Negotiating the price of a used vehicle at a MB dealership

[beaker218]

I was just wondering if anybody has recently had any experience in negotiating the price of a used vehicle with a MB dealership. Today, I offered £17,000 for a vehicle which was priced at £18,490. I thought this was a quite a good figure to start off a bit of negotiation but the dealership in Huddersfield wasn’t interested. The salesman told me that they price their cars competitively trawling the internet to establish the right price and it was the Groups policy not to negotiate on the advertised price. I have never come across this before when I have bought Mercedes from other dealers in the past although I am aware that the second-hand market has remained rather buoyant during this recession and maybe their approach has changed.

Has anyone else had a similar experience lately at any other MB dealerships?

 

[crockers]

What is the car? Is it fairly unique in regard to it's spec? Or are there quite a few around?
Are you offering any p/x? If not then I am amazed he isn't willing to offer any discount. Best time to pitch in for a car is end of month / qtr / year....when their bonuses are at risk..
I know others may disagree - but I could never pay asking price for a car...it goes against the grain and I am sure most if not all dealers build in some allowance for this.

 

[gibby2009]

I have seen similar with a new purchase at Newcastle. I tried to play the Sunderland Strockton, carlisle and Newcastle branch off on my purchase of a new E class.

They are all in th same ownership and apparently have a set policy about pricing by mercedes.

It very much sounded like they should be reported to the monopolies and merger commision! as once they new I had made an enquiry with one dealer the others as soon as they took my name would not talk to me.

I did manage to get a good deal and beat the what car price and those on line....

 

[peterg1965]

Was the car at a Stratsone dealership?

 

[crockers]

I have seen similar with a new purchase at Newcastle. I tried to play the Sunderland Strockton, carlisle and Newcastle branch off on my purchase of a new E class.

They are all in th same ownership and apparently have a set policy about pricing by mercedes.

It very much sounded like they should be reported to the monopolies and merger commision! as once they new I had made an enquiry with one dealer the others as soon as they took my name would not talk to me.

I did manage to get a good deal and beat the what car price and those on line....

OP is looking at a Used car - I appreciate that new ones can often have no negotiating if demand is outstripping supply..that's pretty rare for a used one though

 

[BTB 500]

I got a grand knocked off the forecourt price of my SL, and free Supagard included (Approved Used car, at a main dealer).

 

[fuzzer]

Was the car at a Stratsone dealership?

No , carlisle is syntner

 

[James Rothwell]

It's irrelevent as it differs from vehicle to vehicle, if they've got a £5k margin then yes getting £14900 off should be fine, if it's overage and owes them a fortune getting a penny off will be tricky!

 

[LTD]

Leave your details on a card, hand it to them and walk away.

You will probably get a call within the week if times are slow and it hasn't had much interest.

Forecourt metal very rarely accrues money for a dealership - it is a cashflow liability at times.

 

[grober]

I think the answer is not to fixate on one car/dealer. Assess the deal -make your offer--no success--move on. Until you have tried several deals its difficult to tell who is getting it wrong you or the dealer.

 

[James Rothwell]

Leave your details on a card, hand it to them and walk away.

You will probably get a call within the week if times are slow and it hasn't had much interest.

Forecourt metal very rarely accrues money for a dealership - it is a cashflow liability at times.

Good method, but most main dealer stock is funded by the manufacture so they usually don't start paying for the car for 90 days by which time if the car isn't sold you should have words with the buyer for the dealership!

Margins in the trade are tighter than ever yet people seem to be asking for more and more off, which is probably why he is saying no, nothing off the price to everyone. I generally explain to people fairly early on when looking at used cars that I haven't got massive margins but I'm happy to do a deal as long as it earns me something as I don't sell cars as a charity.

 

[wemorgan]

. I generally explain to people fairly early on when looking at used cars that I haven't got massive margins but I'm happy to do a deal as long as it earns me something as I don't sell cars as a charity.

