How Much Discount to Ask for on a Brand New 140K Mercedes GLS 350d?

BestofOZB on 28/07/2016 - 10:55
Last edited 02/08/2016 - 19:54 by 1 other user

Hi ozbargainers!

I have achieved a new milestone in my life and decided to treat myself and my family to a new car.

This is my second brand new car, my first one was during the financial crisis so rules don't apply now.

I have already decided on the car, test-driven it and am in the final stage of negotiating the price (please do not suggest used or alternative cars).

Dealer's initial price is 140k, my question is how much does a dealership usually margin their prices to allow for discounts? How much discount should I ask for/expect?

Details:

Car : Merc GLS 350d
State : QLD
Price: 95k
Options (heated seats, TV etc): 9k
Dealer delivery : 4k (max on Merc website is 2,700)
Rego: 900
GST : 11,000
LCT: 16,000
Stamp : 4,500

As a comparison Audi Q7 with similar specs quoted us 130k discounted to 119k.

I want to ask/get it for 125k, is that a reasonable ask, how much should I negotiate for. Any thoughts/facts would be appreciated.

Ask any more details if it is not there.

EDIT: Closed a deal at $125,800 drive away from a dealer 2 hrs away.
Ended up calling 5 dealerships. Prices ranged from $138-142K. Which makes it a discount of 9%-11.5%.

Automotive

Comments

    • BestofOZB on 28/07/2016 - 15:07

      Yeah still haven't decided how I will finance the car, employer, own company or otherwise :)

    • Eca1 on 29/07/2016 - 07:49

      Yes, many professional associations etc have these deals with MB. But MB wont raise it until and unless you do. And they wont give you these corporate extras after the deal has been done.

    • Matt P on 29/07/2016 - 22:09

      Best reply in this thread. Why? MB will wear some of the discount. This means you can push harder.

  • Charity on 28/07/2016 - 13:57
    -1

    Can you afford the AMG version?

    If you are going to spend premium prices, get the best version. Especially with Benz's. Don't go half way! Go big league!… "The best or nothing" ! ☺

    SPOILER ALERT Realise though, most of these sorts of cars aren't made how they used to be anyway. They are not made to last. Probably not German either. To me, it seems Mercedes these days only puts in effort in their $400,000+ line up. They are special cars still, but only if you really have deep pockets.

    I understand if you disagree. And if you are happy however, stick to it! You being happy is the most important thing. ☺

    • BestofOZB on 28/07/2016 - 15:08
      +1

      I can't unfortunately, maybe with the next promotion :)

  • robertbruce on 28/07/2016 - 14:02
    +2

    Margin is usually 8-12%
    140 to 125 cash make it very very tight

    Assure the dealer
    you will provide a A1 customer survey
    you will provide a referral
    you are going to get your servicing done there

    but yeah, 140 to 125 will make it tight

    • Gronk on 28/07/2016 - 14:07

      I'd have gone with ~15% excluding holdback…

      • robertbruce on 28/07/2016 - 14:39

        oh dear, that's going to cost the SM, now the DP prefers to write 30K out of used to make everyone's month!

    • BestofOZB on 28/07/2016 - 15:10

      Thanks.
      Source for the 8-12%? Are you in the industry?

    • taoz on 28/07/2016 - 21:50

      no way the margin is that small.
      maybe that's what someone told, you or the first margin.

  • modsec802 on 28/07/2016 - 14:50
    +1

    There's an old saying: buy the cheapest car your ego allows. Is your ego really that big?

    • BestofOZB on 28/07/2016 - 15:10
      +8

      Not really….I just don't agree with that saying ;)

  • garffi on 28/07/2016 - 14:55

    15 - 20% off? I know 2 friends who bought new mercs last year were able to cut that much off their initial pricing.

    • BestofOZB on 28/07/2016 - 15:11

      Jeez…that would be awesome.

  • alz on 28/07/2016 - 15:13

    Sorry no offence OP but you are buying a $140,000 car and you're on Ozbargain?

    • BestofOZB on 28/07/2016 - 15:19
      +11

      No offence taken.
      You will be surprised who is on Ozbargain nowadays :)

    • nafe on 28/07/2016 - 16:24
      +12

      Clearly with the money they saved on Bargains they can now afford a Merc! :)

    • Cluster on 28/07/2016 - 19:14
      +15

      Rich people become rich through a combination of three things:

      A) Earning a lot of money
      B) Good investments
      C) Spending it wisely

      I have met some really tight rich people. You would be surprised about the lengths they go to to save money.

