Just about ready to pull the trigger and buy the R350-need help

My local dealer is trying to persuade me to order the 08 R-350 for a Fall delivery.  From what I have read on some other forums this is quite common for Mercedes vehicles. 
 
Here are my concerns and I hope you (or anyone else) can help me:
 
1. How can you order a vehicle for which you don't know the price?
 
2. Won't the dealer feel that he has you locked in and the negotiation of the deal will be very, very difficult now with respect to price?
 
3. How much deposit should you have to leave for this type of transaction?
 
4. Is the deposit refundable?
 
5. Do you know if there are any new exterior colors as choices for '08?
 
6.   I am also getting mixed advice from MB dealers on this:   I drive 25,000 miles per year, should I lease or buy? One dealer is telling me that I should just pre-purchase my miles upfront and still lease. Another is telling me that leasing is not an option for me because I drive too many miles. Thoughts? Opinions? Advice?
 
7.  Also, doesn't it cost more to insure a leased vehicle than one you own?

8.  I am panicking since so many people seem upset that the car is built here in the US rather than Germany.  So what does that mean exactly?  Is it an American made car?  Are all the parts flown in from Germany?  Is it a mixture of parts? 

THANK YOU SO MUCH FOR YOUR HELP!!

1. You bargain the %age off of MSRP that you are willing to pay for the car.

2. Not necessarily, because you can backout at any time, if you are not satisfied - you are not obligated to buy the car.

3. Some dealers expect a $500-$1000 deposit (check or credit card - money won't be withdrawn); others will just take your word for it. In the case of pre-ordering an R-Class, they are just selecting options (on your behalf) for one of many cars that will be delivered in the next few months. They prefer to order cars that sell well, with the right options - your choice happens to be one of them. At the same time, they don't want uncommitted buyers.

4. Yes, it is fully refundable. In fact the paperwork (if you pay a deposit) will say that neither parties (car buyer, dealer) is obligated to buy/sell the car. Its just that you get to pick first, once it arrives in the showroom.

5. I read in another web site that the new colors on the 2008 R-Class are calcite white, sanidine beige or periclase green. Your dealer should be able to give you specifics when pre-ordering the car through the online system.

6.   I would buy, because good (discounted) residuals and Money Factors exist typically for 10k, 12k and 15k/year leases only. If you get a very good pre-purchase option for the extra miles and are able to negotiate, then it might be worth - but I have my doubts. And I know that some folks lease for business accounting reasons.

7.  Not really. Lease companies expect you to have good insurance coverage for liability - which considering the car you are able to afford, would cover the minimal 100/300 (or whatever) the requirement is. 

8.  The car is built in one of the most sophisticated auto assembly plants in the world (Check out http://www.mbusi.com/).  That said, there is some pseudo-prestige / hype (and surely some historical evidence) that cars built in Japan and Germany by their original manufacturers are better (or truer to their heritage - as applicable). But keep in mind that newer plants are designed better to produce new models, using the latest technologies, resulting in more automation and stricter QA/monitoring. The R-class is not a collectors car, so I wouldn't bother too much on this point.

And just a fyi - I ordered my 2008 R350 a couple of weeks ago.

Thank you very much Jay, you are full of so much useful information. 
 
I have a couple more ?'s now in response to your answers.
 
What is the best possible % off MSRP I could hope for in a perfect world?  What did you get?
 
Can you tell me what other website you read about the colors?  I like to join all the sites that are discussing this car. 
 
What color and options did you order in your R?
 
What part of the country are you from? 
 
Thanks!

Glad you found the information useful.
 
The absolute best you can do (IMHO) for the 2008 R-class is 12% off MSRP - that's the dealer margin on these cars. I'm in the LA area, where there is a lot of competition and undoubtedly the best prices in the US. I was able to get 3 (out of 6 that I tried - there are 20+ MB dealers in the So. Cal area) dealers agree on this discount and finally went with one of them. I would say that 7-9% off is a reasonable discount for these cars. You may already know that '07s are going for $10k+ off MSRP - much like they did for '06s at the end of last year.
 
http://www.leftlanenews.com/mercedes-benz-r-class.html is the site which had the MB press release.
 
My order was R350 (Iridium Silver + Black MB-Tex) + P2 package + Panoroof + Lighting package + Rear Seat Ent.
 
Note that for '08, the Panoroof is not part of the premium packages. And you get to choose between RWD and AWD. Also, the AMG "appearance" pkg is standard for '08.

No, I didn't know that the R's for 07 are having $10K off.  Is that a backdoor dealer incentive that they don't like to tell their customers about?  I am not happy that none of the dealers in the area are sharing that information with me.  There is one R that has ALMOST everything I want.  It is in DesMoines, I live in New York.  Could this be why no one is jumping through hoops to help me out?  Instead they are all pushing me toward ordering the '08 though that may no be the worst thing in the world since I will get it EXACTLY as I like.
 
What do you think about the new second row bench?  For the website you referred me to, it doesn't look as if it really offers that much more room or that anyone (even a child) could be comfortable sitting in the middle there.  I have two kids 1 and 5 so I thought the second row bench would be practical for me but the pictures don't really look like it.  It may be more practical to get the center console so they can put their 'stuff' including DVD's in there and the car won't look messy. 
 
So, please share what you did...Did you go to the dealers and say something like, "if you will meet 12% off of MSRP and you've got my business?"
 
How about this perk that some of them try to offer saying that they won't come and pick you up for servicing or give you a loaner car unless you buy from that specific dealership?  Have you heard of this and what do you think?
 
Also, my local dealership is offering the 1st year of free oil changes.  Is this special or do all dealers offer this?
 
Thanks again!!! 

I'm not exactly sure about the factory incentives versus dealer discounts, but out here that's what happened towards the end of '06 for that year's model and the same can be expected now too - more especially because the newer one is going to be a better option for most. As an example, a local dealer was offering the following lease specials last week:
2007 R350
(Only 1011 available / No substitutions)
(Metallic Paint, Premium Pkg 1,18in Wheels)
MSRP = $49,600
Total due at signing = $3,499
7,500 miles per year 5859 months = $389 + tax
8889k miles per year  9899 months = $409 + tax 
128129k miles per year  138139 months = $423 + tax
 
I think no one around your area is competitive because they don't have enough cars in stock / dealers to compete with.
 
I'm not sure of the practicality of a 2nd row bench seat. If number of seats available is more important than comfort, then its a good choice to have this option. Your logic below, for using the console as a practical storage solution does make sense.

I did not go to any dealer - I just did everything over the phone / email - it was quick getting 3 / 6 getting to the same target point that I had. In fact, since then I have many other dealers wanting my business but since I went with a recommended one who has worked well with me during the process, I plan to stick through my decision.


All MB dealers here give a loaner car. Some of them give you an MB-only loaner if you purchased from them. I take my current car to a MB dealer nearby where I didn't buy the car, but the friendly service consultant always ensures that I get an MB loaner. Anyway its a small incentive and I would not give it much value, unless the option to purchase existed for a competitive price. Purchase price for the car always trumps, for me at least. My other car is a Lexus - and I can say that those dealers sure know how to host / service customers.

Free oil changes for the 1st year? That means nothing (or close to it at least)! Since new MBs need servicing every 13K, 26K, 39K miles,... In the 1st year, you would in a best-case scenario take it for one "A" service that costs less than $300. Not a big deal - you are better off bargaining the purchase price / lease for the car.