I'm sure you're honest, but I've heard this phrase many times before from other dealers and it's rather like crying wolf. I'm not saying you're wrong to say it, especially since it's the truth, but don't be surprised when customers don't believe you. We've heard it all before

 

[Pappilo]

I think the answer is not to fixate on one car/dealer. Assess the deal -make your offer--no success--move on. Until you have tried several deals its difficult to tell who is getting it wrong you or the dealer.

+1
Although I bought new, my local dealer who was only about 3 miles away wouldnt give me a pound off the list price. I travelled 200 miles to pick up my car and saved me £3k. The local called me about 2 weeks ago asking if I got the car at the price I wanted and I replied yes, from South wales. He was shocked

 

[Noodle-Pulp]

I walked away 3 times in fairly quick succession, before the dealer came to the price I was thinking of, each time he got progressively nearer, the last time with the dealer principle. They thought they could nail me on extras or finance but I had the cash up front which was my bargaining chip. I also mentioned the Audi dealership just down the road was my next port of call.

Trouble is they buy the vehicle in at a price and if they can't shift it at top profit, and it's taking up forecourt space with not much interest they're going to negotiate.

 

[Rory]

Margins in the trade are tighter than ever yet people seem to be asking for more and more off, which is probably why he is saying no, nothing off the price to everyone. I generally explain to people fairly early on when looking at used cars that I haven't got massive margins but I'm happy to do a deal as long as it earns me something as I don't sell cars as a charity.

The issue I keep hearing is that, with new sales down, there aren't anything like as many used cars coming through. So the dealer is selling fewer cars and wants to maximise the profit on every car he does sell.

The dealer also has to think about how much it's going to cost him to replace a car that he sells - chances are the cost goes up all the time, but it's not so easy to raise resale prices.

One used car dealer on PistonHeads selling cars typically around £7-£9K said the advertised price is very critical - if it's £500 too much then people won't even come and look. So he sets realistic prices but people still expect a grand off.

 

[Bobby Dazzler]

I have seen similar with a new purchase at Newcastle. I tried to play the Sunderland Strockton, carlisle and Newcastle branch off on my purchase of a new E class.

They are all in th same ownership and apparently have a set policy about pricing by mercedes.

It very much sounded like they should be reported to the monopolies and merger commision! as once they new I had made an enquiry with one dealer the others as soon as they took my name would not talk to me.

Well it's not as if businesses are in cahoots to fix prices. Based upon your comment above they're all the same business - just different outlets. You wouldn't report Tescos for having the same prices in it's neighbouring stores.

There are plenty of other business from whom you may buy an E-Class. The secret is to play different dealer groups off against eachother, rather than outlets within the same group - or maybe brokers and other third parties.

 

[Rory]

...but I had the cash up front which was my bargaining chip.

Dealers hate cash (unless they're just about to go bust and need it to pay wages - apparently some people got *very* good deals at certain VW dealerships last year).

If you pay cash there's no chance to gain extra profit for the dealership and commission for the salesperson from the finance company.

 

[lil.smartie]

I'm in the other position. We've got my own forfour for sale at the moment and I've just put the advertised price up. I'd priced it at £6k, which it is more than worth as there are some which have sold on Ebay with more miles and as private sales for this, yet I keep getting asked what price will I sell it for and when I answer £6k they get huffy. There really isn't a better spec'd, lower mileage one out there for anywhere near that price! Really if people want to negotiate on price they need to do their homework 1st! Now advertised at £6.5k and I'll 'negotiate' to £6k if needed!

Kate

 

[LTD]

I think many people are only too aware of the prices that cars are bought in at and the prices that these cars appear at on the forecourts.

 

[beaker218]

The car I was buying was a CLS. Extra's included Command, Parktronic and a glass sunroof. Even so, the car is 4 1/2 years old and I've never paid the asking price before so I don't intend to do it now (although I have to admit I am hoping the dealer will ring back as I do really want the car - I just hope that as the year end looms nearer they start to get desparate for a sale)