Welcome!

News Feed Item

New Mercedes-Benz CLA Outshines Aging C-Class, According To Kelley Blue Book

Upcoming C-Class Redesign Anticipated to Grab Back Sales, Market Share from CLA

IRVINE, Calif., Jan. 9, 2014 /PRNewswire/ -- The latest entry-luxury sedan to join the Mercedes-Benz lineup, the 2014 CLA, is closing the gap on its outdated sister model, C-Class, with stronger average transaction prices, projected resale value and shopper interest, as well as lower incentive spend by the automaker, according to Kelley Blue Book www.kbb.com, the leading provider of new and used car information.

(Logo: http://photos.prnewswire.com/prnh/20121108/LA08161LOGO

"Mercedes-Benz is looking to increase its reach in the entry-luxury category with the CLA, and the initial numbers suggest they've succeeded," said Karl Brauer, senior analyst for Kelley Blue Book.  "Though touted as a sub-$30,000 car, the CLA is transacting in the mid-$30,000 range, or at roughly the same price as the outdated C-Class generation.  As the newer and arguably more attractive sedan in this price range, the CLA has an advantage over the stodgier C-Class.  This is clear in the higher residual value and lower incentive spend recorded for the CLA; however, this should change when the all-new C-Class is revealed next week at the Detroit auto show.  Expect Mercedes-Benz to bump the new C-Class' price and drop its incentive spend to distance it from the CLA." 

Average Transaction Prices

Make

Model

Trim

Sep-13

Oct-13

Nov-13

Dec-13

Q4-13

Mercedes-Benz

2014 CLA-Class

CLA250 Coupe 4D

$36,564

$36,744

$36,988

$36,605

$36,821

Mercedes-Benz

2014 C-Class

C250 Sedan 4D

$38,028

$36,226

$37,570

$37,685

$37,124

Incentive Spend Per Unit

Make

Model

Sep-13

Oct-13

Nov-13

Dec-13

Mercedes-Benz

CLA-Class

$0

$572

$557

$545

Mercedes-Benz

C-Class

$2,804

$2,884

$3,128

$3,104

Although marketed as an entry-level option for those interested in the prestigious Mercedes-Benz brand, the CLA has been commanding a premium price well beyond its advertised $30,000 price of entry since launch.

"Those quick to scoop up the CLA have shown no hesitation in loading the vehicle with extra options to meet their needs, which has pushed transaction prices near the higher priced C-Class," said Alec Gutierrez, senior analyst for Kelley Blue Book.  "This is especially impressive considering the miniscule amount of incentive spend Mercedes has put behind the CLA.  Although prices are up today, we expect to see them dip in the months ahead as early adopters that tend to load up on options get their fill.  While the CLA is clearly getting the attention of luxury shoppers looking for an affordable option, a redesigned 2015 C-Class, which is expected to move the model line upmarket, should help to differentiate the C-Class from the CLA and further cement Mercedes' position in the quickly growing entry-level luxury category."

Residual Values*

Make

Model

36-Month Percentage of MSRP

Mercedes-Benz

CLA-Class

56%

Mercedes-Benz

C-Class

52.5%

*Residual values used are based on the January/February 2014 Kelley Blue Book® Residual Value Guide. Percentages based on the 36-month residual value.  

With the CLA, Mercedes-Benz has brought to market a vehicle that has popular appeal and due to its pricing strategy, is expected to retain its value better than the aging C-Class.

"Although not quite segment-leading, the CLA is forecast to be the brand's top residual value sedan across its entire lineup, except for the high-performance C63," said Eric Ibara, director of residual value consulting for Kelley Blue Book.  "That, of course, could change with the redesign of the C-Class based on the model's performance and stylistic revisions in relation to any price change."

Shopper Interest:  KBB.com Month-Over-Month Share of New-Car Traffic

Make

Model

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Mercedes-Benz

CLA-Class

89.6%

8.4%

8.6%

55.9%

30.1%

222.7%

36.4%

-15.9%

-9.6%

Mercedes-Benz

C-Class

-5.4%

1.0%

-2.2%

4.2%

11.2%

-2.4%

2.3%

-20.1%

-2.1%

"As the CLA gained more traction, there has been cannibalization that has taken place between the CLA-Class and C-Class," said Mark Williams, analyst for Kelley Blue Book.  "In fact, once the CLA was live on KBB.com, there was a dip in C-Class share of traffic.  The CLA's Web traffic continued to increase after it arrived in showrooms, yielding an astounding increase of 340 percent from August 2013 to October 2013. The surge in shopper interest positioned the CLA as the most popular Mercedes-Benz model for the first time on KBB.com, surpassing both the C-Class and E-Class in October 2013."  

About Kelley Blue Book (www.kbb.com)

Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry.  Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In and Suggested Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week.  The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies.  For two years running, Kelley Blue Book's KBB.com ranked highest in its category for brand equity and was named Online Auto Shopping Brand of the Year in the 2012 and 2013 Harris Poll EquiTrend® study.  Kelley Blue Book Co., Inc. is a subsidiary of AutoTrader Group, which includes AutoTrader.com, vAuto, VinSolutions and HomeNet Automotive.  AutoTrader Group is a majority-owned subsidiary of Cox Enterprises.

SOURCE Kelley Blue Book

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
UpGuard has become a member of the Center for Internet Security (CIS), and will continue to help businesses expand visibility into their cyber risk by providing hardening benchmarks to all customers. By incorporating these benchmarks, UpGuard's CSTAR solution builds on its lead in providing the most complete assessment of both internal and external cyber risk. CIS benchmarks are a widely accepted set of hardening guidelines that have been publicly available for years. Numerous solutions exist t...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...