Hi,
Planning on getting a Mercedes-Benz C-Class and was wondering how much discount to haggle of the retail price?
15% off?
20% off?
25% off?
Wondering what their margins are?
Thanks
Mercedes-Benz C-Class
congo on 18/02/2014 - 08:34
Comments
99% off + 10k cash back to keep it profitable.
What does this mean exactly? Could you please elaborate?
Given that MB is not Toyota - i'd say 20% could be real. Tho you'll have to pick something from stock. Only small discount is usually possible if you order customised vehicle.
I tried calling MB in Sydney and Melbourne for an ex-demo/used SLK200 for 2011-2013 models and the most they ever offered me was a 10% discount (in most cases less)
Could you give some pointer on how to negotiate?
Possibly you'll get some extras or a bit better discount paying cash.
I don't know about the extras but I mentioned to the guy on the phone that I was willing to pay cash and he told me it made no difference how I paid for the car and it wasn't going to get me a discount…
A dealer would rather a bank cheque than cash, which is too much hassle to count and bank. They would much prefer a finance deal on which they get a cut as well. I was negotiating on a demo MINI once and they would only accept my low offer if I financed through BMW finance as well. No thanks.
Out of curiosity, is there anything stopping someone from repaying most of the finance from day 1?
Say I borrow $50,000 from BMW finance, can I repay $49,999 the very next day?
It's usually a fixed term contract, so you are up for an early termination fee (which is normally about what interest they were going to make). But each contract is different, so read the t's and c's.
However I think you have a cooling off period in which case you can pay out early without penalty
BMW Finance/Alphera don't have those penalty so yes, in theory you could repay the whole lot within a month or three. Then again why? You've already paid for the application fee somehow and taken a hit on your credit file.
My train of thought was less interest charged and since the dealer might only give a meaningful discount on finance deals. This might be the best way to go (assuming the application fee isn't horribly expensive)
$30,000 I have done with Toyota payed 29,999 5year later gave them $20. they real pissed off about but u pay as much as u like.
Yeah I was thinking the same thing like this:
Original vehicle cost = $60,000
Best price after finance = $55,000
Finance application fee = $500Pay off $54,999 on day 1
interest after 5 years = ~$20Total $55,520 vs $60,000
Some finance companies impose a penalty for paying off the loan too early and some have a clause stating how much maximum you can pay over first 18 months or so. I would advise to go through their terms and conditions to check whether they have any catch as mentioned above.
Don't forget that most insurers charge a premium on encumbered vehicles - I think it is about 10% more each year on your insurance premium if you car has a loan registered against it.
I've done something similar to this before, but with a different manufacturer.
What does this mean exactly? Could you please elaborate?
That was an attempt of a joke, sorry. Ozbargain way to purchase is to get an item for free and some cash back on the top of it:)
I tried calling MB in Sydney and Melbourne
You'd never get a good deal over the phone.
Could you give some pointer on how to negotiate?
IMHO - Easiest way is shop around 2 times. 1. Get prices from a few available dealers and make a list of them. 2. Come to each dealer once again with the list and ask if they can make a better deal.
Another imho - if 5-10% of the price is a big concern, than new or near new MB is not a good option, because of depriciation.
You'd never get a good deal over the phone.
Yeah I noticed, the problem is most of the decent prices are in melbourne or sydney which is a fair distance from where I live. However it might be worthwhile taking a day trip down and shop around.
IMHO - Easiest way is shop around 2 times. 1. Get prices from a few available dealers and make a list of them. 2. Come to each dealer once again with the list and ask if they can make a better deal.
That sounds like a good idea… But wouldn't the MB dealerships be a fair distance away from each other? I guess I'd just have to take the tram to different parts of Melbourne then?
Another imho - if 5-10% of the price is a big concern, than new or near new MB is not a good option, because of depriciation.
I was looking to go for ex-demos, or are these cars still too new for any real discount? (i'm hoping for the 15-20% range)
Have I read this correctly?
You expect 99% off the price of a brand new MB plus a $10,000 cash back?
