neil5619
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Looking for a new C200 which is in stock. Can see a few premium plus options for around £48K.
Is there room to negotiate?
Is there room to negotiate?
Can you still haggle for a new car?
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liamt
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If you mean a brand new car from a Mercedes retailer then generally no. Due to the agency model the prices are now set by Mercedes and not the franchised dealers. There may be discounts offered on specific models, again these are set by Mercedes themselves, the online showroom price is what you pay effectively. Having said that, when my brother bought a new A200 back in September he did get a very small loyalty discount from our Sytner dealer on top of the discounted online showroom price being an existing customer but it was very small, essentially it was like a small dealer contribution but wrapped up as a loyalty discount, that was specific to Sytner and you had to be an existing customer to get it. Not sure how they were allowed to offer the small loyalty discount on top of the advertised online showroom price but he did get it.
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neil5619
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Thanks. Does this explain why they are not really on carwow (i.e. they dont send you a quote for a car vs what BMW do)
liamt
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Pretty much becuse the price would be the same irrespective of the dealer, it is worth noting that other manufacturers are also looking to adopt the agency model as well. I think Mini were looking to adopt it next year followed by BMW in 2026. Mercedes are one of the first to switch over to the model. The main driver is to boost direct sales online, by offering a single prices across all dealers and online it has more or less levelled the playing field.
NJSS
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I will certainly not consider buying a new car if the agency model precludes me from negotiating directly with the vendor.
Dryce
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It shouldn't really matter. The issue simply comes down to the price you are willing to pay. Whether it is negotiable or not is just an issue that arises because of tradition.
Doodle
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Manufacturers are definitely going to need to up their customer services game, no longer will they be able to fob off customers back to the dealer and keep them going in circles. I suspect we're going to see a lot more US-style class action lawsuits in the future.
Dryce
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There are a number of areas where there should be an investigation.
- Cost of parts involved in insurance repairs
- Servicing and servicing plans
- Subscription features - and variation in terms and conditions.
As an example on that last item. MB sent me this crap on requiring me not to object to a change terms and conditions.
I love the bold bit.
It's not just ephemeral features that can be switched off - this is a general threat - and these can include security and navigation features that improve the economy performance of the car.
I think this is unfair to the consumer. They can change the rules after purchase. And it's likely going to get worse.
ALFAitalia
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The reason they always sent you back to the dealer is because legally your contract was with them... not the manufacturer. You had no claim against the car builder at all in the eyes of the court.
With the agency type dealers it's the manufacturer that is liable... to me that's much worse...your local dealers that you used to be able to go and shout at to get things done....and he legally had to sort it... can now legitimately kick it back up the the manufacturer .... which of course is far more difficult to deal with as a private individual. Nothing about the agency sales scheme appeals to me....but since I never buy new cars, just motorcycles , it won't be an issue for me. But if I was in the market for a new car I would be buying it from a dealer... not an agent... and therefore.... not a Mercedes. On general, not brand affiliated, car forums this seems a common view. The agency type sales arrangements are not favoured.
MikeInWimbledon
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My strong views on negotiation come purely from my experience from managing the sell side (in other industries).
You can talk all you like about the importance of standardisation, fairness and continuity.
But, at the end of the day, some stuff sells itself, while other things have to be kicked out of the door. (Think new model launches vs run out models - SL63 discounting comes to mind)
Some dealers are simply more efficient, so have bigger margins.
Some stock gets ordered but then gets cancelled and so sticks, waiting (for another customer who wants Hyacinth and grey with Bose)
And at the end of the reporting period, everyone, but everyone, wants to get that extra kit out of the door to hit the numbers, so there’s a push to find “deals” to do the month, quarter or year. (Think 2024 EV quotas)
And some customers have more clout. If you are buying big volume, you will expect preferential treatment because of the economies of scale you can bestow on the dealer or manufacturer.
You can talk all you like about the importance of standardisation, fairness and continuity.
But, at the end of the day, some stuff sells itself, while other things have to be kicked out of the door. (Think new model launches vs run out models - SL63 discounting comes to mind)
Some dealers are simply more efficient, so have bigger margins.
