MB to target younger drivers with Financial Services

[grober]

Mercedes would be well to remember that Prestige comes with Exclusivity. Get too many people driving Mercedes for just that name/badge as opposed to unique qualities that rival brands don't possess may eventually bring people to the realisation they are driving a Renault with a Mercedes badge on the front and paying handsomely for it?
As ol Abe Lincoln said
You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.

 

[nick mercedes]

Mercedes would be well to remember that Prestige comes with Exclusivity. Get too many people driving Mercedes for just that name/badge as opposed to unique qualities that rival brands don't possess may eventually bring people to the realisation they are driving a Renault with a Mercedes badge on the front and paying handsomely for it?
As ol Abe Lincoln said
You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.

Driving a Renault, but paying Mercedes money for servicing it.

 

[renault12ts]

What's wrong with Renault?

 

[Deleted member 6183]

Acquisitions?
Aviation?
Marine?

Space?

Three pointed star would look good on the moon.

What about you?

Spacecraft, definitely spacecraft.

 

[grober]

What's wrong with Renault?

Nothing- they're cheaper to buy and service. Renault have a historical pedigree similar to Mercedes and a history of F1 and WRC success.

 

[renault12ts]

Nothing- they're cheaper to buy and service. Renault have a historical pedigree similar to Mercedes and a history of F1 and WRC success.

Cheers...I have pedigree.

 

[Deleted member 6183]

Cheers...I have pedigree.

A Spaniel?

 

[StuartK]

I think the age/financial ability thing is a bit insulting if I'm honest. I'm 27 why should I be too young to buy a Merc!?

Also with the greatest of respect I havnt gone entry level and nor did I previously. If someone can afford it then why not? So I don't get the MB have gone downmarket comments?

I think the only thing I disagree with at the moment with the manufacturers as a whole but MB seem to be going drastic with it is the stupidly small engines.

For example a C200d is a 1.6 litre! Ridiculous, tissue tearing performance in pursuit of mpg.

 

[ash59fifty-uk]

^ C200 cdi is a 2.1TD isn't it? Do you mean the 1.6 Kompressor model

 

[ash59fifty-uk]

(Mine)

 

[renault12ts]

I think the age/financial ability thing is a bit insulting if I'm honest. I'm 27 why should I be too young to buy a Merc!?

Also with the greatest of respect I havnt gone entry level and nor did I previously. If someone can afford it then why not? So I don't get the MB have gone downmarket comments?

I think the only thing I disagree with at the moment with the manufacturers as a whole but MB seem to be going drastic with it is the stupidly small engines.

For example a C200d is a 1.6 litre! Ridiculous, tissue tearing performance in pursuit of mpg.

No one said you were too young...though you have the usual propensity of young people to see insult where none was either intended nor given.

If you had been born 20 years earlier than you have been, I doubt you would have had a MB at 27...they were very dear 20 years ago (and any AMG would have been well beyond the grasp of any but the most wealthy) compared to now. The prices of MB have effectively not just stood still for 20 years, but with the cost of finance being so low have gone backwards.

My first MB cost £30000 in 1999...and cost more (in actual pounds and pence) on a monthly basis than a well specced new C63 today...get the picture? And so yes...they are going down market, in so far as the demographic who can afford to drive them now could not have done so as recently as 20 (or fewer) years ago...is there a better demonstration of going down market?

As for the "stupidly small" engines...on what planet were you born? There are very few mainstream makers other than MB and BMW who make large engines...and these are dying out.

Strange as it may seem, many many people buy cars for other than the outright performance of the engine. I suspect the most common E class in the UK is the E220 cdi...and those people are unlikely to be unable to afford the larger motor.

Without getting personal, can I ask what you do for a living?

 

[StuartK]

That's a fair comment however your assuming that £30k is a small amount of money these days when it isn't.

I'm a partner in a small property firm I don't see how thats relevant?

 

[StuartK]

^ C200 cdi is a 2.1TD isn't it? Do you mean the 1.6 Kompressor model

The new C200d is a 1.6 Renault lump.

Fine thing it is but paying £30k for a Laguna with an MB badge is a bit strong.

Especially when no V6 diesel option is given

 

[John Jones Jr]

...they were very dear 20 years ago (and any AMG would have been well beyond the grasp of any but the most wealthy) compared to now. The prices of MB have effectively not just stood still for 20 years, but with the cost of finance being so low have gone backwards.

My first MB cost £30000 in 1999...and cost more (in actual pounds and pence) on a monthly basis than a well specced new C63 today...get the picture? ?

Go back thirty years and it's worse.

A family member paid c.£40k for a well spec'ed late 80's E-Class saloon, no discount, no finance deals. According to the BOE inflation calculator that's £80k in today's money and not an AMG badge insight. Expensive or what?

Even my own 2.5-16 was £39k back in '91, £75k today...

No doubt Merc's have become cheaper. Larger volumes, economies of scale and easier/cheaper to produce. They just lack quality.

 

[gIzzE]

That's a fair comment however your assuming that £30k is a small amount of money these days when it isn't.

I'm a partner in a small property firm I don't see how thats relevant?

It is compared to even 25 years ago.

I bought my 2 bed terrace house, in the right part of town, for £36k in 1992, that same house just sold for £280,000.
My old man collected his new E320 the same day we got our keys, that E320 was £36k.

I know property prices have gone up a lot since then, but in 1990 when the E320 launched, the UK average wage was £13k. Spending that on a car back then was not for the masses.


£30k in the grand scheme of things is peanuts if we are honest with ourselves.

 

[John Jones Jr]

The new C200d is a 1.6 Renault lump.

(

It's all about the badge. Sadly, most couldn't give a rats **** about where the parts come from even major components like an engine or even chassis for that matter. Badge is 'King' (possibly with a manageable monthly PCP too).

 

[Deleted member 37751]

I bought my 2 bed terrace house, in the right part of town, for £36k in 1992, that same house just sold for £280,000.
My old man collected his new E320 the same day we got our keys, that E320 was £36k.

I don't think that E320 of your dads will be worth £280k now pal.

 

[Deleted member 37751]

That's a fair comment however your assuming that £30k is a small amount of money these days when it isn't.

You're missing his point; it's only really been the last ten years that Mercedes have really made their cars affordable compared to previous, older models and the only way you can do that is to reduce the build cost and offer cheap finance.

Like some of the examples given, if you adjust for inflation your C63 would probably be about £150k new compared to say 20 year ago and there wouldn't have been any 'dealer contributions' either.

 

[Harrypic]

The bottom line is MB aren't a charity, they are a global corporate business and have to answer to their shareholders, who demand growth and value for their investments. R+D cost on a new model/technology is huge, has to be paid for and a few diehards in smoking jackets wanting exclusivity would have sent them down the SAAB conclusion years ago.

All prestige manufacturers face the same dilemma and have adopted the same business model, to survive you need a model range that crosses demographics and feeds long term customer loyalty....today's A Class youth is tomorrow's SL63AMG.

Every A Class etc that's sold to a "youth" means money in the kitty to develop cars like the SL and S class, so embrace it because without it not many of you will be driving Merc's in 5 years time ��

 

[Deleted96908]

That's a fair comment however your assuming that £30k is a small amount of money these days when it isn't.

Depends how you view £30k. Few have access to the cash, many have access to the facility.

However, Mark Carney noted recently that the UK needs higher interest rates to promote growth, so we can be sure the cost of financing cars will grow - whether they will rise to the 8% to 15% range that was common before 2008 (when you were early 20s?) who knows.





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