Market Forces

[J S MILL]

For anyone planning to buy a German car - I am looking at E class and C class - in the near future, the decline in sterling against the euro is worrying. Low demand is prompting some good offers and keeping prices tight; but paying in sterling for a euro product is bound to become more expensive.

Does anyone have a feel for how these two forces are going to balance out over the next few weeks and months? Have we ever been in a similar position before?

 

[pma]

Does anyone have a feel for how these two forces are going to balance out over the next few weeks and months? Have we ever been in a similar position before?[/QUOTE

Yes it,s happened many times before The £ € & usD go up & down all the time

 

[jibcl500]

Why not consider buying an approved used Mercedes, prices are very low at the moment on used stock. Just a thought.

Personally dont think the exchange rate will get any better soon, reading somewhere Portugal, spain and Germany want to pull out of the Euro.

jib

 

[Andy87]

Some very good offers out there on both used and new cars, and cheap finances.

 

[jberks]

Not sure prices will increase - certainly not in the current climate but it is true that prices here are probably lower in euro terms now than anywhere else in europe so something will have to give longer term. If it stayed that way though it's not entirely unthinkable for MB to build a factory in the UK!
I suspect with competition as it is, which won't change for many years, the downward pressure will keep things keen but I do worry that the reduction in profit will hit us in other ways - such as stricter warranties, less goodwill etc and in the longer term, lower kit levels as standard.

 

[hawk20]

For anyone planning to buy a German car - I am looking at E class and C class - in the near future, the decline in sterling against the euro is worrying. Low demand is prompting some good offers and keeping prices tight; but paying in sterling for a euro product is bound to become more expensive.

Does anyone have a feel for how these two forces are going to balance out over the next few weeks and months? Have we ever been in a similar position before?

I can remember no similar period when the pound has dropped so sharply and so far against the Euro. In 2000 the Euro was about 63p and most years since is has been between that figure and 70p. But in the last year the Euro has risen (and the pound has fallen) to well in the 90p's and at times close to a pound for one Euro.

There is no way that prices can be left where they are now:
a) once the recession is over and
b) if the pound stays at these levels.
Europeans by law can order LH drive or RH drive cars at any dealer in the EU and MB won't want a flood of cars being ordered over here at our prices only to undercut sales in dealers on the Continent.

Just cross fingers that the pound will revive. MB will ride out the short-term pain given the recession -for a while- but I shall be surprised if they would do so for long.

Over the years the pound has been much more volatile against the dollar varying from 1 dollar to the pound up to 2 dollars in recent years.

 

[J S MILL]

I can remember no similar period when the pound has dropped so sharply and so far against the Euro.

. MB will ride out the short-term pain given the recession -for a while- but I shall be surprised if they would do so for long.


yES, THAT WAS MORE OR LESS HOW i READ IT ALSO. tHE PROBLEM IS TO GUESS FOR HOW LONG THEY WILL ABSORB THE PAIN!

THANKS TO YOU AND ALL OTHERS WHO REPLIED.

 

[hawk20]

It will be interesting to see how they price the new E class in June.

 

[Ashley H]

A recent article in the FT suggested that many continental European buyers are indeed taking advantage of our low prices and ordering "quality German cars" - within which group one would presumably place MB! - in LHD for export.

 

[hawk20]

A recent article in the FT suggested that many continental European buyers are indeed taking advantage of our low prices and ordering "quality German cars" - within which group one would presumably place MB! - in LHD for export.

That's the trigger. My E estate is nearly £55k in France or £40k in the UK. Can't last.

 

[jberks]

The problem is that if they put the prices up by that amount here, sales will pretty much dry up. Think back to 70s and early 80s when prices were relatively that high, the dealer network was fairly small and mercs were rare. They were also dramatically better than everything else and their rarity (plus inflation) allowed you to sell for more than you paid.
Those days are gone. They have a huge dealer network to support, a huge range of cars, the rarity has gone and the difference between an E and a Mondeo isn't what it was between a 123 and a cortina.
If they make an E220cdi over £50k I'm fairly sure they won't sell any. It also explains why privately owned mercs are rarer in Europe than they are here. I doubt I'd be able to run one if they were that much. So their chioice will be to contract their operation dramatically (inc factories) or else maintain prices roughly where they are, find a way to cut costs, and go for volume.