Yeah that and people thinks by flashing cash will be a bargaining chip.
It means jack shit in the grand scheme of things.
Well, money talks, but to be heard you'd need to be throwing your cash on the table, physically. That brings with it it's own set of problems, but you'd be immediately qualified as a legitimate buyer.
I could pull out a credit card or a cheque book to achieve the same.
I paid cash. Made no difference whatsoever as the question of "would you like to finance it with us?" only came up after we had agreed on everything else. Only thing paying cash does is tell the dealer that you're ready to go and not pending something (i.e. you don't need to put "subject to finance" on the contract for sale).
Nice car… all those OzBargain deals have been paying off for you
I'd say at least 20pc considering an all-new model has entered production already.
Unfortunately you've missed out the deals that was on late last year/January. Prices seem to have gone back to where it was even though the new model is now in production. Wait till June I suppose.
If you want 20% off without too much effort, try Audi any day of the week. A pleb walk in with little haggling should get 17-18% without much resistance, aim at 20%+ will be met with some resistance but not unachievable.
Buy a demo if price is a concern. Besides, there's not much options available on the C anyway, not like you'll be missing out on 'personalisation'.
why are you worrying about the purchase price? the amount the car will depreciate is the first couple of year will greatly eclipse any haggling discounts
Minimise your loss at trade-in/resale time.
Take a looksie at Red Book…most cars after 3 years are worth around 60% of their RRP (without options and/or on roads) so if you're paying 20% less, while you aren't exactly in front but it hurts your wallet less.
My experience is that the car dealers haggle on these things a lot more than most of us. They don't want to waste time in the haggling bit until they know you mean business. Go into a dealer, let him know you are going to 3 dealerships in Melb/Syd to buy a car. Make sure the dealers you choose aren't part of the same group/franchise!
Play the dealers off against each other. They will give you excuses for prices that are 'one time only', 'only good for the next hour', not prepared to give a written quote etc. If they don't want to write a quote down, ask for a business card/brochure and write the car and model/details on it. Be very careful for things like 2013 plated cars etc and make sure you understand what you are getting a price on.
Take your price to another dealer, regardless of what the 1st seller tells you. Show it to another dealer even if the 1st guy makes the price conditional on 'only good for the next 1/2 hr' or even if he doesn't want you to show it to anybody else etc. The other guys you show it to will possibly be very quick to point out to you if you are getting stitched up with an old model or a demo or some kind of crock deal. I would try and play 3 or maybe 4 off against each other. No messing about be straight with them and tell them:
'I've done my research, this is the car I want to buy, I have the finance ready to go and I will buy a car this day/week. Here is the best price/deal I've been offered from (insert dealership here) can you guys beat this.'
When you have a standout or when 2 or 3 of the others concede you have a great deal and cant match it, buy the car.
Be careful of the 'lowball' offer. This is where the 1st dealership you go into offers something crazy cheap. Nobody else comes even close so you go back to this guy and then all the excuses start. The one they quoted has sold because YOU didn't buy it on the spot etc. This is a trick designed to put pressure on you. After making the removal of their original deal sound like it is your fault, they will then bail you out with a different offer that is way less competitive and potentially worse than other dealers. The lowball is designed to waste your time and make sure you come back to the 1st dealership giving them the last crack at your valuable decision making time.
Most of the negotiating/sales tactics these guys use are designed to put pressure on you to make a rash decision. Despite how friendly they are and how nice they will try to be, most of them are remunerated via commission and they need your business. You make worse decisions when you are stressed so if they can put pressure on you they are a better chance of making a sale. Deals that are 'time dependent', complicated etc are designed to put that pressure on.
Great advice!
The lowball is designed to waste your time and make sure you come back to the 1st dealership giving them the last crack at your valuable decision making time.
THIS is the best insider tip.
what is to say the 2nd or 3rd dealership doesn't give you a lowball also? If you've done your research, you'd realise the lowball is an insane deal and you simply say "OK…where do I sign…?"
