What's up with the $5,000 mark up and 2 per dealer limit?

[Peteypab2133]

Originally Posted by vividracing

Simple: go elsewhere!

I test drove a Beetle Turbo when they first came out here in the US. (Yes, I know, it was going to be a second car, driven mainly by my wife, honest!) They were fairly difficult to come by initially, in fact, at the time, I recall that there was only the one dealership in the Phoenix area that had them.

Anyway, this dealer had a $4500 markup on it, Market Value Adjustment, I think they called it. I liked the car, but certainly not enough to pay $4500 over the odds, so I walked.

Graeme

there was a $25,000 increase on my dealers Zr1 and my local nissan dealer who asked $30,000 extra for the GTR when they hit lol... not that I could afford either, but its still the principle.

[bozola]

I first read this thread and thought.. greedy dealer. After thinking about it, it's just capitalism and it works both ways. 30 3 series on the lot? You've got a lot of bargaining room. Models that don't sell well, people expect HUGE discounts. Low supply, hot model? MSRP or more.

It's just supply and demand. The best part.. you don't have to buy it there. It's your choice. Screw em, Walk away.

IMHO, the perception will be that the 1M is overpriced and attractive to a only few enthusiasts.
You will see them in the lots with big discounts once the hype is over. Wait six months and see what happens.

Same thing has happened to our one. Perception is overpriced and only attractive to a few enthusiasts. Great deals to be had on 1's now.

Reminds me of our Seattle baseball team. Charge more for weekend games that weekday games. Seems greedy, but I bet you it works.

[Jake C]

This is why I will do European Delivery with the 1M if I decide to purchase one. After April 15 2011 the 1M will be available for European Delivery according to a reliable CA. However no one knows (yet) if there will be an European Delivery discount or not.

- J

[LeMansM5]

I am planning to do Euro delivery and my dealer told me that the discount will be little + usual Euro delivery pricing, as compared to the discount they usually give me. I have bought several BMW from them. April 15th, 2011 see you at the Welt.

[I<3BMW]

I confirmed today that we are going to sell at MSRP. We're going to come up with a plan for a raffle. We have so many loyal customers that are interested in the 1m that we think that a raffle would be the best way to keep it fare.

[lucid]

Some people want to spend the summer with the car and are willing to pay the extra $3k-$4k for it (meaning sticker), and that's their call. To them it's worth it.

The real interesting part will be in MY12 (or maybe MY13 depending on how things turn out). I wonder if BMW will have to literally give these cars away like they had to with the 08 Z4Ms. I've heard of people saying they got $15k off MSRP then. Cars were not selling mainly because people were waiting for the next generation M3, which was just around the corner (althought it was more expensive and heavier).

If one is willing it wait for a rock bottom deal on an 1M, that might be the time to go for it...

[02fireman]

Originally Posted by I<3BMW

I confirmed today that we are going to sell at MSRP. We're going to come up with a plan for a raffle. We have so many loyal customers that are interested in the 1m that we think that a raffle would be the best way to keep it fare.

A raffle for what? MSRP?

[M3 Adjuster]

Originally Posted by lucid

Some people want to spend the summer with the car and are willing to pay the extra $3k-$4k for it (meaning sticker), and that's their call. To them it's worth it.

The real interesting part will be in MY12 (or maybe MY13 depending on how things turn out). I wonder if BMW will have to literally give these cars away like they had to with the 08 Z4Ms. I've heard of people saying they got $15k off MSRP then. Cars were not selling mainly because people were waiting for the next generation M3, which was just around the corner (althought it was more expensive and heavier).

If one is willing it wait for a rock bottom deal on an 1M, that might be the time to go for it...

I also wonder if thus will occur. Personally my bet is that the model runs more than one year. With the 1m having a six speed only and limited color palette, and a second gen 1m coming that very well may be lighter and more powerful, it may initially sell well, but leftovers could occur,as is common with niche vehicles.

[lucid]

Originally Posted by M3 Adjuster

I also wonder if thus will occur. Personally my bet is that the model runs more than one year. With the 1m having a six speed only and limited color palette, and a second gen 1m coming that very well may be lighter and more powerful, it may initially sell well, but leftovers could occur,as is common with niche vehicles.

I didn't realize BMW had committed to a 2nd gen 1M. If it happens, more reason for this platform to be sold at a significant discount in a year or two. Who knows though, so many variables in play...

So, wouldn't you rather buy my Z4M instead of waiting?

[I<3BMW]

Originally Posted by 02fireman

A raffle for what? MSRP?

Yes, the raffle will be for the opportunity to purchase at MSRP.

[Pete_vB]

Originally Posted by I<3BMW

Ok, I don't know this guy, but I sell BMW's too and I can vouch for his claim of hearing 2 per dealer. I had M car training 2 weeks ago at my dealership and of course the 1M came up. We were told the same thing by a very attractive German lady Now, as far as the 5k over, that would be at that dealers discretion. As a client advisor, I think it's strange how people act like a profit is a 4 letter word, it's not. Without profit, the cars that we all love to drive wouldn't be available nor would we have the money to buy them.

