jeffreyy

Hi. I'm curious. How much is everyone hearing as to dealer mark-up for these new SL55s?

Jeff

jeffreyy

The reason I am asking is that I am #1 on the list in my area. They have given me a November build date with a January delivery time frame. However, with the markup they are asking for, I'm thinking about waiting until things cool down. Seems crazy to pay so much more than sticker just to be first.

I've been reading the board for 6 months now, but this is my first posting. Great community of enthusiasts here... Any help would be greatly appreciated.

Tezta

Jeffery, welcome to the board.

I don't understand, you are at the top of the list for your dealer, yet they will charge you a markup for the 55? Right now the 500's are being sold by authorized dealers as "used" with the standard 10-15K markup. Non-authorized dealers are selling brand new SL's for a bit less than the 15K markup. To my knowlege Mercedes dealers are not allowed to sell any brand new vehicle with a markup so I guess your buying from an non-authorized dealer? What would the out the door price be from your dealer? Right now there are some Euro models going for any where from 150K to 200K, I think there was one US spec car on Ebay for 150K. Honestly i would wait for the new Baby Lambo and spend 150K on that instead of a 150K SL55.

theboogers

i too am # 1 on the local dealer list. my salesman said he thinks the higher ups may want a premium above list for the sl 55. i just got a sl500 with everything and am waiting for the word on the sl55. there is little you can do if the dealer wants more money than to pass on the sale, unless someone has another idea.

blueSL

Unless you have money to burn, it's a bad idea to pay over list because once the supply eases, you will be sitting on huge depreciation. It's interesting to see the cars for sale on ebay, all with reserves and hardly any selling. Paying over list to an MB dealer is one thing, paying to a speculator is something else.

Mr. Xristo

MB dealer's get around this by "trading" cars (i.e., buying, and selling amongst themselves).

This, in effect, allows them to sell new vehicles as used, because there is more than 1 name on the title.

jeffreyy

Thanks for the warm welcome!

Well, it is an authorized Mercedes dealer. I find it puzzling. They want $20K above list for the SL55. Brand new, I get to spec it.

Now, do I think that Mercedes in warranted in charging $20K more for the SL55 compared to the SL500? ---Yes.

Do I think that I should pay the dealer an additional $20K (over retail) for the SL55 for allowing me to be first when I have been first on their list for 2 years and they have had my deposit for 2 years? ---No.

Also, if I refuse to take the first one, they state they will bump me to the bottom of the list #1-->#19.

I would be very interested to know if there really are pricing guidelines or restrictions for Mercedes dealers. I can't say I've ever encountered such strong-arm tactics from a dealer before.

Jeff

awiner

You are correct, Mercedes dealers are not supposed to charge over window for a new unregisterd vehicle. However, here in Souther California, most Mercedes dealers DO charge well over window for hard to get AMG vehicles.

Obviously, Mercedes looks the other way, as this has been going on for many years now.

Mr. Xristo

You may wish to ask "RAB" (member of this board) what you have asked all of us. He may be able to provide you with some additional information.

jeffreyy

Thanks for the advice everyone! I'll try and send a message to RAB.

To be honest, it doesn't matter to me if I'm first in the neighborhood with the car. Personally, I'd rather wait until early next year and get the new DVD Nav in the car anyway. Also, I'm somewhat nervous about quality issues that have been reported with these first units.

However, this is my first experience with this particular dealer, and I have to say, I just object to the whole way this issue is being handled. I will likely refuse to buy the car from them just on principle. If I knew this a priori, I would have also put down a deposit with a dealer in California I have happily purchased from before.

Anyway, thanks again for the help! I hope everyone else has better luck with their SL55 orders!

Jeff

bobafett

This is absolutely preposterous. Have you taken it up with the owner, or at least someone of that stature?

I've found that explaining your position, and if necessary the clout you have (thousands of MB owners nation-wide who ARE very active and are amongst the top-spenders / owners) in order to come to some resolve.

I'm curious to see what the outcome is, and I hope it's in your favor in a good way.

--Dan

Robert ...RAB

Jeff,

I haven't been able to respond to your personalized e-mail because I've been swamped today. I trust this will help. We've closed for the night so I have some quiet time.

