What's a fair price to pay for a new Mercedes? To get the best deal on a new car, you need to understand all the different terms. Holdback, MSRP, and true dealer cost are all important to know, but everything begins with the invoice price.
Knowing the Mercedes invoice price will give you an edge when car shopping. With it, you can be an informed shopper, enter the dealership with confidence, and go home with a new car at the best possible price.
What Is the Mercedes-Benz Invoice Price?
The invoice price is the initial dealer cost of a vehicle. In other words, it's the wholesale price. The Mercedes invoice price covers several costs associated with getting quality vehicles like the Benz C-Class to market, such as manufacturing, advertising, and additional fees unique to each region. Because of these factors, the invoice price may vary depending on the dealership.
Like any other manufacturer, Mercedes car prices will be based on the invoice price. You can use it as a starting point when negotiating your take-home price for a car.
Definitions to Know
Having a base knowledge about new Mercedes prices will help you get a fair deal and potentially save you thousands. Here are some terms you should know.
The sticker price, or MSRP, is the manufacturer's suggested retail price. This is the price that auto manufacturers recommend their dealers charge for the car.
The MSRP vs the Mercedes-Benz Invoice Price
MSRP will always be higher than the Mercedes invoice price. The difference can be thousands of dollars. This is how dealerships and salespeople make their money.
The suggested retail price won't necessarily be the selling price for a car. Dealerships often set their own prices based on different circumstances. When negotiating, many car shoppers will also use the MSRP as a starting point and try to work their way down from there.
True Dealer Cost
The invoice price isn't always what the dealer pays for a Mercedes. The true dealer cost is the net total they pay the manufacturer after taking discounts, rebates, and reimbursements into account.
Automakers encourage dealerships to stock additional vehicles by offering them incentives. These incentives come in the form of rebates and discounts, effectively reducing the dealer cost. Occasionally these savings get passed on to customers.
The holdback is a cash reimbursement from the manufacturer to the dealer. It's usually based on a percentage of the invoice price or the MSRP. Mercedes only pays the holdback amount once the car has been sold.
What Price Should You Pay for a Mercedes-Benz?
People make a big mistake when car shopping starts at the MSRP, then negotiating the price down. The truth is, salespeople expect most of their customers to try this tactic. While it feels good to cut the cost down, you could still overpay for your new Mercedes.
To get the best deal possible, use the true dealer cost as your anchor point, then negotiate up. Here's a formula to help you calculate it:
True Dealer Cost = Invoice Price - (Dealer Holdback + Manufacturer Incentives & Rebates)
You immediately lower the price by a significant margin by ignoring the MSRP and anchoring your negotiations on the dealer cost. This can potentially save you thousands of dollars right off the bat.
Once you've established a price that's fair to both you and the dealer, you can figure out the monthly payments on your new Mercedes. If you need help, you can use our payment calculator.
How to Get the Mercedes-Benz Invoice Price
Getting the Mercedes invoice price gives an essential piece of the car-shopping puzzle. With it, you'll go into the dealership with more confidence, skip most of the hassle of negotiating, and buy your dream car at a fair price.
Since invoice prices vary, exact pricing in your area may be hard to come by. Thankfully, you can fill out our free application, then wait for us to get new Mercedes prices from local dealers right to your inbox.
Get Mercedes Invoice Prices Now
That new Mercedes-Benz is calling to you, and you don't have to overpay for it. Avoid the stress of haggling with salespeople and apply now for the best Mercedes car prices possible.
Any questions? Reach out to us for more information.