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Prices Paid: Buying & Leasing Experiences Mercedes-Benz SLK Prices Paid and Buying Experiences
118 messages, Last post on Apr 24, 2009 at 8:43 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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folks, if you're trying to boil-down the numbers,it goes like this: mercedes fixed pricing about five years ago throughout the U.S., so the apple in Alaska will price the same as the apple in Florida, and everywhere in between. The mark-up in the cars is 6.9% across the board. So, you take the MSRP, subtract the $720 destination charge, then multiply that amount X .069 and that is the profit margin. Now before everyone responds with "holdback" and "rebates," let me say something about that, because this site is dedicated to disclosing that info, but I don't believe everyone thinks critically about it. In a perfect world where every car sells the day it hits the lot, the dealer NETS almost every dollar of that holdback. In the real world, cars can sit on the lot for up to a year if they're cold(wagons, for example) and consume not only their own holdback, but that of 4-5 other cars as well. All holdback does is pay the interest that the cars are drawing while they sit. A small dealership like I work at can expect to pay 3/4's of a million dollars a year in floorplan interest, and my store has two salespeople and we sell 80-90 cars a year each. The holdback barely keeps the lights on. Also, if you MUST be a shopper at this level of auto, try your best to buy from the people who will service your car, because the good servicing of these cars is far more of a value to you for the years to come than the moment of glory when you 'get the deal.' There is also, I think, the importance of spending your money within your community. Shop everyone else first, if you must shop, and give your local store the last word,(unless they are among the vermin that give this business a bad name). It's very easy to beat someone else's number, but pay someone for their time and expertise. Sorry for the rant. I'm a huge enthusiast, but I work long, hard hours(wah!) and feel like I have to defend the good people of my profession. |
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Replying to: stroudman (Mar 17, 2005 7:51 pm) Has anybody seen this kind of thing?
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Replying to: espresso1 (Mar 22, 2005 10:44 pm) BMW calls it MACO.. and with them, it varies by metro area or region... I don't think your dealer is lying to you.. If you think they are making up fake invoices, then using them to sell you on a deal, I'd go somewhere else.. but, that seems like a lot of trouble to go to... When you ask to see the invoice, or negotiate a certain amount "over invoice", then expect to see a lot of extra charges... |
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| most dealers are compelled to participate in regional advertising, it's part of the cost of doing business. The dealers are in business to make money, so if you're trying to manuever around that fact from one angle, it stands to reason they will try to make their profit from another angle. If you're in the market for a mercedes-benz automobile, then somewhere, someone is paying you a significant profit. Why, then, shouldn't you? | |
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Replying to: espresso1 (Mar 22, 2005 10:44 pm) |
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| Thank you! I find it hard to understand why so many people who are in this bracket of cars are so afraid to pay a profit. I think part of the reason our economy seems so slow to rebound is because so many consumers have made such a science of not paying anyone for anything, anymore. Money has to circulate. If you're going to buy a ford or toyota, by all means shop, there's a store on every corner. But when you're talking about a premium, pleasure car such as a mercedes roadster where service after the sale is a huge factor, pay the guys you expect to bend over backwards for you for the next few years a profit(not "holdback," a meaningful profit). At sticker price the dealer nets 6.9%, less than most state and local sales tax. | |
Regarding economy, it's yes and no. The money saved from SLK can be better used to buy PSP or other computers to save economy even more,  I believe dealers have to right to make profit. Also, we, consumers have right to look for better deal. The reason you see so many webs/forums/message boards for price issues is that simply internet works better for consumers. I have never done invoice + something before. It's been alway fixed prices deal. So, I didn't know there is such item in the factory invoice list. Paying $500 more for a $50000 car should cause so much damage to a buyer. I just wanted to know if it's legal. Thanks for sharing your knowledge. |
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My bad It should read "Paying $500 more for a $50000 car SHOULDN'T cause so much damage to a buyer." |
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Have to replace my OEM Michelins--which are "summer tires" with "all season" tires as we get some snow in winter. Any recommendations? Am thinking about Pirelli "P Zero Nero" They look good from the info on Tirerack's site. Also how can I salvage some money from the Michelins that have less than 3K miles?
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Replying to: greasykid1 (Mar 25, 2005 9:21 am) |
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