Dealers Charging over MSRP for 1M (Chapman BMW AZ for starters)

[RPM90]

The true 'value' or price of anything is what an actual buyer is willing to pay.
Is an SRT8 worth 10k over MSRP?
If there is a buyer willing to pay that much, then of course it's worth that much.

Does it suck that some BMW dealers will want as much as they can get for a 1M?
Yes. But, it doesn't really matter if we think it sucks. It's a free market and the only control you, or any individual, has is to not pay what you think is not the right price.
If enough people pass on the marked up price, then the actual value/price will have to come down. However in some markets there are people willing to pay the price, so then, that's the market price like it or not.

When the EVO 8 came to the US, in my area the only Mits dealer within a 30 mile radius sold one for $10k over sticker. The buyer agreed that that was the price to be paid for that car cause he paid it.
BTW, it was for his 18yr old son.
A couple of months after that the same Mits dealer was offering me a new Evo 8 for near invoice. Demand fell, supply went up/or stayed the same, price changed.
In Cali, I recall buyers paying more than $15k over MSRP to have an EVO 8.

There is always a cost to being the first on the block to get the newest cool thing.
Right now, it's the 1M.
Those of you who really want a 1M should look toward the interior of the country where some BMW dealer will get some 1M's, but their market may not even have 1 buyer. That is where you'll score your best deal.
It certainly would be worth a few hundred dollar ticket and some time to save thousands.
Start calling and work a solid deal with agreed on, signed papers for the actual selling price.
Give the deposit and wait till your 1 comes in.

[Vertigo//SD]

Originally Posted by Redadair

Chapman BMW of Phoenix Arizona just confirmed to me that they will be holding out for highest offer prices of all future 1M allocations at their dealership.

Too bad since Chapman was one of 32 US Dealerships to be honored by BMW for Dealer Excellence in 2010. Just shows what Greed will do to some dealers.

I would like to start a list of BMW Dealers that are charging over MSRP for the 1M. People deserve to know going into these dealerships what to expect. I also believe that by listing these dealers it may help reduce this practice of GREED on the part of a few BMW dealers.

Trying to secure the purchase of an 1M is difficult enough without dealers expecting to turn the buying experience into an bidding war!

I intend to contact BMW NA as well about this dealers practice, not that it will do much but I don't think we should just accept this sleazy business practice without at least trying to do something about it.

I contacted Chapman and received this response...

"Not exactly as this blog entry viewpoint. The pricing for vehicles have always been market driven, and follow suit with our supply and demand economy. It would be the same if we expected everyone to pay the MSRP on all of the 3 series models, the highest produced model that BMW makes. Each dealership is only receiving a few for the entire year. The pricing will be adjusted to what the market will pay. It would be no different than any other industry. Let me know if I can be of service to you on the 1M, remember your local dealer may ask for even more than a major metropolitan dealer."

[BimmerJim]

@Redadair-tell them you want ED and see what they quote you then compare.

[SamS]

Originally Posted by Vertigo//SD

I contacted Chapman and received this response...

Sucks to hear this, but not totally unexpected.

In fact, early this year when people began discussing how dealers where actually "taking orders" for the car, I was surprised that I didn't read about this then.

Supply and demand is still the best way to sell most things, and I think that includes cars. If there was a 6MT 335d that was sitting on a dealer's lot for almost a year, wouldn't you try to use the laws of supply and demand to haggle a really aggressive price from the dealer? No real reason the dealer can't turn the tables regarding a more popular car with limited supply.

[singular]

Not sure if the 1M is available for performance delivery, but, if so, you could buy from any dealer in the US, do a PD, and pick up your car in South Carolina.

By doing so, you've significantly increased the "supply" side of the equation and pitted the dealerships against each other.

[Redadair]

Originally Posted by Vertigo//SD

I contacted Chapman and received this response...

"Not exactly as this blog entry viewpoint. The pricing for vehicles have always been market driven, and follow suit with our supply and demand economy. It would be the same if we expected everyone to pay the MSRP on all of the 3 series models, the highest produced model that BMW makes. Each dealership is only receiving a few for the entire year. The pricing will be adjusted to what the market will pay. It would be no different than any other industry. Let me know if I can be of service to you on the 1M, remember your local dealer may ask for even more than a major metropolitan dealer."

Fortunately for me my Local dealer has offically heard they will be getting Two 1M's (At least) for the year. I am #2 at my local dealer with a deposit and a signed agreement for a 1M at MSRP. My dealer will not be nor have they ever marked up a BMW over MSRP. So at the end of the day there are still a few dealers out there that aren't going to play the "Get all we can get" game on the 1M.

