Why does an S class intimidate so many people?
07-26-18 | 06:08 PM
#226
Lexus Champion
Joined: Nov 2013
Posts: 12,601
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From: WA
No fees as it’s not technically a termination. In your lease paperwork it’s clearly spelled out that you can purchase the car at any time during the lease, for the residual amount plus remaining payments. That’s basically what you’re doing in the sale - paying that off for purchase and transferring ownership.
07-27-18 | 04:36 AM
#227
Pole Position
Joined: Sep 2006
Posts: 2,882
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From: Coral Springs, Fl
Some of the comments here seem to be off track from OPs post, but I think I can contribute here as I used to sell Mercedes.
Why do people buy the S class? Because they have been told that it is the best and they can afford it. I have sold dozens of S classes and there are two types of customers that buy them new. The wealthy customer that doesn’t want the attention of a Bentley or Rolls brings and the customer that wants to show the world that he has made it, that he is successful.
The S class is a status symbol for sure, so much that some of my buyers HATED the rest of the Mercedes lineup. They wouldn’t be caught dead in an E class or CLS as they were less expensive, therefore not as good. Some of my customers could stroke a check for the dealership, but they bought an S class so they didn’t look so pretentious to their friends.
New S class buyers tend to be old money, mostly business owners. I saw very few young people that had recently acquired money in the market for an S560.
The preowned market is completely different. More than half of my preowned S class buyers would buy a high mileage model for cheap. Most of the time they could barely afford it and wanted to show off to their friends. The joke at the dealership was to call your customers that want to “roll deep for cheap” if we took in a high mileage S. Others stated that they could buy new, but didn’t want to waste the money. After seeing their income when they went to finance, nost of them were lying.
Very rarely do customers shop other brands when looking at a new S class. I worked for Mercedes for 3 years. Over my time there, I had 2 customers cross shop the LS460 and 3 cross shop the 7 series. That was literally it. Everyone else came in and knew exactly what they wanted down to the color combination. Of the Lexus cross shoppers, both bought the LS460, they said “the ride was close enough and they offered me a discount.” I would politely tell them that we were at sticker because the S class sells itself and it really does. Anyone could sell that car. I did not discount the S class unless the new model year was at the dealership. All three of my BMW buyers bought the S class. My counter was, if you want something sporty, go buy a sports car, if you want a sedan that is built for comfort, here it is. That seemed to work.
Both the S class and the LS are fantastic cars. Easily the best two in the large sedan segment. The LS grabs the buyer that cares about maintence cost, longevity, and doesn’t want to waste money on cars. Most new S class buyers simply doesn’t care, they plan on replacing it in a few years. We actually had a lady that would order a new S560 black on black every 6 months and trade in her 6 month old car. We loved getting her trades in.
Forgot to mention, 80% of my customers paid cash, the other 20% leased through their business.
Why do people buy the S class? Because they have been told that it is the best and they can afford it. I have sold dozens of S classes and there are two types of customers that buy them new. The wealthy customer that doesn’t want the attention of a Bentley or Rolls brings and the customer that wants to show the world that he has made it, that he is successful.
The S class is a status symbol for sure, so much that some of my buyers HATED the rest of the Mercedes lineup. They wouldn’t be caught dead in an E class or CLS as they were less expensive, therefore not as good. Some of my customers could stroke a check for the dealership, but they bought an S class so they didn’t look so pretentious to their friends.
New S class buyers tend to be old money, mostly business owners. I saw very few young people that had recently acquired money in the market for an S560.
The preowned market is completely different. More than half of my preowned S class buyers would buy a high mileage model for cheap. Most of the time they could barely afford it and wanted to show off to their friends. The joke at the dealership was to call your customers that want to “roll deep for cheap” if we took in a high mileage S. Others stated that they could buy new, but didn’t want to waste the money. After seeing their income when they went to finance, nost of them were lying.
Very rarely do customers shop other brands when looking at a new S class. I worked for Mercedes for 3 years. Over my time there, I had 2 customers cross shop the LS460 and 3 cross shop the 7 series. That was literally it. Everyone else came in and knew exactly what they wanted down to the color combination. Of the Lexus cross shoppers, both bought the LS460, they said “the ride was close enough and they offered me a discount.” I would politely tell them that we were at sticker because the S class sells itself and it really does. Anyone could sell that car. I did not discount the S class unless the new model year was at the dealership. All three of my BMW buyers bought the S class. My counter was, if you want something sporty, go buy a sports car, if you want a sedan that is built for comfort, here it is. That seemed to work.
