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

R-Class Sales continuing to slide

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Old Sep 4, 2008 | 04:43 PM
  #1  
albellenchia's Avatar
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From: NY Capital Region
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R-Class Sales continuing to slide

In August MBUSA sold less than 500 R's. While the climate for big vehicles in general is poor, that figure is astonishing and does not bode well for the R in the future. What a pity. If you own, rather than lease, your R like I do, the continuing slide in value is also distressing.

Last edited by albellenchia; Sep 4, 2008 at 04:47 PM.
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Old Sep 4, 2008 | 05:37 PM
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not surprising. Also, don't be surprised if gas continues to drop in price and sales pick up once again. Just as many people are predicting gas will go back down to $70 a barrel which will put gas in the 2.75 range.

Not to rub it in, but this is why I never buy cars, only lease.
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Old Sep 4, 2008 | 08:37 PM
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2011 C300 4matic, 2015 Porsche Macan S, 2006 R500 (sold)
Originally Posted by heron25
not surprising. Also, don't be surprised if gas continues to drop in price and sales pick up once again. Just as many people are predicting gas will go back down to $70 a barrel which will put gas in the 2.75 range.

Not to rub it in, but this is why I never buy cars, only lease.
or buy 2 years old used MB.
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Old Sep 4, 2008 | 08:43 PM
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From: Warrington, PA
08 R350, 12 Mercedes R350
Thumbs down

Bad news.

That is good news for me.
Less cars on the roads and it will make my 08 R350 an unique and rare vehicle to own. I see one or two on the road monthly but not days or week.

BTW, I always buy new cars and never buy used because I do not know the history of the second hand car.(Never paid MRSP)

Last edited by AsianR350; Sep 4, 2008 at 08:52 PM.
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Old Sep 4, 2008 | 09:06 PM
  #5  
albellenchia's Avatar
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Originally Posted by heron25
not surprising. Also, don't be surprised if gas continues to drop in price and sales pick up once again. Just as many people are predicting gas will go back down to $70 a barrel which will put gas in the 2.75 range.

Not to rub it in, but this is why I never buy cars, only lease.
I am well aware of the pros and cons of leasing v. buying, thanks. What works for one doesn't apply to all, as other comments here attest.

The point is that MB has not been able to fix the R-Class's sales difficulties and its not all about the price of gas. The GL has from day one had stronger sales, despite much poorer fuel efficiency.

Last edited by albellenchia; Sep 5, 2008 at 10:18 AM.
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Old Sep 4, 2008 | 10:35 PM
  #6  
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I'm proud to be, like you all, one of the first adopters of the R concept, where Mercedes again, led the way. Just look at the Oct 2008 Automobile Magazine ) Advertising supplement for the new Chevy lambda platform "Traverse." It's the same concept as the R, but ofcourse no comparison. People continue to flee the large SUV trucks for innovative "do it all" crossovers. (and wagons don't sell in the USA). Mine, which I bought used, is the only one around, and it continues to turn the occasional head.
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Old Sep 4, 2008 | 10:38 PM
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Those who lease are going to hell... I'm kidding I'm kidding.

Those figures are quite surprising as I keep seeing more and more R's around and my dealership is actually moving them almost at the same rate as when it was first introduced. I'm still on the side that if MB wants to really move more R's all they really need to do is update the front and rear clips, do some minor reworking of the interior, work on a good ad campaign and the sales would go up. They need to do what they did with the 2009 ML, new front clip including grill headlights and fog lights, a new interior including steering wheel all seating surfaces and door inserts plus a new radio/nav unit, and a new rear clip including bumper and tail lights. The 09 R does get the same steering wheel and nav/radio unit but the rest is just carry over.
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Old Sep 5, 2008 | 08:25 AM
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Originally Posted by chilledbenz
Those who lease are going to hell... I'm kidding I'm kidding.

Those figures are quite surprising as I keep seeing more and more R's around and my dealership is actually moving them almost at the same rate as when it was first introduced. I'm still on the side that if MB wants to really move more R's all they really need to do is update the front and rear clips, do some minor reworking of the interior, work on a good ad campaign and the sales would go up. They need to do what they did with the 2009 ML, new front clip including grill headlights and fog lights, a new interior including steering wheel all seating surfaces and door inserts plus a new radio/nav unit, and a new rear clip including bumper and tail lights. The 09 R does get the same steering wheel and nav/radio unit but the rest is just carry over.
+1

If MB really wanted to move the R, it would make a few changes that are necessary and really come up w/ an ad campaign. The deals right now on the R's are killing me, but I bought mine as a long-term/10 year investment and so I'm not that worried. But when a guy can go in and get a brand new '08 w/ P2, DVD headrests, etc. and walk out for $44-$45k, I have to admit I do get a little PO'd.
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Old Sep 5, 2008 | 09:28 AM
  #9  
albellenchia's Avatar
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Originally Posted by R. Reyes
+1

...when a guy can go in and get a brand new '08 w/ P2, DVD headrests, etc. and walk out for $44-$45k, I have to admit I do get a little PO'd.
That was the point I was trying to make in my original post. I don't know how others feel, but with the R, I feel like you really can have it all: European engineering. sedan-like ride and feel, luxury, flexible space and really good gas mileage, especially on the highway (I routinely get 24-26 mpg.) Yeah, minivans can give you some of that, but not the ride/handling.

