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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > Possible lack of veracity in car deal?



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      03-20-2010, 02:08 PM   #1
Budfox27
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Possible lack of veracity in car deal?

I am currently negotiating buying a 2011 335is from a dealer in Texas.

I offered $500 over in invoice for European Delivery. I thinks it's important for the consumers to stick together and make sure we are getting the best deal. I know some of this is bs.

Here was his response:

Hello Bryan,

I too enjoyed our conversation about the upcoming high performance 335is Coupe on Friday.

Thank you for your offer, however........

I will get with our General Manager to see if he is willing to give up that much potential profit on your EuroDeliv special request.

Even though I realize there may be a few BMW Retail Centers sprinkled around the country who may agree to 'cheap-sell a car', a Retail Center who agrees to sell the car for a genuine $500 over dead invoice strains the bounds of whether it is a sound business decision.

Allow me to explain...........

* The Dealer earns no quarterly hold back monies on EuroDeliv cars
* The Dealer earns no volume bonus on EuroDeliv cars
* The Dealer does not earn another unit or production slot by selling a EuroDeliv car (it does nothing to increase our turn rate)
* Internally, the Dealer pays Client Advisor $350.00 commission to handle, orchestrate, and execute a flawless order and delivery process
* Also, the Dealer is required to perform PDI 2 service on the vehicle upon arrival at store ($186.27)
* Dealer is required to clean and detail the vehicle upon arrival at store ($135.00)
* Dealer is required to fill the car with fuel (50.00)
* Even though the car is paid for in advance, once the car is actually invoiced to the selling Dealer (hits our books), the bank who carries the Dealer's Floorplan Account charges a one-month-interest-charge on the carry. This amount varies depending on Dealer size and total floorplan carry. Based on current wholesale interest rates, the average interest carry per car/per dealer is almost perfectly right at $300.00


Therefore, if you tabulate the hard cost for a Retail Center to sell a new BMW, which is currently $1,021.27, your kind offer to purchase from us for $500 over invoice leaves us a bit shy of simply breaking even. I think you will agree; this does not make for a sound business model.

Before I dismiss the offer based on price, allow me to research the color issue and talk with my General Manager about the numbers, and get back with you.

All the best, (END QUOTE)

Last edited by Budfox27; 03-20-2010 at 02:09 PM.. Reason: Spelling
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      03-20-2010, 02:13 PM   #2
BayMoWe335
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Tell him to shut up and buy it somewhere else.
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      03-20-2010, 02:19 PM   #3
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Quote:
Originally Posted by BayMoWe335 View Post
Tell him to shut up and buy it somewhere else.
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      03-20-2010, 02:37 PM   #4
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+2

You should be paying LESS than retail for European Delivery; much less.

Have you checked out the BMW USA European Delivery Website:
http://www.bmwusa.com/Standard/Conte...erYourBMW.aspx

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      03-20-2010, 02:41 PM   #5
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uh servicing and detailing the car at the dealership does not cost over $300, they pay some kid working for 10 bucks an hour to take a hose and vaccume to it....

tell him to go sit on a large pole and gyrate
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      03-20-2010, 02:57 PM   #6
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I can guarantee you he has this saved in a Word file and he copies and pastes it to anyone who tries to negotiates. I just ordered a 2010 today, and I am paying $1500 below invoice (granted it's because of the $2500 credit).
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      03-20-2010, 03:35 PM   #7
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Quote:
Originally Posted by midshrink View Post

Have you checked out the BMW USA European Delivery Website:
http://www.bmwusa.com/Standard/Conte...erYourBMW.aspx

I don't see the IS model available for a choice. I would be surprised if you find a dealer that will basically make nothing on a new model that isn't even available yet.

Best of luck to you though.
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      03-20-2010, 04:53 PM   #8
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Quote:
Originally Posted by bsamoul View Post
+1
+2

He's smooth talking you. Complete BS..
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      03-20-2010, 06:15 PM   #9
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Far be it from me to defend a car dealer here, LOL , but I think we may be being a bit harsh in this thread. While there are certainly ED deals being made for 2011 3-series for as little as $500 over invoice based on credible reports, that seems to be the bottom of the range, and I don't think it is the median or the average. That might be especially true for the 335is, which may command a bit of premium because of the higher base price and demand. From what I can make out, the range of 2011 "good deals" seems to be from about $500 to $1500 over invoice, with $800-$1200 being most frequently mentioned.

