Negotiating a Price

"Bob Smith" wrote

1) most people are able to get somewhere between $1000-$2500 off MSRP on most BMW models. 2) BMW has different holdbacks than other manufacturers, and you won't get their dealers to come down from there unless it's an end-of-model sale.

Not saying you might not be able to get something cheaper than that, but it's not likely.

FloydR

Most dealers will accept anywhere from $1,000 to $1,500 profit. Offer $1,000 over invoice (or whatever you feel comfortable with if it's lower) and let them suggest an alternate price. You may get lucky.

Remember the number one rule at a dealer "Never let the customer walk".

If you wish to buy new rather than used, and you have somebody in your family that has been in military service- you can go through USAA and they will find the cheapest vehicle in the exact style that you want anywhere in the US. You can choose the geographical area as well. Once they find the vehicle, they cut you a check, and you walk in the door and walk out with the car. That's one option, if you or your immediate family have been in any military branch.

ER

1) BMW doesn't HAVE a holdback 2) Some dealers are required to pay into a regional advertising pool increasing their cost over invoice 3) The "profit" over invoice pays salaries, utilities, rent, advertising etc. What a minimum profit might be is dependent on the local market and the dealer's fit in that market. BMW dealers that sell cars for only $1000 over invoice are rare (nonexistent?). $1500-2000 over invoice would be an excellent deal.

R / John

ER wrote "you can go through USAA".

My daughter and son-in-law are both career AF. They are stationed in VA whereas I reside in FL. Are you telling me that they can through USAA and locate the best deal for me where I live? Who has to present the check, my daughter or I? Who will be the actual owner of the car?

First off, do not "walk into the dealer" - do your negotiation via e-mail and don't give out your phone number until YOU have decided that this is the dealer for you.

Sec> I walk into the dealer armed with pricing info inc. options on the car I

First rule of car shopping is don't waste the time of the sales people. They work on commission, and if you are monopolizing their time, they are not earning an income. Do your research on the vehicles first. Talk to friends, family and co-workers that drive a similar make and model. Use the internet and start with the manufacturer's website and continue to other independent websites for information. Once armed with the information and have a few vehicles that you are interested in, call your local dealership and set an appointment to test drive those cars. Give them as much or as little information as you wish. Just remember, most dealerships will require you to present a drivers license and phone number before they will let you drive their cars. This is required by their insurance carrier should you bend their Beemer! Be respectful of the sales person's time; be upfront on what you want and how much you want to pay. If you don't know these things, how do you know if they are offering you a good deal? Gone are the days of the thousands of dollars mark up and the underhanded sales people. Just as any major business, they have rules and laws that govern new and used car sales and have specific margins to work within. If you want to know their best price, ask for it. If you want then to try to compete against another dealers quote, say so and show them the quote. Car sales is not rocket science, but you can make it downright miserable if you are working with a hidden agenda.

As for the pricing on BMWs, as mentioned above, there are no hold backs and depending on availability and model you can expect to get from 0 to

3% off on a new BMW. Good luck and remember to have fun.

Niels Petersen wrote:

If your daughter is in the armed services, then yes, not only can they get a car in your area, they can get an even cheaper car through the military itself. The military has had cars like the pontiac cruiser for 10 grand less than civilian prices. But that is just extra work on her part. There is also a waiting list most times.

The most practical thing would be for her just to use USAA to find the lowest price in Florida for whatever model you want. Then get that information and you go about contacting them directly- Or you can give your daughter the money and have her transfer title. Ask her about it. I don't think you can join USAA, but your daughters immediate felial line can. It works downstream, but not up.

If your father/mother were in the military, then you could join. Besides the immediate price, they have the lowest loan and credit card rates anywhere. They even beat out my credit union, and are completely mobile. You can hit any ATM anywhere in the world and not get charged for it. Anyhow, best of luck. Your daughter will be able to fill you in on the rest.

ER