ProV1

is the declining economy & skyrocketing gas prices putting a damper on S-class sales, or has the s-class been selling well? it could be argued that ppl who can buy these cars couldnt care less about gas prices..?

WSH

S-Class sales (like most other $100K+ car sales) are down some ?15-20%+ y-o-y....when I chkd a few wks back, found some ?100d inventory on dealer lots in US of S/CL600/63/65

Need to consider that S/CL buyers run a wide gamut in terms of net worth and willingness to spend on any car, no matter economy....not surprising when commuter cars range from <$100K-$200K

Most affluent guys aren't car guys (e.g., most billionaires in Manhattan are driven around in humble S550s), so, if not in mood/have diminished ability to spend, most will readily "scale down", e.g., keep old S-Class longer or step down to a cheaper BMW/Lex/Audi

Others who own/manage economically-sensitive businesses are often politically astute guys who realize it may be problematic to drive to office in a new S65 (even if one's own net worth means any new car is a trivial cost) when announcing skimpy bonuses/layoffs to employees...or when trying to negotiate aggressive terms vs business suppliers/investors, etc....

Mercutio.Mont

"Dampened" might be putting it a bit lightly.

The entire production car industry has tanked, virtually across the board. Some hybrids and econo cars are still doing decently or even well. But when MB is offering $11k incentives on the S, you can be assured that things are not looking good.

Diesel Benz

Right, the whole economy is going down, it would be amazing if S-class sales where steady. Also there is the normal peak for a new model. Here the short term figures from Germany (copyright jesmb).

gellie

Keep in mind that chart only goes to 07ye. The economy has deteriorated dramaticly since then.

Diesel Benz

Strange, I didn't even look at that, usually these are reasonably up-to-date. It of course takes some time before official figures are available but it looks like Julian has not been working with this data recently.

But I was not trying to show "no decline" with the figure, more that there are big changes even if economy was steady. Also the relative sales between competitors is changing but model changes show most significant bumps.

shap07s550

Mark my words - the guy willing to wait a few months from now will kill it on lot leftovers of S550's. Myself, I'm handing in my '07 S550 in December and scaling down to the C63 to save 30+k in MSRP.

gellie

My local dealer is offer 15k off sticker on all in stock 08 550's.

trumpet1

My dealer has not had an S600 since I bought mine in October of 2006. It seemed at first the 600 was very abundant but since I bought mine, I rarely see them on lots and on ebay. Less than 6 usually at a time and most of those are sold as Renntech/Carlsoonld in Florida by some dealership down that way.

gellie

just saw in the paper a local dealer offering 20k off sticker for a s63!

trumpet1

Wow! And to think they're making a profit at that price. Just think how much they make off of us when we buy in good times!

cjf_moraga

I wonder if MB are importing S600/63/65's into the USA at the same quantity levels as they might have done before. Perhaps they are diverting their production of models that are less likely to sell (in quantity) in this economic climate to other markets (China, Russia etc)

Chris

Mercutio.Mont

I doubt that diverting is possible due to US DOT requirements.

trumpet1

Is it just my imagination or is it true that S600s are rare. I see more S65s than I do 600s. I guess folks are thinking if they don't get a 63, then what the heck, go all out and get a 65 and skip over the 600. Not being able to get the AMG package would be the blame for that I suppose. The only new 600s I see are the ones in Florida that are getting the aftermarket stuff put on them (65 wannabees).

Sal Collaziano

The Mercedes dealership in Palm Beach is still selling lots and lots of S550s.. I don't think the economy is hurting them at all. We have a TON of very wealthy people around here. Across the street from the Mercedes dealership is a Lamborghini dealership. And a block or two away from that, Rolls Royce and Bentley. In fact, Maserati and Aston Martin are close by as well.. Then, of course, you have all your BMWs, Lexus', Inifinit's, Acuras, Cadillacs, Lincolns, and the rest.......