I don't believe we are going to sell them for 5k over MSRP but if someone is willing to pay it is that gouging? Maybe it just means that they were priced to cheap to start with.

I have no problem with the dealer making a profit, but I do think it’s very bad form for a dealer to charge over sticker.

The dealer must make money, but they must also remember that they represent BMW, and that comes with some responsibilities.

BMW has offered a deal for a car- they say it performs like X and costs Y. We’d all agree that if it didn’t really perform as advertised this would reflect very poorly on BMW- they would not have held up their end of the deal... But doesn't it reflect almost as poorly when we walk into the dealership to find the cost is higher than promised?

Bait and switch tactics piss customers off. In this case they piss BMW customers off (as evidenced by this thread). To me that seems an irresponsible thing for a BMW dealer to be doing. I’m happy to pay MSRP, which includes a nice profit for the dealer. Like others I’m not at all happy to pay more.

Your new raffle solution sounds much better. I'm sure they had the above in mind when they chose it...

[M3 Adjuster]

Originally Posted by lucid

I didn't realize BMW had committed to a 2nd gen 1M. If it happens, more reason for this platform to be sold at a significant discount in a year or two. Who knows though, so many variables in play...

So, wouldn't you rather buy my Z4M instead of waiting?

Lol

[02fireman]

Originally Posted by I<3BMW

Yes, the raffle will be for the opportunity to purchase at MSRP.

No thanks, I remember when they had raffles to buy houses down here in FL.
We all know how that ended. With no limit on production numbers, only time, I'm sure I can find more than a few dealers to sell at MSRP without a raffle. Plus, being the 4th car from a my local dealer, I would hope the standard ED price (7% off) with a little off for loyalty.

[Jake C]

Originally Posted by M3 Adjuster

I also wonder if thus will occur. Personally my bet is that the model runs more than one year. With the 1m having a six speed only and limited color palette, and a second gen 1m coming that very well may be lighter and more powerful, it may initially sell well, but leftovers could occur,as is common with niche vehicles.

I agree I think it will run more than one year. Unless they bring in the Z4M it leaves a gap at "entry level" M with no M3 in 2012.


If I were BMW I would move to limit the amount of leftovers by only granting 1 or 2 1M's to each dealership. It will not sell like a 328. Maybe that is what the OP's dealership was saying they are only getting 2. That could be true but maybe they only receive 2 to start and then have to sell 1 of those 2 before they can have another.

- J

[Technic]

I bet $1 that the 1M will have trunk money by the 6th month in the market...

[I<3BMW]

Originally Posted by 02fireman

No thanks, I remember when they had raffles to buy houses down here in FL.
We all know how that ended. With no limit on production numbers, only time, I'm sure I can find more than a few dealers to sell at MSRP without a raffle. Plus, being the 4th car from a my local dealer, I would hope the standard ED price (7% off) with a little off for loyalty.

The raffle is so that we are not showing favoritism to any particular customer over another as we have many loyal customers from our 35 years in business.
As we get closer to a launch date, we've already had several people step up and offer to put a deposit to purchase it at MSRP. I'm sure that before we actually get our allocation and demand grows more than supply, we'll get offers over MSRP. Right now the word is that it's a one year run and done.

[technik330]

Originally Posted by I<3BMW

Yes, the raffle will be for the opportunity to purchase at MSRP.

Greedy dealers / salesmen FTL-

[Jake C]

Originally Posted by I<3BMW

The raffle is so that we are not showing favoritism to any particular customer over another as we have many loyal customers from our 35 years in business.
As we get closer to a launch date, we've already had several people step up and offer to put a deposit to purchase it at MSRP. I'm sure that before we actually get our allocation and demand grows more than supply, we'll get offers over MSRP. Right now the word is that it's a one year run and done.

This dealership is in a smaller town and they are the only BMW Dealership within an hour's drive. So they are able to be a lot firmer on price than some other dealerships that have increased competition to move product. Not to mention BMW has an increased visual presence in the area since the BMW Plant in Spartanburg/Greer is only 20 minutes away.

I am not defending them at all just setting the stage for why they can be firmer on price. If I wanted to buy from these guys I would just call the GM (used to be Bobby Bishop IIRC) or go to Atlanta and work with Adrian Avilla and just do a PCD.

- J

[FStop7]

LOL @ the idea of paying over MSRP for a car in the current economy. Some of these dealerships are smoking crack. You'll be able to buy these at close to invoice within 2 or 3 months of release, just like any other car these days.

[02fireman]

Originally Posted by I<3BMW

The raffle is so that we are not showing favoritism to any particular customer over another as we have many loyal customers from our 35 years in business.
As we get closer to a launch date, we've already had several people step up and offer to put a deposit to purchase it at MSRP. I'm sure that before we actually get our allocation and demand grows more than supply, we'll get offers over MSRP. Right now the word is that it's a one year run and done.

U funny.....