Mercedes boss: Haggle free new car sales is working – and it’s what our dealers wanted

[KennyN]

Discount can be had quite commonly on Rolex watches....same as any other big brand watch.

Not if you cant actually buy one . every shop i go into either in the UK or abroad they only has "exhibition only"

Been three years since i put my name on the fictional "list" for a Deep Sea / Deep Blue and havent even received a courtesy call from either of the places.

Never heard of anyone paying under list in the UK for a new Rolex , in recent years.

K

 

[Scooby_Doo]

A car is a terrible purchase to "keep money in" - you would be better off with an asset that generates income and has some chance of appreciating in value not depreciating. Then use the income from the asset to fund a car.

So you sit on your money ,carefully watching it appreciate and then spend it on a car that depreciates. Life's too short , buy the car ,enjoy it and try and minimise the depreciation.

 

[Scooby_Doo]

Although a contributing factor to Porsche’s excellent residual values is their attitude towards discounts. A very small discount (relative to other manufacturers) on the volume models and diddly on the rest.

Improved residuals may be an outcome of Mercedes strategy to avoid discounts, stop chasing volume, and focus on maximising margins. Sounds a bit like their Stuttgart neighbour.

MB sell roughly 4 to 5 times as many cars as Porsche in the Uk, how low do they plan their sales to be to achieve that goal.

 

[Bobby Dazzler]

MB sell roughly 4 to 5 times as many cars as Porsche in the Uk, how low do they plan their sales to be to achieve that goal.

Which goal?

 

[Bobby Dazzler]

My impression is that MB has an inward facing culture and has lost focus on the customer. It can keep going for a while like this but ultimately it will kill the business. I'm not convinced that MB will survive the next big set of changes coming in the auto industry as new Chinese EV companies join the competitive landscape.

I believe Mercedes will continue to do reasonably well in the short-medium term, however like many other car manufacturers - especially volume manufacturers - their medium-long term future looks much more uncertain.

Chinese businesses learn and evolve quickly, are prepared to take risks, enjoy a low cost base and have extensive local manufacturing capability. As a result the automotive industry has been very concerned for years that the market disruption which Chinese car manufacturers could cause would dwarf the huge and growing success of the Japanese and Korean car manufacturers.

Electrification will slingshot the Chinese car manufacturers out of their domestic markets and into the established US and European strongholds. Whether they manufacturer cars for another brand, buy established brands, or do it in their own name their share of the global car market will grow dramatically, inevitably accelerated by the move to electrification.

Affordability will allow them to grow very quickly in markets where car ownership is less common and Western brands are too expensive for all but the wealthy. Even in the US and Europe, the affordability of Chinese EVs will attract buyers who cannot afford or justify buying EVs from the brands they used to buy. Even though new ICE car prices have risen there’s still not parity with EVs.

 

[st13phil]

Although a contributing factor to Porsche’s excellent residual values is their attitude towards discounts. A very small discount (relative to other manufacturers) on the volume models and diddly on the rest.

Improved residuals may be an outcome of Mercedes strategy to avoid discounts, stop chasing volume, and focus on maximising margins. Sounds a bit like their Stuttgart neighbour.

Private purchase discounts aren't the big driver of poor residuals, it's a combination of artificially high list prices and deep discounting for fleet sales. Fleet discounts have distorted the UK car market for decades and unless that's dealt with, the private buyer will always get stiffed.

Returning to MB, in the UK the list price of their volume models is consistently higher that that of their competitors which I suspect will prove to be unsustainable in a "fixed price" sales model. The issue they have is that if they did the realistic thing which is to reduce their list prices to bring them into better alignment it will cause howls of protest from current owners.

 

[Fastcar155]

Hi , please do not shout at me but I feel motor manufactures are having trouble in obtaining credit insurance for some of their dealers.

I understand that cars are generally paid for prior to delivery but transfers do go wrong potentially leaving an importer exposed to a bad debt.

Before I retired years ago credit insurance was a prerequisite before opening / continuing a credit account for a customer / old or new.

What it is like now I have no idea / but general insurance is in some cases tricky to obtain at reasonable premiums.

It is not that long ago a UK car manufacturer had to purchase a major motor group to safeguard their assets.

 

[davymead]

At my tender age I’ve witnessed many organisations think they can dabble with the laws of supply and demand and forever come up short. Mercedes vehicles do/will/have followed that law, and always will, with no exception.
Being involved for many years ‘in the trade’ I’d think maybe it’s Hyundai/Kia‘s selling technique might be where the opposition should be looking. They’re everywhere.

 

[Bobby Dazzler]

The issue they have is that if they did the realistic thing which is to reduce their list prices to bring them into better alignment it will cause howls of protest from current owners.

Now is the best time in decades to fix that, holding prices or increasing prices more slowly than their competitors will allow a correction without reducing list prices, in a fraction of the time compared to what it would have taken in recent history.

