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      02-23-2008, 11:21 AM   #1
pete_d
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Dealer discounts

Has anyone had experience of ordering a new car in January or February, specifically around the new discount regime? DriveTheDeal are showing a whopping 21 discount on a 335d touring, while Coast2Coast are still showing a much more attractive 9%.

I'm on the verge of putting an order in, but if the discounts are really so close to zero at the moment, I'm more inclined to wait until later in the year.

Any advice or experiences welcome!

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      02-23-2008, 11:31 AM   #2
///ajd
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Drive the deal were showing 9.2% before adding the further 1000 finance discount (hence approx 12% total discount depending on model), at the beginning of THIS WEEK, but these discounts dissappeared on Wed/Thurs I think.

Broadspeed have some discounts too but not as much.

I've come to the conclusion its too risky buying new at the moment as:

a) new model out in Sept 08
b) BMW faffing about too much over pricing - are there discounts or not?

For a model thats about to be superceeded its just too overpriced at anywhere near its current list price, even with Edition models and cheaper options (e.g. Media packs, cheap xenons etc. on 330/335s etc.).

Also the 17% discounts that were available upto Dec 07 are just too well known about - for BMW to try and pretend this level of discount is no longer relevant when thinking about how much a new E9x should cost is rather naive in my view. Punters don't see why it should cost so more now - & rightly so it shouldn't - they should be getting cheaper in the run up to its Sept 08 facelift, not more expensive!!
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      02-23-2008, 12:39 PM   #3
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Quote:
Originally Posted by ///ajd View Post
Drive the deal were showing 9.2% before adding the further 1000 finance discount (hence approx 12% total discount depending on model), at the beginning of THIS WEEK, but these discounts dissappeared on Wed/Thurs I think.

Broadspeed have some discounts too but not as much.

I've come to the conclusion its too risky buying new at the moment as:

a) new model out in Sept 08
b) BMW faffing about too much over pricing - are there discounts or not?

For a model thats about to be superceeded its just too overpriced at anywhere near its current list price, even with Edition models and cheaper options (e.g. Media packs, cheap xenons etc. on 330/335s etc.).

Also the 17% discounts that were available upto Dec 07 are just too well known about - for BMW to try and pretend this level of discount is no longer relevant when thinking about how much a new E9x should cost is rather naive in my view. Punters don't see why it should cost so more now - & rightly so it shouldn't - they should be getting cheaper in the run up to its Sept 08 facelift, not more expensive!!
10% discount is kind of the industry norm, so it's reassuring that this is back on the table with some brokers.

It's what I got off my car and off the VW I just bought for Mrs NFS.

BMW have caused themselves and their customers some damage with the 17% discounts we've been seeing. They are also coming under increased pressure from competitors. The c-class is actually looking like a decent option now as is the new A4/A5

BMW are going to have to come up with something. According to them, my car has depreciated by 1000 per month, but when I bought it .. 6 month old models were being offered by dealers at only 1k below list.

I blame the dealers .. it's just not fun being ripped off by them and I don't want to do it again.
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      02-23-2008, 12:43 PM   #4
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Ignoring the extra 1000 for using the finance, 10% is the absolute tops that a dealer has to give, but you'd proably end up nearer to 8%. BMW have changed their strategies recently, and the dealers are now acting as sales agents for BMW Uk themselves, rather than selling for semselves being able to control all the discount.

In all fairness BMW were cheapening the brand giving so much discount, both Audi and VW give no more than 11%. Give it 6 months, and used prices would have settled in line with the new lower discounts, and then the market will level a bit.

All those, and me included, who purchased their cars last year with 15% odd discount ( I actually had more than this) can own their cars and sell them for a small profit when they are a year old - cheap motoring
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      02-23-2008, 12:57 PM   #5
///ajd
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OliH

Are you confident a buyer will be willing to pay, say 35k for a 335d like yours? Won't they know you paid less than this a year & x thousand miles ago? Is this realistic? You can still get a loaded 335d ED model brand new for around 37k even with the lower discounts.

These cars loose around 19-20% p.a. in value - until they are worth around 12k 4/5 years down the line. I know supply/demand can affect (i.e inflate) nearly new prices, but for me that journey to being worth 12k starts as soon as it gets delivered, and hence the biggest hit should be in year 1. Whilst your 335d is very nice, for me this suggests it should only be worth 29.5k after 1 year (assuming list was about 42k, & hence discounted to 35-36k).

