R-Class (W251) Produced 2006-2013: R320CDI, R350, R420CDI, R500

Incentives

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Old Dec 5, 2005 | 09:16 PM
  #1  
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Incentives

I heard today that there's a 2k incentive on the R if financed through MBCC. Anyone else hear that?
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Old Dec 6, 2005 | 12:20 AM
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Something just came out...We took delivery of our R500 on Friday night and my dealer (who I obviously trust) called me on Saturday A.M. to tell me to come back and sign a new contract with a $1,000 lower cap cost. That was a nice surprise and something he didn't have to do. He could have said nothing, but based on your $2k number mentioned, he split it with me. Pretty fair IMO.

By the way...the R is better than I ever imagined.

Originally Posted by albellenchia
I heard today that there's a 2k incentive on the R if financed through MBCC. Anyone else hear that?
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Old Dec 6, 2005 | 09:45 AM
  #3  
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I think this is part of the Mercedes Winter Event, or I could be wrong.... Anyway that was nice of your dealer jkrutch! Where did you get it from? POST SOME PICS ALSO!
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Old Dec 6, 2005 | 09:49 AM
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MB of Pembroke Pines. Pics to follow when I can find time.

Originally Posted by PHYBENZ
I think this is part of the Mercedes Winter Event, or I could be wrong.... Anyway that was nice of your dealer jkrutch! Where did you get it from? POST SOME PICS ALSO!
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Old Dec 6, 2005 | 10:55 AM
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Incentives

My dealer told me yesterday about the 2k discount, and as a result, we reworked the order I had placed to add some content and found a vehicle scheduled for delivery in the next two weeks. My salesperson has been a stand-up guy on this deal: $1500 under invoice now, with the rebate.

Last edited by albellenchia; Dec 6, 2005 at 11:15 AM.
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Old Dec 6, 2005 | 08:33 PM
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Incentives

This thing has jumped the shark after 2 months on the market. Good luck MB.
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Old Dec 6, 2005 | 10:39 PM
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I was luke warm at best, but after 4 days of ownership my wife is thrilled beyond belief. It will catch on with time and with reviews like MotorTrend just published, it might be sooner than later. They loved it and now I know why. We have 4 kids and this is the perfect car for us....I am sure we are not alone.

Originally Posted by Timothy
This thing has jumped the shark after 2 months on the market. Good luck MB.
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Old Dec 6, 2005 | 11:28 PM
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You have the coin to drive a Lamborghini Gallardo. I suspect MB intended that thousands of units would be sold to persons with significantly more limited means. Above median income, yes, but not Lambo drivers' wives. I think they won't be able to move the number of units they need to move at the current price.
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Old Dec 7, 2005 | 08:47 AM
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I am not sure I totally agree and here's why...

I see a ton of ~$65k Escalades and even much more expensive Porsche Cayennes and Range Rovers. The people with the means are out there. We are in the minority with 4 children, but anyone with more than 2 can't cut it in the ML (which would have been my 1st choice). My wife was tired of the "truck drive". She wanted a way to handle all the kids and not feel like she was in a massive SUV like the QX-56 we got out of. The new lease programs have brought the "R" payment into a competitive level with vehicles that I consider to be of lesser overall quality, performance and status. I could very well be wrong, but I think the R will catch on.


Originally Posted by Timothy
You have the coin to drive a Lamborghini Gallardo. I suspect MB intended that thousands of units would be sold to persons with significantly more limited means. Above median income, yes, but not Lambo drivers' wives. I think they won't be able to move the number of units they need to move at the current price.
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Old Dec 7, 2005 | 09:02 AM
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I agree with jkrutch

Originally Posted by jkrutch
I am not sure I totally agree and here's why...

I see a ton of ~$65k Escalades and even much more expensive Porsche Cayennes and Range Rovers. The people with the means are out there. We are in the minority with 4 children, but anyone with more than 2 can't cut it in the ML (which would have been my 1st choice). My wife was tired of the "truck drive". She wanted a way to handle all the kids and not feel like she was in a massive SUV like the QX-56 we got out of. The new lease programs have brought the "R" payment into a competitive level with vehicles that I consider to be of lesser overall quality, performance and status. I could very well be wrong, but I think the R will catch on.

