2024 Mercedes-Benz Prices: MSRP, Invoice Price, True Dealer Cost, and Holdback

Mercedes Prices: How to Get the Best Deal on a New Mercedes-Benz.

Mercedes-Benz Prices - MSRP, Factory Invoice Price, and Dealer Holdback

Understanding the Mercedes-Benz invoice price is essential when considering the purchase of a new Mercedes. This amount represents the payment made by the dealer to the manufacturer and can differ from the MSRP displayed on the window sticker and the actual cost incurred by the dealer for the vehicle.

Suppose you are contemplating buying a new Mercedes and want to learn about the factory invoice or how much you can save by purchasing below the MSRP. In that case, this article has all the information you need to make an informed purchase.

Mercedes Price Tip: Finding a new Mercedes-Benz at a reasonable price in today’s market can be difficult, and some buyers may pay more than the suggested retail price. Nevertheless, obtaining a free dealer price quote from an online car shopping service and comparing it with local dealer price quotes can still help secure an excellent deal on a new Mercedes.

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What are Mercedes-Benz Invoice Prices and MSRP?

To ensure a fair new car offer before visiting the Mercedes dealership, it’s crucial to have a clear understanding of both the Mercedes MSRP and factory invoice price.

The Manufacturer’s Suggested Retail Price (MSRP) is the price the manufacturer suggests for the dealer to charge for a vehicle, considering the model, trim package, color, and options. This is typically the sticker price displayed on the car at its release.

On the other hand, the Mercedes factory invoice price is the amount the dealer pays the manufacturer for the vehicle before any discounts or incentives are applied, including the cost of factory-added options. While the invoice price is the amount paid for the vehicle, the dealer’s new car cost is the total amount incurred, including invoice price, shipping costs, storage fees, and other expenses.

It’s essential to remember that not everyone can purchase a new car at or below the invoice price. Nonetheless, understanding these figures can help you make a reasonable negotiation offer. By using this information to determine a fair profit new car offer, you can be better prepared to purchase your Mercedes-Benz when the time comes.

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How to Find the Mercedes Invoice Price

Starting your Mercedes-Benz search online can give you an advantage in finding a reasonable price, and a good understanding of essential factors can be beneficial. While car dealerships are not always transparent about the prices they pay for cars, being aware of the Mercedes-Benz invoice price and MSRP can help you to have more negotiating power.

Thankfully, several free resources are available, including RydeShopper, MotorTrend, and Edmunds, that can assist you in finding the invoice price of a specific model and trim level.

Edmunds and RydeShopper are among the top online car-buying tools that offer detailed lists of the current MSRP and invoice for your selected make, model, and trim. This provides the necessary information to negotiate a fair price for your new Mercedes-Benz.

The Difference Between Mercedes Invoice Price and Dealer Cost

The factory’s invoice prices of Mercedes vehicles contain undisclosed profit margins like dealer holdback and manufacturer-to-dealer discounts. However, the dealer’s actual cost for a new car, which may be notably less than the invoice price, is the amount the dealer pays the manufacturer.

How Much is Mercedes Dealer Holdback?

The factory invoice price of a new Mercedes vehicle is augmented with an extra cost element known as dealer holdback, which typically equals 2-3% of the MSRP. It’s worth noting that dealer holdback is not a discount or rebate but an additional sum of money that some Mercedes dealerships may opt to receive.

Mercedes-Benz dealer holdback is 1% of the total MSRP

The dealer holdback amount for a Mercedes vehicle can be calculated by multiplying the total MSRP by 1%. This amount is paid by the manufacturer to the dealer every three months for each vehicle sold.

It’s important to note that the dealer holdback amount is not always negotiable, and some Mercedes-Benz dealerships may choose not to disclose the exact dollar amount.

How to Calculate Actual Dealer Cost on a Mercedes-Benz

How to Determine the Dealer Cost of a New Mercedes:

Mercedes Factory Invoice Price
– Dealer Holdback¹
– Customer Rebate²
– Dealer Incentive²
+ Destination Fee
= Actual Dealer Cost

¹The Mercedes dealer holdback is 1% of the total MSRP.
²If is applicable.

How to Find the Best Lowest Local Mercedes-Benz Price

Using the Mercedes invoice price as leverage can make it easier to negotiate a better deal for your Mercedes-Benz purchase and get a more significant discount on the sticker price.

If you can negotiate a price lower than the Mercedes dealer invoice price, you may be able to save even more money on your purchase. To start looking for the best local price on a new Mercedes-Benz, you can use online car shopping services such as RydeShopper below.

2024 New Car Price Guides

About the author
My name is Carlton Wolf, and I’ve been in the car business since 1994, both retail and wholesale. I created the Auto Cheat Sheet to better educate buyers about the deceptive sales practices many dealerships use nationwide. Please understand that not all car dealers are dishonest. However, you never know who you’ll be dealing with, though. I’m willing to share my knowledge and experience with anyone who listens. Keep in mind that I’m a car guy, not a writer.