mercedes overpriced

[pacemaker]

i take back my original statement in another thread where i said mercs were cheap
yes they are excellent value when compared to bmw and audi but having just visited the usa webpage i am disgusted to learn that a new c class is £10,000 cheaper over there
i know exchange rates are good but thats crazy
plus obviously they only do decent engines plus better specs

 

[Shude]

That's true for all cars and mostly all other products in the USA, due to cheaper land prices, labour rates, availability, everything. The USA prices appear artificially cheap because of the exchange rate, if your currency was USD then you'd not be able to appreciate that.

Did you remember to include sales tax in your calculations? Might add another 8% onto the price.

 

[MikeL]

I Agree

To be fair to Mercedes, not that it justifies anything, you will find that BMW, Audi have similar UK mark ups - unfortunately it is hard to make other car comparisons due to lack of other manufacturers UK/USA cross over brands.

One thing Mercedes do in the states is offer option packs - a load of accessories under one payment - that would save a few quid.

What is of more concern is the increase in new Merc prices over the last couple of years, looks like they are trying to claw back the price cuts of previous years.

If you want a real shock, check out Dell computers, some of their stuff is over 50% (fifty) more expensive in this country - must be the conversion to right hand drive .

Cheers

Mike

 

[silverarrow]

yep can still get uk cars from the eu at a discount i have seen not just an advert but the cars 54 reg class komp for £19 k all inc and it was auto

i feel unless uk dealers look after customers the resale values will still fall
look at lexus and they are doing a 50 mpg diesel
mbz better watch out when it is private money the trade value at 3 or 4 yrs is very important

 

[glojo]

i take back my original statement in another thread where i said mercs were cheap
yes they are excellent value when compared to bmw and audi but having just visited the usa webpage i am disgusted to learn that a new c class is £10,000 cheaper over there
i know exchange rates are good but thats crazy
plus obviously they only do decent engines plus better specs

I don't understand your point. Look at the price of fuel in the US! It is all about taxation and you simply cannot compare. In Norway you would have kittens if you looked at the price of the Mercedes-Benz. If you survive the shock, then check out the Malaysian prices.

I read with interest how a new US Ford Mustang V8 convertible retails in the US for just under £14000, that highlights the equivalent pricing.

The specs are definitely NOT better in the US, they are different. Try ordering a US E-class 320CDI Estate! You can't because they do not import it. Each country decides on what it wants from Mercedes-Benz and only imports that selection.

I might soon change my spots if Mercedes-Benz only supply the short wheelbase version of the new R-class into Europe though.

sorry to disagree with you, but I suppose that is the plus point about this forum. We all have differing opinions and can voice them in a polite informative manner.

Have a nice week-end,
John

 

[SimonsMerc]

i take back my original statement in another thread where i said mercs were cheap
yes they are excellent value when compared to bmw and audi but having just visited the usa webpage i am disgusted to learn that a new c class is £10,000 cheaper over there
i know exchange rates are good but thats crazy
plus obviously they only do decent engines plus better specs

Hrm...is it possible/easy to import a car from the states and register it over here? Left hand drive won't bother me (I drive abroad a lot, it'd probably even be useful). Anyone done this? Any idea how much it would cost?

-simon

 

[andy_k]

Hrm...is it possible/easy to import a car from the states and register it over here? Left hand drive won't bother me (I drive abroad a lot, it'd probably even be useful). Anyone done this? Any idea how much it would cost?

-simon

yes you can do it but if it's a new car then you'd need to add VAT and all the other taxes the UK levies on new vehicles because there is no free trade agreement like we have with the rest of the EU. I seriously doubt you'd get any warranty cover (unless of course you returned the car to the original dealer) so come resale time it would be almost worthless

Lights would be different spec, as already mentioned the trim level and options on the car are different to Europe etc etc so presumably you'd need to get all the neccessary conversions done and the car inspected before you could register it in the UK.

So, yes it could be done but it would make more sense to buy a two year old UK car and let somebody else take the big hits in depreciation

Andy

 

[grober]

Screw The Consumer

All part of the great UK screw the consumer tradition. Maybe they cost more in order to fund the great MB palaces of glass and steel springing up around the country. Pity they dont seem to worry about the quality/price quotient of the product inside them. Cars are a mass produced item like washing machines, TVs, computers etc. Ok they are a bit bigger but so what? The same principles apply. With mass produced items the idea is make many/ sell many and your unit costs stay low. Wonder just how much it costs Daimler Chrysler to make a C180 in South Africa. Bottom line. I think we might be surprised.

