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      01-23-2021, 03:44 PM   #1
dsad1
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The Mercedes dealer wouldn’t budge from MSRP on a GLE 63 S

I am just curious how dealers think, or how they make money, sometimes I don't get their logic.

I was at Mercedes this week, long story short after some ridiculous offers from them for a gle 63s coupe, I made my offer of a 2% discount and the base mf rate. I am thinking this is a very fair offer and we could move on. They wouldn't budge, they want msrp and some ridiculously inflated mf.

They have two of them on the lot with two more about to arrive. I am just curious why they would let me walk out on such an easy sale with barely any discount.

I have no emotional attachment here, car isn't even for me, it's for my father and they know that. I just do this because english isn't his first language.

Can anyone give me insight on how this makes sense for them? I could understand this if I came in asking for a 10% plus discount, but 2%?
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      01-23-2021, 04:08 PM   #2
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If they think they can sell for more, they will hold out. Some geographic regions have more/less competition and may not discount as much.

I walked from an Audi because their discounts aren’t as high and their MF and residuals were awful making their leases WAY worse than BMW’s. Ended up with an X5 and I ‘m super happy.

Just depends on a lot of factors. Also, the GLEs are selling like hot cakes so less of a need to discount. Someone else will come along soon.

When I was shopping my X5 I had dealers all over the place but no one started off very competitively. Had to negotiate pretty hard to get the discount I got and others have done better. One dealership wouldn’t go below 6% discount. Volume vs margin - different approaches. You can probably find a dealer that has a model you are looking for, just have to look and be willing to expand your search radius.

Maybe try a dealer a bit farther away?

Last edited by jg05; 01-23-2021 at 07:12 PM..
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      01-23-2021, 04:32 PM   #3
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Try online purchase. They’re typically better to deal with and give discounts easier.

I went through a nasty MB process too. I put my money down when GLE were just arriving on dealer lots. Went back and forth with dealer on configuration. Finally decided and was waiting patiently for my build to go through MBUSA but after several weeks, pinged dealer and they kept giving me the run around.

Finally got into argument with sales guy because he kept trying to push me into a similar vehicle in his lot and one that was incoming but it didn’t have the features we wanted. He wanted to give his allocation to another buyer and he actually implied it was out of my price range.. wtf

Well I ended up buying an X7 and had to do a chargeback on my CC because they gave me the run around on my deposit.

COVID also has flipped logic on car sales and with the electronics shortages plaguing a lot of carmakers right now, cars in general are flying off lots.
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      01-23-2021, 11:09 PM   #4
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If you are in the Bay Area, pricing is inflated. I had a passing thought of purchasing a G63 and spoke to a dealer. They wanted $50k over msrp, so I looked at other Dealerships and saw similar markup. I am not a markup type of guy so I passed.
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      01-23-2021, 11:17 PM   #5
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its regional.
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      01-24-2021, 08:54 AM   #6
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Like others have said, its probably regional, maybe try a different dealer. Most I've seen is 6-7% off a 63, both here and on MBWorld. The GLE's are in hot demand and most dealers are still having trouble with inventory due to supply issues (although this is more for the 450 and 580's).
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      01-24-2021, 11:52 AM   #7
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It's all supply and demand. Some areas have more or less of either one.
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      01-24-2021, 12:11 PM   #8
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Get an X5M instead

If dealers are not willing to work with customers, they have to understand we will shop somewhere else
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      01-24-2021, 12:17 PM   #9
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But I'm special and I deserve a discount!
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      01-24-2021, 12:17 PM   #10
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It’s easy, someone will come in and pay exactly what they asking for. Also it’s principal.

I would rather give a discount to someone who is not asking for, versus someone who will argue and fight with you for hours just to get couple bucks off.

I do some retail on the side and have these specific groups of individuals who come in and try to market bargain me to a penny.....I won’t budge just out of Principal.

Last edited by TheRussski; 01-24-2021 at 12:24 PM..
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      01-24-2021, 05:33 PM   #11
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This car has been sitting there for over a month, I wouldn't say they are flying off the shelf.

The discount from msrp isn't the big deal, it's that they are more than doubling the base money factor, that is about $8k more over three years.That is just greedy.

If someone comes in tomorrow and pays cash or does third party financing, they still wouldn't get that $8k.
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      01-24-2021, 05:41 PM   #12
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Quote:
Originally Posted by JamesNoBrakes View Post
But I'm special and I deserve a discount!
It's just about being fair, there are not many people that would walk in and be ready to sign on a car within an hour. I am sure they have many people that waste their time for hours and then go shop all the other dealers. The ease of the sale and the little time wasted should amount to something.
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      01-24-2021, 05:50 PM   #13
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Quote:
Originally Posted by TheRussski View Post
It’s easy, someone will come in and pay exactly what they asking for. Also it’s principal.

I would rather give a discount to someone who is not asking for, versus someone who will argue and fight with you for hours just to get couple bucks off.

I do some retail on the side and have these specific groups of individuals who come in and try to market bargain me to a penny.....I won’t budge just out of Principal.
Yeah.... if I go walk into a dealer and don't ask for any discount I'm SURE they will give me a discount because I didn't ask for anything.

