the very least, educate yourself on the process and potential savings and gently ease on the knowledge to your local salesperson and work together to both get a great deal.

My sales rep at my local dealership accepted my offer after about 5 minutes and a date for delivery was set for end of December. 20 days prior to delivery you have to pay for the vehicle. At the time, I had a trade (2014 S550 RWD) that already had a price set for the trade in valuation. When I came in to the do the paperwork, the dropped my trade value by $7,000. I spoke to the manager who was exceptionally discourteous and rude. So I cancelled my order all together. Yup, three months of waiting and I cancelled. But it was the best decision. This dealership thought I was in too deep with the order and couldn’t back out. You most certainly can and you deposit is fully refundable. I then got bombarded with emails and voicemails pleading that the car had my name to it and “it was waiting for me”. American Express refunded me my deposit as per my purchase order that clearly states deposit is refundable should I not agree with the financing terms.

Not to be discouraged, I went back to my office and set out with the “Rizzo Method” covered in the BMW forums. Basically, I called about ten of the closest Mercedes dealers, asked for an experienced sales person and simply told them I would like to send them an email with information and an offer on a vehicle I would like to order. Then I would send the same email to each salesperson that gave me their info basically outlining the exact vehicle I wanted with option codes, pricing, etc. Then I would give them my price offer (remember, 7% off MSRP is minimum, you should be shooting for 9-11% depending how well equipped your car is). About half responded and I visited three separate dealerships. In the end, I choose to work with Jay Johanas of Rallye Motors in Roslyn, New York.

Jay is a gentleman and a true car enthusiast. He too had done euro delivery for his own meticulously- kept SL. He agreed to my emailed offer and we placed the euro delivery order the same day. We were able to lock in February 2nd, only five weeks later than my original date with the other dealership, which was fine by me. I would highly recommend Jay for any East coast buyers. If you are located on the West coast, Herbert Haemmer at Mercedes-Benz of Escondido is the best European Delivery salesperson there is. He too is a gentleman and very easy to work with.

PAPERWORK

After you place your order, you will receive an email from the European Delivery department from Mercedes corporate in Atlanta. You will have to fill out 3-4 forms so they may setup the registration for the temporary plates (15 days, additional can be bought in advance). You are also requested to contact HRG travel to setup which date you would like to use your hotel voucher (standard package is a one night stay at the Stuttgart AM Schlossgarten Hotel). A $200 Delta voucher is also available but prices via Delta were so expensive it wasn’t worth it. I elected to fly Swiss business with my points instead.

If you are buying the car for your company or will have someone else (only immediate family) pickup the car on your behalf, you will also have to fill out a power of attorney form. Everything has to be submitted as least 20 days prior and full payment has to be made (or lease setup). I financed with a local credit union (less than 2% APR!).

Once everything has been submitted and you have made final payment, you will receive from your sales person a “confirmation of order” that included details of your car and the date of delivery, make sure that date is accurate. Attached with this email will also be a 65 Euro certificate for lunch of breakfast at the factory. If you don’t spend it all, they may give you a parting gift such as chocolates. In my case, because the majority of factory workers were on strike on February 2nd in Germany, the delivery center was not running at full capacity and the breakfast was limited to coffee and pretzels. They gave me a bottle of Moet champagne to take away, which was a nice touch. The Confirmation of Order will also have a deduction of $100 as a taxi voucher, which the dealership should take off form the final price of your car. This credit replaces previous hard vouchers (2) that the program gave you to use in Germany (ideally, one voucher from airport to hotel and the other from hotel to the factory) which most taxi drivers in Stuttgart accepted.

II. MY EXPERIENCE TAKING DELIVERY

I flew into Stuttgart a night prior to delivery and took a taxi to the hotel. I suggest that if you have an international data plan (T-mobile offers one at no additional cost albeit at 2G speeds in the winter, 4G in the summer), to always put your destination in Google Maps and track how the taxi is going. Taxi drivers in Europe, at least in my experience, are notorious for driving around randomly with foreign passengers to hike up the total fare. Lo and behold, my guy drove about 4km out of the way locally avoiding highways until I called him out on it and negotiated a flat fare to the hotel as a refused to pay meter.

We arrived at the AM Schlossgarten hotel, which is advertised as a top hotel in Stuttgart. The lobby and general amenities are ok, but the room was a solid three-star compared to stateside hotels. If you need an additional room, you can contact HRG and they will set one up for you for an additional price.