 

[andy_k]

possibly very little but that's not the point. DC are in it to make a profit and they need the punters to buy their products in order to do that. Like any other product a car is only worth what the customer is willing to pay.

From what little I know of American car prices, the dealers have to really work to sell cars because American customers expect a bargain and would walk away if they were offered just a few percent "below list" and buy from another dealer or worse still another marque and not selling at all is far more costly to a manufacturer than selling a car at a reduced profit.

Sadly we only have ourselves to blame and If everybody stood up and said "we are not buying new cars because they are too expensive" the manufacturers would have to reduce their prices but that won't happen because people fall for the old "I need a new car to reflect my status" idea and settle for grudgingly paying any price to have that new car parked on their drive rather than fighting for a bargain.

Andy

 

[grober]

Take your point Andy but why DB AUDI and BMW want to take MORE profit in the UK than elsewhere in the EU. I'm not denying them profit just why do motorists in the UK have to subsidise the rest. The UK has always been regarded as a cash cow by all car manufacturers. Technically we are supposed to be in a free market but witness all the obstacles put in the way of people trying to buy cars in Europe. Continental Mercedes dealers RHD "PREMIUM" was a recent example. DB said this was for increased administrative costs!!!!!!!!!!!

 

[glojo]

Take your point Andy but why DB AUDI and BMW want to take MORE profit in the UK than elsewhere in the EU. I'm not denying them profit just why do motorists in the UK have to subsidise the rest. The UK has always been regarded as a cash cow by all car manufacturers. Technically we are supposed to be in a free market but witness all the obstacles put in the way of people trying to buy cars in Europe. Continental Mercedes dealers RHD "PREMIUM" was a recent example. DB said this was for increased administrative costs!!!!!!!!!!!

This is a Mercedes-Benz forum so we quite rightly highlight this marque. You have mentioned BMW and Audi, but surely any comparison to show the stupidity of this point must be aimed at the likes of the Range Rover, or Discovery. You order a car from a European dealer, they order it from the UK, they export it to Europe, you buy it and re-import it back to its country of origin and still save thousands of pounds????

Pick on Mercedes-Benz by all means, but open your eyes to what our own country has started and Europe is simply copying.

John

 

[Will]

Agree with most of the above - you could go on for ever with similar examples, but is has all been said already.

This is Britain and no one is forcing anybody to buy anything.

Anyone who doesn't like new car prices can vote with their feet - either buy secondhand or import yourself. Andy's example may sound ridiculous, and in practice would probably never happen, but if people were not buying the cars then manufacturers would be forced to slash their profit margins.

I'm sure that if I was running a similar business I would make an informed judgement as to making a balance between selling a certain amount of cars, and as to how much profit each sale made. If I knew I could sell the required amount at my current price, why would I sell them for less (that wouldn't make very good business sense!). I would be doing whatever was needed to maximise profits, just like any other dealership would in the UK or abroad.

Lastly, has anyone stopped to wonder why else the prices may be more expensive here? I'm certainly no accountant, but I bet the cost of land/property for the dealerships, taxes and rates, insurances and salaries for the staff that run these UK businesses are higher than some equivalents abroad - just a thought.

And as always, just IMHO.

Will

 

[gary350]

Mercedes cars are overpriced in the UK by 30% min compared to the USA, its the options that highlight the differences its dollars for pounds (nearly 50% difference), why because the Americans would not buy them if they were priced as per UK or in fact europe. Because its a big market for them they still make a handsome profit in the US, what do you think would happen if we stood up and threatened to boycott their cars, nothing - but if we got together with some other EEC countries - then your talking. My belief is that they consort (in europe) together to keep prices high, greedy blighters.

gary

 

[glojo]

Mercedes cars are overpriced in the UK by 30% min compared to the USA, its the options that highlight the differences its dollars for pounds (nearly 50% difference), why because the Americans would not buy them if they were priced as per UK or in fact europe. Because its a big market for them they still make a handsome profit in the US, what do you think would happen if we stood up and threatened to boycott their cars, nothing - but if we got together with some other EEC countries - then your talking. My belief is that they consort (in europe) together to keep prices high, greedy blighters.

gary

Hi Gary,
I for one appreciate the input, what are the taxes that are applied to the US cars compared to UK cars.

I am certain that US 211 vehicles do NOT have the standard features on their E-class that we have. The options that they can buy are similar to the options we can purchase. In your opinion what options are available in the US that are not available in Europe?

Why do you think that US vehicles are not popular here in the UK if they are such good value? The Ford Mustang being a prime example, it is available with a 'small' V6.

