[twobytwo]

My end-of-year deals work out pretty well... Here's how it works:

The 2013 PURE MSRP is $14,400
Because it's end of model year - we're clearing the remaining cars out with a $4500 discount.
The "Loyalty" program for current smart owners has been doubled, the normal $1000 discount is now $2000.

$14,400 - 4500 - 2000 = $7900
Add about $1800 in freight/pdi, admin, ac/tire fee plus taxes.
The lease for this car is something like $90/month with tax ($113 without loyalty)

I also have ED coupes from $15,500 ($26,990 - $3000 discount - $1000 loyalty - $7500 (ONTARIO government rebate before taxes))

Thanks for your time

 

[Huronlad]

The Ontario rebate is $8500 is it not.

 

[twobytwo]

Hey Huronlad!
Yes, it is $8500 after taxes.

Some people like to see what the car costs before taxes (typically if they're leasing), so I'll use the pre-tax rebate amount on the pre-tax car cost. To be more exact, it's $7522.16 ( x the 13% tax in Ontario = $8500).

It ends up being the same total regardless of where the rebate goes, but thanks for allowing me to clarify for the community.

 

[Mister_smart_LA]

You should make clear that you can't outright purchase the car for that amount. It's a lease price, and with that customers only seem to care what the actual payment will be.

The residual value at lease end is going to be right around $7900 I'm sure just slightly less. . . unless MB is offering different numbers for the Canadian market...

 

[twobytwo]

You should make clear that you can't outright purchase the car for that amount. It's a lease price, and with that customers only seem to care what the actual payment will be.

The residual value at lease end is going to be right around $7900 I'm sure just slightly less. . . unless MB is offering different numbers for the Canadian market...

Hey Mister Smart LA! I have family in Van Nuys and Manhattan Beach - I'll come visit next time I'm there! Would be awesome to compare US to Canadian operations. Anyway, you're correct...

For the Pure, after dealer fees/costs it's roughly ($7900 + 1800) $9700 plus tax... about $10,961 in Ontario (we have 13% tax). Residual on a 2 year lease with 12,000km's/year is 51% - about $7400. However, Loyalty is an offer from Mercedes-Benz financial and is not available on a cash purchase (only lease & Finance) but the interest rate is only .9% on a finance up to 72 months and can be paid off anytime. My opinion is that if you finance you're saving $2000 because of loyalty - if you purchase, you only save the $250-300 in interest.

I was being incredibly conservative with my lease payment estimate. On a pure with no options, if you are eligible for the $2000 loyalty bonus, you pay down the 1800 up front with the first month payment and security deposit; the monthly payment is just under $32 with tax on a 2 year lease with 12,000km's/year. Residual is 51% or about $7400.

for ED, $15,500 + $1800 + 13% tax = $19,549 would be the total with a basic ED coupe with no options. For a cash purchase, start at $16,500 since there would be no loyalty. Residual on a 3 year lease is 41% with 12,000km's/yr. With the loyalty bonus, and paying the same fees upfront plus first month and security deposit, the monthly payments are $162 with tax and a residual of $11,106.

The caveat is that only one basic ED was ordered, most have some combination of options. Loyalty is $2000 for smart owners & $1000 for mercedes owners on Pure and passion. Both smart and mercedes owners get $1000 on ED.

I hope this clarifies things, thanks everyone

 

[Mike T]

Let me get this straight: can you buy with cash a pure coupé for $7900 plus delivery fees, or not?

 

[twobytwo]

Hey Mike... No

if you buy with cash you are not eligible for loyalty. so it would be $14,400 discounted to $9,900 plus dealer fees ($1800), plus (Ontario) tax = approx $13,240

If you finance, extra $2000 off for loyalty is $7900, plus 1800 plus tax = $10,980 plus interest. Monthly payment is $234.11 x 4 years term (48 months) at .9% = $11,237, $157.70/mo x 6 years (72 months) = $11,354

The bottom line is a cash purchase is more expensive... So finance and then just pay it all off whenever you want... 72 months, 12 months, 2 months... it's all the same

I swear... I'm really not trying to make this confusing.

 

[dancote]

Add about $1800 in freight/pdi, admin, ac/tire fee plus taxes.