    • DeToxin on 29/07/2016 - 21:00
      +2

      You don't build wealth by wasting money :p

  • Mumbles on 28/07/2016 - 16:17
    +2

    Start by negotiating with your local dealership but tell them you are looking at other dealerships. It will give you an idea if you like the local dealer enough to want to give them your business.

    Telephone to the Mercedes dealers in your state for a quote. You can have your cake and eat it too. There are dealerships that are happy to deliver to your door even from hundreds of kilometres away. I'd choose the dealership which gives you the most fun experience.

    The original post seems a little weird. The biggest attraction for buying a luxury car off a new car dealership is the pampering the sales staff give you. If price is the only concern and no butt kissing is required there's heaps of alternatives to distance you from the experience. eg. brokers, reverse bidding, novated leasing with fleet discounts, etc.

    If it was purely on price then second hand but still within warranty is best. Luxury branded cars have huge depreciation. No sales staff are involved. Theres no upselling/fleecing you with accessories. No taxes. No Mercedes Benz dealer delivery charge.

  • nafe on 28/07/2016 - 16:26
    +1

    FWIW, I have a mate in Brisbane who was in the market to pay cash for his new MB. The sales service he received was atrocious so he walked straight into a BMW dealership and bought that day. Lost sale for MB because no one could be bothered to assist him at all. He's no cashed up bogan either, just a straight shooting successful business man who wanted to buy a car…..

    • robertbruce on 28/07/2016 - 16:32
      +1

      lol, in Brisbane, BMW owns the Merc dealer…lol…

    • BestofOZB on 28/07/2016 - 17:16

      I can't complain about their service so far :)

    • modsec802 on 28/07/2016 - 17:32
      +3

      That's because they make their money off finance. They don't give a crap if you have cash.

      • nafe on 29/07/2016 - 07:41

        Maybe so, but they never even got to that point. He struggled to even get someone to acknowledge him in the showroom. Not sure which MB dealers he went to.

  • chumlee on 28/07/2016 - 17:12

    Congratulations on a career promotion. Glad to see you finally got the Head job you wanted.

    • robertbruce on 28/07/2016 - 17:15
      +3

      lol, a new merc and a head job, bloomin' fantastic i say…lol…

  • hopper on 28/07/2016 - 17:23
    +1

    10%

  • [Deactivated] on 28/07/2016 - 17:35
    +1

    Forget the discount, talk to that guy with 150k, get him to buy it, and keep the 10k as commission to yourself.

  • BestofOZB on 28/07/2016 - 18:06
    +3

    Thanks everyone for the advice.

    I took most of the suggestions here and things progressed very quickly.

    Local dealership suggested they can only drop the price by a "few thousands". When I sounded "aggressive", they offered a "final" price of $129,917 (and suggested they make about $700 only on that price)! I think I'm gonna take it and call it a deal!

    • spackbace on 28/07/2016 - 18:18

      Congrats and now you just need to decide where not to park it ;)

      • BestofOZB on 28/07/2016 - 18:59

        I won't be going anywhere on weekends for a long time :)

    • matt-ozb on 28/07/2016 - 22:58
      +1

      Yes, $700 profit after that include overheads, salaries, corporate profit, mandatory dealer profit of probably 15%+, then they make $700 profit.

    • Mumbles on 28/07/2016 - 22:59
      +1

      $140K down to $130K means a discount of less than 8%. I've never bought a new Mercedes and have no idea about their margins but I'm certain its not their final price.

      Dealer delivery : 4k (max on Merc website is 2,700)

      I'm sure you already figured out the local sales person is dishonest about the claim about only $700 profit. Take it as a sign that they are not willing to negotiate with you any lower until you come back with a competitors offer.

  • robertbruce on 28/07/2016 - 18:32

    Yeah, grab that, that's a very good deal…
    Make sure you leave enough time for delivery!

  • lnq on 28/07/2016 - 19:01
    +3

    Seriously? 140k for ancient tech car? I won't buy any less then a Tesla Model X.

