Quote:
Originally Posted by DCist
I think max that a dealer could give you off MSRP (with options) is 2%....but that is not guaranteed at all. It would depend on your dealer's location, number of cars on the lot and number of cars on order.
The current mark up stands at 7.45%. However, the dealer has to pay $600 for advertising on any car sold + freight $875.
Example:E 550
Invoice = 52,395 (with no options)
Advertising surcharge $600
Freight = $875
True Invoice = $53,870
MSRP = $56,300
Thus, the true mark up is (56300-53870)/53870= 4.51% or $2430
The mark up on options is constant and is 7.45%. It is generally a lot harder to persuade the dealer to discount options or packages.
Overall, I do not think that E 2010 MSRP or options will be discounted in corporate any time soon.
Here is the reason why:
The car is made in Germany. E550 with Sport and equivalent of P1 package prices out at about 78,000 Euros on www.mercedes-benz.de
USD stands at 1.40775 per Euro as of this morning. This exchange rate makes E 550 with SP + P1 package sell for $110,000 in Europe. |
There are several errors here;
1) The MSRP you list does not include the freight (see MBUSA). Therefore you adding it back in is doubling up in a way and your true market figure is incorrect.
2) Advertising fee is a voluntary program that dealers can sign up to but don't have to.
3) Pricing in Eurpoe has nothing to do with pricing in the US; neither does the exchange rate at the moment.