syswei

OK the MBUSA site has the March specials up now. Nothing for the S550. But if anyone is interested in the CLS550:

$799/mo. For 27 month lease
$6,593 Total cash due at signing

...OR...

1.9% APR financing up to 72 months

syswei

Maybe I missed it earlier or maybe they were still updating the site, but the S550 now has a 3.9% financing offer for up to 72 months.

I think if I wait the deals will get better.

scriber

Strange, edmunds says they have 2.9%.

syswei

I assume edmunds is wrong, here is the MB link:

http://www.mbusa.com/models/main.do?modelCode=S550V

With the economy tanking and market interest rates declining, I think eventually MB will offer 1.9%, as they have already done with some other models. Or maybe we'll get to 0.9%.

BlackMamba24

Do you guys think it will definitely drop by april 08?...when do you guys predict 1.9% or lower for the s class?...let me know cause im probably taking delivery in April so under 3.9% would be nice...since this march promotion ends on march 31st...

syswei

My impression is that most MB, Lexus, etc try to make big sales pushes the last month of each quarter...Mar, Jun, etc. So the best chance for a heftier incentive will be June, or further into the summer as they clear out the 2008 models. But if the economy continues to weaken rapidly, who knows?

I do suggest that if one isn't in a hurry, the deals will eventually get better than what we are seeing now.

WSH

Interesting topic....

Agree w/your logic....but suspect there are a few missing pieces in the US pricing/sales/profits game....

In which mkt anywhere on Earth can MB (or any luxury mfr) sell S550-like products (and 600/63/65s) in any relevant volumes if US mkt can't absorb them???...

But would also observe that many affluent in US are psychologically not comfortable w/paying much more than $100K for any car (would guess that perhaps 90%+ of affluent aren't particularly interested in cars)...

Interestingly, many other EU luxury goods mfrs (like Patek, Kiton, Petrus, etc etc) are able to more effectively pass along robust, roughly 7-10%/yr price increases into US mkt....and unit volume growth seems to be strong (at least was until US economy slowed in past 3-6mos)....thus, my read is that luxury car mfrs simply lack pricing power in US mkt, even during the '99-'00 Tech Bubble and during the '03-'07 RealEst/Debt Bubble....

Vaguely recall reading somewhere that S-Class accts for 30-40% of MB Car Group's operating profits...

Would be curious what MB Car's operating profit margin was back in early '90s....after all, '92 S500 costed some $92Kish in US back then; 16yrs later, median S550 MSRP is prob only ?$95K....would suspect costs of production and R&D may be relatively deflationary, b/c of tech-based efficiency gains...and let's not forget that cost of capital (interest rates) is much lower today than in early '90s.....I doubt FX hedges fully explain the ability of MB to retain profitability, despite deflationary US pricing....

WSH

Agree, Trumpet....but would argue CA economy is not at all immune to what's happening in US economy now....esp LA region is arguably world's epicenter of aspirational consumption, i.e., lots of guys who don't have much money....who struggle w/arithmetic and reading/writing, but who want to have a cool-looking house/car, etc that they often can't afford.....this Debt Bubble is just beginning to burst.....

Suspect CA and NYC region will face the brunt of this bursting of Debt Bubble that's underway.....real estate foreclosures, etc in most of urban CA and the high-income layoffs in the NYC financial industry are hitting 2-3 of the US' (and world's) wealthiest urban regions fairly head-on....and financial industry is a major buyer of SiliconValley computing power/software....and Apple stuff is fairly discretionary....after all, no one needs a new iPod/iPhone every 6-12mos....

Sure, a few places like SF/Woodside and Manhattan/Greenwich, which have deep pools of recession-immune wealth, will have a few guys waiting 3-4 mths to get their new S65 (at MSRP or minimal disct) for kid-hauling duty....but the S550 buyer base tends to be far less recession-resistant and more price-sensitive....

Will be interesting to see how cheap new S550 leases will become over next 6-12mos....

syswei

Well, the 750Li is currently offered at:

$999*/month for 36 months
• $999 First months payment
• $3,500 Down payment
• $1,000 Security Deposit
• $5,499 Cash due at signing

But then again, the 750Li's msrp is a little lower ($85,270 for the $999 lease), and the car is in the last year of its production cycle. Maybe for a similar amount down we'll see the S550 at $1099 or $1199 by summer?

RajwanyS550

thats because 7 series is getting redesigned next year they r trying to clear out their inventory.

syswei

Yes I understood that, that's why I'm not expecting $999, and put in the earlier post that the 7 is "in the last year of its production cycle".

gellie

Have you checked The bloated s inventory ? or the Feb sales?

bigben320e

The market is flooded with pre-owns. Check Ebay, and the other usual suspects. You can find amazing deals day in day out on a S550. Why go to a dealer where you they are doing the high markup? Why lease at the prices that are out there now? Just a thought....

I got a 4 year at 6% on my CLS, and it's done. Buy the car, keep it for a while, then sell it if you wish. New cars seem to be such a waste even as a lease, especially now IMO.

usctrojans1

Quite agree. However, MBUSA is decreasing its production of the S65, thus causing a reduced supply and subsequently creating a artificial demand for the car and therefore allowing dealers to sell at or close to MSRP. For example, there are only 5 black/black S65's in the state of California.