    • Caped Baldy on 29/07/2016 - 12:38
      +1

      I don't think tesla is that high tech either. Not powered by eneloops.

      • [Deactivated] on 29/07/2016 - 20:05
        +1

        Well to be honest, they are pretty damn close to being powered by Eneloops from a technology perspective. A single 18650 cell (which a Tesla uses) is only a little bit bigger than a AA battery, and a Tesla battery pack is basically just a lot of 18650 cells crammed together. The chemical composition is different. Panasonic is a major supplier of the cells to Tesla as well.

    • zeomega on 29/07/2016 - 23:38

      the build quality of a tesla is not at the level of a German marque. tech is there, build quality aint.

    • zeomega on 29/07/2016 - 23:39
      +1

      If you can afford a 140k car, and buy it for $120k, you have 20k for enloops and torches. You don't get to afford a 140k car by spending frivolously.

  • [Deactivated] on 28/07/2016 - 19:42
    +2

    What a good problem to have. Personally I am partial to Tesla.

  • GLO on 28/07/2016 - 20:55
    +2

    Great thread, and having owned 3 CDI Benz's with the most recent 4 months ago I will add my 2c.

    My recommendation is to work out the spec's and colour/trim you must have,

    Call each of your dealerships, starting from the furthest out and ask:

    1. What colour and spec level GLS they have on the showroom floor.
    2. You will then have a short list of who has what you want now.
    3. Go visit the closest one that has what you want and negotiate hard.
    4. Tell them that the other dealership also has one you will buy if you can't get to the right price point here.

    I gave my local MB dealership the option to close the sale but we couldn't agree on the price. I ended up getting a younger Demonstrator with 10k less Kms (on their Executive university driven vehicle) about an hour away for only couple of grand more. It also have more rego too.

    Service is great, but if you can do the deal with your local dealership, then you will save time if any issues come up.

    Warranty work can be addressed at any of the dealerships, but if it's the dealership you bought from, they do look after you better because it's part of their whole dealer experience.

    • BestofOZB on 28/07/2016 - 21:31

      Thanks.
      How much did you manage to negotiate less off their original price?

  • Euphemistic on 28/07/2016 - 21:12

    See if they get it down lower if you'll buy two. I'll buy the other one if it goes low enough

    • BestofOZB on 28/07/2016 - 21:29

      How low?

      • Euphemistic on 29/07/2016 - 08:57
        +6

        I can probably stretch to about $60k

  • matt-ozb on 28/07/2016 - 22:58

    cheapest on carsales is $126K

    http://www.carsales.com.au/bnc/details/Mercedes-Benz-GLS350-…

    • spackbace on 28/07/2016 - 23:03

      That's a showroom listing, direct from the manufacturer.
      It's also showing $133k d/a here in WA

  • [Deactivated] on 29/07/2016 - 00:04

    Just tell a couple of dealers that you want to buy but are not in a rush (6 months or so), then they will be calling you with ever decreasing offers when they're one car away from meeting their sales target etc.

    • Ahan on 29/07/2016 - 06:31

      GLS needs to be ordered he wait time is 6 month anyway

  • p1 ama on 29/07/2016 - 01:38
    +1

    Why's everyone getting these SUVs these days? Sometimes I feel like I'm the only one who genuinely likes a good old-fashioned mid-sized sedan.

    • BestofOZB on 29/07/2016 - 07:03
      -6

      People have children you know, 2 or 3 of them sometimes.

      • modsec802 on 29/07/2016 - 08:57
        +13

        Sedans fit children you know. 2 or 3 of them easily.

      • npc on 29/07/2016 - 15:13

        You'd be surprised how much cabin space there is in mid-size sedans. I'm not even speaking about full-size commodore or skoda superb. SUVs are tiny boxes.

      • p1 ama on 30/07/2016 - 00:59

        What? A sedan and SUV have basically the same interior. Often mid-sized sedans have bigger cabins than SUVs, e.g. a Camry vs. RAV4.

        • BestofOZB on 30/07/2016 - 08:01
          +1

          sorry guys I was talking about my individual case with a 7 seater SUV. Family with 2 children ( maybe 3 soon), relos, inlaws etc.

    • Euphemistic on 29/07/2016 - 12:45

      They don't make proper big station wagons anymore (eg Falcon)

      • [Deactivated] on 29/07/2016 - 13:34

        Because no one bought them.

