So how are Mercedes selling cars?

So how are Mercedes selling cars?

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carparkno1

Original Poster:

1,435 posts

165 months

Saturday 6th January
quotequote all
Realise this is a bit of an edge-case (and I'm hoping Fast Bug may shed some light).

Haven't been to a Merc dealership in a long time, but currently evaluating warm/fast hatches and coupes as a second car. Popped down yesterday and made an appointment today to test drive a car.

Dealership inside rammed with electric cars, outside a very packed used lot. Sales chap couldn't have been nicer... chucked me the keys, told me to crack on and enjoy.

Good test drive later I return, like the car but not the colour (looking at used vehicles at the moment) so enquire around other cars in stock. Of course sir, drop me an email and I'll send you what we have.

Asked about financing, effectively told use Merc if you want or do it yourself for better Apr... Was shocked at the lack of sell (but pleasantly surprised with the honesty).

I guess my questions are related to the Agency Sales model I've read about with Merc.

1) is the finance not pushed anymore because they won't discount or add an incentive?

2) Who sets the price of used cars now? A central team or the dealers, because there are identical spec/trim/year/mileage cars across the country at different Merc dealers with values £3k apart. Would one dealer match another now even if a different franchise?

All felt very different to visits to Audi/BMW - can't say for the better or worse but I'm interested in the mechanics as this is meant to be the new world for car sales going forwards isn't it?

Edited by carparkno1 on Saturday 6th January 14:05


Edited by carparkno1 on Saturday 6th January 14:06

Chris Stott

14,535 posts

204 months

Saturday 6th January
quotequote all
Mercedes are responsible for new car pricing… including any deals or incentives. Dealers can sell/incentivise the add ons.

Anything registered (other than Mercedes supplied demonstrators) is owned and priced by the by the dealer.


carparkno1

Original Poster:

1,435 posts

165 months

Saturday 6th January
quotequote all
Interesting didn't know that

Panamax

5,077 posts

41 months

Saturday 6th January
quotequote all
Several big Mercedes car dealerships, including Mercedes World (Brooklands), were bought in 2023 by Hedin Group, a Swedish outfit who also own MB dealerships in other European countries.
https://www.pistonheads.com/gassing/topic.asp?h=0&...

As you say, they seem to be making a huge push for electric.

I don't know the basis on which their sales people work. It's possible they're paid in a way that doesn't give commission on individual car sales, although I have no information about this.

Sheepshanks

35,018 posts

126 months

Saturday 6th January
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A few years ago they sold a bunch of other dealerships to a Chinese company, LSH. They're now adding BYD alongside Merc!

Bodo

12,421 posts

273 months

Saturday 6th January
quotequote all
I ordered a new Mercedes in autumn in Germany - agency model was established in Q2 already. I paid the price from the online configurator plus delivery. Mercedes own dealerships and independent offered the same price; equally acting as agents - the contract is with Mercedes-Benz directly.

Regarding question 1) - interest increased significantly in the last two years, both, leasing and financing became expensive. I decided to buy cash, as I won't get better returns with my (conservative) portfolio strategy and I intend to keep the car for 7-12 years.

carparkno1

Original Poster:

1,435 posts

165 months

Monday 8th January
quotequote all
carparkno1 said:
Not sure why this was moved just to the Mercedes forum... it was intended as more general question regarding car buying/state of Mercedes as a sales model vs the rest of manufacturers.