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Mercedes-Benz C-300 European Delivery

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Comments

  • jrct9454jrct9454 Posts: 2,367
    Everyone seems to forget that the MB OSD program not only includes a 7% discount on the MSRP, but they also waive the US destination charge, which is another $775 on a C-Class, or another 2%. If you use the bottom line USA MSRP as a benchmark, your actual savings are closer to 9%, not 7%.

    That said, of course everything is negotiable, but don't count on big discounts on an OSD - dealer margins are very slim on an OSD [unlike BMW, where the OSD markup is virtually the same].

    I still say, you don't do this strictly for the money - if you're planning to go anyway, and are planning to buy a new car anyway, the OSD program is definitely worth it...but it's the experience that makes it worthwhile more than the pure $ saved.
  • cdnpinheadcdnpinhead Forest Lakes, AZPosts: 3,206
    ". . .if you're planning to go anyway, and are planning to buy a new car anyway. . ."

    Bingo! Absolutely correct, and don't forget the potential cost of a rental car for a week or 10 days in Europe, which is significant, at least in my income bracket.
  • mike02mike02 Posts: 13
    Hello:
    I got the following terms for 2008 C300 luxury edition with navigation package lease with European Delivery Program:
    39 months, 12,000 miles, residual 61%, money factor 0.031
    0% down, i.e. $1,665 at sign time which includes first month lease.
    With EDP they also give one month free (for the time they ship the car back from Europe). Monthly payments including taxes $450.00
    The dealer is in New England. Is this a good deal in your opinion?
    Thank you.
  • Sounds like a good deal to me. I must tell you that the more I drive my C-300 the more I like it. I can't count all the cars I have had with many being built in Germany but the best is the new C-300. It gives a great ride but when you push it into a corner it handles like a sports car. I now enjoy driving again. Thank you MB for a job well done.
  • Hi,

    So, you will end up paying $1665 + 38 * $450 = $18765? What is your tax rate and also what does it mean 1 month free? Also, you mentioned about 61% residual value, what is that value at in terms of the actual number? Money factor 0.031 means a 3.1% APR right?

    I am in the market for EDP Luxury with navigation package only. I haven't really thought of leasing though. I am not really familiar with leasing terms, so pardon my ignorance.

    Thanks.
    Will
  • qbrozenqbrozen Posts: 16,894
    Also, you mentioned about 61% residual value, what is that value at in terms of the actual number?

    Residual value is calculated from the MSRP. So the MSRP x .61 = buyout price at the end of the lease.

    Money factor 0.031 means a 3.1% APR right?

    APR = MF x 2400

    so, actually, the poster meant .0031, which equates to 7.44%.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • My wife and I took European Delivery in late September 2007 on a 2008 E320 Blutec, drove about 1500 miles through Austria, Switzerland, Italy and France before dropping the car in Nice for shipment to Jacksonville. The delivery process was wonderful - friendly, smooth as silk and full of creature comforts. MB really took care of us.

    There are a lot of posts about whether this is a money-saving measure. It is, but in our opinion, that is secondary to the experience. I found not a lot of negotiating room on an '08 Blutec for US delivery, so the 7% + all the extras (taxi to town and to Sindelfingen, first class hotel, $100 top notch lunch at the factory, 15 days of zero deductible insurance, shipping, dealer prep, etc.) + not having to pay $2000 for a 15 day average size European car rental, made the numbers pretty friendly.

    The factory tour opened this engineer's eyes to what MB puts into the design and manufacture. As far as mileage goes, we averaged 34.5 mpg for mixed city/country/highway. I suspect we will see 37+ highway once it is broken in.

    Great car, great experience both recommended.
  • Thanks, qbrozen.

    Mike02, what is the MSRP on your car? I tried configuring EDP Luxury + Multimedia package only = $33,341. 61% residual value = $20,338.

    So theoretically, it's $13,003 loan with a down payment of $1,150 and monthly payment of $429 for 39 months (adjusted for an assumed 5% sales tax).

    The Edmunds financial calculator (http://www.cars.com/go/advice/financing/calc/loanCalc.jsp?mode=full) with 7.44% interest rate shows monthly payment of $343, a difference of $86 a month.

    I was trying to see how do we consider whether a lease option is a "good" deal. I do realize about the mileage limitation.

    Thank you.
    Will
  • mike02mike02 Posts: 13
    Paid $32,000.00 for European Delivery Price.
    C300 luxury with navigation package, non-metallic paint.
    Dealer in Massachusetts.
  • Mike02,

    $32,000 is a very good price. How did you get that low?

    Thanks,
    Will
  • qbrozenqbrozen Posts: 16,894
    Well, Will, this is a pretty complicated question, and I'm sure you can find many different answers to it. In my humble opinion, a lease is a good deal when it is subsidized by the manufacturer with either extra money, a low rate, or a high residual.