I think that the R class will catch on, too, as MB adjusts the price and/or dealers decide to deal. The money is out there, but the market is not fully developed. As to pricing, while I think that MB made a mistake in de-contenting the 350 by omitting certain features that should be standard, I can understand the desire to not cannibalize either ML or E Wagon sales, either. If you need room and don't want a truck or minivan, there aren' a lot of options. Here in NYC, as is the case in most "affluent" markets you sure see a lot of Escalades and Navigators, as well as Cayennes and Range Rovers.
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Old Dec 7, 2005 | 03:09 PM
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Originally Posted by albellenchia
I heard today that there's a 2k incentive on the R if financed through MBCC. Anyone else hear that?
Can anyone confirm the money factor on the R class lease and is the money factor influenced by the $2k incentive in any way? In other words, can the lower money factor be combined with the $2k incentive?

TIA.
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Old Dec 7, 2005 | 04:09 PM
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Hmmm...I dont know. I am buying, not leasing, but I believe that the lease rate was in effect before the new incentive. Not sure how or if they combine.
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Old Dec 7, 2005 | 05:03 PM
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Just confirmed a .0023 money factor combined with the $2k incentive. This makes for a killer deal.
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Old Dec 7, 2005 | 05:15 PM
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Wow, yes. Will make a nice lease. Heard that the finance rate is 4.95. Also a sweet deal.

I received a nice stadium blanket from MB today. Will go nicely in the R when it comes.
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Old Dec 11, 2005 | 07:24 PM
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The R-Class gave MBUSA an added boost in the light truck category, selling 1,213 units in its second full month on the market. [i.e., Novenber 2005] http://www.emercedesbenz.com/Dec05/0...esFigures.html

That's pathetic. They calculated 20-30,000 units per year. In 2 full months of exposure and full-on sales, they've sold about 2,000 units. This thing is DOA.
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Old Dec 11, 2005 | 07:56 PM
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First, I think it will catch on. It is still too soon to tell and with gas prices back down to "normal" levels, I think all SUVs will start doing better. The entire market for thirsty vehicles took a nose dive in the last few months.

It is a great vehicle and the special leases will help dramtically. Secondly, if you're right it won't matter to me. I got a killer lease deal and in 2 years we're on to the next one.

If the R class is DOA, then Audi's Q7 will be in even worse shape.

Originally Posted by Timothy
The R-Class gave MBUSA an added boost in the light truck category, selling 1,213 units in its second full month on the market. [i.e., Novenber 2005] http://www.emercedesbenz.com/Dec05/0...esFigures.html

That's pathetic. They calculated 20-30,000 units per year. In 2 full months of exposure and full-on sales, they've sold about 2,000 units. This thing is DOA.
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Old Dec 11, 2005 | 08:04 PM
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"I got a killer lease deal and in 2 years we're on to the next one."

Yes, and you drive a Lambo Gallardo, so a $70,000 2-year disposable vehicle is nothing for you. MB isn't aimed at a market consisting solely of folks like you. They have a business to run. With your income, you represent probably 1% or less of their target market. They need to convince the populous (the roughly $150,000 USD median income populous who buys their vehicles) that they are worth while.

Sadly, all the 3 point star says nowadays is "I have lots of disposable income!" It used to say - "this is one of the most well constructed, best engineered, best value automobiles available, and I'm a discerning buyer."
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Old Dec 11, 2005 | 08:30 PM
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My pmt on the R is comparable (or probably cheaper) than an Escalade or Navigator and much cheaper than a Range Rover. Stop harping on the Gallardo as one thing has nothing to do with the other. I still work for a living like most people. In fact, I probably work harder than most and I don't toss money around like it grows on trees.

In my current neighborhood, I have the only exotic car (other than one Bentley GT). Yet there are tons of Escalades (2), Range Rovers (3), Lexus LX's and GX's (4 or 5) on my block alone. A Cayenne Turbo and a few Hummers as well. Every one of these people are the target demographics for the R class. They can all afford it and if their wives, like mine, are tired of the truck drive, MB will win.

As for the $70k disposable vehicle comment....That is why I am leasing it... Even on my short term lease, I am paying in around a third of the total price. I see that as a great deal.