        • Euphemistic on 29/07/2016 - 14:24

          …because 'everyone' wants an SUV.

          One of the other factors for SUVs is the extra seats and people movers aren't cool. Can't just squeeze an extra kid or two into the back seats anymore everyone has to have their own seatbelt. Then add that until 7yo kids need booster seats etc and that it is heaps easier to reach in a buckle in your little brat/angel without stooping down to hatchback levels.

        • p1 ama on 30/07/2016 - 14:30

          @Euphemistic:

          Which I don't get, SUVs are unnecessarily big (makes them harder to park, requires more garage space…etc.), they are too wide for many of the narrower city streets, often erring into neighbouring lanes and they block vision for cars behind, which is something that I personally don't like.

          When I drive, I usually keep a vision of traffic a few cars ahead to gauge what is going on. Driving behind a large SUV is like driving behind a bus or a truck, it's very hard to see ahead meaning that the only guide to traffic ahead is the red brake lights of the SUV.

          On top of that, I live near a school where many parents drop off their kids with a large SUV. When turning onto the main road (at T-intersection), I turn left, whilst most of the parents turn right. Turning left should be an easy-ish affair at this time because it's against traffic. However, when a large SUV is waiting to turn right and you pull up right next to it on the left (in the left turn lane), it's impossible to see the oncoming traffic. People behind start honking and becoming impatient and the SUV will take ages to move because it takes a while for there to be a gap in the traffic on both sides. I have no problem with pulling up next to sedans, or even SUV drivers who are considerate and stop around 1m from the very front of the intersection so that those turning left can see out.

          Which leads me to my next point. Most SUV drivers are fine, but when I see idiotic things happening on the road, it's almost always SUV drivers. Driving aggressively, doing stupid maneuvers…etc. I've seen an SUV driver open a door wide open in the emergency stop lane of a freeway.

        • jleno on 30/07/2016 - 19:19

          Because most wives prefer SUVs.

    • 00 on 31/07/2016 - 14:56

      Because the marketing departments of USA car companies convinced us to desire SUVs so they can sell us the same cars the US public buy.

  • Ahan on 29/07/2016 - 06:30

    Hey I think it would be $125k. I ordered a GL350 in Brisbane six month ago whne GLS just released

    • BestofOZB on 29/07/2016 - 07:06

      What extra options did you have (or how much worth) and how much did you settle for? How much did they drop their original offer by? Which dealership?

      Thanks.

      • Ahan on 29/07/2016 - 08:01

        If you want to save some effort. Go with Dean at Macgreggor. He is very straightforward. When talking about price he offered the lowest price he thought I could get managers approval for. It turns out his price was actually touched lower than the manager approved price.

        I ordered a GL350 so I doubt my price/option will mean anything to you.

        I ended up getting my deposit back just before the car was ready though. My contract was subject to test drive as there was no car available for test drive at the time of purchase which gave me a way out easily.

        • robertbruce on 29/07/2016 - 09:11

          so what didnt' you like about the car?

        • Ahan on 29/07/2016 - 11:26

          @robertbruce: at the time I was not eligible for corporate program. I could save $3000 if I was eligible. As an ozbargainer, my philosophy is if I cant get the cheapest price on the market, I'd rather not getting it. Paying more unnecessarily really pisses me off.

          The salesperson said he could assist to get our company on the list so I can be eligible but my bosses both are tight arise driving holdens didint support me on this. They were like I can't see any benefit of joining…

        • robertbruce on 29/07/2016 - 14:36

          @Ahan: that's a pity, Mercedes make a far far better car.

  • Eca1 on 29/07/2016 - 07:50

    I buy very low km demos and save lots.

    • BestofOZB on 29/07/2016 - 07:54

      Not available in few essential options I need unfortunately. But will try near by dealers. But same question again, how much do they "overprice" the demo and how much "discount" should I ask for.

      • robertbruce on 29/07/2016 - 09:22
        +1

        demo's are optioned up so much it's impossible to sell them cheaper than a new base model, so there is no discount to be had there unless you exactly wanted those extra features..and even then…
        Dont think the demo is something a franchise wants to sell or are motivated to sell. A demo is very valuable to a franchise for a myriad of uses. Also, Demo's cop a bit of a canning, i wouldnt buy one.