Both the S class and the LS are fantastic cars. Easily the best two in the large sedan segment. The LS grabs the buyer that cares about maintence cost, longevity, and doesn’t want to waste money on cars. Most new S class buyers simply doesn’t care, they plan on replacing it in a few years. We actually had a lady that would order a new S560 black on black every 6 months and trade in her 6 month old car. We loved getting her trades in.
Forgot to mention, 80% of my customers paid cash, the other 20% leased through their business.
It's impossible to build any kind of wealth living beyond ones means. So many people here look wealthy because they drive the nice cars, they live in mcmansions, they belong to the country club, they buy $7.00 late's every day, their kids go to private schools, they have 10,000 cable channels and have a family plan with 18 smart phones. It absolutely blows my mind that these same people sit down at night and wonder why they're broke. They just can't seem to get ahead. They think they need to make more money!
Too many people spend money they don't have, to buy things they don't need, to impress people they don't know. (will Rogers)
07-27-18 | 06:10 AM
#228
Lexus Fanatic
Joined: Sep 2016
Posts: 8,491
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From: PA
Interesting observation, from Texas. It's a far different story down here, in Florida. I don't have exact data, but I would say 85-90 percent of S class cars are leased by hyper consumers that can't really afford the car. Heck, I see $100k S Class's running around with Primewell tires on them, what does that tell you? Don't get me wrong, there is a lot of money down here (serious money) but there is also a lot, (and I mean a LOT) of stealth wealth. These aren't the folks buying S Class, 7 Series, A8's and Telslas.
It's impossible to build any kind of wealth living beyond ones means. So many people here look wealthy because they drive the nice cars, they live in mcmansions, they belong to the country club, they buy $7.00 late's every day, their kids go to private schools, they have 10,000 cable channels and have a family plan with 18 smart phones. It absolutely blows my mind that these same people sit down at night and wonder why they're broke. They just can't seem to get ahead. They think they need to make more money!
Too many people spend money they don't have, to buy things they don't need, to impress people they don't know. (will Rogers)
It's impossible to build any kind of wealth living beyond ones means. So many people here look wealthy because they drive the nice cars, they live in mcmansions, they belong to the country club, they buy $7.00 late's every day, their kids go to private schools, they have 10,000 cable channels and have a family plan with 18 smart phones. It absolutely blows my mind that these same people sit down at night and wonder why they're broke. They just can't seem to get ahead. They think they need to make more money!
Too many people spend money they don't have, to buy things they don't need, to impress people they don't know. (will Rogers)
Even though a person can "afford" the payment on the car, can they truly just say shucks, if something breaks, no problem? To the tune of $1k, $2k, $3k, $4k, $10k? Like I've said, preschool went up to $500/mo., and yes I know I have to pay it, but it doesn't mean it's nothing. That's $6k/yr., taxable.
If I got a CPO X5 50i, and constantly called you to say hey I'm not coming in today, I need to drop my car off and by the time I got to the office it'd be 11 AM anyway, I'll be remote today, and I did this even 3 to 10 times in a quarter, no boss is going to say that's ok dude, you're gonna make partner soon, don't worry, I understand that's part of driving a twin turbo. Not realistic. btw the above is my cousin's ex, she got rid of it and went into a Range Rover. Believe it or not if you ask her, it's a lot more reliable than the X5. But as you can see, she has the need to drive a luxury SUV. I said SUV, we'll go GM, isn't that what they do? Bad move. lol But at least we don't impress anyone with the GM, nor does anyone have the impression that we are trying. Maybe this is a specific case, the alternator replacement in April, for the GM would have been $1,000 but we have the GMPP extended warranty (dumb I know). More than a BMW.
edit: want to be accurate, so I rechecked the price on a BMW X5 alternator replacement, and it would seem that no, the BMW is not less than the GM. A 2011 X5 is coming in at $1,600, and a 2016 at $1,800. So maybe the $1,000 alternator for a 2011 GM is cheap? lol At those rates, let's be honest--there is a compelling reason to DIY.
Last edited by Johnhav430; 07-27-18 at 06:18 AM.
