Daimler AG (DAI)’s Mercedes-Benz has put up its own incentives to protect its lead in the US luxury market. According to a memo sent on October 2 to dealers, Mercedes is letting some buyers skip more monthly payments than BMW AG with $5,000 discounts to VIP customers.
Mercedes-Benz is currently holding a 5,221 unit lead against BMW through September, while BMW surpassed Mercedes and Toyota's Lexus in 2011. Aside from the price cuts, the new program also allows Mercedes-Benz customers ship as many as five payments.
As for VIP customers, these cash offers included a $750 for C-Class, $2,250 for E-Class, $3,000 for GLK-Class SUVs, $3,275 for S-Class and $5,000 for GL-Class SUVs.
Mercedes-Benz deal allows owners of all model, except the ML450 Hybrid to skip five payments to buy or lease a 2012MY or 2013MY via Mercedes-Benz Financial Services.
“It isn't just about being No. 1,” said Greg Goodwin, chief executive officer of Vancouver , Washington-based Kuni Automotive, which operates 14 dealerships, including a BMW franchise, in Washington , California , Colorado and Oregon. “What BMW and Mercedes also are dealing with is global competition and the ebbs and flows of global demand.”
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