Keep in mind, I'm not bred from the loins of the "SalesMonkey" so I'm inclined to side with you guys, the consumer. In this case I have to ask for forgiveness because of my business background and understanding that without profit, one falters quickly in the real world.

As you well know, business in this country functions very well under rule #1 of Economics 101. "Supply and demand dictates price." Simple enough? Too many want the little that one has. Not unlike an auction. Right? Does the low bidder take home the rare painting? I think not!

The operative word in the letters, MSRP, is "Suggested". No where does it imply THE ONLY. I don't know where some people come up with the notion that independent businesses, in this case M-B Centers, are not allowed to charge whatever price they want for their merchandise. I've asked around of some very seasoned M-B Managers and no one can show support of such a legal document. I'm sure MBUSA would love it if all M-B dealers charged MSRP. Goodness, wouldn't my job be easier. If it were demanded and enforced I believe some well meaning organization in America would immediately sue for "Price Fixing." We are not always best served by well meaning attorneys. Just look at the cable industry and the airlines.

In the case of the SL55 AMG, the supply will be well under the level of demand the Mark commands. It's done intentionally and for good reason. Exclusivity breds repeat clientele'. If Rembrandt painted thousands of pictures, who would pay top dollar for one? Most people with your income level don't want what the average guy has, you want what's unique and less obtainable. "Ego de-voiding" I call it. Nothing wrong with that. It's your money, afterall and I'm certain you worked very hard to obtain it.

You can pay the man's price and be the first on the block to own one. Or, you can drop off the top of his list and hope to get one much later when the novelty wears off. It will be much, much later. By that time, something new and very exciting will come about and you will have forgotten about the 'old technology' of the '03 SL55 AMG. I see it all the time in the car business. It's what pays our mortgages.

Personally, I think anyone who pays excessive amounts of money only to have the latest and greatest has too much money to burn because that is exactly what they're doing. To use the venacular that many on this formun use, "you're pissing it down the toilet." Unless it's a '55 Gullwing, even a venerable SL55 will eventually lose it's luster and lose it's value. Look at the softening of the CL55 market! It no longer commands the Sticker + $25K it once generated.

In summary, it's entirely up to you but please people, don't complain if the bonified business owner can ask and receive his way with the price. It's still a free market and you do have the option of passing.

Enough said, for now. ...RAB

jeffreyy

RAB and Bobafett,

Thanks for the input. I can totally understand that prices are driven by the market. I am somewhat surprised that MB has no control over this, but if that is the case, then that is the way it is.

It turns out that a lot of my friends are frequent buyers from this dealership, so I will see how things pan out.

Personally, as I mentioned before, I just object to the handling of the whole situation. If they think they can get $20K over, let them find some poor sap that will pay it. All I want is to keep my spot in line as it were. So, if they want $20K over for spot #1, fine, let them find someone else. If they can't and want to talk about closer to retail, they can contact me again.

However, I think that trying to threaten me with the whole, "you have to buy it or we drop you to #19" is simply rude and not very bright. People on the list only have $1000 on-the-line and a refundable $1K at that. There is no guarantee that any of these people will spend $140K+tax for a SL55. I'm sure a few people will but eventually no one on the list will. I won't even though I could just because I think it is throwing money away as RAB says. Had they said, "okay, if you choose not to buy now, we will contact you when the next car is available," that would have been okay with me and a far more professional way to deal with the situation, in my humble opinion.

All they risk doing by treating me in this fashion is losing a customer and his friends who are also customers. If I don't buy a SL55 right now, I might buy a SL500 in the interval.

To be honest, they already lost one sale from me in this fashion. I was looking for an E. I tried to get my salesperson to run a search as it was a little bit of an unusual configuration (Xenons/Bose/Rear Sunshade), and my saleperson refused saying it was a waste of his time as the configuration was too rare to exist. I simply went to California and bought the car.

From my perspective, I placed faith in the dealership that they would treat the sale of the SL55 fairly two years ago when I placed my deposit. I feel that now, I am being backed into a corner which is not something I would expect from a MB dealer or find pleasant.

I think you will agree that another rule of business is always treat your customers well. Why tick off a customer when you can treat them fairly and professionally and maintain a good relationship?

Jeff

blueSL

It's obvious your MB dealer is sitting fat dumb and happy and doesn't care whether you come back in the future. I've always judged how well I'm doing in my business by whether clients come back for more, it's much easier to retain a client than find a new one.

