Mercedes Ireland Price Gouging

Smouse156 · 05-08-2023 12:14am #1

Any reason why Mercedes Ireland can get away with selling paddy spec (everything is an optional extra when compared with UK models) for 20-30% extra here if brought up to UK basic spec after accounting for the VRT difference.

Ive compared numerous hybrids (7% VRT, VAT is the same in both countries 23%) and the paddy price is at least 20% higher here. When I compare say a BMW X5 or a Tesla EV the only difference is the VRT (there is no paddy spec versions either).

Can anyone explain why anyone would buy an Irish Mercedes? An Irish Mercedes is basically a Toyota given its paddy specs (stripped of everything) with a Mercedes badge! The price gouging is truly sickening and I’m shocked people buy them!

Also why do ads, especially dealer ads stupidly mark “Irish Car” when it’s the equivalent of stating “your buying the **** version” on something?

User1998 · 05-08-2023 5:50am

What exactly is an optional extra in Ireland that comes as standard in the UK?

There are lots of basic ‘paddy spec’ cars in the UK too. Some are actually worse spec than here.

You can’t just import from the UK anymore so thats why people would buy Irish instead.

Some people are uneducated and won’t buy imported cars. Thats why they are marketed as ‘Irish’

sumo12 · 05-08-2023 3:09pm

I would say at this stage the spec of Irish cars is on a par with UK cars, if not better. Yes, there are more top spec and up-specced models in the UK, simply because its a bigger market. That also affects pricing - less choice means more expensive cars. Supply and demand and all that...

Lots of good reasons for avoiding UK cars and buying - as you call it - stupid Irish cars. No.1 being underbody corrosion caused by excessive salt use in many areas of the UK in winter. Can turn even a simple repair job like replacing links or bushes into a drama. That's without considering the long term effects of corrosion on the chassis itself.

Charles Babbage · 05-08-2023 3:24pm

https://www.boards.ie/discussion/comment/120942932#Comment_120942932

You would expect a premium car brand to be able to cope with road salt, after all Germany has colder winters than most parts of Britain and these cars are sold in Finland, Canada etc.

User1998 · 05-08-2023 3:53pm

https://www.boards.ie/discussion/comment/120942981#Comment_120942981

They cope just fine, cars in the UK easily last 20+ years despite the salt used on the roads

bazz26 · 05-08-2023 3:58pm

Ireland has been using rock salt on our roads in winter the same as the UK for the last number of years afaik. This talk of corrosion due to excessive use of salt on roads was originally exaggerated here by those who feared the competition of cheaper used cars from the UK. You could argue similar about sea salt and cars owned by people living in Irish coastal areas but you don't hear it.

Casati · 06-08-2023 5:24pm

https://www.boards.ie/discussion/2058308095/mercedes-ireland-price-gouging

Could you give an example? Are you looking at brand new?

Smouse156 · 06-08-2023 6:55pm

Lets disregard the salt aspect as this post is really about price gouging.

Let me give the following example: EQE350 SUV in the premium plus pack (New).

The base paddy spec naturally comes with just 4 wheels and is actually cheaper than the UK model as its essentially an electric Toyota with a Mercedes badge.

Now if we add the following to the paddy version to bring it to the UK model (I haven't selected any optional extras in the UK baring the premium plus version):

AMG line exterior
Night package
AMG line interior
22 inch multi spoke alloys
Radiator grille with Mercedes star pattern
Heated windscreen washer system
Panoramic sliding sunroof
Acoustic Comfort Package
Energizing package
MBUX Hyperscreen
Dash Cam
Parking Package with remote parking functions
Burnmester 3D surround system
Guard 360 vehicle protection
Rear axle steering

The UK model also came with running boards and the chrome package which I could not add onto the paddy spec car. All the above highlight how much Mercedes Ireland strip out of their cars. A UK Mercedes EQE SUV car is a luxury car...the Irish version is a joke! Its like a Iphone 7 software & hardware in an Iphone 14 case shell and somehow charges more!

When the paddy model is brought up to UK spec it costs €155,446 vs UK price £112,260 (€129,977). I'd expect chrome and running boards to add another €2500 minimum, making the Irish car almost 22% more expensive. I have found other configurations that were closer to 30% more expensive. The VRT on these is 7% which should be the difference.

Now if we compare a BMW X5 xDrive50e M Sport (no paddy spec version, cars look exact same). UK price is £79,265 (€91,774) while Irish price is €97,795, which is just under 7% of a difference (The VRT is 7%). All extra options are similarly priced, therefore staying within 7% of a difference.

So why do people still accept Mercedes scamming with their paddy spec models while BMW and others can price their cars similarly? Especially as both cars are built in Germany.

pat_sconce · 06-08-2023 7:02pm

When did the UK increase vat to 23%?

User1998 · 06-08-2023 7:11pm

You can buy a ‘Paddy spec’ EQE in the UK too, and it costs about £90,000. The ‘Paddy spec’ in Ireland costs the exact same (€105,000), despite us having to pay an additional 7% VRT and 3% extra VAT.

All of those extras that you added to the Irish car have 7% VRT and 3% additional VAT too

I’d imagine BMW are just taking a hit on the price and absorbing some of the VRT and VAT

Believe it or not, a lot of cars are actually priced cheaper here than they are the UK, but our high VRT inflates the price to make it look more expensive than it really is

Strumms · 06-08-2023 7:39pm

I’m looking at some here online on the site of an Irish Mercedes dealership that market itself as “a family owned business which has been in operation since 1959. We are very proud to sell and service blah blah blah”…..