The next morning we took a taxi to the Mercedes “Kundencenter” which is the delivery building. Here you will find a gift shop, a restaurant, a small theater that shows a short clip of the factory process, etc. You check in with the front where they take your confirmation of order and passport and collect your luggage for storage. At this point, you are recommended to take the two hour factory tour (10:30am for English tours) however due to the strike we just chose to have a coffee and snack while they prepared our car’s paperwork. After an hour or so, I was asked to sign documents which include the temporary German registration, green insurance card, affirmation that I received two car keys, and finally a letter stating I accept the car with summer performance tires (standard on sports package 20” wheels) despite the fact that it is winter in Europe. This removes the factory for any liability should something happen on the road. In places like Austria and Germany, if you are involved in an accident during wintery conditions you could be fined or held for partial blame if you do not have winter or all-season tires mounted on your car.

After signing, we were lead to a unique part of the Kundencenter known as the Center of Excellence. I was lucky enough to have the same experience in December 2013. Instead of taking delivery in the main hall, we were chosen to take delivery of our car in a private setting and were invited to a private three-course lunch. They usually reserve these special of deliveries for AMG models or for S-Classes. The food and service was top notch.

After lunch, a specialist showed me the car and how to work the new infotainment system. 20 minutes or so later, we were on our way to France.

DROPOFF

Mercedes give you a list of locations you can dropoff your car all over Europe. We chose and made an appointment with TT Car Transit located at CDG airport in Paris. Dropoff was fairly quick (15 minutes) and they offered a shuttle to my departing flight terminal. The car will then be trucked to Bremerhaven, Germany where it will be loaded onto a Ro/Ro car carrier ship bound for the States with a possible stop in the UK. Upon arrival at the port of Baltimore, the car will go through the Mercedes Vehicle Preparation Center where USB cables will be added and the software will be programmed for US specs. Then it is trucked to the selling dealership, which should take about a day or two depending on it’s location.

III. COMPARISON BETWEEN PRE-LCI & CURRENT S-CLASS

This 2018 S560 4matic replaced a similarly equipped 2014 S550 RWD. The new one is now in 197 Obsidian Black instead of 040 Black. I am very happy with the new metallic color. I kept the interior the same (exclusive nut brown/black), which is my favorite compared to the other available colors.

SUSPENSION

My 2014 S550 had Magic Body Control with road surface scan. The car drove like it was on rails and was extremely nimble with minimal roll. However, the ride was rougher especially with the 20” sports package wheels. The new 2018 is fitted with Airmatic along with the 4matic all wheel drive system. This is pretty much a prerequisite for New York. The new car rides much smoother however you really feel the size of the car and the body roll is especially pronounced.

TRANSMISSION

The new 9-speed is silky smooth at highway speeds, but it is quite a bit jerky at low speeds. I found it hunting for gears during stop and go traffic with an annoying lurching motion. Otherwise, the transmission is impressive and fuel-efficient. I was averaging about 24 mpg combined.

DELETIONS

Compared to the 2014 S-class, deletions include:

- Front seat lower compartments

- Rear comfort seats no longer have Easy-Adjust headrests with the power forward adjustment

- Electric parking brake in now black plastic, not silver aluminum colored

- Trunk is slightly smaller with the rear comfort seats

Changes (Exterior)

- Revised front and rear bumpers, side skirts

- Revised headlights and taillights with torch effect

- Revised sports package 20” wheels

- Previous S600 front grille now standard on all S-classes

Changes (Interior)

- Revised rearview mirror

- Revised cupholder (no more plastic secondary cover)

- No more CD changer, now it is a car key holder with wireless charging

- Revised screen graphics with a larger display

- Three styles for speedometer screen: Sport, Standard, Progressive

- Carplay and Android Auto is added

- Faster response time for infotainment, but still a bit slow compared to other manufacturers

- Steering wheel with distronic controls instead of stalk

- When heated steering is turned on, whole wheel is heated including wood portions

DRIVING IMPRESSIONS

Car rides smoother, faster, more refined. Distronic works flawlessly compared to 2014. Can now change lanes and pass cars with a simple turn signal change. Holds between the lane lines much better. Driver Assistance option is an extensive upgrade from previous model.

For some reason, cabin noise seems more intrusive.

Heads up display is informative and non-obtrusive.

Steering feel is great, much better than BMW 7 series, but not as good as Audi A8 (I drive all three regularly).

CONCLUSION

I hope this write-up can serve as a guide for anyone interested in the European Delivery program. The savings coupled with the experience is well worth it in my opinion. Do not be discouraged by the waiting period and the paperwork, it really is not that bad. Finally, the ability to option a car exactly to your liking and still receive a considerable discount may be the single best reason to do European Delivery.

Please feel free to ask any questions about the process or about the changes for the 2018 model, I would be happy to answer. Thank you for reading and I hope you enjoy some of the pictures attached.