What's the avg % discount on Mercedes MSRP

Ask the Hackrs
1

Team:

I just got off the phone with a good friend who is a Mercedes client advisor here in Virginia and he stated that Mercedes only has 6% markup on their cars.

If this is true, how is it that per your example, the Bluetec e class can be discounted so much more?

(Assuming a sticker price of $61,045, we believe an excellent but realistic selling price is $52,500)

I trust him and am wondering if regions and dealers are really that far off? (I’m hoping not)

Thanks!!

2

While it’s true the difference between MSRP and invoice is roughly 6%, dealers get all sorts of bonuses and holdbacks that enable them to sell cars for below invoice.

Pricing varies by region; we arrived at the target price of 14% off MSRP based on the Average Price Paid information found on a popular car shopping website using a Los Angeles zip code:

Bear in mind you won’t get close to that discount if you work with a salesperson on the showroom floor. The internet sales/fleet sales department goes by a different compensation structure and will generally provide lower prices.

As for the average % discount, it really depends on the model. Mercedes-Benz’s C- and E-Classes will see the biggest discounts, while new models like GLC-Class will be discounted minimally.

3

Thanks for the quick reply, Michael.

I am curious what you meant by working with the internet sales/fleet sales department. Are you saying someone within the dealership that holds that position?

I guess I’m trying to land as close to that % as possible.

And thanks again for all of the knowledge on this site. I didn’t even know I was eligible for the FEP discount but thanks to you, I received my control number today.

4

Ps. I’m looking at either an E class sedan, coupe, or c class since they do give the best deals per the FEP

5

Usually, it’s whoever responds to your online form/email inquiry – rather than the first person who runs out to greet you in person at the dealership.

E-Class deals can be great! Best of luck.

6

Got the following quote for E350 for Raleigh, NC. Please let me know if this is a good deal.

$61,130 MSRP
-$4,500 DISCOUNT
-$3,500 FEP FLEET INCENTIVE

$53,130 SELLING PRICE

36 month lease with 10k miles per year
$1,408.21 total due at signing including taxes, DMV fees and 1st payment
$611.05 monthly payment

7

Hey Michael, thanks for this website it’s been very informative. I’m looking to lease an E class for the first time. I live in the LA area and was wondering what the best way to get a deal is. So far all the people I’ve spoken to have only gone to 6% off MSRP. For example I opened up the Silver Star AG website and clicked contact us.

Is that the best way to get an Internet sales? Do you have any tips for a beginner or even a dealer more likely to get one through? Best I have gotten is 561 a month on E250 BluTEC with 2400 down not including reg fees.

Thanks

8

Here is the breakdown I am now getting:

E350W $53,100

149 Polar White
111 Black MB-Tex
P01 P01 Premium 1 Package: COMAND(r) System wi $4,180
540 : Power Rear-Window Sunshade
536 : SiriusXM Radio w. 6 mos. service
531 : COMAND Navigation
502 : Multi-Year Update
500 : Power Folding Mirrors
287 : Split-Folding Rear Seats
P49 : Mirror Package
R02 All-Season Tires (Std.)
R38 18-Inch 5-Double Spoke Wheels
218 Rearview Camera
321 321 Sport Package: Lowered Sport Suspens
954 : Sport Package
951 : Appearance Code
772 : Sport Bodystyling
677 : Suspension for Sport
4U4 : Radiator grill with central star
51U Black Roof Liner
6P5 Factory Code
736 Black Ash Wood Trim
810 harman/kardon LOGIC7 Surround Sound Syst
873 Heated Front Seats(Incl.in P01 pkg)

SUBTOTAL                                         $57,280
DESTINATION & DELIVERY                              $925
TOTAL                                            $58,205

I can sell this one to you for $49,000! (+ Tax and DMV)

Comes out to $53,954.95

This is all done pre-FEP, which I am a United Premier members. Does this look right? I haven’t mentioned leasing so far just inquiring about the price. What advice can you share for a newb?

Thanks

9

The dealers that I’ve talked to have said that their pricing includes the Mercedes Winter Event Bonus Cash and that this bonus cash cannot be combined with the FEP discount.

The Winter Bonus Cash is $3000, while FEP is $3500, so realistically, you’d only be saving about $500 with FEP.

10

I checked with a source, and quitepossibly is right – it turns out the FEP incentive cannot be combined with the Winter Event certificate, which dealers likely have already incorporated into their quotes. Bummer.

That said, you can try using the FEP incentive as a negotiation tool. Say that you’re aware FEP is $3,500 while the Winter Bonus certificate is $3,000, and that you’d like to use the FEP incentive instead. Ask if they can knock another grand off the selling price in total, and if so, offer to come in “today” to pick up the car.

Then clarify you’d like to lease the car. Ask for a lease quote using the same selling price, and ask for the base money factor (no markup). Tell them you have excellent credit, if true.

A selling price of $48K should result in $403/mo+tax with first month’s payment, MSD, license/reg as drive-off.

11

Michael, can you post what the money factor and residual for the MB E350 sedan for a 24 month and a 36 month lease with 12,000 miles per year?

I’ve been told that there is a promotional MF for this car, but it cannot be combined with the multiple security deposit discount.

12

2016 E350 Sedan, 12K/year
24 mo: 65%
36 mo: 58%

.00068 MF for both terms

Starting around April of this year, MBFS changed their policy to allow MSDs with promotional rates once again. I’d ask the dealer to double-check with MBFS.

13

I purchased a new MB E550 Coupe in 2013.
MSRP was $68905. I got it for $57405. So around a 16.66% discount right off the boat

14

Hi Kumarsrin
I am trying to negotiate a GLC300 in Cary,NC and can use your insights. Between the three dealers, did you narrow down on one best ?

Regards
Karthik