ljcool

I've been doing some building on mbusa and checking out what options are available for the new W222. I didn't see the AMG Sport Package on the site so I checked Mercedes Germany to see if it's there and it was. So I was about to try a build until I saw the base price of the S500 long wheelbase (S550 in US) and it was 108,944.50 Euros which is equivalent to $141,119.82USD. At that price you could have a fully optioned S550 here. I'm curious as to why the huge price difference? Thanks!

Cptdenny

VAT Taxes for one.

That's one reason why I had to sign a paper stating I would not sell my 2014 S550 overseas for one year at my dealership. There must be some sort of a trade agreement between our two governments.

ljcool

But you're allowed to sell locally?

Also, does the S Class come from their German plant or one of the plants in South America? I've checked the plant in Alabama and it mostly assembles their SUVs and the new C Class.

thomas311

I am German but live here since 8 years.
The S class comes from the German plant. I ordered one and its currently on the ship from Germany over here.
There are several reasons why the same car is more expensive in Germany than here. One has been mentioned, but its a factor which blurs the initial calculation: if you configure your car on the US site, then the price is without tax. On the German site it is show with tax included (currently 19%). Then you have some exchange rate issues. if a German car manufacturer would always just use the current exchange rate to price a car other than EUR, it would change daily. Therfore they have a completely different pricing model for the regions. Just because the EUR-USD constellation changes, doesn't mean the value of a EUR or USD within it's country changes. 1 EUR is worth about 1.30 USD today, but in average a dollar still buys u more over here than a EUR does in Germany. Another reason why the pricing model needs to be different as otherwise no one in the States would buy a German car. Another interesting factor: a German car in the US is longer under manufacturer warranty than in Germany.... Probably also a matter of buyer expectations here and over there. Hope that helped.

Cptdenny

Yes of course, I can sell it anywhere in the US, including Long Island NY.

The S class comes from it's German plant.

MTrauman

Yes, one can sell their car in the US if purchased in the US.


MBUSA and dealers are attempting to stop people from buying MBs in the US and having that same car being sold in other countries for the first 12 months of ownership. I have not signed one of those "export limitation" forms since 1998 since the main dealer I buy my MB cars from knows I will not export the car for profit.


The S Class for the US market comes from the Stuttgart, Germany plant.

ljcool

@thomas311

Thanks for your well defined explanation and yes it helped me understand a lot. I guess it has a lot to do with the economy, something I'm not very good at understanding.


@Cptdenny

Thanks for your information as well. I'm just miffed they're not offering the 3 spoke sports steering wheel (the one that comes standard with the new S Coupe).

TomS

Sindelfingen technically but very near Stuttgart.

ljcool

I was discussing with a friend about what I learned so far and he raised an interesting question. What if a person, say from Canada, wanted to purchase a first hand S Class off the dealer here in the US for personal use and take it back home with him. Would that be violating the 12 month agreement?

MTrauman

I believe the answer to this is that in fact the person would be violating the agreement if he/she was required to sign an "export limitation" form. The dealers are responsible for helping to prevent US initial purchase of a new car for export to other countries. The US dealer would be required (assuming the dealer knew the person was a Canadian resident) to have the Canadian resident sign this limitation form. Upon signature it is a contractual part of the car purchase. I would suspect that if the dealer screws up and does not have this Canadian resident sign the form they could take it back to Canada but the dealer might be in hot water with MBUSA over the matter.


European Delivery--This is another way that people might try to buy the car at US prices but keep the car in Germany. However for Euro Delivery you cannot get insurance or registration past 12 months if you are a US resident on a Euro Delivery car.

ljcool

I see. So no matter the circumstance a brand new Merc purchased from a US dealer can not be owned outside of the territorial US within the 12 month non export agreement. I never knew this coz I got my C300 second hand. Thanks for your answer!