US prices are indeed attractive and that applies across the board. A number of us have purchased electric car polishers, there are a number of boat importers that sell US boats. People fly to New York solely for shopping trips so do not believe for one moment that it is just Mercedes-Benz.

John

 

[janner]

I always thought that US cars had higher specs than ours. (certainly true on the W124).
I can't believe they're whinging about paying almost $3 a gallon (US gallon).

there are a number of boat importers that sell US boats.

US boats are about half the price that they are here but by the time you add shipping, tax, VAT and CE marking they're about the same price.
Well, we've got to pay for all the asylum seekers and gypsies somehow..

 

[glojo]

I always thought that US cars had higher specs than ours. (certainly true on the W124).
I can't believe they're whinging about paying almost $3 a gallon (US gallon).

Definetly not the case for the 211. I take with the proverbial pinch of salt most of the comments posted here. The very basic US E320CDI sells for $51,750, it does come with leather seats though, but once you start hitting the options list then it becomes a very expensive vehicle. after that you will have to import it into the UK (with all the different taxes)??? Then try to get the vehicle adapted for use on our roads etc etc. My comments only apply to the 211, as it is a vehicle that I have developed an interest in.

It is healthy though to have a good old fashioned rant, just to purge hte system

As I have continually stated the US does not have access to all the standard features that we have, they do however have cup holders as standard, but these are available in the UK as options. Ask for a 320CDI estate in the US and you will be told they are not produced?? Ask for SBC Hold and you will get a blank stare.

As all good journalists say, "Never let the truth get in the way of a good story!"

John

 

[gary350]

glojo, if you take the SLK350 its basic is £34340 here in the uk which is about $63500 the americans pay a destination fee of $720 and taxes which vary state to state (I believe) and the cost of the car is $46970, the only difference is that we get electric seats they dont as standard. But they have packages like entertainment/sports/comfort etc, if you take the entertainment package which is DVD Command + Harman/Kardon sound system + 6 disc auto changer which cost $2800 in the USA here the 3 items work out to £2800 or $5180 (based on 1.85 $ to £). The differences in the far east or South America are even worse than ours.

When I told a US friend that I was paying around $74000 for mine he said no one in the USA would pay that sort of money for the car and were even moaning about paying mid $40s over there. Go to www.mbusa.com and see the prices they pay, $53900 for C55AMG, $80000 for E55AMG, $60500 for SLK55AMG

gary

 

[glojo]

When I told a US friend that I was paying around $74000 for mine he said no one in the USA would pay that sort of money for the car and were even moaning about paying mid $40s over there. Go to www.mbusa.com and see the prices they pay, $53900 for C55AMG, $80000 for E55AMG, $60500 for SLK55AMG

gary

Hi Gary,
I note you have an SLK and no doubt you are very knowledgeable regarding its options.

Use the same link you have and look at the E-class and you will see where I am coming from. T

Would your friend buy fuel at the prices we pay?

It is simply all about taxation.
John

 

[Rory]

A few points here:
All the US prices you see are tax, registration and delivery exclusive. These charges vary by state, but on, say, an 'entry level' C-Class might be around $5000. I *think* the tax % rates increase on more expensive cars?

I'd tend to disagree about the spec's - there's usually a much more limited range is the US (especially engine choices) and options are usually in packages. BMW is a good example of this - the 'entry level' 3 Series is a 325. It's a very similar spec to UK SE version but includes Sun (they call it Moon) roof but doesn't include parking sensors. There's a limited range of options and option packs. Options are usually much cheaper than UK.

I reckon the main reason for reduced choices is that Americans generally won't wait for a car - they like to buy from stock, so the manufacturers have limited the engine/option choices available to make stocking them more viable. Of course the Americans are also not interested in a C180K, or a 318i, as they've only got 4 cylinders

Many new cars are private leased in the US and it seems staggeringly cheap - I have a colleague in the US who's just got his wife a Porsche Cayenne for $600/mth, and he drives an E55 at $800/mth. He told me that the standard College Grads cars are either 325 or C240 - they're the entry level 3 or C in the US and both can be had for $249/mth.

One thing that he (and others) have never been able to explain to me is why used cars are so expensive in the US. 3-4 yr old cars are about the same price as here. It kind of makes sense to have low lease rates if the residuals are high, but then if the cars are cheap to start with, why buy used?

 

[Dieselman]

Hi Gary,

Why do you think that US vehicles are not popular here in the UK if they are such good value? The Ford Mustang being a prime example, it is available with a 'small' V6.

This is more to do with the US cars not being type approved in the EU.
Also they don't meet EU crash test criteria, so can't be sold here.