    For instance, I have 2 leases now. A Honda and a Chrylser. The cap cost on both cars was well below invoice (very very far below invoice in the case of the chrysler). The Honda lease deal at the time also included a strong residual and a very low money factor that equated to about 1.9%. At the end of the lease, the car will not be worth the buyout, but I get to give it back and walk away, and Honda Finance will lose some money when they sell the car. On the Chrysler, the rate is 0.7% and it also carries a residual higher than its true wholesale value. So in both of these cases, it was much cheaper to lease the vehicle than to buy it, at the time, and I have saved a good amount of money compared to buying and selling after 3 years.

    On the current rates I'm seeing with this C-class, I would not lease based on that alone. However, the residual is quite strong. Whether or not the market will support such a residual cannot be guessed. Only time will tell.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • Qbrozen,

    Thanks for the detailed explanation. So in general, a lease should evaluated on 3 factors: money factor (APR), residual value and manufacturer discount (which affects the MSRP at which the residual value will be based upon).

    Mike02 mentioned $32,000 for luxury with navigation package. The EDP price at mbusa website is showing $33,341. So, I was wondering how he could even get the price lower.

    From what I have heard, the C-class are usually sold with a few hundred off the MSRP nowadays, since it's still new and very popular. Plus, with EDP (around 2k savings off the MSRP), it's surprising to see that dealer will even go lower.

    So, I was just wondering how Mike02 is able to get that price? Did he try various dealers and get them to beat one another's price?

    I really appreciate the help.

    Thanks,

    Will
  • mike02mike02 Posts: 13
    They took 7% + destination charge off MSRP automatically for European Delivery.
    Then I asked couple of dealerships for further discount. After few days of negotiations (over e-mail and phone) I got the mentioned offer from 2 dealerships.
  • Thanks Mike02.

    Wow, you got a very good deal. Can they do this again for me? =p I am in the west coast though.

    7% off + $1300 discount + a good money factor + residual value = it's a STEAL

    So just email / phone negotiations? Did you come to the dealership at all when all these negotiations are going on? Usually internet fleet manager are the ones handling these internet negotiations right?

    Will
  • mike02mike02 Posts: 13
    I think they will be happy to repeat the deal for you, but you have to be physically present to sign all paperwork, to pay $2000 deposit and then you have to be physically present to receive the car when it comes back from Europe.
    I did not go to the dealership, just called and asked for European Delivery Specialist, someone who have done the program before. Then I said that I am very serious to buy now but I need better price. I said that I will not buy without discount. The fact that not one but two dealerships agreed to the same discounted price tells us that even with such discounts they are making good business with such deals.
  • qbrozenqbrozen Posts: 16,894
    So in general, a lease should evaluated on 3 factors: money factor (APR), residual value and manufacturer discount (which affects the MSRP at which the residual value will be based upon).

    Almost. No discount affects the MSRP or the residual. MSRP is set in stone. It is whatever the sticker price is on the car. And the residual is based on that. So, in other words, if the sticker is $34k and the residual is $21k, you pay $13k over the lease if you pay full sticker OR $12k if you get $1k off sticker OR $11k if you get $2k off sticker, etc.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • Hi mike02,
    I am interested in doing a European delivery for a C-class (C350) and considering to move over to Europe for good. For this reason, I am interested whether it would be possible to just keep the car in Europe and stay without shipping it to the US. Does Mercedes write any information or penalties in the contract or other paperwork what would happen (or what I would have to pay) if I just don't ship the car over to the US and just keep it in Germany?

    Your help would be strongly appreciated.

    Thanks, Joe
  • jrct9454jrct9454 Posts: 2,367
    Well, for starters, you will have to pay the German Value-Added Tax if the car stays in the EU past [I think] 6 months...it might even be 3 months. This is spelled out somewhere in the EU Delivery part of the MBUSA website. They've just recently increased the tax again - I think it's now in the range of 18% or more on cars - you can Google on German VAT and see what you find.

    But beyond that, if you're going to live there for an extended period, I would really want to buy out of the MB EU catalog, not the severely limited choices offered by MBUSA. You can go to the EU MB website to get an idea of how many more choices you have - my personal favorite is the 2.2 Diesel that isn't offered here, but is a best-seller in the EU. Prices, of course, are higher than for most US-bound cars, but the savings over there on fuel costs will make up the difference pretty quickly - you really need to think hard about what you want, how long you plan to stay there as a resident, and do some serious math.
  • mike02mike02 Posts: 13
    Is there a CD out there with European Maps which could be used in C-300 navigation system during European Delivery Tour?
  • jrct9454jrct9454 Posts: 2,367
    I believe that's available at the Delivery Center when you pick up the car in Sindelfingen. But best to check with MBUSA or the dealer to be sure.
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