The dealer drew the OP a picture; I interpret the dealer's message as "I'd be thrilled to make a deal for invoice +$1500, but if you push me, I might do $1000." And if that dealer doesn't, somebody else will.
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      03-20-2010, 06:21 PM   #10
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Tell them you didn't realize the 'stress' you would be putting them through by ordering a vehicle.

Go to someone who appreciates the business in these recessionary times.
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      03-20-2010, 06:29 PM   #11
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My gut feel is that business people never justify why they're not accepting a fair offer, they simply tell you let us know when we can be of service in the future. I experienced that when buying a GIA diamond--when my offer was too low (bluenile.com at the time was my yardstick--get an internet price in-person using credit card and GIA cert, and no tax was my objective), a shop didn't even entertain the offer, because it was literally insulting.

Whenever someone is willing to take an offer to mgt., it is something they would consider. To have that long dissertation is one of those sales techniques that sort of goes, "You don't know what I went through to get you this deal." my .02...
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      03-20-2010, 06:32 PM   #12
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wow, this sucks
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      03-20-2010, 06:40 PM   #13
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Quote:
Originally Posted by luxun54 View Post
...The dealer drew the OP a picture; I interpret the dealer's message as "I'd be thrilled to make a deal for invoice +$1500, but if you push me, I might do $1000." And if that dealer doesn't, somebody else will.
Agreed. There aren't many dealers who would consider a "take it or leave it" offer for $500 over invoice. The dealer would have to be really desperate to entertain such an offer. It's not even worth 20 minutes of the salesman's time. The OP needs to be prepared to increase his initial offer when the dealer makes his counter-offer.
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      03-20-2010, 07:46 PM   #14
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Whatever the case may be, I'd buy it from a salesperson who's not trying to give me a lesson in business. That dumbass doesn't know the first thing about business. Sell cars and shut up.

All that crap just made him sound like a moron/prick.
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      03-20-2010, 07:46 PM   #15
BayMoWe335
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Where in Texas might I ask? BMW of Dallas?
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      03-21-2010, 07:10 AM   #16
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Do what I did, buy elsewhere and when they e-mail you asking if you are still interested in the car (don't delete the email, but respond to it) tell them that you bought the exact car at $_________ somewhere else. For this particular douche, I would spend an hour typing a special letter/e-mail for him about the recession, economy, unemployment, etc etc.
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      03-21-2010, 07:19 AM   #17
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I simply told my dealer I had a quote form another dealership at $500 over invoice, but wanted to remain with them if they were willing to match it. No questions asked, they did.


It is all in your tact.
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      03-21-2010, 07:42 AM   #18
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Quote:
Originally Posted by BayMoWe335 View Post
Whatever the case may be, I'd buy it from a salesperson who's not trying to give me a lesson in business. That dumbass doesn't know the first thing about business. Sell cars and shut up.

All that crap just made him sound like a moron/prick.
Exactly. When you as the buyer make an unreasonable offer, the seller simply moves on as if it's not a serious offer. They don't attempt to justify why they don't feel the offer is fair.

I found the same BS when refinancing my home. The dumb a** loan officer tried to convince me the refi was a 8-9 mo. break-even i.e. no-brainer (I calculated closer to 26 mos.). That may have worked back when waitresses were flipping houses 6 years ago in FLA, but he should stop and think that possibly he will encounter customers who went to top tier b-schools and save the BS for himself....
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      03-21-2010, 09:32 AM   #19
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Keep us posted if you find a dealer that will sell you that car at $500 over invoice. I am curious at how much time and how far you are willing to go to get that deal.
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      03-21-2010, 10:26 AM   #20
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Call up BMW of Murray in utah, ask for Ryan, he helped me a whole 2 years on finding a car, and was very nice the whole time.
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      03-21-2010, 12:02 PM   #21
BayMoWe335
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FYI, I went to another city to buy my car because the dealerships in mine were complete morons. At least the sales side.
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      03-21-2010, 02:19 PM   #22
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if you were thinking about ED, why the heck didnt you do your research and go with Irv Robinson? He is a sponsor and has great feedback. there is no one out there that knows more about ED than IRV
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