 

[chic0821]

Just as an aside, I did order the optional extra 'indicator package'

You must have waited a while for the delivery of your car, as that is a very rare option. Did the salesman, sorry, or saleswoman, sorry again, or some one, else show you how it worked

 

[st13phil]

Now is the best time in decades to fix that, holding prices or increasing prices more slowly than their competitors will allow a correction without reducing list prices, in a fraction of the time compared to what it would have taken in recent history.

That would be my approach too. However, on past performance I doubt MBUK would do it.

 

[MikeInWimbledon]

All EVs have suffered either large or massive depreciation over the last 6-9 months, some more than others - the Nissan Leaf being one of them. It is a decent car as a town run around, bear in mind that it uses Chademo as the rapid charging connection whereas nearly every other car ex Tesla uses CCS, Chademo will be phased out at charging points over time. Not an issue for a town run around charged at home but will impact Leaf residuals at some point.

Understood, this would be purely for local runabout / 50 mile radius work, charged from home. As far as I understand that's why the price has collapsed so much. (Less than £10k gets you the previous model). As you say, it's forecasting residuals that's the tough one.

Would rather have the e-Niro but then you're traipsing on Tesla's door. More money and then it starts to weakly challenge a "proper car."

 

[davymead]

All EVs have suffered either large or massive depreciation over the last 6-9 months, some more than others - the Nissan Leaf being one of them. It is a decent car as a town run around, bear in mind that it uses Chademo as the rapid charging connection whereas nearly every other car ex Tesla uses CCS, Chademo will be phased out at charging points over time. Not an issue for a town run around charged at home but will impact Leaf residuals at some point.

Predictable entirely for me as in my own circles I don’t know of a single person who would contemplate buying a second hand EV. Reflecting directly of course on the continued inflation of used ICE prices.

 

[chic0821]

Discount can be had quite commonly on Rolex watches....same as any other big brand watch.

Used to be, but not now. They are keeping the supply less than demand so pre owned are now selling at over retail. That is why Rolex have introduced Certified pre owned on pre owned watches (obviously) they come with a warranty (2 years) & sell for over retail would you believe, as the wait for most models is in years.
I have just sold my James Cameron Deepsea (4 years old) hardly worn for more than the current retail price. Still have a Daytona which is now worth a lot more than retail

 

[chic0821]

Been three years since i put my name on the fictional "list" for a Deep Sea / Deep Blue and havent even received a courtesy call from either of the places.

Just spotted your post, only sold mine about 3 weeks ago. Never crossed my mind to put it on here first. As a previous client, (bought 3 over a few years) I got mine about 2 weeks after visiting my AD requesting one

 

[ALFAitalia]

Predictable entirely for me as in my own circles I don’t know of a single person who would contemplate buying a second hand EV.

In my circles I don't know anyone who would buy an EV......FULL STOP.....new or used!!!!

 

[Fastcar155]

Hi , again many many years ago Roots group slashed the price of new cars , in particularly the Avenger.

Many dealers had had second hand cars on books but could not sell them , reason , your could buy a new car far cheaper than the second car down the road.

Audi to obtain a foothold in the again heavily discounted retail cars prices by 15 % but when the owners came to px them the residual value was poor.

I worked for a large fleet user , both car and commercial vehicles and the discounts they received were mind blowing.

What many people do not understand , it's the difference you pay between your px and your new car that's is important.

Again many years ago a friend of mine had a few franchise garages and his real competitors where the car rental companies , many owned by the major car companies.

The car industry is in a real mess that could have serious concquences for the UK economy

 

[E55BOF]

I have just sold my James Cameron Deepsea (4 years old) hardly worn for more than the current retail price.

Bit pointless having it, then, isn't it? Or did you buy it as an investment?

(I've just read Rolex's own blurb on the internet; ... Same planet, different world).

 

[KennyN]

Just spotted your post, only sold mine about 3 weeks ago. Never crossed my mind to put it on here first. As a previous client, (bought 3 over a few years) I got mine about 2 weeks after visiting my AD requesting one

I ended up buying one around three months ago from a local Grey Market dealer , paid around £1k over list but at least i have one now , better than waiting for "that call" from the AD to say i have been "selected" to buy a flipping watch or popping in and asking if they have anything for sale whilst already knowing the answer.

Still on the list and will take the watch if i can get it , stick it in the safe , and the kids can sell it when i checkout.

K

 

[Smiley]

Understood, this would be purely for local runabout / 50 mile radius work, charged from home. As far as I understand that's why the price has collapsed so much. (Less than £10k gets you the previous model). As you say, it's forecasting residuals that's the tough one.

Would rather have the e-Niro but then you're traipsing on Tesla's door. More money and then it starts to weakly challenge a "proper car."

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If the car is only to be used as a local run around and charged at home then there is little point in buying a 64kWh 300 mile range e-niro - good as they are. The bigger the battery the heavier it is and the lower the mpkwh. A nissan leaf 30 will easily do 50 miles in the depths of winter and can now be bought for peanuts, a pre April 2017 one will only pay £20 ved even from 2025 and servicing costs are practically zero. If you have the space for a spare car, can charge at home and don't want to fire up the v8 to go to the shops an EV shopping trolley is a bit of a no brainer really.