Feck all photos of their used cars, a lot of pics are generic stock pics of generic models in the distance and despite not offering people photos, the cars three, four, five years old have according to their prices , not significantly depreciated in value despite some of them approaching or having just over six figure kilometre totals on the clock.

one page has zero actual photos of the actual cars they are selling… are they sitting mothballed in a warehouse in Oostende or somewhere waiting for someone to get around to it ? Not that impressed, shouldn’t be too difficult for a dealership selling what are essentially in the main premium luxury vehicles to prioritise getting a photographer sorted , especially when looking for a lot of cash.

masterboy123 · 06-08-2023 8:09pm

I am an ex-Mercedes owner. The amount of unexpected €600-1200 every 6 months plus the associated hassle of leaving your car at the dealer was not worth it.

I am with Hyundai Tucson Hybrid now and happy to say it's highly reliable; done 75000 km with zero maintenance cost so far.

I may go with BMW in the coming years, but not with Mercedes again.

jmreire · 06-08-2023 8:46pm

https://www.boards.ie/discussion/comment/120943074#Comment_120943074

Corrosion protection has come a long way since the 70's, 80's, 90's etc. when any car showing a coastal county plate was automatically devalued. I remember County's Clare and Galway coming in with the radiator fins rusted out of them due to the salty air. ( and not only the radiators either! )

Smouse156 · 06-08-2023 9:06pm

Yes I accept that there is 3% VAT extra that I was incorrect about. All the extras should not change the total price percentage difference.

thankfully other dealers are not totally gouging, BMW seem to be charging lower than the UK. It’s just Mercedes price gouging on **** models.

even the lowest spec in the UK doesn’t compare with Paddy Spec

road_high · 06-08-2023 9:28pm

Mercedes are generally the priciest of the big premium marques. A new C class is around €70k for a decent spec one now.

User1998 · 06-08-2023 10:01pm

https://www.boards.ie/discussion/comment/120947548#Comment_120947548

What does the base UK spec have that the Irish version doesn’t? Baring in mind that the Irish version is actually cheaper before VAT and VRT are accounted for

Casati · 07-08-2023 1:00am

Does Her Majesty not impose an import duty for cars manufactured outside the U.K.?

Retail prices ex vat in the U.K. were traditionally 15% to 30% higher than the actual discounted prices available, no idea if the discounts are back to that level in the U.K. but what I hear is Irish dealers won’t entertain any discounts - that might be wrong.

GSBellew · 07-08-2023 1:41am

This "Paddy Spec" in relation to Mercedes is a load of bollox.

Back in the days of the W211 there were differences, Irish 211 series had horrible plastic steering wheels, the UK ones leather, Irish ones were missing some interior lighting on the overhead control panel. Irish estates came with a factory CD changer, UK didn't........

On the 212 series the differences disappeared. Irish and UK specs were pretty much the same, continental markets had lower spec lines not available in Ireland or the UK.

On the 213 series MB UK decided to do away with options during the life of the model, gradually whittling it down until you had no boxes to tick other than paint and an extremely limited interior trim colour choice, this was done as MB UK wanted to negotiate a lower cost price from Germany, Germany agreed if the cars were spec cars, that's why options disappeared because they were being built in numbers to basic specs.

Want a specific wood trim inside? Nah, in the Uk you got whatever they felt like at different points in the model, generally it was an aluminium in the SE spec, Black Ash in the AMG Line. Here you can tick a box to pick all manor of different wood trim and colours of leather trim. We have had to order Irish cars in beige leather to swap the entire interior over with UK Black Leather cars to be able to supply Beige Leather for UK Customers.

Want the Exclusive Line? not available in the UK. SE Sport or AMG line only.

Want a different set of wheels? nope, R11 17" wheels on the SE

Now it's AMG Line exterior with Avantgarde interior only full stop, no choice at all and you don't get the AMG Line interior, you are not told that, so the leather twin stitched dashboard and door panels are gone, as are the nicer seats.

If you want to talk Paddy Spec, go look at German or Italian specs, they have a basic line exterior and interior not offered in the UK or Ireland, cloth seats, no anodised aluminium on the door rubbers, no parking sensors, no heated seats, no active brake assist, real poverty spec stuff, want to know a secret? they are more expensive than the Paddy Spec cars........

GSBellew · 07-08-2023 1:44am

https://www.boards.ie/discussion/comment/120948048#Comment_120948048

No, under the terms of the Brexit trade deal EU origin goods (including cars) are not subject to tariffs or limits when entering the UK.

The reciprocal agreement is that UK Origin goods (including cars) are not subject to tariffs when entering the EU.

Smouse156 · 07-08-2023 12:07pm

I‘m not sure about Italian cars but I know Irish cars are completely paddy spec’d compared to UK.

go to the UK website, there are few extras. Here everything outside the wheels are extra. I’m surprised the Irish cars don’t have manual crank windows.

at least other brands (BMW) are not gouging like Mercedes are

User1998 · 07-08-2023 12:33pm

Volkswagens have been higher spec in Ireland for the past 15 years or so.

For example, a base model 2015 Polo in the UK doesn’t even come with central locking

Base model Golf is also lower spec in the UK compared to Ireland

road_high · 07-08-2023 10:04pm

I remember working with a company ten years ago now and junior U.K. staff got super basic Skoda Octavias- I mean absolutely terribly spec, no central locking or electric windows. The same spec wasn’t even available here they had to be Classic and to be fair while basic was quite acceptable. The super basic specs would not just sell here at all