MB Dealer Holdback / Profit / Invoice $$$

F.Y.I.

On MB cars the dealer has "holdback" of 3% of "Total MSRP" (i.e. 3% of sticker price minus destination). For example, a bare bone E320 without any options (which is VERY rare) dealer makes at least $1,700+ profit by selling it at his invoice price. And makes about $3,300+ by selling it at MSRP (sticker price).

To calculate dealer's invoice price for a new MB:
take a sticker (MSRP) price, subtract destination charge ($720 for E320), then subtract 3% (i.e. multiply by 0.97), then add destination charge back.

For example for bare bone E320 without any options MSRP = $48795
(48795 - 720)*0.97 + 720 = $47352.75 (this is actual dealer invoice).

Any comments?

 

DMI+RY38041.045

Just let us know which dealer is dealing like this and I will be first in line for my new CDI. I'll have it shipped for about $500.

I believe that you need to re-do your math!  You should take the dealer (MSRP-Freight) times .97 + the freight calculate the dealer cost after deducting the holdback.  THere is also an advertising fee from the factory to add back and a floor plan allowance to subtract, to get to a dealer low net cost!

 

Bob

Well, thats is the same information given on kbb.com for the invoice price.

 

[QUOTE=scubadvr2001]

I believe that you need to re-do your math!  You should take the dealer (MSRP-Freight) times .97 + the freight calculate the dealer cost after deducting the holdback.  THere is also an advertising fee from the factory to add back and a floor plan allowance to subtract, to get to a dealer low net cost!

[/QUOTE]

Sorry, 3% off total; MSRP - my mistake.

RE: advertising fee - most of the times you can easily negotiate 50% of the amount the dealer tries to put on the order sheet.

About 25% of the orders you can get away without paying advertising fee.