MB has never represented "value". They have always represented affluence and prestige in addition to superior quality and engineering. Honda and Toyota are value driven marques, as is VW.

MB has hit some road bumps in the last few years, but based on my experience which is 5 MB's in 5 years, I have yet to have an issue with their quality. I think they are past that.


I think you're wrong and the R class will be a success. Let's revisit this in a few months...




Originally Posted by Timothy
"I got a killer lease deal and in 2 years we're on to the next one."

Yes, and you drive a Lambo Gallardo, so a $70,000 2-year disposable vehicle is nothing for you. MB isn't aimed at a market consisting solely of folks like you. They have a business to run. With your income, you represent probably 1% or less of their target market. They need to convince the populous (the roughly $150,000 USD median income populous who buys their vehicles) that they are worth while.

Sadly, all the 3 point star says nowadays is "I have lots of disposable income!" It used to say - "this is one of the most well constructed, best engineered, best value automobiles available, and I'm a discerning buyer."
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Old Dec 11, 2005 | 08:54 PM
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"Let's revisit this in a few months..."

Yes - absolutely. And thanks for the intelligent debate. And yes - I see Audi's Q7 as a huge risk under current market conditions.

Tim

PS: Didn't mean to pick on the Lambo - heck of a ride and I wish I could have one. Just using it to suggest that at the price levels set for the R, MB may be attracting only folks with very high disposable incomes; too high if the company expects to sell 20-30K units per year.
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Old Feb 2, 2006 | 08:11 PM
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Ok, here we are, 2 months of sales later (Dec 2005 & January 2006).

Mercerdes' stated sales goal for R class was 20-30,000 units per year.

10/2005 (first full month of availability)- 930 units sold
11/2005 - 1,213 units
12/2005 - 2,430 units
1/2006 - 686 units (see http://www.daimlerchrysler.com/Proje...s___Jan_06.pdf for 1/2006 sales figures)

In December, MB started very aggressive leasing/price cutting/advertising for the R. That probably accounted for the pop in December. But only 686 sold in January? I still think this new model is overpriced, and will continue to struggle and ultimately fail. I think that's because fewer and fewer customers will pay simply for the brand. Value and reliability are also requirements.
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Old Feb 2, 2006 | 10:32 PM
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Agreed...

needs to be about $5000 less and include some of the ridiculously overpriced option which others make standard.
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Old Feb 3, 2006 | 06:43 AM
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Originally Posted by Timothy
Ok, here we are, 2 months of sales later (Dec 2005 & January 2006).

Mercerdes' stated sales goal for R class was 20-30,000 units per year.

10/2005 (first full month of availability)- 930 units sold
11/2005 - 1,213 units
12/2005 - 2,430 units
1/2006 - 686 units (see http://www.daimlerchrysler.com/Proje...s___Jan_06.pdf for 1/2006 sales figures)

In December, MB started very aggressive leasing/price cutting/advertising for the R. That probably accounted for the pop in December. But only 686 sold in January? I still think this new model is overpriced, and will continue to struggle and ultimately fail. I think that's because fewer and fewer customers will pay simply for the brand. Value and reliability are also requirements.
Also, just remember that these numbers do not reflect the full market for the R, They still have not went on sale over seas. The W251 will move when it hits the market.
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Old Feb 3, 2006 | 01:02 PM
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Holy Cow!

Originally Posted by carpersn
needs to be about $5000 less and include some of the ridiculously overpriced option which others make standard.
Looks like MBUSA is listening. Edmunds is showing $5000 in marketing support and low APR financing for February for both the R350 and R500.

Last edited by Calcio; Feb 3, 2006 at 01:05 PM.
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Old Feb 3, 2006 | 01:43 PM
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Originally Posted by Calcio
Looks like MBUSA is listening. Edmunds is showing $5000 in marketing support and low APR financing for February for both the R350 and R500.
it seems to slowly be catching on. saw 2 being prepped for delivery at MB of Princeton this week
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Old Feb 5, 2006 | 03:13 PM
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If they don't start moving with $5k of incentives, then there IS a problem. I think that this support will fix the value equation.
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