Because on your 3rd dealership your not interested in wasting another few hours so you go in there and say:
'I've done my research, this is the car I want to buy, I have the finance ready to go and I will buy a car this day/week. Here is the best price/deal I've been offered from (insert dealership here) can you guys beat this.'
someone give this guy a cookie : D
Great advice - will definitely try this one the next time i need to buy a car
Awesome tips! Thank you very much for the tips :-)
Another tactic is look for cars in 'distress'.
Dealers are funded by floor plans (think of a massive revolving line of credit) and for some weird reason (it's not weird, I just haven't managed to find out why), once the car's been stuck on the plan for more than 90 days, funny things happen to the interest calculation. As such, there is a vested interest for the dealers to shift the cars nearing or exceeded this. The car in question might not necessarily be problematic, it's just pot luck sometimes.
Try the larger Merc dealers in Melbourne, my understanding is that they're company owned (i.e. Merc owns it themselves) so is MB Sydney. Most of them time they've got sharper pricing.
There's obviously the branding part and licencing of the MB deal that the dealer principal pays etc…but no…they are owned and operated by people not salaried by MB. Margins on cars are not where they make most of their money - they hope to get a large slice of cash on packaged products with the sale - extended warranties, finance and insurance packages, servicing, accessories…
As a rule of thumb, if you approach as an easy-sell and simply tell them what you want and how much you are willing to pay for it…write it down on a card with your phone number, if they don't agree immediately - they are free to give you a call for a guaranteed sale to meet their quota or a stretch target that may give them a nice bonus. 10% should be easy as a ballpark discount depending on brand margins (I don't know what MB margins are but I do know Nissan's margins as a guide). Maybe 20% is achievable, but I doubt it. Don't forget they have to pay for that big shiny showroom and those cosmetically impossible smiles. If your offer is way out of kilter they probably wont even take your card…but if it's possible, then maybe the friend you brought along to the showroom who arrived separately and doesn't appear associated to you can spot whether that card gets filed away in a pocket…or the bin…
my frd just got a c class 200 demo for 59k with luxury options last month, and there's a demo with 55k with no accessories.
Both with very low kms, sydney area.A friend wanted to buy a car (Toyota) and typed up a letter listing the exact model, colour, options they wanted and stated it was being sent to all Toyota dealers in Vic.
He got a good deal without the haggling.Pay with a duffle bag full of $10K stacks and watch the discount magically increase.
Good idea. And bring a security guard with you. Preferably one who carries a gun.
If you read any of the above comments, cash means nothing, actually cash is their least favourite option. Counting money? Ain't nobody got time for that. And not sure if you've dealt with large amounts of cash, but $10k can easily fit in your pocket. More like sandwich bag than duffle bag.
The new model C (W205) is due in Australian showrooms in July, so the current model (W204) should be run out from about May.
Otherwise, the rules of engagement are the same for many other cars; try to buy at the end of the month because that is when the dealers and salesmen (and women) want to pick their numbers up. Arrange your own finance, unless they are prepared to give you a balls and all deal on theirs. Remember to ask for the comparative rate from the dealer; that makes comparisons more valid. BTW, they are required by the Trade Practices Act to tell you what it is. If they don't, tell them you are going to another dealer and walk out, and be loud when you do it.
Remember, there is a fair bit of fat built in to the price, most of the stock that is in the country now would have been imported a few months ago because it is better for car companies to do one big production for a market than to do more, smaller runs. So the cars you are looking at were probably paid for by an A$ much higher than it is now.
Avoid the extras like window tinting and rustproofing. That is all crap, and just some fat for the dealer, so tell them upfront you are not interested. On the other hand, free roadside assistance or servicing saves you money from your pocket, and they can be good bargaining chips.
One tip from a mate who used to be a salesman; take in a clipboard and make sure it has something from an opposition brand in it, something like a brochure for an Audi A4. If the salesman thinks he is up against all the Audi and BMW dealers in the city as well, he may come down even further.
