Quote:
Originally Posted by Merefield
The margins on premium vehicles are always high.
Also, look at residuals to compare the prices manufacturers recommend and the "real" value in the market - needless to say the latter is much lower which is one of the reasons why second hand car values drop like stones.
You think there is significant wear on a year old car with only 4k on the clock? No way is this the major reason why the price has dropped. The major reason is the real value of the car is reflected in the free market price which is much less within the control of the car manufacturer or the dealer (but of course they can influence this in a good market by restricting supply - a CLASSIC tactic used by Porsche, for example)
The manufacturer does its best to hype up the car with marketing to make you perceive a certain value, but in the end of the day, on the secondary market, reality bites.
If one buys at MSRP one is very foolish, imho.
Your room for negotiation is very much larger than usual.
And if the dealer needs to re-negotiate the cost to him from BMW as part of this whole supply chain so be it! We live in a free market economy.
Its only rational for a business to sell its products at the highest value a market, indeed an individual buyer will bear. The thing is that the market will not bear anything like the prices it could two years ago. Factor this into your negotiation and if you care about getting value for money, make sure you are not taken in by the marketing and the psychological tricks the sales people play.
In other words, treat it like a business transaction and play HARDBALL is my advice. Then you can save more to put towards a Z4 mk3 when this one's replaced  |
Well said.
I had NEVER paid list price for any of the 15 or so vehicles I've owned, but foolishly decided, when the '08 M3 hit the shores, to pay list for one. I ended up selling it in October with only 4k miles on it in BRAND NEW CONDITION, and at the same time, lost $14k (with taxes) in 7 months. Obviously, the depreciation hit is always the worst if you sell your car with a year of purchase, but that was HORRENDOUS. Especially since I sold the car PRIVATELY and not to the dealer. If I had traded it, I would have lost another $6k. (dealer offered me $50k on a vehicle I had paid $66k for).
Understand that no matter what you buy, you will always lose money. But to minimize your loss, DON'T EVER PAY LIST! I believe the power of the internet has severely impacted dealers opportunity to charge exhorbitant premiums, except to the most foolish people who have their minds set on a car at any price or to those for whom money is not an object. For me, even if I was a multi-billionaire, I wouldn't throw money away just to be the first one on the block to own something that soon every Tom, Dick, and Harry will.
Be patient. Impulisivity is only good for dealers. I'm sure BMW will overproduce them just the way they have with every other Z car.