I might be interested at 29k BTW! Vested interest, me? Never!
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      02-23-2008, 05:13 PM   #6
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Quote:
Originally Posted by OliH View Post
Ignoring the extra 1000 for using the finance, 10% is the absolute tops that a dealer has to give, but you'd proably end up nearer to 8%. BMW have changed their strategies recently, and the dealers are now acting as sales agents for BMW Uk themselves, rather than selling for semselves being able to control all the discount.

In all fairness BMW were cheapening the brand giving so much discount, both Audi and VW give no more than 11%. Give it 6 months, and used prices would have settled in line with the new lower discounts, and then the market will level a bit.

All those, and me included, who purchased their cars last year with 15% odd discount ( I actually had more than this) can own their cars and sell them for a small profit when they are a year old - cheap motoring
Olih Mate,let me know on the profit thing no chance pal
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      02-24-2008, 08:52 AM   #7
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Quote:
Originally Posted by squeezebm View Post
Olih Mate,let me know on the profit thing no chance pal
Remember I wll be getting forecourt price for mine, and I also got 19% off retail, which with my spec was just over 8000. And its all about supply and demand, and there are very few M Sport 335D tourings available.

Watch this space as I may have sorted a deal out on it last week, Im just waiting for a call back
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      02-24-2008, 11:23 AM   #8
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11% i got
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      02-24-2008, 01:13 PM   #9
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Quote:
Originally Posted by OliH View Post
Remember I wll be getting forecourt price for mine, and I also got 19% off retail, which with my spec was just over 8000. And its all about supply and demand, and there are very few M Sport 335D tourings available.

Watch this space as I may have sorted a deal out on it last week, Im just waiting for a call back
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      02-24-2008, 01:19 PM   #10
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Ta
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      02-24-2008, 01:22 PM   #11
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Quote:
Originally Posted by OliH View Post
Ta
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      02-24-2008, 02:46 PM   #12
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Dont understand the fascination with new cars TBH, Happy to continue buying cars a 2-3 years old with low mileage (current one is a 55 plate and had 15k miles on the clock - barely run in).
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      02-24-2008, 03:01 PM   #13
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For me, I like a specific spec, and as I always finance them, residuals on new are better than used so work out better value
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      02-24-2008, 04:18 PM   #14
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So what are you getting next OliH?

Your technique of "beating the new model dep curve", in my much more limited experience only really seems to work occasionally on specific "in demand" models - which it appears your 335d is, just. I assume its now too late to try again on a 335d and I suspect you are not going to get another 335d, or are you? - Are you are getting the next "must have" model that those in the trade (like yourself) are picking up vibes will be an easier seller. So whats it to be? 135i too risky I assume?
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      02-24-2008, 04:29 PM   #15
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the 'new' e90 is a facelift - a bit like the 5 series got last year. I saw some pictures and yes if someone tells you what they are, there are differences. However they are hardly noticable. So i would'nt let 'new model' pressure stop you buying
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      02-24-2008, 04:48 PM   #16
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It maybe only a facelift in Sep 08 but it will affect residuals slightly - so take this into account if you are buying new now.

Whilst the changes maybe subtle, it is likely to have a few new bits and bobs, and is therefore likely to be more desirable both new and used. This is certainly what the dealer will tell you come trade in when he is sucking his teeth about its value, and most switched on private buyers will say the same (and most E9x buyers seem to know their onions).

The same is true of the Sept 07 changes and that wasn't even a facelift - cars with ED are more desirable than pre Sept cars, and look at the poor 335i cars with 227 g / CO2 - sadly no-one wants them, just because of the grey clouds over being in Band G.

So, you're right, don't let it stop you buying now, but haggle hard for a good discount - for me I see no reason why that shouldn't be at least 17% as per pre end Dec 07!!!! Anecdotally these discounts no longer seem available at the moment, and personally I think private buyers should not buy until price drops return with a vengeance!
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      02-25-2008, 01:41 PM   #17
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Quote:
Originally Posted by ///ajd View Post
So what are you getting next OliH?

Your technique of "beating the new model dep curve", in my much more limited experience only really seems to work occasionally on specific "in demand" models - which it appears your 335d is, just. I assume its now too late to try again on a 335d and I suspect you are not going to get another 335d, or are you? - Are you are getting the next "must have" model that those in the trade (like yourself) are picking up vibes will be an easier seller. So whats it to be? 135i too risky I assume?
I am getting an Audi S3
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Last edited by Oli; 03-05-2008 at 03:59 AM.
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      03-06-2008, 08:20 AM   #18
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No More Broker Deals?