They created this shady as fuck system not me. Then they advertise super low prices online, but in the fine print somewhere at the bottom of the site the say the price excludes $5k worth of bs fees. I've seen some who will even make you use their financing or you have to pay an extra $1k. I change cars a lot so I'm always browsing. There are certain dealers that I will completely ignore no matter what car they have or what price they are advertising it at because I know they are total scum.

They could always you know... advertise the best actual price they are willing to sell their product at and save everyone a bunch of time and hassle. In fact a lot of dealer are moving to that model and I've actually purchased my last 2 vehicles from these types of dealers. Such a better buying experience.

All that being said I don't blame the dealers necessarily. As long as people keep buying from these types of dealers and keep paying ridiculous markups because they HAVE to have the latest model whatever then dealers will keep doing what they do.
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      01-24-2021, 05:58 PM   #14
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Any other dealers willing to discount for you?
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      01-24-2021, 06:07 PM   #15
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Quote:
Originally Posted by dsad1 View Post
I am just curious how dealers think, or how they make money, sometimes I don't get their logic.

I was at Mercedes this week, long story short after some ridiculous offers from them for a gle 63s coupe, I made my offer of a 2% discount and the base mf rate. I am thinking this is a very fair offer and we could move on. They wouldn't budge, they want msrp and some ridiculously inflated mf.

They have two of them on the lot with two more about to arrive. I am just curious why they would let me walk out on such an easy sale with barely any discount.

I have no emotional attachment here, car isn't even for me, it's for my father and they know that. I just do this because english isn't his first language.

Can anyone give me insight on how this makes sense for them? I could understand this if I came in asking for a 10% plus discount, but 2%?
Have you thought about getting an X6 M Competition? You should at least build a X6 M Competition and request a quote to see what the deals are.
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      01-24-2021, 06:09 PM   #16
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Quote:
Originally Posted by dsad1 View Post
It's just about being fair, there are not many people that would walk in and be ready to sign on a car within an hour. I am sure they have many people that waste their time for hours and then go shop all the other dealers. The ease of the sale and the little time wasted should amount to something.
Not necessarily. There’s a lot of people out there that will come in, pay in cash exactly what they’re asking for. Sounds like they don’t mind waiting for that right buyer.
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      01-24-2021, 06:11 PM   #17
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Originally Posted by dreamingat30fps View Post
Yeah.... if I go walk into a dealer and don't ask for any discount I'm SURE they will give me a discount because I didn't ask for anything.
I was giving example of my retail side gig and what I would do. Not the dealership.

Some people just can’t pay what someone is asking for.
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      01-24-2021, 06:13 PM   #18
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Originally Posted by stein_325i View Post
Any other dealers willing to discount for you?
I haven't tried any other dealers, I would rather just change manufactures than go outside of the city.

I called BMW and even though they have no x5m's in stock they are willing to order one with a good discount and base mf. We built a relationship with them because they treated us right from the first purchase.

The Mercedes guy did not come back with a 1.2% discount but will not budge on the money factor.
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      01-24-2021, 06:25 PM   #19
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Originally Posted by TheRussski View Post
Not necessarily. There’s a lot of people out there that will come in, pay in cash exactly what they’re asking for. Sounds like they don’t mind waiting for that right buyer.
In this situation though, somebody paying cash doesn't really help him because he still wouldn't get his inflated lease fees.

I would have signed if the deal was msrp and base money factor.
The 2% discount is about $2500 the inflated rate adds $8k.
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      01-24-2021, 06:40 PM   #20
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Quote:
Originally Posted by dsad1 View Post
This car has been sitting there for over a month, I wouldn't say they are flying off the shelf.

The discount from msrp isn't the big deal, it's that they are more than doubling the base money factor, that is about $8k more over three years.That is just greedy.

If someone comes in tomorrow and pays cash or does third party financing, they still wouldn't get that $8k.
Leases are controlled by the Financial Services Division at the corporate entity level and dealers are not normally given discretion to change terms, so you either take what's offered or seek 3rd party financing as you alluded.

As for your other point, the GLE 63 S is ~$120K, so 2% discount is ~$2,400 which is not insignificant considering dealer margins. They've obviously considered incurring carrying charges for keeping the car in inventory longer is still better than accepting your 2% off offer.

What you consider greed others consider as supply and demand forces at work. If you don't like it, you're free to buy elsewhere. I hear the BMW X2 isn't selling well and supply is plenty, so you may get some less greedy deals there.
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      01-24-2021, 06:55 PM   #21
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Why are you so hung up on this? Dealer won’t discount and marking up the money factor so they must think someone else will pay up. Move on to the next dealer or pick another brand. I wouldn’t have even given 2 seconds to this.
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      01-24-2021, 09:06 PM   #22
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Dealers have transaction data that (most) consumers don't have access to. They know, in fact, what specific models are selling for, by location and date. They know the market, it's their business.

The economy is very good now, and getting better. People have money to spend. Dealers know this and set prices accordingly.

The local rainmaker BMW salesman in my town sold a bunch of M8C units in 2020, to buyers (consumers) from all over the country. It doesn't matter to a dealer if a local customer walks into the showroom with a briefcase full of cash, if the buyer isn't offering the price they want.

p.s. Funny theme in this thread, on a BMW site, of how bad MB dealers are. Same comments on the MB site.
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