Hello everyone
I am looking to get a ‘22 Mercedes GLC. I live in Los Angeles but am from San Francisco. In both regions, the dealers have tons of inventory and yet I don’t see them being discounted that much. Will these end up like the Acura MDX fire sales we saw in late 2020, with both models aging out due to a refresh? What do dealers plan to do with this inventory (50+ cars on the lot at most dealers)?
Thanks!
Whatever you’re seeing at the moment is the reality you’re living in. No one has a crystal ball regarding what dealers may or may not do in the future. Maybe they’re hoarding and will continue to hoard. Maybe they’ll discount them more. Who knows… but expecting firesales like the ones that happened pre-chip shortage seems unrealistically optimistic IMO.
And there’s no reason to assume MBFS will save the day with some amazing RV/MF, i.e. no reason to assume lease pricing will revert to some pre-pandemic mean.
I don’t know, to be honest. I think the recession is here and demand for products purchased on credit (e.g., luxury cars, homes) is collapsing right now. The conventional wisdom is what you say; the reality may very well be that cars become even cheaper than pre-pandemic. Higher rates are starting to filter through the economy and home prices in wealthy coastal California are already down 10-15%.
Those higher rates also cancel out the potential for any savings, unless you happen to be buying cash. Expect to see the same thing in the automotive industry, with the exception being that a cash buyer doesn’t really have an advantage there.
I don’t agree. Auto manufacturers can discount their financing terms and take a loss on the financing when there is extremely poor demand for their products in order to move inventory. That leasing environment does seem to be coming. Already you’re seeing cars that were above MSRP now 5-8% below in just a matter of months. Used car prices have slid 15-20% in the past few months. This is just the beginning.
Surprised Mercedes isn’t liquidating its aging inventory here.
You may be surprised, but I’m not.
Anyway, you’re the buyer. It’s your prerogative to wait for better deals or not. If you don’t have a deadline by which you’ll need to get a car, more power to you… that’s a luxury a lot of car buyers in the previous year or so didn’t have.
However, if this is yet another ‘crystal ball gazing’ thread it will be merged into the megathread that already exists. It’s up to you whether you want any insight on what price to target on a GLC at the moment or join all the other auto market forecasters
You think prices should go down sooner or later since they have a new somewhat redesigned one coming out?
What cars are you referring to? Are these for in stock units or custom orders? Care to share your source?
There were 130 on the ground GLC units between AutoNation San Jose and Stevens Creek when I checked the other day.
OP: email your offer, within reason of course. I could see 10% off being achievable on one of these. 15-20? Probably not.
I don’t see a recession here in socal, homes around my area sell pretty quick, if they are desirable, restaurants are full, retail is strong, store parking lots are full, getting a spot takes work. Interest rates are being raised because there is too much demand (spending) so trying to slow demand. It’s all about product, things that people want hold price better than junk. So good homes are still selling at full price because people want that house where it is and how it looks. Some crappy thing next to a busy street, that one has a deep discount right now. I don’t imagine a Mercedes SUV to be the non demand category.
I am not sure how this is relevant to my original comment.
If OP claims they are seeing discounts on cars that were being sold above MSRP a few months ago, then let them provide some additional info.
Although some brands/models are being advertised with discounts ranging from 5 to 10% off MSRP, most of these deals are on custom orders.
Here are some broker listings:
BMW 5-Series, X3, X5 at 8% off MSRP here in California
Lexus ES 8% off; last week, RX was 8% off (looks sold out now) in New York
Many dealers will tell you they can’t go below MSRP; it’s not true, because the market has materially shifted, and very quickly in the past few months. It will eventually reach all models.
I’m trying to unload my '20 Infiniti QX60. The value of the car was $38-39k at the beginning of the year; it’s $31.5k now, with some giving $29.5k. (The car has been driven 2k miles since then.) In passing, I asked the dealer about offers on the new vehicles. He’s telling me he can’t sell a new '22 QX60 below MSRP, and yet brokers here are offering 7-8% off MSRP. They can probably do 10% with some hard negotiation. (Not that anyone should be getting an Infiniti.). But why would even consider it when an X5 is being discounted 8% right now?
$5 million plus market has rapidly slowed down, with sales down by half, and prices down 10-15%, particularly in Pacific Palisades, Beverly Hills, Bel Air, Holmby Hills, etc. The $1 million plus minus part of the market is active, but even there you are seeing cuts unless something is properly priced to begin with. The slowdown is spreading quickly. Local car dealers are pushing cars faster than before.
Give it another 3-6 months and come back to me.
I have seen those broker listings. These are mainly for orders.
Dealers are in the business of making money. Certain brands and models have either always sold at or above MSRP. Some examples are Audi RS cars, Mercedes AMG cars, MB G Wagon, etc.
Seven, eight months ago I couldn’t get any mainstream Mercedes or BMW below MSRP, really. It’s a different market today. It will continue down this path. Rates may even normalize, but the collapse in financial asset prices occurring in the financial markets right now is psychologically scarring and destructive of demand. I’m wondering how to balance my desire to get a better vehicle with the reality that I will be taking a loss on a new car given the way the market is going.
Pity for my friends who paid $4k above MSRP for a Toyota six months ago.
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