07-27-18 | 07:27 AM
#229
Pole Position
Joined: Sep 2006
Posts: 2,882
Likes: 1
From: Coral Springs, Fl
Again, if anybody, from an income of $0 to $10 mil., buys an Honda Accord or Toyota Camry, or even a Civic or Corolla, it would be difficult to criticize them. It's a vehicle that goes from point a, to point b. Offers value, and reliable. BORING. But not criticizable.
Even though a person can "afford" the payment on the car, can they truly just say shucks, if something breaks, no problem? To the tune of $1k, $2k, $3k, $4k, $10k? Like I've said, preschool went up to $500/mo., and yes I know I have to pay it, but it doesn't mean it's nothing. That's $6k/yr., taxable.
If I got a CPO X5 50i, and constantly called you to say hey I'm not coming in today, I need to drop my car off and by the time I got to the office it'd be 11 AM anyway, I'll be remote today, and I did this even 3 to 10 times in a quarter, no boss is going to say that's ok dude, you're gonna make partner soon, don't worry, I understand that's part of driving a twin turbo. Not realistic. btw the above is my cousin's ex, she got rid of it and went into a Range Rover. Believe it or not if you ask her, it's a lot more reliable than the X5. But as you can see, she has the need to drive a luxury SUV. I said SUV, we'll go GM, isn't that what they do? Bad move. lol But at least we don't impress anyone with the GM, nor does anyone have the impression that we are trying. Maybe this is a specific case, the alternator replacement in April, for the GM would have been $1,000 but we have the GMPP extended warranty (dumb I know). More than a BMW.
edit: want to be accurate, so I rechecked the price on a BMW X5 alternator replacement, and it would seem that no, the BMW is not less than the GM. A 2011 X5 is coming in at $1,600, and a 2016 at $1,800. So maybe the $1,000 alternator for a 2011 GM is cheap? lol At those rates, let's be honest--there is a compelling reason to DIY.
Even though a person can "afford" the payment on the car, can they truly just say shucks, if something breaks, no problem? To the tune of $1k, $2k, $3k, $4k, $10k? Like I've said, preschool went up to $500/mo., and yes I know I have to pay it, but it doesn't mean it's nothing. That's $6k/yr., taxable.
If I got a CPO X5 50i, and constantly called you to say hey I'm not coming in today, I need to drop my car off and by the time I got to the office it'd be 11 AM anyway, I'll be remote today, and I did this even 3 to 10 times in a quarter, no boss is going to say that's ok dude, you're gonna make partner soon, don't worry, I understand that's part of driving a twin turbo. Not realistic. btw the above is my cousin's ex, she got rid of it and went into a Range Rover. Believe it or not if you ask her, it's a lot more reliable than the X5. But as you can see, she has the need to drive a luxury SUV. I said SUV, we'll go GM, isn't that what they do? Bad move. lol But at least we don't impress anyone with the GM, nor does anyone have the impression that we are trying. Maybe this is a specific case, the alternator replacement in April, for the GM would have been $1,000 but we have the GMPP extended warranty (dumb I know). More than a BMW.
edit: want to be accurate, so I rechecked the price on a BMW X5 alternator replacement, and it would seem that no, the BMW is not less than the GM. A 2011 X5 is coming in at $1,600, and a 2016 at $1,800. So maybe the $1,000 alternator for a 2011 GM is cheap? lol At those rates, let's be honest--there is a compelling reason to DIY.
07-27-18 | 07:37 AM
#230
Lexus Fanatic
Joined: Sep 2016
Posts: 8,491
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From: PA
I'd like to be clear on one point. I don't want to sound cheap or sound like a prude. Listen, there is nothing wrong with driving a new luxury car or living in a big giant house and spending $100k/year for your country club membership. Heck, more power to you. The problem arises when you have all these things and still can't afford a $400 emergency without going into debt. If you can buy all those things and still save 20-30 percent of your income, you're doing quite well and good for you. Unfortunately, that person is the exception, not the rule. My Wife and I aren't rich by any stretch of the imagination, but we do live a pretty good lifestyle, have more than a year's worth of expenses in our emergency fund and we've been saving greater than 20 percent of our income, and have been doing so for years. I consider myself the exception. I do know one thing though, if I live that long, I will not be old and broke.
