Executive car mark up!!!

[Jonnygearbox]

MY Fiance's Family Owned Rossets Mercedes Benz until her father passed away last year and it has since changed hands to another family member. After discussing car with the her uncle to new owner i got talking to him about the price of AMG and other luxury brands in general and was shocked to hear that the mark up for the MERCEDES and AMG models was 42%.

Just bare this in mind the next time you try to haggle with a dealer and they tell you we can only knock off a few ££££. This is utter lies and with the C63 AMG which retails at roughly £56,000 which in fact costs them around £32,000-£33,000 to buy from the factory thats why when u come back in 2 years they can offer you £39,000 etc for your car. They still have made over 20,000 in profit from you so they dont mind giving you a little back.

Just a bit of food for thought the next time you go in and deal with the mercedes benz dealership for a new car

I feel sorry for the SLS Owners who purchased new

 

[MOCAŠ]

the C63 AMG which retails at roughly £56,000 which in fact costs them around £32,000-£33,000 to buy from the factory thats why when u come back in 2 years they can offer you £39,000 etc for your car. They still have made over 20,000 in profit from you so they dont mind giving you a little back.

Have you never heard of VAT? Pre-tax list price of a C63 is around £46,000, so if the dealership is buying them in at £33,000 their mark-up is £13,000. Not all of that will be profit - they still have overheads to consider in running the dealership and the salesmen still have to be paid - but that's the most they have to play when discussing discounts, unless they're prepared to sell at less than cost. By the way, it's not news that luxury goods carry the greatest profit margins.

 

[Jonnygearbox]

the £33,000 is already taking in the consideration for the Tax

 

[MOCAŠ]

the £33,000 is already taking in the consideration for the Tax

So are you saying that dealerships actually pay the factory £22,000 for a C63?

 

[moonloops]

Have you only just realised you live in a capitalist economy/country also ?

They sell at a price they can achieve: ergo supply and demand.

I don't begrudge anyone trying to make a profit, but I do have a slight disdain for those folks who want the cheapest price possible (and end up with horse meat..) There is a sensible middle ground..

 

[John Jones Jr]

mark up for the MERCEDES and AMG models was 42%.

If somebody asked me what was the margin (without kick backs, rebates or taking in house finance into account) on a new £56k Merc or BMW for that matter I'd have said 10%.

 

[Jonnygearbox]

There is £11200 tax on a C63 at £56,000

Taking that off the list price leaves £44800

Taking the 42% of the £44800 leaves £25984 Which the Dealership pays the factory actually (without tax)

£25984 adding tax is Just over £31,000 that the dealer has paid cost.

 

[Jonnygearbox]

even with the 20,000 plus they add on of course tax comes into that also, still a heafty profit margin whichever way you look at it.
and i was merely just pointing out people can haggle that little bit more thats all

 

[MOCAŠ]

There is £11200 tax on a C63 at £56,000

Taking that off the list price leaves £44800

Taking the 42% of the £44800 leaves £25984 Which the Dealership pays the factory actually (without tax)

£25984 adding tax is Just over £31,000 that the dealer has paid cost.

Your figures are out. VAT is payable on the list price of the car, which is stated as being £46,025, and first-year VED is a fixed amount of £1065 (for a C63), so the dealership has to pay £10,270 in tax on the sale - assuming that the car is not sold to the customer at a discount.

Also, a 42% mark-up is not the same thing as taking 42% off the pre-tax price.

 

[MOCAŠ]

even with the 20,000 plus they add on of course tax comes into that also, still a heafty profit margin whichever way you look at it.
and i was merely just pointing out people can haggle that little bit more thats all

The fact that there's room to haggle is a fair point to make, but let's not pretend that dealerships are making anything near £20,000 clear profit on the sale of mid-range cars like the C63.

 

[Jonnygearbox]

Well either way, the dealer pays 42% less than the car is retailed for so work it out youself, i just know there is a hefty profit margin

 

[Jonnygearbox]

it even goes down as far as the smaller car ranges like vauxhall, Our local vauxhall had a employee only special where the employees could buy the VXR corsa £1000 on top of cost price and the employees paid something silly like £11500 all in for the vxr.

 

[b1g1an]

Oh for the days of the old car tax, 5% of the cost to the dealer so everyone knew what they paid for them.

 

[Bluebell]

Rossetts lost their Mercedes car franchise in 2002 when Mercedes took it in house, they retained the Mercedes commercial vehicle franchise which they have to this day.

Leaving aside that never in a million years is any car retailer making a 42% margin, I think the OP is talking rubbish.

 

[davidjpowell]

I don't believe that there is a 42% mark up on an AMG. I do believe that the cost to 'build' the car may be 42% of the list price.

The manufacturer is not going to sell to the dealer at that price though....

 

[MrVix]

I have never heard such twaddle, i think the op is being a little naive LOL !!!!

 

[colin.dillon]

If there was that much profit there'd always be a dealer who'd undercut everyone else to get the sale. Think that maybe a bit of embellishment and, which I know is hard to believe, maybe a few sherbets drank lol
Luxury goods always have larger mark-ups to take into account that fewer units are sold.

Don't have a problem with companies making decent profits - no profit=no company=no jobs
Col

 

[MarriedBlonde]

Just out of interest why didn't you buy your c63 form your fiance's garage? Surely they could have sourced you one or could have suplied a new one cheaper than getting one from a dealer in huddersfield?

J.

 

[Jonnygearbox]

can this be deleted please

 

[renault12ts]

Nope...it's here for posterity.