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

Last edited by albellenchia; Dec 6, 2005 at 11:15 AM.
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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 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.
TIA.
I received a nice stadium blanket from MB today. Will go nicely in the R when it comes.
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.
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.
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.
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."
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...
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."
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.
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.
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.
Last edited by Calcio; Feb 3, 2006 at 01:05 PM.


