Check my deal!

[FDfranklin]

Well I went in today finally and im a bit uneasy about what I came out with (I didn't purchase or put a down payment in yet). Anyways I priced ordering a new 135i, with M sport package, navi, metallic color(lemans blue) and ipod hookup. MSRP $40,875.00

The thing was the salesman told me the price is locked at MSRP if I took the route of BMW Select Financing, which I had originally wanted to do. Can anyone confirm or deny this?

The OTD price like this would be 43,390 including taxes/fees. Ill be giving a 2k down payment also so -2k.

[gavolant]

Originally Posted by FDfranklin

The thing was the salesman told me the price is locked at MSRP if I took the route of BMW Select Financing, which I had originally wanted to do. Can anyone confirm or deny this

I don't know if this varies by state but I ended up paying $600 under DEALER invoice on a 2011 135i, m sport, navi, premium, plus I used the $1000 BMW ultimate drive money. Just tell him you want to see the dealer invoice and work from there.

[FDfranklin]

Let me say I want you guys to be brutally honest with me, im 22 and I look young and ive never purchased a new car so tell me if I should beware etc etc

[FDfranklin]

Originally Posted by gavolant

I don't know if this varies by state but I ended up paying $600 under DEALER invoice on a 2011 135i, m sport, navi, premium, plus I used the $1000 BMW ultimate drive money. Just tell him you want to see the dealer invoice and work from there.

May I ask what you paid? Also what is the ultimate drive money?

[gavolant]

The ultimate drive was a thing BMW did at the dealership where you come out and test drive a new car, and get $1000 towards the purchase of a new vehicle granted you take delivery prior to sept 30. I think before taxes/tags/title I was $38k, and after $40k. Im also 23 and it was my first purchase. Just make phone calls to all the local dealers and speak to the general sales manager, not the CAs. Once you get a dealer invoice in hand you will know what they paid for the car, and can work lower from there. Once you get a number from one dealer, call another and see if they can beat it.

[HISI808]

Originally Posted by FDfranklin

Let me say I want you guys to be brutally honest with me, im 22 and I look young and ive never purchased a new car so tell me if I should beware etc etc

Well, first thing I would ask would be can you really afford a $40k car? Do you have any other debt? credit cards, student loans, etc... If you can truthfully honestly answer yes, then I see no problems. Depends what area you are in and how many other BMW dealerships there are, I would shop around.

[MarkR171]

Originally Posted by gavolant

I don't know if this varies by state but I ended up paying $600 under DEALER invoice on a 2011 135i, m sport, navi, premium, plus I used the $1000 BMW ultimate drive money. Just tell him you want to see the dealer invoice and work from there.

Problem is, he's using "BMW Select" financing. It's a different program from leasing or regular financing. There could be some small print that says you must use full MSRP only to get into that program.

[ES BMW]

Originally Posted by FDfranklin

The thing was the salesman told me the price is locked at MSRP

I haven't done too much research on the Select Financing but this sounds really fishy. Nothing is "locked" at MSRP unless they are unwilling to negotiate.

Have you thought about doing a Euro delivery? That'll save you a good amount off of the cost of the car and you can still do any type of financing you want - even lease.

[MarkR171]

ED doesn't really save any money... Sure, the price of the car is lower, but flying to and from Europe and eating/travelling while you're there isn't exactly cheap. He could do PCD though, there's still some discount in PCDs right? That way he can also negotiate with any dealer in the country.

[HISI808]

read this thread about the BMW Select program. It shows you the pros/cons.



http://www.1addicts.com/forums/showthread.php?t=258641

[jpd]

In Florida you have a plethora of dealers shop around. Insurance?????? I would check here first. 2K down is not very much save more and then financing becomes easier. A 128 might be better suited to your ability to finance. Your credit score is just as if more important for financing. Don't get in over your head money wise. Your payment should be no more than 20% of your net income.

[FDfranklin]

Originally Posted by jpd

In Florida you have a plethora of dealers shop around. Insurance?????? I would check here first. 2K down is not very much save more and then financing becomes easier. A 128 might be better suited to your ability to finance. Your credit score is just as if more important for financing. Don't get in over your head money wise. Your payment should be no more than 20% of your net income.

The 2k down payment might be low, but its mainly because I just started a new job making alot of money(decent amount for my age) and I need to get out of my s2k now for personal and financial reasons. I really just want to know if the fact that MSRP is "locked" when using BMW select is true, too see if this guy was trying to pull a fast one on me.

[Vorsprung7]

The sale price of the car shouldn't make any difference for any type of financing. I always work out a purchase price on the vehicle and say I'm unsure of how I'm financing. Then once I have an agreed price, I work on the financing.

[ES BMW]

Originally Posted by MarkR171

ED doesn't really save any money... Sure, the price of the car is lower, but flying to and from Europe and eating/travelling while you're there isn't exactly cheap. He could do PCD though, there's still some discount in PCDs right? That way he can also negotiate with any dealer in the country.