 

[hawk20]

The problem is that if they put the prices up by that amount here, sales will pretty much dry up. Think back to 70s and early 80s when prices were relatively that high, the dealer network was fairly small and mercs were rare. They were also dramatically better than everything else and their rarity (plus inflation) allowed you to sell for more than you paid.
Those days are gone. They have a huge dealer network to support, a huge range of cars, the rarity has gone and the difference between an E and a Mondeo isn't what it was between a 123 and a cortina.
If they make an E220cdi over £50k I'm fairly sure they won't sell any. It also explains why privately owned mercs are rarer in Europe than they are here. I doubt I'd be able to run one if they were that much. So their chioice will be to contract their operation dramatically (inc factories) or else maintain prices roughly where they are, find a way to cut costs, and go for volume.

They are not a social club for the benefit of Britain. If they need to cut costs to boost sales they will do that for all EU countries and not just keep our prices low. They dare not have significantly different prices in different EU countries because we can all order what we want from any EU country. The French have started ordering over here. If prices don't change the trickle will become a flood.

Calais is 22 miles from Dover and people can order via the phone or the internet and have the car delivered to where they are in Europe. £55k in France and £40k in the UK is a huge incentive for people to order here. Cannot last.

 

[hawk20]

Just been announced today that Ford and GM (Vauxhall etc) are putting up UK prices 'due to the falling pound'.

 

[television]

Going by the above, secondhand prices should soon rise and go back to their true values, once the stock pile has cleared

 

[Splatt]

For anyone planning to buy a German car - I am looking at E class and C class - in the near future, the decline in sterling against the euro is worrying. Low demand is prompting some good offers and keeping prices tight; but paying in sterling for a euro product is bound to become more expensive.

Does anyone have a feel for how these two forces are going to balance out over the next few weeks and months? Have we ever been in a similar position before?

Certainly do not order a factory car for delivery. Go into a good dealer and pick up one of his pre reg delivery mileage cars at a whacking discount. This is their dead sales period at the best of times, they need to do some business at this moment to maintain sales discounts from MB. Not only will you get a good price he will probably cover you in kisses.

 

[Alex M Grieve]

Not only will you get a good price he will probably cover you in kisses.

There is no rule says "he" has to be a he! :Oops:

 

[television]

There is no rule says "he" has to be a he! :Oops:

Well they do say the getting your first MB is something special

 

[hawk20]

Now others have started raising prices due to the fall in the pound, I expect the new E class will be a fair bit dearer than the present one -unless the pound revives soon.

 

[Captainiceman]

So how much would any of the Senior Members expect an E280 or E320 on an 08 plate to be sold at ?

If its on the net at £28995, then how much can I expect to pick it up for ?

I'm hoping someone has an experience to share ..

 

[hawk20]

So how much would any of the Senior Members expect an E280 or E320 on an 08 plate to be sold at ?

If its on the net at £28995, then how much can I expect to pick it up for ?

I'm hoping someone has an experience to share ..

Do you mean the diesels (280cdi and 320cdi)?
First I would go and look at the offers on the MB website where both are being offered at under 6% APR on a PCP, with free upgrade to Elegance, Avantgarde,or Sport and free leather and COMAND. That will give you an idea why the nearly new ones have to be very cheap to sell. Sadly MB are wrecking residuals again.

If you don't want one of the offers then I would use the search engine for approved used on the MB website to see what dealers have on offer. With no part ex you can knock off £1,000 from most asking prices -more if desperate.

If it helps -even before the pretty amazing offers that are now available- I was able to find, last September, an E220cdi estate with nice extras, 6 months old with 6k miles, for about £15k below list. But with the offers around I think you will get more off than that. So add up what the cost would be from the normal list without free upgrades etc (and remember VAT is now only 15% not 17.5%) with all the extras you want, and knock off £15k plus. Compare that with dealers and the website offers.

Some price lists in some dealers were October 2008 prices and don't show the effect of lower VAT.