Thanks for your time

Bear in mind that I don't have a dog in this fight but ... $1800 in freight/pdi, admin, ac/tire fee (What the heck is that?) plus taxes ... almost makes me giddy to live in a place with restrictions on this kind of extortion. Not to say that we here in the U.S. are pure in this regard (I'm looking at you Florida and several others) but ... OUCH my Canadian friends.

Regards,

Dan

 

[Mike T]

If you finance, extra $2000 off for loyalty is $7900, plus 1800 plus tax = $10,980 plus interest. Monthly payment is $234.11 x 4 years term (48 months) at .9% = $11,237, $157.70/mo x 6 years (72 months) = $11,354

OK, that's what we did with our new Fiesta last year, it was $2K off plus a set of steelies with winter tires and pressure sensors, if you finance. So we did and paid it off with cash after the first payment. The dealer refunded the interest component of the first payment too.

So yeah that's OK.

 

[Mister_smart_LA]

Bear in mind that I don't have a dog in this fight but ... $1800 in freight/pdi, admin, ac/tire fee (What the heck is that?) plus taxes ... almost makes me giddy to live in a place with restrictions on this kind of extortion. Not to say that we here in the U.S. are pure in this regard (I'm looking at you Florida and several others) but ... OUCH my Canadian friends.

Regards,

Dan

Freight isn't cheap. Maybe they just break the numbers down a little more explicitly in Canadian markets than they do here. Our "destination" charge is $750 for cash purchases (or $295 in a lease) here in the United States.

At the end of the day, a Pure coupe in the U.S. is $14,330 + tax with air conditioning. smart/MB owner loyalty is good for $1,000 here in the United States which would mean $13,330 plus tax. The $1,000 loyalty deal doesn't matter if one chooses to purchase or lease.

 

[Mike T]

in 2005 the smart freight/pdi was $1295 CAD and then it went to $1800 and has been stuck at that level since. smarts and M-B in Canada only arrive in one port: Halifax Nova Scotia. They are sent across the country on Canadian National Railways. For cars that are delivered to Vancouver Island, where I live, it's probably a reasonable fee, but for people in Halifax, not so much.

There is an air conditioning excise fee of $100 in Canada, nominally used to offset the environmental damage that the HFCs cause, but with our present government, it's probably being used to accelerate tar sands production :wink:

There is a tire recycling fee of $5 per tire.

 

[twobytwo]

in 2005 the smart freight/pdi was $1295 CAD and then it went to $1800 and has been stuck at that level since. smarts and M-B in Canada only arrive in one port: Halifax Nova Scotia. They are sent across the country on Canadian National Railways. For cars that are delivered to Vancouver Island, where I live, it's probably a reasonable fee, but for people in Halifax, not so much.

There is an air conditioning excise fee of $100 in Canada, nominally used to offset the environmental damage that the HFCs cause, but with our present government, it's probably being used to accelerate tar sands production :wink:

There is a tire recycling fee of $5 per tire.

Thanks Mike. Yep, additional charges are: Freight&PDi $1295, Admin $395, Air Conditioning Tax $100, Tire Environmental Handling Fee $23.96 and $5 for my motor vehicle industry fee (Ontario) = $1819

Just for a quick update - there's only about 4 or 5 of these 2013 PURE's left, if you're thinking about it and on the fence... let me know TODAY! Double Loyalty ($2k) ends soon!

And - for those waiting on 2014 ED's... they are here and ready for new owners to take them home!

 

[wrumbarger]

AND one more thing to add even more confusion:

These numbers are in Canadian Monopoly Money, and not real US Dollars?

 

[dancote]

Freight isn't cheap. Our "destination" charge is $750 for cash purchases (or $295 in a lease) here in the United States.
QUOTE]

Do people in the car industry not get why the general public is so leery of car dealerships? Why is the "destination" charge different between a purchase and a lease? Did the lease cars come by magic carpet?

Not casting aspersions here. I genuinely want to know how these things work.

Regards,

Dan

 

[grwhitaker]

Freight isn't cheap. Our "destination" charge is $750 for cash purchases (or $295 in a lease) here in the United States.
QUOTE]

Do people in the car industry not get why the general public is so leery of car dealerships? Why is the "destination" charge different between a purchase and a lease? Did the lease cars come by magic carpet?

Not casting aspersions here. I genuinely want to know how these things work.

Regards,

Dan

I'm guessing the same reason that sales tax (in states that have it) is charged monthly instead of a lump sum when making the purchase.