Just spoke to a UK dealer, I was enquiring about a specific car, which I would be interested in buying if only the price came down to a level where it was meaningfully less than list.

More specifically, I told him than sites such as broadspeed and uknewcarsquote.co.uk were offering brand new cars for around the same price the dealer wanted for an ex-demo. And teh new car price was for the 'Edition' model, with the leather seats, sat-nav etc.

The dealer claimed that since BMW have cracked down on brokers recently, sites such as broadspeed are unable to live up to their claims, that they can't get you the car they're advertising. He didn't say why these companies continue to pay to advertise a service they can't provide.

Any thoughts?
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      03-06-2008, 08:56 AM   #19
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Quote:
Originally Posted by FieldingMellish View Post
Just spoke to a UK dealer, I was enquiring about a specific car, which I would be interested in buying if only the price came down to a level where it was meaningfully less than list.

More specifically, I told him than sites such as broadspeed and uknewcarsquote.co.uk were offering brand new cars for around the same price the dealer wanted for an ex-demo. And teh new car price was for the 'Edition' model, with the leather seats, sat-nav etc.

The dealer claimed that since BMW have cracked down on brokers recently, sites such as broadspeed are unable to live up to their claims, that they can't get you the car they're advertising. He didn't say why these companies continue to pay to advertise a service they can't provide.

Any thoughts?
You've got to make sure you have current info. At the moment Drive the Deal are not offering any discounts on BMW list prices.

A few months ago, before BMW UK clamped down and altered it's dealer policy they were offering up to 18% off a 335i saloon.

Broadspeed are offering around 8% at the moment, which is likely to still be achievable from specific dealers.

Be careful to read the small print on brokers prices and be aware that they are not formal 'offers' in contractual terms. Your 'contract' when using a broker is with the dealer and the broker is simply negotiating a price on your behalf.
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      03-07-2008, 03:44 AM   #20
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Quote:
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You've got to make sure you have current info. At the moment Drive the Deal are not offering any discounts on BMW list prices.

A few months ago, before BMW UK clamped down and altered it's dealer policy they were offering up to 18% off a 335i saloon.
Yes, I've heard about the clampdown. BMW felt discounts were 'devaluing the brand'. Which is rich when you consider how BMW have been eg. selling 320i cars with injector problems and refusing to acknowledge the general problem....

Quote:
Originally Posted by needforspeed View Post

Broadspeed are offering around 8% at the moment, which is likely to still be achievable from specific dealers.
Ok, so:

8% of 26K (the list price for the car I was after) = 2080.

26,000 - 2,080 = 23,920

So the dealer asking 24,450 for an ex-demo model, is a bit much surely? If I added the 'Edition' pack to my new order, I'd pay 24,920. So would it really be worth paying 470 less for a used car (without the 'Edition' pack)? Hardly.

It's just these new ED cars, not many of them out there yet, but that is slowly changing....
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      03-07-2008, 08:22 AM   #21
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Quote:
Originally Posted by FieldingMellish View Post
Ok, so:

8% of 26K (the list price for the car I was after) = 2080.

26,000 - 2,080 = 23,920

So the dealer asking 24,450 for an ex-demo model, is a bit much surely? If I added the 'Edition' pack to my new order, I'd pay 24,920. So would it really be worth paying 470 less for a used car (without the 'Edition' pack)? Hardly.

It's just these new ED cars, not many of them out there yet, but that is slowly changing....
The dealer knows that most people will try to get something off the ticket price. If you can prove your case he MAY try to reflect the discount available on new. Or he may just suggest that you get a new one.

I just ordered a VW Polo for my wife from drive the deal, with around 12% discount, bringing it below prices for lessor spec'd nearly new models. When I discussed this with dealers they all said they couldn't reduce the nearly new models by that sort of margin, so she's getting a new one. Arrives next Friday.
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      03-07-2008, 10:47 AM   #22
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Quote:
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When I discussed this with dealers they all said they couldn't reduce the nearly new models by that sort of margin, so she's getting a new one. Arrives next Friday.
Yes, they always tell me that they paid a certain amount for the used car, which turns out to be about 500 quid less than they are asking, so there is no way they can discount it further. But who is going to buy a used car for about the same amount as a new one, expecially when the new one will have the 'Edition' package?
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