MB changing direction to sell cars

[chic0821]

Might find a lot more zero mileage "demonstrators" in your local Mercedes dealer if sales dip.

 

[oldguy57]

I don’t believe the Competition and Markets Authority will be too concerned as Mercedes won’t be controlling the price of all vehicles, only the vehicles they themselves manufacture and/or import. There are more than enough vehicle manufactures and importers operating in the UK for there to be free choice in the market.

Yes but surely it's restricting price competition between independent dealers.

 

[Bobby Dazzler]

Yes but surely it's restricting price competition between independent dealers.

You’re absolutely right, it will certainly restrict pricing competition for Mercedes models, but as Mercedes models account for a relatively small share of the total market, it won’t restrict vehicle pricing across the market as a whole.

The CMA have been known to reach surprising conclusions though…

 

[190]

On the subject of Mercedes prices, it's obvious that they have been pushed substantially higher. Only a few years ago a base model C class was £30K now they are £40K. I did the sums on comparing the cost of a C class back in 2009 when mine was new and the price today. The cost of a new C class has risen by a over twice the rate of inflation over that period which makes them much less affordable than they used to be. It's as if they are deliberately going back to the days when a Mercedes was much more expensive than other makes of a similar size. I wonder if the strategy will succeed as BMW 3 series prices start £3K lower and Audi A4 $6K lower.

 

[Fastcar155]

Hi , well it what I said over 12 months ago , will Mercedes survive in the UK market !

Generally MB dealers are appointed in geographic locations in clumps.

Markets change over the years and companies come and companies go.

From what I can remember Mercedes in the fleet markets were only interested in 400 cars plus.

Will Mercedes have to perform a U turn ?

!!

 

[Dryce]

On the subject of Mercedes prices, it's obvious that they have been pushed substantially higher. Only a few years ago a base model C class was £30K now they are £40K. I did the sums on comparing the cost of a C class back in 2009 when mine was new and the price today. The cost of a new C class has risen by a over twice the rate of inflation over that period which makes them much less affordable than they used to be. It's as if they are deliberately going back to the days when a Mercedes was much more expensive than other makes of a similar size. I wonder if the strategy will succeed as BMW 3 series prices start £3K lower and Audi A4 $6K lower.

MB aren't the only ones upping prices. I noted VW had been quite happily raising prices.

The market for MB evolved to the point where PCPs were the core of private purchasing and fleets the route to sub-3 year Approved used.

With PCPs we were seeing offers involving 'deposit contributions' making a £40K list car a notional £35K car on PCP. And with GFVs the PCP rates would be possibly 'discounted' a bit furtjher to meet a monthly price point.

Problem I think is that we have a trap where the market spirals down in terms of volume and has no real way of protecting itself but upping prices which may cause a further reduction in sales. Reduced sales increase vehicle costs - manufacturers need to increase prices to sustain profits. But with dealers reduced new sales potentially also lead to reduced stock of AU a year or two down the line. And then the workshops also lose business with in warranty work.

If things were to go bad then the forced move to EVs may well ultimately 'save' the manufacturers by allowing them collectively to gouge that part of the market to extort what profits they can.

In a worst case situation we could end up with a two tier driving setup in the mid 2030s - one set of drivers in shiny new expensive EVs and a rump of Cuban style old 2020s clunkers refusing to be let go becoming ever more restricted in where they can go.

 

[Tiim533]

I had an E43 on order for months, but then as no build slot could be confirmed before the year end, the dealer returned my deposit, as they could no longer honour the discount. It’s bad as the dealer I used was very good, but now all orders have to go through MBUK, he couldn’t track one down and “swap” which he had done previously for me. Now prices are effectively controlled by MBUK, I fear for his sanity.

I met a MB USA dealer principal in California in July, and he said the dealers in the US are ready to go to court to avoid the agency model. He was pretty agitated to say the least.

So, with a heavy heart I placed an order for a an 840i, have the build slot and it should he here in November. Got 11% off list as well for cash (up to 17% for PCP but I don’t like debt. The dealer said the agency model may come to them in 2025, but they were all looking to see what happens at MB. Oddly, indicators came as standard.

Very sad to be leaving MB, and my sales guy. Hopefully sanity will return.

 

[Scooby_Doo]

Something's changing with MB , had a look on Drivethedeal last night to get a price on an A35 AMG - nothing - no Mercedes at all , not even listed.
Mercedes have always had a huge selection of cars on DTD and good discounts , so either they don't have enough new cars or discounts have now stopped.

 

[markjay]

In the US, the price new cars (those in demand, anyway) consists of MSRP + Dealer markup + mandatory accessories.

So you have the manufacturer's advertised price, on top of that each dealer adds what they think they can add, and in addition some mandatory dealer fitted accessories are added such as an 'upgraded' alarm system etc.

Your only wriggle room is the Dealer markup.

Each market has its own quirks.....