THE ART OF THE DEAL
#1
Contributors
Thread Starter
Join Date: Nov 2005
Location: nyc
Posts: 1,256
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: 2010 M5 alpine white, black full leather, etc.
For the past six months or so I've followed an 08 M6 convertible on a dealer's site offered at $18,000 under MSRP.
It seemed like a no-brainer incredible deal on a "new" m rocket with less than 190 miles sitting forever gathering dust. What dealer would not want to have it gone as fast as possible? I've lusted over one for a long time and last week decided to check it out and work out the numbers in my feeble mind. At first they offered me $28,000 for my perfect ride with 15000 miles. Many of you in the area have seen it. I'm not exaggerating its condition. I also realized in advance I was going to get slaughtered in a trade-in. In a couple of minutes my trade suddenly became worth $34,000. Go for it, right? Then, I asked about financing and the "best" was from Chase @4.9%. Uh,oh, there was no BMW special rate, like 2.9%, on this vehicle. Next, I asked about the warranty. It would run out in the middle of 2011, but they would give me "an especially low price" on an extended warranty!
After 45 minutes I cordially thanked the salesperson and left for home realizing the only way they were going to unload this thing was at auction. Brand new ones are being discounted and with much lower financing rates carrying a full warranty plus this vehicle would depreciate a ton five minutes after I drove it away. For example, there was a similar one on the lot also 2008 with less than 8,000 miles for somewhere in the area of $74,000 and change with a full CPO warranty plus the balance of the new vehicle warranty!
I think I'm going to be happily driving my 550 for a while longer making a few changes to it along the way to keep me excited about it.
Ah, the games they play.......
It seemed like a no-brainer incredible deal on a "new" m rocket with less than 190 miles sitting forever gathering dust. What dealer would not want to have it gone as fast as possible? I've lusted over one for a long time and last week decided to check it out and work out the numbers in my feeble mind. At first they offered me $28,000 for my perfect ride with 15000 miles. Many of you in the area have seen it. I'm not exaggerating its condition. I also realized in advance I was going to get slaughtered in a trade-in. In a couple of minutes my trade suddenly became worth $34,000. Go for it, right? Then, I asked about financing and the "best" was from Chase @4.9%. Uh,oh, there was no BMW special rate, like 2.9%, on this vehicle. Next, I asked about the warranty. It would run out in the middle of 2011, but they would give me "an especially low price" on an extended warranty!
After 45 minutes I cordially thanked the salesperson and left for home realizing the only way they were going to unload this thing was at auction. Brand new ones are being discounted and with much lower financing rates carrying a full warranty plus this vehicle would depreciate a ton five minutes after I drove it away. For example, there was a similar one on the lot also 2008 with less than 8,000 miles for somewhere in the area of $74,000 and change with a full CPO warranty plus the balance of the new vehicle warranty!
I think I'm going to be happily driving my 550 for a while longer making a few changes to it along the way to keep me excited about it.
Ah, the games they play.......
#2
Contributors
Join Date: Mar 2009
Location: New York, New York
Posts: 10,301
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: See my signature
Lee, you have pretty much summed up why when I buy a car, I only negotiate through email and then only with the General Sales Manager. Going to car dealers is generally such a waste of time due to the ridiculous games that most of them play -- like attempting to withhold key financial terms (such as MF and residual) from a lease negotiation and just trying to talk monthly payment.
One word of advice on trade ins: do not mention that you have a trade in until AFTER you and the dealer have agreed on a final purchase price for the new vehicle. If you don't, the dealer may offer you an unbelievably low price on the purchasd while totally shafting you on the trade in. And even then, do not negotiate a trade in until you know the Kelly Blue Book value for your trade in.
One word of advice on trade ins: do not mention that you have a trade in until AFTER you and the dealer have agreed on a final purchase price for the new vehicle. If you don't, the dealer may offer you an unbelievably low price on the purchasd while totally shafting you on the trade in. And even then, do not negotiate a trade in until you know the Kelly Blue Book value for your trade in.
#3
Contributors
Join Date: Dec 2007
Location: The State of Southern NJ!
Posts: 5,972
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by 1600' post='1092438' date='Jan 17 2010, 02:32 PM
For the past six months or so I've followed an 08 M6 convertible on a dealer's site offered at $18,000 under MSRP.
It seemed like a no-brainer incredible deal on a "new" m rocket with less than 190 miles sitting forever gathering dust.
Next, I asked about the warranty. It would run out in the middle of 2011, but they would give me "an especially low price" on an extended warranty!
