Mercedes Benz UK bans dealer haggling!
Discussion
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. Other brands have done this for some time now.
Seems very mixed response from dealers about the model but they’re generally not happy about it. I think there’s legal action going on in Australia between dealers and manufacturers.
Edited by Sheepshanks on Friday 9th December 07:34
It’s being done by many manufacturers, Toyota, landrover, Tesla, polestar - in so far as I can ascertain it’s to stop individual dealers / dealer groups stockpiling cars in the current world of short supply.
Vast amount better than the smoke and mirrors that goes with Porsche buying, unclear dealer allocations, favoured buyers who get preferential options, big deposits and indeterminate times (years) to secure a build allocation.
I can’t see this being a positive for the consumer. The price is not going to be levelled at ‘the best price’ it’s going to be levelled at the higher price. They are just trying to maintain profit, remove the hassle/cost of consumers negotiating and remove competition between dealerships. It’s also going to dumb down the job of the sales person from someone who can negotiate, put a deal together and close business to that of an admin agent.
I understand some people feel uncomfortable negotiating but if the money ain’t staying in your pocket, it’s going in the coffers of the business you are buying from. What would you prefer for the sake of what you perceive to be a little awkward conversation?
I understand some people feel uncomfortable negotiating but if the money ain’t staying in your pocket, it’s going in the coffers of the business you are buying from. What would you prefer for the sake of what you perceive to be a little awkward conversation?
f
k haggling. I’m not buying a carpet in an Arabian souk. I just want to know how much it costs, and that I’m paying the same price as anyone else buying it. If I can afford it, and I want it, I’ll buy it. Buying my Tesla was the most pleasant and painless car purchase experience I’ve ever had.
k haggling. I’m not buying a carpet in an Arabian souk. I just want to know how much it costs, and that I’m paying the same price as anyone else buying it. If I can afford it, and I want it, I’ll buy it. Buying my Tesla was the most pleasant and painless car purchase experience I’ve ever had. CheesecakeRunner said:
fk haggling. I’m not buying a carpet in an Arabian souk. I just want to know how much it costs, and that I’m paying the same price as anyone else buying it. If I can afford it, and I want it, I’ll buy it. Buying my Tesla was the most pleasant and painless car purchase experience I’ve ever had.
And how much did you overpay as a result?k haggling. I’m not buying a carpet in an Arabian souk. I just want to know how much it costs, and that I’m paying the same price as anyone else buying it. If I can afford it, and I want it, I’ll buy it. Buying my Tesla was the most pleasant and painless car purchase experience I’ve ever had. Given pressure is on demand side, then it is a sellers’ market for new cars, particularly EVs.
That makes it easier for the supply side to firm pricing.
When the market shifts, oversupply will mean price negotiation will be back on the table.
‘Twas ever thus…
Sheepshanks said:
All VW EVs have been sold using the agency model.
Seems very mixed response from dealers about the model but they’re generally not happy about it. I think there’s legal action going on in Australia between dealers and manufacturers.
Mercedes dealers in Aus are taking legal action over it.Seems very mixed response from dealers about the model but they’re generally not happy about it. I think there’s legal action going on in Australia between dealers and manufacturers.
Edited by Sheepshanks on Friday 9th December 07:34
Honda did it in Aus about 18 months ago.
Portofino said:
Reads suspiciously like price fixing to me.
Not sure you know what price fixing is. It certainly isn’t someone fixing a price for a product, otherwise every business in the world is guilty of it all the time with everything they sell. Think of how many crimes Sainsbury’s or Tesco must commit on a daily basis if it were. Stuart70 said:
CheesecakeRunner said:
fk haggling. I’m not buying a carpet in an Arabian souk. I just want to know how much it costs, and that I’m paying the same price as anyone else buying it. If I can afford it, and I want it, I’ll buy it. Buying my Tesla was the most pleasant and painless car purchase experience I’ve ever had.
And how much did you overpay as a result?k haggling. I’m not buying a carpet in an Arabian souk. I just want to know how much it costs, and that I’m paying the same price as anyone else buying it. If I can afford it, and I want it, I’ll buy it. Buying my Tesla was the most pleasant and painless car purchase experience I’ve ever had. LF5335 said:
Portofino said:
Reads suspiciously like price fixing to me.
Not sure you know what price fixing is. It certainly isn’t someone fixing a price for a product, otherwise every business in the world is guilty of it all the time with everything they sell. Think of how many crimes Sainsbury’s or Tesco must commit on a daily basis if it were. Mercedes will be telling the dealers the price across the network, no internet deals, no offers, no geographical differences etc. thus removing the supply & demand led price set by the free market.
Sounds like price fixing to me.
Portofino said:
Supermarkets need to be competitive with the branded goods & even with non branded to an extent otherwise people will shop elsewhere.
Mercedes will be telling the dealers the price across the network, no internet deals, no offers, no geographical differences etc. thus removing the supply & demand led price set by the free market.
Sounds like price fixing to me.
Just like you’re free to use another supermarket if your current one doesn’t have prices you like, you’ll still be free to buy another brand of vehicle if Mercedes prices aren’t to your taste. Mercedes will be telling the dealers the price across the network, no internet deals, no offers, no geographical differences etc. thus removing the supply & demand led price set by the free market.
Sounds like price fixing to me.
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. Other brands have done this for some time now.
Coopers for example. As has been said above, negotiation are based on monthly payments/deposit/GFV rather than base price so you need to adjust your thinking when doing a deal.
Rough maths -every £24/month x 48 month term equates to £1k of value on the car/or total value of deal. A very simplified way of thinking, interest rates have an impact too of course.
So when a bought a BMW a few months ago - i got a finance quote online before i went to the dealership , and went in to dealer and set my monthly payment target over X years at £75/month less than my previously acquired quote and started negotiating from that point.
I don't understand some people's fear of negotiating a price....."haggling" if you will
You have a conversation with someone, make an offer, hear the counter offer, negotiate some other things in there if you want to or can.
What's so frightening or loaded with hassle?
I think some people are just scared of negotiation.
You have a conversation with someone, make an offer, hear the counter offer, negotiate some other things in there if you want to or can.
What's so frightening or loaded with hassle?
I think some people are just scared of negotiation.
CheesecakeRunner said:
Portofino said:
Supermarkets need to be competitive with the branded goods & even with non branded to an extent otherwise people will shop elsewhere.
Mercedes will be telling the dealers the price across the network, no internet deals, no offers, no geographical differences etc. thus removing the supply & demand led price set by the free market.
Sounds like price fixing to me.
Just like you’re free to use another supermarket if your current one doesn’t have prices you like, you’ll still be free to buy another brand of vehicle if Mercedes prices aren’t to your taste. Mercedes will be telling the dealers the price across the network, no internet deals, no offers, no geographical differences etc. thus removing the supply & demand led price set by the free market.
Sounds like price fixing to me.
It's more like Heinz saying that a tin of beans is now 75p and that every supermarket, corner store and grocery delivery service must sell it for that price no matter the circumstances.
Mercedes' policy does sound like price fixing to me (although the devil is in the detail and i am sure that their commercial lawyers have made sure that it takes advantage of a loophole or two) as dealerships won't be at liberty to set their own prices
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