Mercedes Benz UK bans dealer haggling!

Mercedes Benz UK bans dealer haggling!

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Discussion

Ari

Original Poster:

19,347 posts

215 months

Thursday 8th December 2022
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I've just received this email from Mercedes Benz in the UK.

There’s a new way to buy your new Mercedes‑Benz. No matter where or when you buy it, online or in-store – choose your car, and there’s just one price. Our best price. No haggling needed.
From 3 January 2023, you’ll be able to search for a new Mercedes-Benz car on our Online Showroom, or speak with a Mercedes‑Benz Agent at one of our showrooms across the country. And all this, confident in the knowledge that you’ll receive our very best price however you choose to buy.
Our dedicated nationwide team of new car Sales Agents will be ready to help you.
Online, in-store, or any combination of the two.
One price – easy.

Of course there is the slight matter of the part exchange valuation, if there is one. But if you're a cash buyer, that's the price matey, take it or leave it!

Funk

26,277 posts

209 months

Thursday 8th December 2022
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Bold strategy; I guess they've seen it working for Tesla and think they have enough brand cachet/loyalty that customers won't wander next door to the nearest BMW or Audi dealer instead...

sly fox

2,226 posts

219 months

Thursday 8th December 2022
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You say this like it's something new ?

Other brands have done this for some time now.

samoht

5,716 posts

146 months

Thursday 8th December 2022
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It's a good time to do this, as discounts are pretty minimal on many new cars anyway since demand exceeds supply.


Aunty Pasty

618 posts

38 months

Thursday 8th December 2022
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My preference IMO. If I want something and I can afford it I just want to be able to go ahead and buy it and then enjoy it. I don't want to finish a purchase wondering whether I've done the right thing or made the right moves or whether or not I've been screwed over.

RicksAlfas

13,401 posts

244 months

Thursday 8th December 2022
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A big part of it is people searching online for a car "up to £20,000".
Dealers can no longer advertise a car at £20,500 with £500 of haggle built in as it won't come up in the search.

Aletank

102 posts

82 months

Thursday 8th December 2022
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Hopefully they'll make the RRP realistic !

valiant

10,231 posts

160 months

Thursday 8th December 2022
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Prices have been pretty much fixed for a while now so shouldn’t make much difference to most.

Doofus

25,821 posts

173 months

Thursday 8th December 2022
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Aletank said:
Hopefully they'll make the RRP realistic !
Well, it won't be an RRP, will it?

wink

Stick Legs

4,910 posts

165 months

Thursday 8th December 2022
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Of the people I know the ones who ‘need’ to see a bit off to feel like they ‘have got a deal’ won’t be buying new cars anyway.

The one who have new cars lease or finance them.

The ones who have enough money to buy anything they want outright own nearly new rather than new.

Frankly I am surprised it’s taken this long.

maz8062

2,245 posts

215 months

Thursday 8th December 2022
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In todays car market the RRP is not really that relevant - it comes down to the deposit, monthly payments and gfv. If I want a car and the dealer can’t get the numbers to work for me I’ll go elsewhere. I’m sure deals will still be getting done.

Venisonpie

3,273 posts

82 months

Thursday 8th December 2022
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The residual value/balloon will become the key variable if the seller needs to move stock. Cash has had a diminishing value in car buying for a while and this puts it to bed.

jimmyt1202

212 posts

183 months

Thursday 8th December 2022
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It’s the agency model - MINI are going this way in 2024 and BMW following suit in 2026. Expect it will be the way for most manufacturers soon

Ari

Original Poster:

19,347 posts

215 months

Thursday 8th December 2022
quotequote all
sly fox said:
You say this like it's something new ?

Other brands have done this for some time now.
Have they? I recall Daewoo (remember them?) doing it, not heard of anyone else.

The-Wanderer

213 posts

67 months

Friday 9th December 2022
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You’ll be buying the car direct from MB, and the dealer becomes simply a handover agent. You can only finance through MB finance, or you can pay cash.

The dealer can choose to buy your existing car if they want it, passing on any equity to MB as customer contribution.

The value of your current car is the only negotiation, everything else is fixed by MB and you are dealing with them. You’re simply choosing which site to collect it from, the price of the new car is the same in Glasgow, Newcastle, Stockport, Bristol or Exeter.

stinkyspanner

719 posts

77 months

Friday 9th December 2022
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What's in it for the dealers then?

______

11,654 posts

269 months

Friday 9th December 2022
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Ari said:
sly fox said:
You say this like it's something new ?

Other brands have done this for some time now.
Have they? I recall Daewoo (remember them?) doing it, not heard of anyone else.
Toyota do this.

LF5335

5,942 posts

43 months

Friday 9th December 2022
quotequote all
[quote=__]
Ari said:
sly fox said:
You say this like it's something new ?

Other brands have done this for some time now.
Have they? I recall Daewoo (remember them?) doing it, not heard of anyone else.
Toyota do this.
Tesla always have. That’s the brand that I think most manufacturers are looking to as well, as their marketing has been phenomenal.


The-Wanderer said:
You’ll be buying the car direct from MB, and the dealer becomes simply a handover agent. You can only finance through MB finance, or you can pay cash.

The dealer can choose to buy your existing car if they want it, passing on any equity to MB as customer contribution.

The value of your current car is the only negotiation, everything else is fixed by MB and you are dealing with them. You’re simply choosing which site to collect it from, the price of the new car is the same in Glasgow, Newcastle, Stockport, Bristol or Exeter.
That’s pretty much how it is now isn’t it?

The cash or MB Finance is how it’s always been. Not sure how it could be anything different. Either you borrow the money via MB Fiancé then the dealer gets their cut, or you get a secured loan / HP / lease finance elsewhere and they pay the dealer in full, own the car and you pay them back, or you get a personal loan / use savings and pay the dealer in full and own the car.

The Rotrex Kid

30,309 posts

160 months

Friday 9th December 2022
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Long lauded as the future of the motor industry!

Dealer still does the test drive, px, ordering, handover, still gets paid, nothing much changes except saying ‘that’s the price, take it or leave it’

Customer gets a price set by the manufacturer, no negotiation.

Some will win, some will lose.

All manufacturers will go this way, hopefully the OTR prices will become more realistic and finance offers will be a bit sharper, but mostly, nothing changes (except the dealer gets a fixed £ amount instead of a % in lieu of not being expecting to give any of the £ away!)

Teddy Lop

8,294 posts

67 months

Friday 9th December 2022
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Is it new? I've had sniffy responses when buying new vans - don't expect "best possible price" but would try to support local dealer if they're willing to engage - last one (ford) just quoted me exact list price (and it was for the wrong van too), thanks but I can read the brochure. Online discounters 4k off, can't ignore that.