Prepare to be flexible on your models. I know someone who took his A4 in for a service and walked out with a new, later model A4 diesel because that car was not selling in that quarter and Audi told its dealers to move stock. Such was the deal that he got that his lease payments on the new car were cheaper than his old one (plus, he avoided paying for a major service!)
And remember; many customers treat buying a car like it is dating. The good salesmen treat selling a car like it is war.Read an article online last night… Something about Farry O'Barrel considering removing duties on imported cars. It seems they're considering doing this because since they've wiped out car manufacturing in this country, there's no one manufacturing garbage overpriced cars here to protect with tariffs any longer. Maybe wait a while and save $10,000+ again.
Toyota/Holden/Ford et al are not pulling out before 2016, so it would be silly for any government to reduce tariffs before then and kill off any remaining jobs even faster.
…duties/LCT are federal matters and O'Barrel is NSW Premier so what does it got to do with him?
I read a very interesting article about Car Salesman in Edmunds website Confessions of a Car Salesman, very good insider tips and tricks of car salesman.
Hey OP.
Why don't you take a look at the pre-approved seconds? Apparently they come with warranty.
Hi Op, I haven't read any of the other posts but post from experience (I bought a C250 CDI w204 facelift when it first came out).
Don't expect a huge discount. This isn't Audi (or many other manufacturers) where you can literally get 20-25% off. Mercedes won't even say they're giving you a discount but rather they'll say this is what they're willing to let it go for previously (lol).
Be aware of what you can remove from the deal - typically MB includes free stuff depending on which dealership (e.g. a B&O $1500 iPod speaker for your house, advanced driving lessons, random MB merchandise, etc). You can negotiate these out explicitly.
Also be aware of what other "offers" might be applicable e.g. Corporate Pack for certain employees of certain companies. Whilst they say it doesn't change the price of the car, what they really mean is it's factored into the final price they're willing to sell it to you for. It includes (at least in my time) a few years of service, airport parking discount (or free parking if you buy from the Alexandria store from memory), extra year of roadside assist and some other random benefits. I think it's priced around the $1500 mark but am not sure. Note that some other car companies don't actually change the end price (e.g. Audi will always offer it to you regardless of what final purchase price is- even if you haggled 25% off).
Also be aware of the limitations of buying a car where you need to wait for the one you want with the exact specs/equipment you want. If possible try to stick to the option "packs" which typically are cheaper and the ones they actually stock up on rather than custom order (e.g. the Vision pack includes sunroof, xenon lights and H/K sound). You can always get a better deal on a car in the dock in Pyrmont. Note that all Sydney MB dealerships are centrally owned (rather than locally owned) now so there's no stock favouritism but different individuals might be more or less flexible.
Work out the realistic trade-in if you are trading in. I traded in an Evo X which despite me going to various dealerships (not MB too), the trade in was always about the same. That being said you might be able to save a bit if you're buying a fuel efficient model (e.g. C250 CDI) as they can retain the change over price but alter the trade-in and sales price so that the car is below the fuel efficient LCT thresholds.
Hope this helps. I've been extremely satisfied with my Benz and the service I've received.
ps. Don't forget the new C Class is literally due out very soon (w205) so you should be able to negotiate/haggle a lot.
Evo x to a diesel c class. That makes me sad :(
I signed for a B class for approx 20% off a few months ago, and i got the feeling that it could have been lower. I'm eyeing the C class as well, so OP i'd be interested to know how your negotiations go. PM me if you'd like to share some experience.
really? How much drive away for your B Class? On finance?
CLA200 (new) is good and comes for less than 50K driveaway…..No need to haggle..my 2 cents! You can save if its demo though!!
Unsure worth try novated lease for it. It's basically 10% GST off but unsure how much discount leasing company can arrange.
why dont you wait for the new model c class, its much much improved car
In my experience with a 2006 Mercedez Benz C Class, they are made with cheap components and reviews show they still are with coutless problems, you'd expect that buying a Mercedes Benz would mean any model they sell is reliable and great like words cannot express, don't for a second think that you're buying a 'quality vehicle'.