If I were you, I'd pass, let someone else pay the premium. If you buy, there will be this nagging feeling you've been shafted which will be proved correct in a few years at trade in time. Instead of buying the car being a happy occasion, a dream realised, you will hate the scum bag of a dealer.

Prices will come down, they always do but I don't envy your position.

jeffreyy

Well stated BlueSL.

Jeff

Mr. Xristo

If you feel you are being treated unfairly, write a polite, and tactful letter explaining your situation. Include the signed contract, and the cancelled check. DO NOT address, or send the letter directly to the dealership. This letter is to be addressed, and sent to the Better Business Bureau in your area.

Only carbon copy the dealership, MBUSA, etc., and the others. You are not the only one that has been treated like a number, but by writing a letter, you are actually doing something about it, whereas others would simply walk away feeling taken advantage of.

I recently had a terrible dining experience at an area resturant, and the owner was very rude to my date, and I. I wrote the BBB, and CC'd, the 2 owners, the local "City Magazine", and the County Chamber of Commerce, and the City Chamber of Commerce.

Be positive in your letter, and express the truth as well as how the situation has made you feel. Also express the amount of money you have spent at the dealership on previous vehicle's.

This format:

---->START---->

DATE


Better Business Bureau (in your area).
123 Anystreet


Dear Sir, or Madam:

COMPLAINT


Respectfully,

signature

YOUR NAME

Enclosures:
Contract
Cancelled Check

CC:
General Manager, DEARLERSHIP YOU ARE DEALING WITH
NEW CAR SALES Manager, DEARLERSHIP YOU ARE DEALING WITH
Mercedes-Benz USA, LLC, 3 Paragon Drive Montvale, N.J. 07645
YOUR LOCAL CHAMBER OF COMMERCE

Mr. Xristo

I couldn't agree more!! I would be out of business if I were to treat someone like that!!!

MarcusBenz

jeffreyy,


I don't mean to get off the subject, but isn't the dealer in Hawaii the only one on the islands? This lack of competition maybe the reason behind thier "Where else you gonna go" attitude. I don't want to sound as if I agree with this way of doing business, just trying to rationalize the situation & see why they would do something of this nature.


MarcusBenz
H.O.I. MBZ

Mr. Xristo

Be that as it may simply because you have the market in your area does not warrant the attitude.. It is greed, plain and simple.

But, people will do what they will.

You could also purchase the Benz in CA, and ship it to Hawaii!!

MarcusBenz

I would like to say I agree with RAB on the point he makes about
"Price Fixing" If it were up to the dealer, we would all be like Saturn, One car One price. But, in today market (especially in So.Cal) everyone is looking for the BEST DEAL & will waste one whole day they could be spending with thier family, not to mention the gas, to save $5 a month on thier payment. I try to explain to people who have thier own business to look at it from our point of view. If we are to take those ridulous deals where we net a profit of negative $2500, we must have those deals were we get over MSRP to keep the balance. If it were not for those rare occassions the dealer would have to go out of business. I know a lot of people think I am the typicial "Sales-Rape-Person", but I have been on the consumer side of the table longer than the sales side & I understand what getting a fair deal is all about. It is a business just like any other, it must make money to survive & if it doesn't, it must close its doors!

One last thing & I will step off my soapbox, if you read the disclaimer on MOST deposit reservations, it will state that the dealer cannot guarantee the price of the vehicle & it subject to "Market Conditions", it is simply a reservation that secures your place in line & that it is FULLY REFUNDABLE.



MarcusBenz
H.O.I. MBZ

MarcusBenz

By all means you can do exactly that & again, I am not condoning this method of doing business, just was not sure if there were another dealer in Hawaii.


MarcusBenz
H.O.I. MBZ

Mr. Xristo

I agree!! It is simply not the way I do business!!

jco-amg

My reservation includes stock # and specifically states "MSRP at time of delivery"...it pays to shop around. I will make alot of phone calls and visits to save 15-20K!

Mr. Xristo

If the signed contract states "MSRP" and they charge you more, they are in breach of contract...

MarcusBenz

It is always a good suggestion that you have all your I's dotted and T's crossed, especially on a potiential $120k piece of artwork.


MarcusBenz
H.O.I. MBZ