ED does save you money. It just depends on how you do the trip and how long you stay. The wife and I traveled for 4 full days, saw amazing sites and I still saved more than a grand over the cost of purchasing the car locally with a decent deal ($1K over US invoice, no 'extra' dealer fees, etc). Of course, you also have to find a CA that's willing to negotiate based on Euro invoice numbers.

Save money and travel through Europe - it was a no brainer.

[coldnate]

Originally Posted by FDfranklin

Well I went in today finally and im a bit uneasy about what I came out with (I didn't purchase or put a down payment in yet). Anyways I priced ordering a new 135i, with M sport package, navi, metallic color(lemans blue) and ipod hookup. MSRP $40,875.00

The thing was the salesman told me the price is locked at MSRP if I took the route of BMW Select Financing, which I had originally wanted to do. Can anyone confirm or deny this?

The OTD price like this would be 43,390 including taxes/fees. Ill be giving a 2k down payment also so -2k.

NNNNNOOOOOOOOOOO. BULL! I'll give you a GREAT price and get you on BMW Select. PPPLLLEEEASSSEEE DON'T PAY FULL STICKER! NO ONE DOES! KapustaN@Autonation.com I work for the largest dealership network in the country. I don't know if we have a BMW Dealership in Florida, but I know our home office is there. Let me get you to someone who will give you a legit deal. NOTHING says you have to pay any certain amount if you want BMW select. They used to pull that same bull back in the 80's and 90's saying you have to pay MSRP if you lease.

[FDfranklin]

Originally Posted by coldnate

NNNNNOOOOOOOOOOO. BULL! I'll give you a GREAT price and get you on BMW Select. PPPLLLEEEASSSEEE DON'T PAY FULL STICKER! NO ONE DOES! KapustaN@Autonation.com I work for the largest dealership network in the country. I don't know if we have a BMW Dealership in Florida, but I know our home office is there. Let me get you to someone who will give you a legit deal. NOTHING says you have to pay any certain amount if you want BMW select. They used to pull that same bull back in the 80's and 90's saying you have to pay MSRP if you lease.

I'm going to go back in and tell him its BS and if he doesn't want to drop the price some Ill take my business elsewhere. But if you can find me someone who will get me a good deal in Florida I would much appreciate it.

[FDfranklin]

Got him to drop the price by 1500 and took the deal. He is calling me back after the credit check goes though (already got approved online) so once that happens its ordered .

[ES BMW]

Nice! Locked at MSRP... who is he trying to fool?

Don't forget the Value Package if you're ordering the car. Leather and iPod for $0

[gavolant]

Originally Posted by FDfranklin

Got him to drop the price by 1500 and took the deal. He is calling me back after the credit check goes though (already got approved online) so once that happens its ordered .

No offense, but if you made that much improvement in a day with one dealer, think what some patience and a few phone calls to other dealers will do. If he dropped that much that quick obviously there is more wiggle room. I wouldn't be so content to jump at that offer.

[boostm3]

Originally Posted by FDfranklin

Got him to drop the price by 1500 and took the deal. He is calling me back after the credit check goes though (already got approved online) so once that happens its ordered .

No offense, but you could have saved another $1000 !

go to zag.com, select 'buy a car', then 'drive your dream car', then configure your 135i with metallic paint, navi, and msport pkg... You will find a participating Zag cooperating BMW dealer of which there are many will give it to you for around $38,385! Or, go to edmunds.com and price yours out with your options, and youll see that invoice including destination comes to $37,135. Check Edmunds pricing to see what 'others are paying' and it shows you $38,656 which is about $700 less than you paid, but still too much from my experience. You need to get much lower to invoice. A good price on your car would be invoice plus anywhere from $500 to a max of $1000.

For mine which is an alpine white 135i with msport, HK Radio, and value pkg, I paid $35,645 which is about $400 over invoice, which is considered a very good price on a car which must yet be built, ie, not from any dealer's inventory which needs to be dumped, but is far from a unique or unusual price when youre dealing from invoice up. Now I just have to wait forever for it to get built.. But the point is, like has been mentioned, you MUST take invoice and work up, not MSRP and work down.. else you will always get screwed (relatively). live and learn!

[jpd]

BMW Select is a way of locking buyers in two contracts that could total up to 8-10 years. Do you want to pay for it for another decade? What is the car going to be worth in 2020? Answer not much. Save a substantial amount and look at a 128. It's a sweet car and seems to be more realistic.

[Evice]

Originally Posted by MarkR171

Problem is, he's using "BMW Select" financing. It's a different program from leasing or regular financing. There could be some small print that says you must use full MSRP only to get into that program.

I paid 700 over invoice for my car with BMW Select. Price is set way before you choose your financing. So it is irrelevant.

The catch with BMW Select is the 30% ish of the car is loaned to you separately for the duration of your financing term, and you only pay the interest of that portion. Then if you can't come up with 30%, you have to re-finance and pay more interest.

if you check your amortization table, you will see that your payment has more effect on the principal as the time goes, however this doesn't apply to the baloon payment at the end, you pay full interest and since no principal payment.

Suggestion: Make sure at the end of the term, come up with 30% of the car, OR trade it in, which you will probably break even after 48 or 60 months financing option.