Ah, the games they play.......
It seemed like a no-brainer incredible deal on a "new" m rocket with less than 190 miles sitting forever gathering dust.
Next, I asked about the warranty. It would run out in the middle of 2011, but they would give me "an especially low price" on an extended warranty!
Ah, the games they play.......
#4
Contributors
Thread Starter
Join Date: Nov 2005
Location: nyc
Posts: 1,256
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: 2010 M5 alpine white, black full leather, etc.
Indeed, indeed, that is what I thought. But it was being sold as "put into service" after being ordered by a customer, in the middle of 2007. Not a CPO.
Go figure.
Go figure.
#5
Senior Members
Join Date: Jun 2007
Location: Atlanta, GA
Posts: 1,845
Likes: 0
Received 1 Like
on
1 Post
My Ride: 2008 535i:
(8/07 Build) Metallic Bronze, Beige NASCA Leather, Ventilated Seats, Sport Pkg, Cold Wxr Pkg, Logic-7 Sound, HUD, Night Vision, PDC, Split Rear Seats, NAV, Premium Pkg, Comfort Access, HD Radio, Sport Auto Trans
Current mods: M-Aero Kit, JB4, Motorcepts 6000k HID Foglamps
Umnitza ICE-Lite 10w LED 6000k AE's
1992 Camaro RS:
Fully Restored w/Custom Interior, 5.0L V8, T-tops, OEM Z28 Foglamps, Inst Cluster, & Spoiler, Custom Sound, Too many engine mods to list
The warranty can also start when the car is "placed in service" as a demo car or it was probably a sale that fell through at the last minute.
#6
Contributors
Thread Starter
Join Date: Nov 2005
Location: nyc
Posts: 1,256
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: 2010 M5 alpine white, black full leather, etc.
[quote name='pukka' date='Jan 17 2010, 03:19 PM' post='1092469']
How much were they asking for the car?
4.9% is pretty good - the only car loan rates I've seen that were lower were from credit unions. Either way you'd probably need an A+ credit rating to get approved.
-----------------------------------------------------------------------------------------------------------------------------------------------
from 1600:
As a straight business deal today... the rate is clearly not favorable.
(and I have an A+ credit rating)
But remember... the point of the this post is the convoluted trickery of the deal that we as buyers have to unravel to begin with.
How much were they asking for the car?
4.9% is pretty good - the only car loan rates I've seen that were lower were from credit unions. Either way you'd probably need an A+ credit rating to get approved.
-----------------------------------------------------------------------------------------------------------------------------------------------
from 1600:
As a straight business deal today... the rate is clearly not favorable.
(and I have an A+ credit rating)
But remember... the point of the this post is the convoluted trickery of the deal that we as buyers have to unravel to begin with.
#7
Contributors
Join Date: Mar 2009
Location: South. Deeep South.
Posts: 606
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: 2008 535i Monaco blue/cream beige, light poplar trim, sport, nav, premium, Logic 7, 6 speed manual
My other rides:
Departed: 2006 530xi Silver gray/black, anthracite maple trim, cold, sport, nav, premium, Logic 7, 6 speed steptronic, bluetooth, adaptive xenons
Departed...2002 525i White/beige, 5 sp manual
You handled that very well. I just find it SO frustrating that they refuse to talk real numbers . I'm amazed at how often they are willing to a let a serious buyer walk rather than make a fair deal.
#8
Contributors
Thread Starter
Join Date: Nov 2005
Location: nyc
Posts: 1,256
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: 2010 M5 alpine white, black full leather, etc.
Originally Posted by BMRMEUP' post='1092575' date='Jan 17 2010, 07:48 PM
You handled that very well. I just find it SO frustrating that they refuse to talk real numbers . I'm amazed at how often they are willing to a let a serious buyer walk rather than make a fair deal.
That is so true. however, I realized when I went out there to see the vehicle and discuss a deal that something had to be amiss. If it was a straight up situation, then and only then, would I have made a purchase.
#9
Contributors
Join Date: Mar 2009
Location: New York, New York
Posts: 10,301
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: See my signature
Originally Posted by 1600' post='1092590' date='Jan 17 2010, 08:34 PM
That is so true. however, I realized when I went out there to see the vehicle and discuss a deal that something had to be amiss. If it was a straight up situation, then and only then, would I have made a purchase.
Thread
Thread Starter
Forum
Replies
Last Post
Island Road
E61 Touring Discussion
5
09-12-2015 06:47 AM