Don't get me wrong, MB is a great vehicle manufacturer but the components they use in the low end vehicles they have compared to the high end vehicles they have are completely different.. Consider this your warning..
The beginning of the W203's were a let down in quality although with your late model they should have stepped up a bit - Mercedes moved production of electrical components from other cheap labour European companies back to Germany.
In say that though, I dislike the materials used in the C-Class. The fake leather especially, horrible hard vinyl. Fit and finish is very good though (very small gaps).
Yeah they budget on engineering and quality of materials.. thats where it matters.. imo, its all about fuel consumption, so turbo diesel is the way to go!!
Don't forget these lower models are also made in South Africa. You would want a big discount on a Rolex made in China. Just something to think about.
The facelifted w204 (2011 onwards) are definitely made in Germany. My C250 has real leather too (not ARTICO) I believe.
Im sure I have mentioned this before.. adding to 2ndeffort's excellent advice. To make your life easier playing dealers against each other, goto discountcarsales.com.au> enquire about the particular model that you are after, the dealers will start calling you back, you will get a pool of dealers that you can start playing each other. And as previously stated dont bow down to pressure and stress, but also keeping in mind you can catch more flies with honey than vinegar.
Im not sure about the margins in Mercs, but I got about 7k off my brand new evo x (mind you this is going back a few years)
Good luck, what engine are you going for ?
Did you negotiate further? I thought I got a killer deal at $69k for the MR brand new but then now that they haven't updated the car much, I think a new MR can be had for low $60's!
Thanks guys. We will wait until the new model comes out.
We will aim for C200 with all of the extras, for $50K.
IMO, go for the C250. The C200's underpowered.
I heard about half a year ago there was so much demand for the C250 which was unexpected (partially thanks to COTY from the year before?) that there was huge amounts of C200s sitting there unsold… and that C250 had become the volume seller as a result rather than the C200.
Therefore maybe able to get a better deal on a 200? :S I personally would avoid the C200 after driving 250. The minor ECU tweaks are definitely worth it. But if you're someone willing to take a bit of risk, you can always use a chip.
From I've read above seems that 10% can be easily achieve, but I could not even get a 10% off on new 2016 C200.
Where is the best dealer in Sydney that can easily give 10% discount without haggling and who should I talk to?
Thanks!
Last week went to parramatta Merc store with Dad. He had been looking for his first merc for a little while. We ended up with c200 (diamond silver) with AMG / vision pack / seat comfort. Price to start was 79k. Their lowest was 65000 and we walked away then. Called us back few days after and we've since signed for 61500. New. Also got the corporate free 3yrs service + extra 1yr roadside assist. Plus some BS about mercedes events which we dont care about. Also got a free apple which i ate
Nice one.
Hi mate, also went to MB Parra, the closest they came was $68k for a same options speced vehicle but no metallic paint, no option for free servicing. I was eyeing $61k figure mark as well.. This was for a 17 built vehicle, how about yours? is it 17 built as well? you got a really sweet deal congrats ;).. as was earlier quoted $79k then $68k lowest quoted..
yeah was very exciting, this car was on during a march month sale or something. Dad said its 16/17 but i dunno what that means
Servicing came from corporate deal just check which company someone in your family works for
Hey Guys, need help. I live in Melbourne and am planning to buy c250 petrol with the following packages. What’s the best price I can get considering it’s the last quarter, c300 replaced c250 at the same price and c200 sports edition is avilable for around 66k(RRP) with AMG and vision pack included.
Command pack
Vision pack
Seat pack
AMG pack
MetallicAlso, note that dealer has ready stock.
Thanks in advance.
99% off + 10k cash back to keep it profitable.
I've recently was offered a 10% discount on brand new camry hybrid straight after the test drive. It tells me that 15% was more or less negotiable, but i didn't want this fridge on wheels.
Given that MB is not Toyota - i'd say 20% could be real. Tho you'll have to pick something from stock. Only small discount is usually possible if you order customised vehicle.
Possibly you'll get some extras or a bit better discount paying cash.