Welcome R+F Mercedes Qualifiers and Achievers!
My name is Amy Cudd and I’m a Rodan & Fields Premiere Circle Car Program Achiever. I saved $5,636 on my new car and I want to teach you how to do it too.
I’m sure you are thrilled about the prospect of getting a new Mercedes. And rightfully so! But just because you’ve earned this bonus doesn’t mean you should overpay for your Mercedes.
Everything you can do to get a lower price on your purchase or lease means more money in your pocket at the end of the day.
My husband created this website to help car buyers, which includes us lucky ladies who have earned a car through the R+F Circle Car Program. He’s researched how the R+F program works and we want to share what you should and shouldn’t do when buying your Mercedes.
But first off…
What’s New in the Rodan & Fields Circle Car (Mercedes) Program?
In 2019 the Rodan & Fields Lexus program has switched over to the Mercedes-Benz brand, but the fundamentals of the program are similar. The two main differences are:
- Your bonus payments must be used towards a Mercedes instead of a Lexus.
- There is a new, lower qualification tier of $500/month towards a car payment in addition to the existing tiers of $750, $1000, and $2,000 per month.
If you are current Lexus achiever and your car’s model year is nearing the end of the five-year eligibility period, when you replace your car it will need to be with a new Mercedes as well.
Now before you buy, the most important thing to remember about the Mercedes program is that…
The price you pay for your new Mercedes matters
Rodan + Fields has created this incentive to reward us ladies for our hard work. However, it is important to remember it is not a “free car”. It is a bonus that must be used towards a new or slightly used Mercedes. Depending on your sales volume, you can qualify for monthly car payments of $500, $750, $1000, or even $2,000 per month.
It is important to note that this money will be included as income on your Rodan + Fields 1099 at the end of the year. This means you need to earmark some of that money for taxes and budget how much you want to spend.
To find out the true, post-tax amount of your car bonus over 5 years (which is the typical length of time before you have to buy a second Mercedes), let’s add up all the payments and subtract taxes. For simplicity, let’s assume a tax rate of 25%.
If you qualify for the $500/mo bonus:
$500/mo * 60 months = $30,000 total bonus
$30,000 * 25% = $7,500 tax
$30,000 – $7,500 = $22,500 True value of the car incentive
If you qualify for the $750/mo bonus:
$750/mo * 60 months = $45,000 total bonus
$45,000 * 25% = $11,250 tax
$45,000 – $11,250 = $33,750 True value of the car incentive
If you qualify for the $1,000/mo bonus:
$1,000/mo * 60 months = $60,000 total bonus
$60,000 * 25% = $15,000 tax
$60,000 – $15,000 = $45,000 True value of the car incentive
If you qualify for the $2,000/mo bonus:
$2,000/mo * 60 months = $120,000 total bonus
$120,000 * 25% = $30,000 tax
$120,000 – $30,000 = $90,000 True value of the car incentive
Please note that you may be able to reduce some of your taxes by deducting vehicle expenses based on business use of your car. It’s a good idea to keep a record of all your mileage related to Rodan + Fields (driving around town dropping off products, meeting prospects for coffee, and training consultants will likely qualify). So talk to an accountant and get some advice before filing your taxes.
A Mercedes-Benz is an expensive vehicle and you will likely need to spend more than the examples above. So keep that in mind when budgeting.
What Model Mercedes Should I Buy?
R+F recommends the following models based on your bonus amount, but these are merely suggestions and you are allowed to buy any model (in Polar White or shade of white). I suggest you assess your budget and only buy what you can truly afford.
- LV Circle ($500 monthly bonus payment): Mercedes CLA Coupe
- Premier Circle ($750 monthly bonus payment): Mercedes GLC Coupe
- Elite Circle ($1,000 monthly bonus payment): Mercedes GLV SUV
- Legacy Circle ($2,000 monthly bonus payment): Mercedes G-Class SUV (note: Legacy Circle must purchase an S Class or above)
Should I buy a new or used Mercedes?
You may be thinking one way to save money on your Mercedes is to buy slightly used. That’s smart and I don’t want to discourage you from doing this and saving money. However, you should understand that for every model year you go back, you will shorten the length of time before you must buy your second Mercedes by one year. The table below from Rodan + Fields Car Program terms and conditions shows what I mean.
Buying used may save you some money in the short term, but you will need to buy your next car sooner. Assuming you continue to qualify for the program (I hope you do!), over the years you will have to buy new cars more frequently costing you more money in the long run.
And perhaps more importantly, by using the strategy on this website, you could easily save 4-5 thousand off the price of a new car like I did, essentially paying the same price as a similar year-old Mercedes.
It matters when you buy your Mercedes
After 3 months of qualifying for the R+F Circle Car Program you will have earned your car (for full program details, sign into R+F Pulse and search for “Mercedes” under the Biz Dev library tab). Once you get confirmation from Rodan + Fields you should plan on buying in the second half of month four. There are a few reasons why this timing is critical.
- Technically the 15th day of month four is when you officially find out if you qualify, although Rodan & Fields will probably let you know earlier in the month.
- Buying a car at the end of the month is always the best time to get a deal.
- Most Importantly, if you wait till month five to buy, you will lose out on your first bonus payment.There is no way to get this back if you miss this window!
How to get the best deal on a new Mercedes
Because you do have to buy your new Mercedes yourself, you should try to get the best possible deal to save money. DO NOT assume you have to pay full price! The best way to get a deal is to:
- Check for current Mercedes deals to see which models the dealerships are trying to move (and are more likely to be negotiable).
- Get prices from several car dealers and make them compete with each other. The easiest way to do this is using the form at the top of this website. Just select a make (Mercedes) and model and click the orange Start a Bidding War button. It’s a straightforward process that’s explained in great detail in this guide.
My husband and I used this process for our Lexus RX350 which had an MSRP of $46,563 and we were able to negotiate the purchase price down to $41,200. That’s a savings of $5,636 off MSRP and about $3,000 below the initial so called “best offers” we received. The process works for any brand of car.
Are you interested in Rodan & Fields? Or just have questions about the Mercedes program? Reach out to me at AmyCudd.com.
In closing, you earned this car and you should be proud of your achievement. Enjoy this exciting time, but also remember to get a great price on the car of your dreams at the same time. If I can help answer any questions for you about the program, please reach out to me and be sure to share this site with your friends! -Amy Cudd