I may have to wait until the 4th qtr for my car but at least I will get an 1M and it WILL be at MSRP or less since I am still talking ED with my dealer. I am also a repeat buyer from my local dealer and last Thursday I ordered a 2011 Mini Clubman - Hampton package for my wife. Mini due end of June, first of July. If only I could get my 1M that fast.

I contacted Chapman as a backup to my #2 list from my local dealer. The CA I first talked to at Chapman said yes to MSRP, only to be told later by his boss they will only sell the 1M's at the top price they can get.

[Jaguar66]

I will personally refuse to participate in the current 1M Coupe BS. I remember the E46 BS. After having owned 4 BMWs, and showing interest in driving an E46 M3, when it came out, and having the dealer say to me, I had to purchase it first, and pay $5000 over MSRP to boot, I walked out the door in disgust. I won't even walk in the door with this type of marketing practice.

A Porsche Cayman S, for less than MSRP, suits my needs for now. (And I got it at Chapman, Tucson).

[RPM90]

Originally Posted by RobMason

I will personally refuse to participate in the current 1M Coupe BS. I remember the E46 BS. After having owned 4 BMWs, and showing interest in driving an E46 M3, when it came out, and having the dealer say to me, I had to purchase it first, and pay $5000 over MSRP to boot, I walked out the door in disgust. I won't even walk in the door with this type of marketing practice.

A Porsche Cayman S, for less than MSRP, suits my needs for now. (And I got it at Chapman, Tucson).

And that's exactly how one fights an over MSRP dealer.

The downside, if it is for you, is that you don't get one, at least not for now.
Maybe demand will be higher than BMW thinks and production will increase for the year. Not likely, but maybe.

[GreasyGinzo]

This shit happens on the east cost to. I can't say for sure about BMW and the 1M because I am not in the market for one but, I remember seeing "Market Adjust Value" on the Evo when they first came out. The SRT Challenger, 20th Anny GTI's, Both R32 MY's, E46 M3's and some others. Did it piss me off to see this? Absolutely, even though I wasn't shopping for some of these cars it sill drove me nuts to see that. But I wasn't pissed at the dealers...you can't get pissed at them. You have to direct your anger towards the PEOPLE who pay those "Market Adjust Fees". Think about this way if you were selling something, anything doesn't matter what it is and you had it listed for $40. Someone comes and says they will pay you $60. Are you going to turn them down and only take $40?

[torquedemon]

MSRP + $2,500 demanded as base starting price at Classic BMW in Cleveland...

[Mowse]

I must respectfully disagree with the sentiment of this thread. In the free market a dealer has the right to ask for what the market will bear. And competion will bring the price down. If one feels the product does not warrant the asking price one is free to look elsewhere.

These are luxury cars, not a essential life sustaining staple. BMW is not in the philanthropy business. They exist to make a profit. I don't blame them a bit. Personally, I feel they are asking $10,000 too little for these monsters.

Supply and demand pure and simple. Greed? Well, do the folks who have commented on this thread give away their goods and services at a cut rate in order to be altruistic? I doubt it. That's why we can afford to buy such nice cars. We all work hard to make the best buck we can. It's a measure of achievement. Should a car dealer be denied this?

Let's step back and be fair before we start a "greedy dealer" witch hunt.
And no, I am not a car salesman.

Make your best deal and if it doesn't meet your personal criteria....well there are some other very nice performance car out there.

[Redadair]

Originally Posted by Mowse

I must respectfully disagree with the sentiment of this thread. In the free market a dealer has the right to ask for what the market will bear. And competion will bring the price down. If one feels the product does not warrant the asking price one is free to look elsewhere.

These are luxury cars, not a essential life sustaining staple. BMW is not in the philanthropy business. They exist to make a profit. I don't blame them a bit. Personally, I feel they are asking $10,000 too little for these monsters.

Supply and demand pure and simple. Greed? Well, do the folks who have commented on this thread give away their goods and services at a cut rate in order to be altruistic? I doubt it. That's why we can afford to buy such nice cars. We all work hard to make the best buck we can. It's a measure of achievement. Should a car dealer be denied this?

Let's step back and be fair before we start a "greedy dealer" witch hunt.
And no, I am not a car salesman.

Make your best deal and if it doesn't meet your personal criteria....well there are some other very nice performance car out there.

