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2012 Mercedes-Benz C-Class

Mercedes-Benz Canada has ripped a well-worn page out of the book of discounting by reviving a "no-payments" promotion designed to fuel sales as the company races to retain the title of "best-selling premium brand in Canada."

Want a 2012 C-Class? Mercedes will waive your first three monthly payments, though be aware of the fine print. Or how about a Smart fortwo? No payments for four months, though again, the fine print.

"The battle for Luxury supremacy continues hot and heavy with Mercedes-Benz holding a slight lead over BMW year to date," says auto analyst Dennis DesRosiers in a note to clients. "MB has sold 22,598 vehicles YTD (year-to-date) and BMW has sold 22,124 vehicles. "Add MINI and Smart to their totals and BMW/Mini are slightly ahead of MB/Smart. This battle is going down to the wire."

And buyers stand to benefit.

Mercedes' so-called Autumn Sales Event includes a promotion that sees the first three payments on your 2012 C-Class waived – with caveats. Lease payments are capped at $450 a month and finance payments at $650. Moreover, Mercedes has a one-month participation fee for its dealers and that amounts to the equivalent of one payment added to the wholesale price of the car.

Mercedes Canada also appears to be offering three other sales sweeteners on top of the no-payment plan: a $1,250 Option Credit, along with another $800 factory incentive and 1.9 per cent financing for up to five years. The Option Credit offer also includes a dealer participation fee and here it amounts to $450.

This is complicated stuff, so see your dealer for all the details, keeping in mind that parsing the little words at the bottom is going to take some time and effort.

The same holds true for Smart, which is offering no payments four months plus a $250 rebate plus 1.9 per cent financing for up to five years.

Obviously BMW Canada is in this game and with some urgency. Next year BMW Canada will introduce a reinvented 3-Series, which means the current version is on its way out and in need of marketing support. That support amounts to $4,000 in a factory-to-dealer rebate on cash purchases only.

BMW Canada also has some sales drivers in its toolbox. The $1,500 Option Credit factory-to-dealer rebate might be advertised as a free automatic transmission, but it applies to all 3s regardless of transmission. That deal can be combined with a $1,500 Delivery Credit, factory-to-dealer sweetener – and 2.9 per cent financing for up to five years.

Finally, Deals was intrigued by the $5,500 cash incentive on the Buick Lucerne. It appears that deal can be combined with GM Canada $1,000 Cash for Clunkers rebate and the company's $1,000 Lease for Cash rebate. Up to $7,500 off a quite decent sedan with a $34,000 price tag isn't bad at all.

As usual, Deals of the Week obtained pricing information from www.carcostcanada.com, among other sources Here are the numbers.

2011 BMW 328i

MSRP: $41,400

Freight, dealer prep, air conditioning tax: $2,095

Dealer discount (estimated): $1,800

Factory discount: $4,000 (Alternate Cash factory-to-dealer rebate)

Taxable subtotal: $37,695

Total price with 13% HST: $42,595.35

2012 Mercedes-Benz C-Class 2.5L 4MATIC

MSRP: $39,900

Freight, air conditioning tax and dealer prep: $2,095

Dealer discount: $1,800

Factory discount: $800 (Direct Support factory-to-dealer rebate)

Factory discount: $800 (Option Credit factory-to-dealer rebate (includes a $450 dealer participation fee deduction))

Factory discount: $1,300 (Value of Three Months Payment Waived promotion (estimated))

Taxable subtotal: $37,295

Total price with 13% HST: $42,13.35

Note: 1.90 per cent finance rate for up to five years

2011 Smart fortwo Pure coupe

MSRP: $13,999

Freight, dealer prep and air conditioning tax: $1,500

Dealer discount (estimated): $450

Factory discount: $250 (Direct Support factory-to-dealer rebate)

Factory discount: $716 (Value of Four Months Payment Waived promotion (estimated))

Taxable subtotal: $14,083

Total price with 13% HST: $15,913.79

Note: 1.90 per cent finance rate for up to five years

2011 Buick Lucerne CX sedan

MSRP: $33,990

Freight, dealer prep and air conditioning tax and Green Levy: $1,550

Dealer discount (estimated): $1,400

Factory discount: $5,500 (Stackable Cash Deliver Allowance factory-to-dealer rebate)

Taxable subtotal: $28,640

Total price with 13% HST: $32,363.20

Factory discount: $1,000 (Cash for Lease factory-to-customer rebate)

Factory discount: $1,000 (Cash for Clunkers factory-to-customer rebate)

Final price: $30,363.20

Pricing information source: www.carcostcanada.com. Calculations based on Ontario customers. Please note that while the information above is accurate at the time of publication, incentives are given at the discretion of individual dealers, and may be changed or discontinued at any time. Dealer discounts are negotiated with the customer on a case-by-case basis.

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