This week our deals are spun from the battle between BMW and Mercedes-Benz to be the No. 1 premium brand in Canada.
All year, Mercedes-Benz Canada has put up a valiant fight to unseat BMW Canada. It truly has been a titanic struggle these past 11 months, with car buyers benefiting mightily from good pricing and eye-popping sales offers.
With Christmas just a month away, it appears BMW Canada will retain its crown for another year, and stay on top as Canada's No. 1 premium brand.
But just in case Mercedes makes a last ditch effort, BMW Canada is putting incentive muscle behind some of its most popular models. The BMW 3-Series, in particular.
According to the pricing service www.CarCostCanada.com, the sweeteners loaded up on the most affordable BMW 3-Series (running through January 4, 2010) have the potential to push the 323i to below $32,000 if you run a tough negotiation and grab all the money on the table.
The top rival for the 3-Series is the Mercedes-Benz C-Class, which according to www.CarCostCanada.com is a far less appealing deal; there are no cash incentives listed.
However, be aware that more than half of the cars Mercedes-Benz Canada sells are moved through corporate-owned factory dealerships. The company stores have room to move on pricing that independent dealers do not.
Now this tumble between the Germans luxury brands has had the effect of creating what we'll call collateral damage amongst other auto makers. That is, to stay in the fight for luxury or premium buyers, other car companies have had to pile on the sweeteners. We've picked the Chrysler 300C as an example of what's going on out there.
Let's look at three deals.
2010 BMW 323i: The base MSRP (manufacturer's suggested retail price) of $34,800 is a pretty fair number, but there's more - a $2,000 factory-to-dealer rebate. So the net is really $32,800. Figure an additional dealer discount of $800-$1,000 and you have yourself a new 3-Series for less than $32,000.
The details:
- MSRP not including freight, AC tax (air conditioning) and other charges: $34,800.
- Factory discounts: $2,000
- Dealer discount (average): $1,000
- Final price: $31,600 plus GST and PST.
If you choose to finance the purchase through BMW, you will not get the $2,000 discount, and 2.9 per cent financing for five years is good, but not brilliant.
Car #2: 2010 Chrysler 300 Limited
Yes, yes, the 300 is a design that is starting to age, but this is still a solid rear-drive sedan, with roots that go back to the previous generation Mercedes-Benz E-Class. It's a far bigger car than either the 3-Series or the Mercedes-Benz C-Class.
Here's a look at the 300 Limited:
- MSRP not including fright, AC tax: $36,995
- Factory rebate: $6,500
- Dealer discount: $1,000
- Holdback: $700
- Final price: $28,795
As for Chrysler's finance rates, many buyers will be able to get a better rate than the 3.99 per cent for five years Chrysler has on offer.
Finally, entry premium car No. 3, the 2010 Mercedes-Benz C-Class 2.5L:
- MSRP not including fright, AC tax: $35,800.
- Factory rebate: None.
- Dealer discount: $1,500
- Final price: $34,300
The best Mercedes Canada is offering on the finance side is 2.9 per cent for five years.
So the deal here on the C-Class is not nearly as appealing as those on the Bimmer and the Chrysler. It looks like Mercedes-Benz Canada will not be passing BMW Canada in sales this year, at least on the strength of the deals offered on the C-Class.
(Pricing provided by www.CarCostCanada.com.)