128 - Whats my target price ?

[matchan]

Im looking at a 2010 128i, just the basics - auto transmission + ipod.
MSRP is 31,190.
Invoice is 29,130.
Holiday cash of 1500.

Dealer is willing to offer at 28k including holiday cash. I believe I can go lower - dont see too many 1 series cars flying off the lot. Want to know if 25.5k is reasonable or not .. Is it too low ?

What is the buying experience of other people in the last few weeks ?

[merlinbk]

If you're not doing ED then ~US invoice is about the best price most dealers bite at (not including rebates, holiday specials, or fees).

[amdmaxx]

25.5 is unreasonable..
That's VW GTI price.

As Merlinbk said.. Invoice - holiday cash is probably the best you can do.

[plasar]

Matchan:

Dealer Invoice is what the dealer paid for the car. Depending on the general economy, the popularity of the model/brand you are buying, you might have to pay say 1%-3% over invoice in normal times.

Today, if you can get it at invoice, awesome. If not, maybe the 1% range is fair. I doubt that dealers are willing to lose money on cars, unless they have been sitting on the lot for way too long, or some other special situation.


I just looked up what "holiday cash" is, and it seems to be a discount if you are using BMW Financing.

You are giving BMW some profit by using BMW Financing - I don't know what kind of bonus the dealer gets for singing you up. You don't mention the rate you are getting from BMW Finance - and how it compares to the standard car loan rate.


So dealer invoice - holiday cash = $27,630. The dealer's offer of $28K add $370 of profit or 1.3% over invoice, along with what they might get for your BMW Financing.

Your offer of $25.5 is asking them to take a 7.7% loss - ain't gonna happen.


What you really should do is let the free market work for you and confirm you are getting a good deal. Go to 2 or 3 other BMW dealers in your neighborhood, and/or go online to Cars.com, and find out what deals you can get on other cars from them.

Then you can compare offers, and ask the dealer who has the car you most want to beat the best offer (in terms of % profit, of course, not absolute price). Let them know you need their best price, approved by their sales manager, or you will be buying the car based on another offer you have in hand.


Do some background research online too. I subscribe to Consumer Reports. Here's a page with some very general background on buying a new car. Edmunds gets into details.

Consumer Reports - Buying a New Car
Edmunds - Buying Tips


Hope this is helpful. Keep asking questions. Buying a car is a big ticket item. Every 1% you keep in your pocket is roughly $300. Better you keep it than give it to the dealer.

Oh, and they will try to squeeze that money from you when you pick up the car. Like the thread below, you DO NOT have to pay charges like "MACO" (WTF is this?) and "Dealer Fee".

Went to place car order...am I getting ripped?

Good luck mate!

(BTW, you're not Japanese by any chance? Mat-chan could be a Japanese nickname. Lived in Tokyo and sukooshi nihongo o hanasemasu.)

[FJUNO78]

it's a limited production car... invoice + 500 - holiday cash.

why would a dealership want to lsoe money on any deal?

Now if you found a 2009.. you may have more wiggle room

[matchan]

Thanks everyone for your replies - Plasar , I'm of European descent, not Japanese.

I guess the best route is to get multiple quotes. I still feel I can get away with 26k at this time of the year - Thanksgiving/Xmas is the slowest time for car sales , especially for 2 door coupes!!
Will keep you posted

[M2BMW]

Originally Posted by matchan

Thanks everyone for your replies - Plasar , I'm of European descent, not Japanese.

I guess the best route is to get multiple quotes. I still feel I can get away with 26k at this time of the year - Thanksgiving/Xmas is the slowest time for car sales , especially for 2 door coupes!!
Will keep you posted

If the car has been on the lot awhile they may decide to take a loss on it ......