Mercedes-Benz drops prices in Ireland by 10 per cent due to weak pound
Mercedes-Benz buyers in Ireland are in luck, because the carmaker has announced that it is reducing new car prices by 10 per cent.
Is Mercedes coming late to the January sales party, you may ask? Nope. The huge discount is in fact due to Britain's decision to leave the EU, and the resulting slump in the pound.
This weak pound meant that right-hand drive UK imports became cheaper, with the Irish statistics office reporting on Thursday that number of used private cars imported and licensed in December more than doubled to 6,357.
Ireland's combination of right-hand-drive models – similarly to the UK – and the Euro meant that importing vehicles across the Irish Sea became an extremely affordable option following Brexit.
So in an attempt to support its 14 Irish dealerships, Mercedes went and dropped its new vehicle prices by 10 per cent.
This discount means that a top-of-the-range Mercedes-AMG GT S now costs €225,000 (£196,000), saving about €25,000 (£22,000).
And Mercedes claims that the decreasing prices of its models were already helping start of year sales.
Sales manager at Mercedes-Benz Passenger Cars in Ireland, Ciaran Allen, told the Independent that the price cut was: "in response to Brexit – and the impact it was having on sales of new and used cars in Ireland as a consequence of the drop in the value of sterling, which in turn has increased the level of grey imports – has had a positive impact".
However, despite this discount, Mercedes models are still more expensive in Ireland than in the UK, with the AMG GT S costing only £111,495 in the UK.
Part of the difference is attributed to higher tax rates in Ireland, and motorists importing vehicles have to pay these fees on their imported cars.