My wife's failed after 6.5 yrs. According to what you said, and what I have read, 40% of Americans cannot pay a $400 unexpected expenditure, without either borrowing or selling something.
In reality, the analogy is they cannot afford to drive a 2011 GM SUV, let alone a BMW X5, or a S class. At least 40%. Because that's simply one component, an alternator. If I had been faced with a $1,000 repair, I in good conscience, would have no choice but to DIY. I cannot in my mind spend $1,000 on an alternator. It's insulting (but it's the correct price). Just like when my BMW 335i ABS failed, outside of the extended warranty, $4,200 at the dealer. I would never, ever, ever, ever, ever, pay that, when DIY is < $300. I had to get some tools and software so it put me closer to just under $500. So you want to drive a 3 series 10 y.o.? You could be facing a $4k repair. Ditto with a 2004 Maxima, they too had an issue. When we're talking S class, the potential is way more. But the OP said maintenance was off limits as far as why no S class...
07-27-18 | 07:57 AM
#231
Lexus Fanatic
Joined: Nov 2011
Posts: 31,752
Likes: 73
From: ON/NY
Never understood this. Supposed one buys a $100K S class and keeps it for 10 years. Pays cash. After year 8, it needs a $3000 service or repair. Fix it is the correct move as buying a new S class at $100k makes no sense. Does this make sense to you? This person should of been collecting his cash from after he bought the car all the way through to the end. Wealthy people have the means to fix or repair things. Rich people may not.
07-27-18 | 08:07 AM
#232
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Joined: Sep 2016
Posts: 8,491
Likes: 372
From: PA
Never understood this. Supposed one buys a $100K S class and keeps it for 10 years. Pays cash. After year 8, it needs a $3000 service or repair. Fix it is the correct move as buying a new S class at $100k makes no sense. Does this make sense to you? This person should of been collecting his cash from after he bought the car all the way through to the end. Wealthy people have the means to fix or repair things. Rich people may not.
p.s. the other wealthy interaction I have observed is the "who pays" scenario. Say it's $150,000, not much in the overall grand scheme, but it matters that the GC paid and not us, etc., out of principle. I saw this going on in Mississauga, the GC handles and marks up everything, where unlike down here, the client is free to DIY with their own folks. That's fine if it's the way it works, but we turn our tough guys on them to keep them honest.
edit p.p.s. what do I mean by tough guys......I remember as a young kid liking the show LA Law. This young buck atty. in a divorce proceeding, goes over the assets one by one. Let's go back to item 83, the porcelain tea set. In other words, he's whittling down the ex husband and his attorney's patience. Actually, he was told by Arnie, never to do that again, it's not the way the firm operates. My firm has guys like that, and the GC in Mississauga got a taste of it!
Last edited by Johnhav430; 07-27-18 at 08:14 AM.
07-27-18 | 08:21 AM
#233
Lexus Champion
Joined: Aug 2006
Posts: 11,344
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From: Illinois
What's with all of the obsession with what the "wealthy" think, want, like, dislike etc.??
07-27-18 | 08:26 AM
#234
Lexus Fanatic
Joined: Nov 2011
Posts: 31,752
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From: ON/NY
As for the idea of an S-class vs LS460, the LS is the better purchase, cheaper to buy, cheaper to maintain, and depreciation is less. The LS is the car I would buy vs a S class, assuming I was to keep it long term.
07-27-18 | 08:38 AM
#235
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Joined: Sep 2016
Posts: 8,491
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From: PA
What's really funny is we're all the same people on this thread, but it seems we cannot talk about anything at all, nor agree on much. It's not like we'd want to spend tomorrow together at a bbq shooting the ****, or meet outside this forum! lol But I think we cannot resist seeing what is being said, and chiming in.
Honestly, I think if you want an S class, you should get it, because it's one of the best cars. You can't be human and get in and say, aw, this is junk and ****. It's nice, if you have the means, why not try it? But the entire topic was conjecture, it didn't say, those who own an S class, explain x,y,z
Honestly, I think if you want an S class, you should get it, because it's one of the best cars. You can't be human and get in and say, aw, this is junk and ****. It's nice, if you have the means, why not try it? But the entire topic was conjecture, it didn't say, those who own an S class, explain x,y,z
07-27-18 | 08:40 AM
#236
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Joined: May 2012
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From: Maryland
I don’t know that I agree with that. I have lots of great friends I enjoy spending time with that I disagree with strongly on many issues
07-27-18 | 08:42 AM
#237
Lexus Fanatic
Joined: Sep 2016
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From: PA
Interesting. I thought the $200 pair of Eccos my wife got me were nice and comfy, but there must be an entirely different level of shoes I'm not accustomed to. I'm having a hard time imagining leather as a durable outsole material. Of course, I'm probably not the intended demographic for such nice shoes.