Just a few points of interest in your comments if I may.

1. It's obvious you aren't buying an 1M and haven't been informed from your sales rep that they are now asking $5 - $10K over what you thought you were going to pay or you would be supporting this post.

2. The MSRP includes Standard Markup Profit for the dealers, generally $3 - $4K per car.

3. Since ALL 1M's will be Per-sold none of the dealers will be required to have the cars sit on their lots as Inventory waiting a prospective buyer. The dealer merely washes the car, shows the customer how to adjust the seats collects your money and says goodbye.

4. Dealers that do this type of Price Gouging are what gives Car Salesmen the representation they have of being sleazy, greedy can't trust them kind of people. Is it any wonder why so many people dislike to even walk into a dealer to look at cars?

5. Since cars aren't as you say "essential life sustaining staple" allows us to look for dealers who won't change their story and try and price gouge us, and at the same time post alerts like this one to other BMW enthusiasts of dealers to avoid that will take advantage of the buyer because of Greed!!!

[Grey Dove]

I can't see the neccessity of putting a price tag (by BMW NA) on a new car since the dealers do whatever they like.
BMW HQ should put an end to this charade.

[torquedemon]

Originally Posted by gs/e60/1m?

I can't see the neccessity of putting a price tag (by BMW NA) on a new car since the dealers do whatever they like.
BMW HQ should put an end to this charade.

Thats not Exactly the case either, yes we have a free market in the US which comes with compromises...that is not to say that you can't find a good deal on the new 1M....yes I don't support price gauging but I do respect the dealers right make a "reasonable" profit on a limited production...but if it doesn't match my checkbook, I take my business to the many other options, which is exactly what I have done...fyi - I have a deposit on a documented, agreed upon 1M for 1k below MSRP in the States

[moveswiftly]

Originally Posted by singular

Basic law of supply and demand.

Do you really expect a dealership to sell one of their few 1M's for less money than someone else is ready to pay?

Bingo. The very principle of supply and demand lies in that if X Dealer sells higher than the market he will have a VERY Difficult time selling the car. If any dealer is asking outrageously high prices for their vehicles their market will be very well stripped. IF they can not sell they will end up lowering prices. But with a hot item topic like the 1M They may be able to get away with it.

If you want a really good deal on this car please wait till the hype calms down. The people who REALLY want it will pay whatever it takes to get it. Simple.

And if a dealer is asking too high of a price find another dealer. Some dealers make their profit in a smaller volume of sales with higher profit / unit. But others make their profit in a larger volume with a lower profit / unit. I always try to shop at high volume dealerships. Even though they may not give me VIP treatment they will take care of my order at a good reasonable rate.

[hollysmac]

Originally Posted by Redadair

Because I am buying one. And the dealer that I do have an allocation with isn't charging over MSRP. Not all BMW dealers feel the need to stick it to us.

Ditto ! My dealer is charging me sticker price and did the same on m e46 m3

[M3 Adjuster]

Originally Posted by torquedemon

MSRP + $2,500 demanded as base starting price at Classic BMW in Cleveland...

I called yesterday and got the same.

[torquedemon]

Originally Posted by M3 Adjuster

I called yesterday and got the same.

yea its not as bad as the $10,000 mark up, but I already have a deposit down first on the list for 1k below MSRP so I'll stick with it

[Jblack4083]

Dealerships are businesses... Get over it and go to another dealership that's going to give it to you at a price you like. Leave your review and now other people can decide if they want to do business with these dealerships. It's not that big of a deal.

The United States has this funny little system called Capitalism... So we go by Supply and Demand. I hear they dont do the Capitalism thing in North Korea or Cuba... You wouldn't have trouble getting a 1M for under MSRP there lol.

[Mr. Clarkson]

My dealer told me today that MSRP +$5k is the standard around here

[RPM90]

I appreciate that purchase price is based on supply and demand and what the customer is willing to pay.
That's how I got my 1 for $250 above invoice.
If MSRP is always the selling price, then most of us wouldn't have got a deal on our 1's.

The 1M has a high demand it seems, and a really low supply.

BTW, a dealer that gave you one price to get the deposit and then changed the price, well that is low and dishonest.
But, that isn't the point of the discussion on whether or not dealers should or shouldn't charge above MSRP.
Changing the price is a different issue, and I agree it sucks if that happened.

[CosmosMpower]

MSRP is manufacturer SUGGESTED retail price. Supply and demand, and capitalism at it's finest.