  • backpaqer on 29/07/2016 - 08:32
    +3

    Dealers have quotas they try to meet. If you have a price you're happy with, try that up front. If they don't take it, write the price on a business card and tell them to call you when they can do that price.

    Also…after getting burned by Ken Morgan when he had his Nissan dealership…insist that every accessory is "factory standard or genuine accessory" - no aftermarket rubbish. Arsehole fitted a Bodyline branded spoiler to my car and claimed that Nissan did not have a genuine part - my wasn't he surprised when I asked him to order the exact part number for the Nissan genuine spoiler. Of course he charged me genuine Nissan part price for the aftermarket too. The ombudsman was begging me to take him to court!

  • jabbairc on 29/07/2016 - 08:44

    Hi OP,

    I've written extensively on this in other posts so hopefully a search will help you. There are several factors to consider based on your description it's a luxury car which will have some decent margin on it.

    For my own experience take 20% off after you add in all the options etc to the retail price.

    Someone always want your money! Don't get bamboozled by the rest of it.

    • BestofOZB on 29/07/2016 - 08:56

      Thanks.
      You have no posts here on OB, is it elsewhere? Any link?
      20% sounds a bit too aggressive, you mean as a start/lowball and work up?

      • jabbairc on 29/07/2016 - 09:06

        Why is it aggressive? It's your money so you should be aggressive in preserving it :)

        Pretty sure it was on OzB I will search and refer back

        • jabbairc on 29/07/2016 - 09:07

          Definitely there a posts on here just found them, someone was asking for the best price on a Toyota Prado I have a few posts in there.

          [OzB Toyota Prado thread]
          (https://www.ozbargain.com.au/node/250426)

          I mention all the various factors to consider.

        • robertbruce on 29/07/2016 - 09:27

          @jabbairc: 20% off always make me dizzy…lol…

  • dlakers3peat on 29/07/2016 - 09:21
    +2

    i would be more worried about the ongoing maintenance of these vehicles. Purchase price is one thing but total cost of ownership is another.

    • Matt P on 29/07/2016 - 22:13
      +1

      depreciation is a much bigger concern, especially when the shape changes.

  • tik tok on 29/07/2016 - 09:33

    Get in touch with various dealers and ask them for their best price. If I were you, I'd do it over email but phone works too. "What's the best price you will sell XYZ for ?" Usual response is give us your phone number or drop by etc. The next I reply is - I will not swing by or communicate any further till I know the lowest you will go on XYZ. This usually gets the ball rolling. Then you can pit one dealer against another to get a better price. Then when you walk in, you talk yourself into freebies. If no freebies, get a deal on accessories. If not on accessories on the labour charges at least. Be willing and threatening to walk away for stupid things - "No free tint ? Deal's off mate"

    I live in a city where there is ONE toyota dealer who has a my way or the high way attitude (and can afford to make new customers wait for an hour even before a salesman can attend to you!) and I still negotiated freebies and half priced labour. You are an Ozbargainer dont let us down :)

  • ilsan0 on 29/07/2016 - 09:56

    I bought my last 2 cars on the phone. Have your CC ready and call every dealer in the country and negotiate the $hit out of it on the phone. Throw ridiculous prices. who knows what will happen.

    Tell them you will pay deposit on the phone if the price is right.

    I managed to drop $10k on my Cx-5 on my last purchase.

    Good Luck!

  • [Deactivated] on 29/07/2016 - 10:15

    at 150K drive away, Mercs usually have about 10K-15K in their price cushion.

    Find the cheapest one on car sales and there's probably only $1500-2k in that at most.

    It really depends on the dealership's level of holdback on the vehicle, and if it's a new model there will be less give, depending on demand.

    Go from there.

    edit: I have sold cars, worked as a finance broker and currently drive a 2014 SLK 350 w/ AMG sports pack

    • spackbace on 29/07/2016 - 10:39
      +1

      OP got a decent offer already - $130k (down from $140k rrp), sound reasonable enough?

      Good that it's from the original dealer as well

      • [Deactivated] on 29/07/2016 - 11:57

        for a new model I'd be very happy with 10K, especially if it's brand new.
        Isn't it amazing to think that you can make 10K off a carsale?
        Their minimum commission there is $500 a car (at least in a merc dealerhsip in Melb.)
        And they get to drive the demos home each night.

