Quote:
Originally Posted by daveI
Although I would certainly love to believe that I don't think the Z4 was ever intended to be a high volume car (good economy or bad) so I have a feeling BMWs built in margins are tight as they are and the car would still be selling at near MSRP prices regardless of the economy. Either way, we didnt settle on a price for a car, only on the fact that I will not be paying anything above MSRP as people do for M3s, etc.. when they first come out
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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