My R is a keeper, but some day I will want to replace it with another.
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Old Sep 5, 2008 | 09:29 AM
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it looks like a lot of you guys bought 06's so you're early adopters of a new style/concept. Little tricky to predict. The R is an interesting car in that it's hard to define where it fits. It's not a minivan and it's not a true SUV. I'm not sure what the thinking was behind it actually. I only got it because it came down to the GL or the R and the dealer gave me a silly lease rate on it. $200 less than the GL, comparably equipped.

Gas will come down and sales will pick up again, especially if there discounting the heck out of this thing. If people can get a Mercedes R for the same price as a Tahoe or Yukon, which do you think they'll pick?
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Old Sep 5, 2008 | 10:31 AM
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Looking for another. . .

I bought a used 06 last year that was crazy expensive new and cheap used with 16K miles or so. . .recently my wife has been driving it instead of her T&C Minivan and she loves it. . . too funny as she was complaining about it when she first drove it last year.

So, I went out looking for another used one and am shocked - pleasantly - at how LOW the used prices are. . .I am seeing reputable lots that sell off-lease high end vehicles have well-equipped, low mileage (under 16K) Rs at 25-29K. CPO low miles are in the low-mid $30s. . .wow.
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Old Sep 5, 2008 | 02:28 PM
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Originally Posted by acrafton
I bought a used 06 last year that was crazy expensive new and cheap used with 16K miles or so. . .recently my wife has been driving it instead of her T&C Minivan and she loves it. . . too funny as she was complaining about it when she first drove it last year.

So, I went out looking for another used one and am shocked - pleasantly - at how LOW the used prices are. . .I am seeing reputable lots that sell off-lease high end vehicles have well-equipped, low mileage (under 16K) Rs at 25-29K. CPO low miles are in the low-mid $30s. . .wow.
The August Manheim auction price on 06 R350 Mercedes Financial Lease return (not junk) in average condition with 20K-30K miles is $20-23K. Excellent condition is running about $25K. R500 is about $2K more.

The reason I know because I just bought a fully loaded (except DVD entertainment and parktonic) mint condition Black/Black R500 last week.... with a good price. Totally enjoying all the toys especially the V8 engine and the Airmatic sport suspension. The leftover Sirus radio subscription is cool too.... Waited for more than two years and finally buy one. Just regret why I did not buy it sooner.
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Old Sep 5, 2008 | 03:40 PM
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Originally Posted by supernsx
The August Manheim auction price on 06 R350 Mercedes Financial Lease return (not junk) in average condition with 20K-30K miles is $20-23K. Excellent condition is running about $25K. R500 is about $2K more.

The reason I know because I just bought a fully loaded (except DVD entertainment and parktonic) mint condition Black/Black R500 last week.... with a good price. Totally enjoying all the toys especially the V8 engine and the Airmatic sport suspension. The leftover Sirus radio subscription is cool too.... Waited for more than two years and finally buy one. Just regret why I did not buy it sooner.
Supernsx - so the Manheim is what dealers pay - correct? So a dealer is going to mark it up, what 10-30%? This is consistent with what I am seeing at the non-MB dealers while the MB CPO seem higher, sometimes a lot. My question is this, are the MB dealers simply able to get more $ than the off lease independent dealers? Certainly CPO adds to their cost (guessing $2K) but many seem to be listing them in $35-$37K range. Is their room for them to negotiate?

Also, if you have access to the Manheim data, what re 320CDIs going for?

Thanks
Adam
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Old Sep 5, 2008 | 04:31 PM
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Originally Posted by acrafton
Supernsx - so the Manheim is what dealers pay - correct? So a dealer is going to mark it up, what 10-30%? This is consistent with what I am seeing at the non-MB dealers while the MB CPO seem higher, sometimes a lot. My question is this, are the MB dealers simply able to get more $ than the off lease independent dealers? Certainly CPO adds to their cost (guessing $2K) but many seem to be listing them in $35-$37K range. Is their room for them to negotiate?

Also, if you have access to the Manheim data, what re 320CDIs going for?

Thanks
Adam
Adam,
Yes, Manheim is the largest auction where the dealers (big MB or small independent) buy the lease return from Mercedes Financial. It is a level playing field, so the prices to dealership or independent dealers are all the same.

Regarding the markup, the dealers normally will pay for the transportation to their locations (to determine, you can look up the carfax report on the location of the auction that the dealer buys the car from) Also, some of the lease return may have dents and scratches, so the dealers will need to fix them all up before they can put cars on the floor. I think it will be fair to say the dealer's cost will be $1K over the auction price. After that, they will be all profit to them disregard of MB dealerships or some independant dealers off the street corner.

For 07 320CDI, I asked my friend and he said there were only 7 of them being auctioned in August. They went for between $31K-36K (depends on color and options) and they are difficult to find a good deal because they are very few and also with good MPG. Btw, it is about $5K preimum compared to a 07 R350.

Last edited by supernsx; Sep 5, 2008 at 04:44 PM.
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Old Sep 5, 2008 | 07:42 PM
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2012 S550 4MATIC, 2007 R-350
My wife got an 07 R-350 and we both love the car.
We take the car every time we go to Vegas.
The roominess of the seats and very smooth ride helps a lot during these long trips.
The backup camera is a must for this car as it is a very long car.
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Old Sep 6, 2008 | 02:27 AM
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Now that the car has a proper rear bench seat, it should sell quite well to people with 4 kids, especially with the CDI engine.

Maybe there aren't that many people with 4 kids! I have a compact sport tourer (B 200) and only 3 kids, but I'd have got a R 320 CDI if we had a fourth. Which won't happen at this point!
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