EinMD

According to the sales manager at Euromotorcars in Germantown, MD, who I know well, he told me today that they have not seen sales slip and said sales have still been strong. I don't doubt him as the metro DC area is also a very affluent area.

carsnob

Regardless of the market conditions, even if they were great, your car is tanking in value!!
I realise that my S 600 will be worth less than half of its original value in no time and that makes me sad. But to get over it, I also know that it was mine from new and it is still like new (apart from the mileage on the clock).
Hence the market conditions don't affect me and why worry...
After all, I'm enjoying the car and its amenities/performance/options/and qualities just as much as when it was new.
Hence, it is "new" to me and worth every penny of its full market value, as long as I don't go to sell it. (After owning so many cars this is a "keeper" anyway that doesn't make you want more in a car).
So get over the values and understand that you drive a depreciating asset and whether or not its a '95 Camry or whatever, the question all drivers have to ask is "how much am I prepared to lose on this car I'm buying in the next 3 (or whatever) years?"
btw, ever have a salesman ask you: "How much do you want to lose on a car and I'll help you pick one to match your loss?"

cjf_moraga

Well said, though I don't think of it in terms of how much I am going to lose.. rather "what is the price of access to the highest level of technology, comfort and safety, that MB has invested over a billion $$$ into?" You get what you pay for and this level of technology does have a fair price.

I don't expect to get any money back on other expensive/quality consumer goods and it is no different with a car. I can't get money back on a fitted kitchen, expensive shirts, or an expensive vacation for example. Cars are not assets.

I mentally wrote off the entire value/cost of my car the day I signed the paperwork. Anything I get back when I sell down the line will be purely a (modest) bonus - but that is many years away.

Thinking this way also qualifies whether one can really afford the car.

Chris

trumpet1

Chris and CJF, terrific posts.

absent

More likely no profit at all at that discount.
$20k covers the initial markup (about 7% on MB) and any rebates or "$$$ in the trunk".

451/443=EW

+1

This is what is happing with Benz in Canada.

Mercedes-Benz Canada reports best June, best second quarter and strongest first half year sales ever
TORONTO, ON – Mercedes-Benz Canada reported today its best June ever with a total of 2,516 units registered for the month. Second quarter results were also the best ever with 7,376 units delivered, up 1,645 units or 28.7% compared to second quarter 2007. The June results bring the year-to-date total to 12,125 units; an increase of 24.9% compared to last year at this time and the best sales for the first half of any year in the company’s history.
A total of 2,105 Mercedes-Benz vehicles were delivered in June, representing a gain of 669 units or a 46.6% increase compared to June 2007 and bringing year-to-date growth to 25.8%. A total of 411 smart fortwos were sold in June, bringing the year-to-date total to 1,964 units, up 20.2% from last year at this time. The combined Mercedes-Benz and smart sales of 2,516 units represents an increase of 613 units or gains of 32.2% for the month.
Very strong B-Class, C-Class, CLS-Class, S-Class, SL-Class, M-Class and GL-Class model sales contributed to June’s success. The next generation All-New C-Class accounted for an impressive 845 units. The M-Class and the GL-Class retail deliveries were up respectively by 36.5% and 54.2% in June. The company’s diesel sales ratio was 61.2% for the month while the permanent all-wheel drive 4MATIC™ units accounted for 61.9% of the overall passenger car and light truck sales (excluding smart).
Total Mercedes-Benz passenger car sales of 1651 units were ahead by 566 units, a 52.2% gain for the month and up 28.6% on a year-to-date basis.
On the luxury light truck side, the M-Class, R-Class and GL-Class performed very well again in June with 454 sales and a gain of 29.3% compared to June 2007 results. Light trucks have shown a growth of 17.1% so far this year with 2,285 units delivered.
On the pre-owned side, the company reported 604 Mercedes-Benz units for the month of June. For the first half of 2008 3,681 pre-owned units have been delivered to customers. This represents an 18.8% increase against year-to-date June 2007 results and is another record for Mercedes-Benz Canada.
Marcus Breitschwerdt, President and CEO of Mercedes-Benz Canada said,” We've reached the half way point of 2008 and Mercedes-Benz Canada continues to break records. Selling over 12,100 units in six months is a significant accomplishment that we should all be very proud of. These results speak volumes to our exciting product range and also our dedicated team of professionals who have worked hard to achieve these remarkable results. It also shows the tremendous positive impact of the huge investments into the dealerships and the network that our dealers and Mercedes-Benz Canada have made over the last year. The year-to-date accomplishment augurs well as we enter the second half of this very exciting year."

Mercutio.Mont

Oil industry. Similar to Houston.

kelvanyao

which dealership? what city?