Mercedes-Benz MADE A HUGE MISTAKE: NOW Dealers & Customers DEMAND CHANGE

okay here we are at our local Mercedes-Benz dealership in Atlanta County New Jersey and uh what's the price Dad what's the price it's a 2023 eqs 450 4matic sedan uh for 116 000 I mean that seems reasonably priced for an electric vehicle doesn't it all right what about the one next to it let's see which side this one well that's it let's do the white one while you're going over and reading out this price I'm going to show everyone there's a lot of cars here folks inventory everywhere what do we got Pops this one's only 118 too all right one more maybe it's gonna be a cheaper one let's see oh God these look fancier oh I'm sorry just 129 7 30. okay but wait wait wait Dad we've got maybe they're cheaper let's see let's see before we get into that SUV oh this one this one's cheap 169. two more two more look at all these SUVs this is cheap this one's only 71a that's an eqb all right one more in eqe let's see what this is Dad nobody loves saving you money quite like courage this summer summer 20 and summer 100 save 20 on car-age coach or car Edge data or save a hundred dollars on a car Edge vehicle service contract discounts are automatically applied at checkout just head over to carage.com now this this ladies and Gentlemen Just eighty thousand four hundred dollars I mean you know if you're looking for a midget-sized electric SUV and your anti-tesla for whatever reason yeah where are we dead I saw an eqs which is going to be even more expensive let's go look at one of those and then okay Millions is an absolute exaggeration but they've got millions of dollars worth of Pokemons goodness this is a bigger one this is the eqs yeah yeah but the wheels they got some of the best looking Wheels he's being sarcastic I am not I love those all right he's not being sarcastic what's the price point 179 all right Dad let's come here come here for a second Ops come here let me just say one thing this is Atlantic County New Jersey okay outside of Atlantic City it's a poor area we're not saying that lightly we're saying the fact that this dealership has so much inventory it's like never ending if I thought but I will tell you they're what person whoever he or she may be these things are lined up perfectly and I guess one of the reasons that they can be lined up like that is because ain't nobody coming out to drive them all right Dad it was viral on Twitter recently yes the headline on Twitter reads Mercedes-Benz dealerships demand price reductions let me read this out an internal letter from Mercedes-Benz dealer Association to the company's top managers obtained by Business Insider reveals a bad situation for the German automaker the dealers accused Mercedes-Benz steering the German market quote Full Throttle into the wall and demand an immediate adjustment of pricing policy to the changed market conditions the dealers criticized the price increases that accompany each model year change at the high gross list price can no longer be justified in the current market environment and that many models would fall out of the fleet policies of important commercial customers due to high prices furthermore dealers are calling for an adjustment to the package logic they criticize the fact that certain equipment levels are now only available via packages The List of Demands goes on and on but it all is themed and centered around one thing dad and that is this crap's too expensive yes it's all priced way way way way too high I can look at a few more 142 000 ladies and gentlemen a hundred and forty two thousand dollars wow you get whale is Right Geez Louise this thing just looks like it's gonna be expensive well this one's only 152. 152 000 for an electric sedan this is an eqe and this one's only 113 590. so this this would appear to be like a relative bargain but then you go well I want all the stuff that's in that one and we're not even talking about the fact that Mercedes-Benz similar to their cousins BMWs and Audis depreciate like boat anchors okay they are the vehicles that depreciate the most luxury SUVs luxury sedans especially these are going to just be not worth nearly what they are worth today but actually you know what that people don't appear to be buying them because again it's a lot I mean this is there there is no inventory shortage at Mercedes-Benz of Atlantic City so if you need a Mercedes-Benz these people based on their on hand inventory should be motivated to move these excessively expensive Vehicles let's go look at a few of the internal combustion engine ones these look like maybe gles I think is the I think these are gles this is an AMG so we won't look at that that'll just be on this side all right we will look at it come on I gotta see what that is wait wait I want to do a guess 118. you are so far wrong ninety one thousand dollars oh well it's a GLE 53 that it's not an actual wait we've got a real yeah but it's the in between AMG wait this looks like an interesting eqs 580. what do you think you've looked at their pricing now a little bit um 138 138 thousand dollars how do you open it you think well you push this yeah pull this out or you need a cake here's a GLE 64. yeah these are the expensive ones no so far they're not I'm guessing 120. 130. holy yeah oh wait a second and they won a ten thousand dollar market adjustment really wow AMG and it's shooting so yes of course you want that market adjustment dad do you how do you feel you never managed a Mercedes dealership but you did Audi you managed yeah I worked at a Mercedes you did yeah you did for 56 days do you understand where the dealers are coming from in that letter that they penned yes to Mercedes corporate yeah yeah because I mean Mercedes is always supposed to have been the high end then it always will be high-end and it's meant for a very specific buyer but you still need some lower priced vehicles to get people who aspire to be able to own a Mercedes-Benz into them so that then you can step them up and keep moving up from model to model to model and that's where Mercedes has difficulty right now yeah so I get it I mean I you know I want to think the other thing is if I were to guess conservatively just on this lot we're probably staring at about 15 million dollars worth of inventory now think about that as interest rates have continued to go up and floor plan costs have gone up so there's a huge difference floor planning your your 15 million dollars worth of inventory when the floor plan interest rate today might be six percent and two and a half or three years ago it might have been well three percent so yeah I get why the dealers are a tad bit concerned yeah because if if they're paying six percent on 15 million yeah it's a lot of money and then again we've been to a lot of dealerships recently this is the most inventory we've seen at any oh absolutely and it's not even close no no I mean it's just it's just it's as far as the eye can see

Channel: CarEdge

Views: 257,406

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Id: KrZMGZ2MoCE

Length: 8min 37sec (517 seconds)

Published: Mon Jul 31 2023