Some stock gets ordered but then gets cancelled and so sticks, waiting (for another customer who wants Hyacinth and grey with Bose)
And at the end of the reporting period, everyone, but everyone, wants to get that extra kit out of the door to hit the numbers, so there’s a push to find “deals” to do the month, quarter or year. (Think 2024 EV quotas)
And some customers have more clout. If you are buying big volume, you will expect preferential treatment because of the economies of scale you can bestow on the dealer or manufacturer.
ALFAitalia
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Thats how it was....not now...at least in the car game.
And bigger car dealers get the exact same margin as the smaller ones.....
And bigger car dealers get the exact same margin as the smaller ones.....
Skd884
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Very little, if any.
The industry talks about "pull" and "push" demand situations - basically you've either got customers queuing up to buy your cars, and you can't supply enough, or the demand isn't there, and you've got to push your product with incentives. Manufacturers love a pull situation, because it reduces factory inventories and stocking costs once the cars leave the factory. The problem is that for volume manufacturers. "pull" never really works, because you can't predict demand with the precision needed. Production line speeds are agreed with the unions, and this includes not only the number of cars per hour, but also the trim mix, as higher level specifications require more items to be fitted at various work stations on the line. If your "pull" situation is not generating enough orders to the correct mix. then you can either slow down or stop the line, which delays sold orders, or build for stock - which then has to be "pushed". In my own experience, there were many occasions when the factory guys who strongly advocated the demand led system had to call me to ask me to order batches of cars (without dealer order cover), because they needed to "fill the line".
The agency model is designed to work with a "pull" situation. It makes it very hard for manufacturers to manipulate the market at the end of the month or the quarter if their market share was not where they wanted it to be. Under the old system, you could give your regional managers handfuls of dosh to chuck at marginal deals, or to pay dealers to do pre-registrations. That doesn't work under the agency model - you could arrange a few pre-registrations, but the cars simply won't be available. The agency model is probably better for those customers who know exactly what they want, and order it in time for when they need it, and don't mind paying a premium for that. If you're looking for a bargain, forget it.
The agency model is designed to work with a "pull" situation. It makes it very hard for manufacturers to manipulate the market at the end of the month or the quarter if their market share was not where they wanted it to be. Under the old system, you could give your regional managers handfuls of dosh to chuck at marginal deals, or to pay dealers to do pre-registrations. That doesn't work under the agency model - you could arrange a few pre-registrations, but the cars simply won't be available. The agency model is probably better for those customers who know exactly what they want, and order it in time for when they need it, and don't mind paying a premium for that. If you're looking for a bargain, forget it.
MikeInWimbledon
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Interesting example of VAG pushing out stock before year end.
Nothing special, of course, just an example.
Nothing special, of course, just an example.
Corporate bingo bs.
It is very simple....
There is a level of demand for a product that either exceeds, is in line with, or is lower than the supply of a product. Depending on which of the three the product sits in at any given time will dictate whether the pricing power sits with the supplier or the buyer; ie price rises or falls.
That's the theory and it works most of the time. I guess that the agency pricing model seeks to hide the reality of the supply and demand forces from the consumer because no dealer is going to undercut another, even if demand is way below supply.
Dryce
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With a production line the situation is made complicated by the inability to arbitrarily vary the supply to match demand.
Manufacturers have used pre-registration and their finance arms to provide a means of flexing deals to try and match over supply conditions and mask discounting to protect list prices.
The agency model doesn't really affect this. It's more about how the manufacturer gets control over the customer and financing. Alongside this there is control over service pricing and vehicle digital subscriptions. And then the setup of resale tiers of approved used with finance and servicing.
Volkswagen Group slips agency model plan into reverse
Three years after Volkswagen Group UK began implementing agency-style contracts for some of its dealer networks selling electric vehicles, the group is now considering reversing its rollout.
www.am-online.com
Hi liamt
Hi neil5619
I Have just purchased a new A class Premium plus. Have you a part exchange? I managed to get an extra £250 pound more on my p/x. Word of warning if buying new make sure that all the digital extras are on the vehicle as stated in the brochure before buying. I am still in discussion with The dealer because some digital extras are missing due to production issues. (Have no 2nd camera fitted to operate traffic sign assist) Not told when I purchased the car