Corvette is the opposite. I would buy one and drive one if the timing were right. But in my office, everyone I talked to frowned upon such a car. They actually consider it showy junk, and poor quality (that's an impression, not fact). But I would still drive it because it's me. Might cost me a promotion but who cares.
07-27-18 | 08:45 AM
#238
Lexus Fanatic
Joined: May 2012
Posts: 58,376
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From: Maryland
Mephistos aren’t your image? Mephistos are not flashy shoes, in fact most of them are really ugly. I own several pairs of Mephistos, but only casual shoes because they’re so ugly lol.
They are however the most comfortable shoes you’ll ever wear.
Mephistos are not image shoes lol
Vineyard Vines isn’t an expensive or flashy brand either. I don’t buy much from them because their clothes aren’t very good quality. For casual polos and shorts and stuff i like Tommy Bahama.
And yes, all high end dress shoes have leather soles.
They are however the most comfortable shoes you’ll ever wear.
Mephistos are not image shoes lol
Vineyard Vines isn’t an expensive or flashy brand either. I don’t buy much from them because their clothes aren’t very good quality. For casual polos and shorts and stuff i like Tommy Bahama.
And yes, all high end dress shoes have leather soles.
07-27-18 | 08:51 AM
#239
Lexus Fanatic
Joined: Sep 2016
Posts: 8,491
Likes: 372
From: PA
Mephistos aren’t your image? Mephistos are not flashy shoes, in fact most of them are really ugly. I own several pairs of Mephistos, but only casual shoes because they’re so ugly lol.
They are however the most comfortable shoes you’ll ever wear.
Mephistos are not image shoes lol
Vineyard Vines isn’t an expensive or flashy brand either. I don’t buy much from them because their clothes aren’t very good quality. For casual polos and shorts and stuff i like Tommy Bahama.
And yes, all high end dress shoes have leather soles.
They are however the most comfortable shoes you’ll ever wear.
Mephistos are not image shoes lol
Vineyard Vines isn’t an expensive or flashy brand either. I don’t buy much from them because their clothes aren’t very good quality. For casual polos and shorts and stuff i like Tommy Bahama.
And yes, all high end dress shoes have leather soles.
That is me, but also, it was convenience, the dealer was there and I was looking for the pins that hold the plastic covers down on the 3UZ-FE. I would have preferred to be dressed business casual, but I guess I didn't care.
The real reason I won't wear the Mephistos is I know they sell for $499 and they just look too nice to scuff or beat up hahahahahaha
edit p.s. I'm sure you are right and I should wear the shoes, as they only cost $20. Someone made the same comment about my LS430--the spare tire may have been used once, is mint, and still has the grease markings from the factory in 9/05. So how come I don't move it from the trunk to the car, when one wheel is all gouged from curb rash? Same thing, I want to preserve history for some day when my LS430 is found in a barn by Wayne Carini!
07-27-18 | 08:56 AM
#240
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Joined: May 2012
Posts: 58,376
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From: Maryland
I wouldn’t walk into anyplace in gym clothes and sweaty.
Youre missing out on the Mephistos. Incredibly comfortable.
The thing about quality shoes and clothes is they last. I have several $400 pair of Allen Edmonds dress shoes. But I’ve had them for years and years and years and just have them resoled. You can’t do that with cheap shoes. Same with clothes, I have quality items of clothing that I’ve had for 15 years.
I dont like “flashy stuff” I like high quality well made stuff.
Youre missing out on the Mephistos. Incredibly comfortable.
The thing about quality shoes and clothes is they last. I have several $400 pair of Allen Edmonds dress shoes. But I’ve had them for years and years and years and just have them resoled. You can’t do that with cheap shoes. Same with clothes, I have quality items of clothing that I’ve had for 15 years.
I dont like “flashy stuff” I like high quality well made stuff.