        • spackbace on 29/07/2016 - 11:59
          +1

          Yeah, bastards lol

          Had a couple of salespeople jump ship from here recently to work for MB. Even the used car salespeople drive new car demos, because the bonuses are so good!
          But, they also don't keep any non-MB trades, so all those Saharas, HSVs etc etc that people trade on that level car don't get kept :o

        • Charity on 29/07/2016 - 20:02

          @Spackbace: Can you explain that last line? What would happen to a Sahara?

        • spackbace on 29/07/2016 - 21:02

          @Charity:

          Sold to other dealers, not sold on their used car lot

      • BestofOZB on 29/07/2016 - 22:51

        I haven't accepted it yet though ;)

        I managed to get the dealer to throw in another extra worth about $500 on top (and now claims his profit is only $100).

        I was (really) ready to put a deposit for 125k but the salesperson said they couldn't go any lower. Even when I told him "so that IS really the lowest you can go and if I find it cheaper elsewhere I won't have to call you back?" He said yes. We were all civil and respectful about it.

        I will most likely buy it from the local dealer around that price. But will wait for what the car broker can do, I know I know you said no car brokers, but now that I got a price that I am happy to pay, lets give them a chance hey!

        • spackbace on 31/07/2016 - 13:06

          But will wait for what the car broker can do

          I gather they haven't gotten a price yet?

          The thing is, you were negotiating at the end of the month which could've held greater power, dealer likely thought you'd buy before end of month. If you leave it till next week, deals can change because bonuses change from the manufacturer

          So up to you if you offer them a crazy offer today and have your card ready. You'll have the best negotiation power today (assuming the dealer is open today)

  • striker5950 on 29/07/2016 - 10:41

    are you getting the gls 350d sport? or the normal one? looks like you are getting the normal one

    • BestofOZB on 29/07/2016 - 13:12

      The standard version with self-selected extras.

  • striker5950 on 29/07/2016 - 10:43

    save up for the 2017 sq7, its a beast coming soon and it only comes in diesel too, so it gives u a bit more time to save up

    • BestofOZB on 29/07/2016 - 22:54

      If only they can make the back row a bit bigger.

  • jhmtaylor on 29/07/2016 - 11:02
    +3

    Mate there is a really good thread on whirlpool about negotiating to buy cars. I got 7% off a new merc GLC with immediate delivery when there was a waiting list of 3 months. Brokers generally will not get as good a deal as you can.
    The key points are
    1. Make a commitment to buy the car then and there if you can agree on price. The salesman will then know that you are not kicking tyres. Don't go for a test drive if you do not have to, he will then know it is a business decision.
    2. Ask his for his price. Don't bother with that lame comment "What is your best price". All you are doing is signalling that you are a poor negotiator. He will always come back with retail.
    3. Counter his offer with your price. Be prepared to walk away. His boss will always have the final say and will come back with some like "Get another $****. Your call whether you increase or not but the salesman will know that if you walk a certain sale has slipped through his hands and will not allow this to happen if you are close.
    Be polite and respectful, don't get upset and don't take a friend (partner)along who could bring emotion into the equation.

    • spackbace on 29/07/2016 - 11:44
      +2

      On behalf of the person on the other side of the desk, that actually sounds reasonable :)

    • BestofOZB on 29/07/2016 - 22:56

      That is a very good advice sir, working for me so far!

  • jerjergege on 29/07/2016 - 12:39

    When I bought my Honda civic MY2015 last year in November, normally around 27.8k I got it for 20.5k because my dad knows the accountant for the dealership and asked them to see if they could pull some strings.

    Researching how much the dealership imports the car for (around 19K) they only made roughly $500 to $1K from selling that car to me.

    Got all the Honda extras and stuff too, including original mats, boot organiser box.

    Shoulda waited like 4 months though, woulda been able to get the 2016 new civic for around that price :'(.

    Ask what's the best they can do, but ask around. I nearly bought one before my dad told me he knew the accountant.

    • [Deactivated] on 29/07/2016 - 15:00

      This sounds basically impossible unless you gave them your old car as part of the deal?
      What model was it? Auto or manual?

      Are you sure? If so, wow.

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