Bad Economy = renegotiate?

[xrayos]

you my friend are very smart. it's better to get sell 10 M3s at invoice, than to sell 2-3 at over invoice. Are you prices valid for '09s also?

[Voltigeur]

My Austin CA is still giving me B/S that there's no discount - WTF!? When the time comes - once my wife stops being nervous about the economic trend - I'm going to have to shop around. I sent the CA this from Bloomberg: believe me, this is early days of this trend:

Originally Posted by bloomberg

BMW September Deliveries Slump 15% on Credit Crisis (Update2)
2008-10-08 15:49:59.250 GMT


(Adds closing share price in sixth paragraph.)

By Steve Rothwell
Oct. 8 (Bloomberg) -- Bayerische Motoren Werke AG, the
world's largest maker of luxury cars, said deliveries slumped 15
percent last month as the widening effects of the credit crunch
discouraged consumers from making large purchases.
Sales fell to 121,621 cars and sport-utility vehicles from
142,357 a year earlier, the Munich-based company said today in an
e-mailed statement. Year-to-date sales gained 1.7 percent to 1.11
million vehicles.
Industrywide car sales plunged 27 percent in the U.S. last
month, and four of the European Union's five biggest auto markets
declined in September. BMW Chief Executive Officer Norbert
Reithofer said Oct. 2 that auto markets won't recover until at
least the middle of next year, and his company may deepen
production cuts if customers continue to delay purchases.
``The situation remains challenging,'' BMW said today. ``The
recent escalation in the financial crisis is also affecting
consumer confidence in the premium segment.''
Demand at the BMW brand declined 16 percent to 98,874
vehicles while sales by the Mini division fell 5.5 percent to
22,618 cars. The high-end Rolls-Royce unit sold 129 cars compared
with 87 a year earlier.
BMW fell 1.88 euros, or 7.7 percent, to 22.66 euros in
Frankfurt trading, the biggest drop since March 24, 2003. The
stock has declined 46 percent this year, cutting BMW's market
value to 14.5 billion euros ($20 billion).

For Related News:
BMW earnings stories: BMW GY <Equity> TCNI ERN <GO>
Today"s top transport news: TRNT <GO>

--Editor: Tom Lavell, David Risser.

[dubiousONE]

I got quoted $500 over invoice on a 08 M3..

Would any one of you take this deal? OR, do you think there may be a chance the price could keep dropping? The M's have been sitting on the lot for a long time.

[xrayos]

actually some on this forum have reported purchasing '08 for 1k under invoice.

[Simple1]

Originally Posted by trackfiend

Well, most dealers, like me, are selling at invoice. so, you won't get much hassle from many dealers. We know the market sucks, we know people are hesistant, we know that money is tight, we know , we know , we know.

So, just shop around i guess.

Invoice at the point of entry? or like 1K off MSRP (invoice), not trying to belittle you or anything like that, just when I was getting my 335 alot of dealers were like "yea I'm selling at invoice" when it was actually MSRP, I guess they didn't know that people know the "ACTUAL" invoice price @ point of entry

[King Tut]

Originally Posted by plnwu

Given the dreadful economy, anyone out there with a car on order thinking they should re-negotiate the price once their car arrives? Market down a bunch, job losses, etc. There just cannot be that many people looking for cars right now.

No. I believe that is dishonest as you agreed to purchase the car at a price and the dealership fulfilled its end of the deal. By the way I got $3500 off MSRP when I setup my 09 order in August. I just sent the payment in for the car to be picked up on the 27th at the PDC.

[Voltigeur]

Originally Posted by King Tut

No. I believe that is dishonest as you agreed to purchase the car at a price and the dealership fulfilled its end of the deal. By the way I got $3500 off MSRP when I setup my 09 order in August.

I agree. And that's not a good deal at the time you signed.

[A97Snipe]

Originally Posted by Voltigeur

I agree. And that's not a good deal at the time you signed.

Are you saying that I could have done better AT THAT TIME? If so, you MAY be right. But remember this was almost 6 weeks ago -- and for a 2009, not 08. I think the deal was within the bounds of being fair as I surveyed every dealer within 250 miles for an 09 sedan price with DCT.

Since that time the economy has gone into meltdown mode. And I never signed a thing -- all i agreed to do was put a deposit down for a production slot. Look at the public M&A market -- deals there are re-negotiated all the time when the acquiror's/or target's stock price is down materially. That's the same case here. Change in market circumstances, no contract signed = open for negotiation.

[schadenfreude]

Renegotiate. Especially if the slot hasn't been assigned yet. Your CA wants a deal, and you want to save money. Sure he loses some commission, but not the thousands you'd lose if you didn't work for a new deal.

[jaay11]

Originally Posted by xrayos

actually some on this forum have reported purchasing '08 for 1k under invoice.

Really...?

under or over invoice?

[guardodoc]

Originally Posted by Voltigeur

I agree. And that's not a good deal at the time you signed.

I think that was a good deal at the time and now. I can't see a dealer special ordering a car at invoice with your specs. He'd prefer to order one which he feels is most likely to sell. Anyone ordering now for more than $3,500 under MSRP?

[newtom3]

I absolutely plan on renegotiating once the car arrives the dealer floor... it's purely supply meets demand and I have not signed anything.

[par4bmw]

According to much of the logic here, you would not be incredibly pissed off with this scenario?

Assume the M3 was a super hot mover and when the car came in the dealer renegotiated for $5000 more since there was a huge waiting list, that would be OK since supply/demand was good for the dealer.

A deal is a deal. Everyone whines and screams at the stealers when things do not go the way they feel is right but we have a right to screw them. I am not fond of dealers, but that just is not right. Remind me not to enter into a agreement with many of you.

[Ali.K_BMW]

hmmmmmmmmmmmm

[madjmonkee]

Originally Posted by par4bmw

According to much of the logic here, you would not be incredibly pissed off with this scenario?

Assume the M3 was a super hot mover and when the car came in the dealer renegotiated for $5000 more since there was a huge waiting list, that would be OK since supply/demand was good for the dealer.

A deal is a deal. Everyone whines and screams at the stealers when things do not go the way they feel is right but we have a right to screw them. I am not fond of dealers, but that just is not right. Remind me not to enter into a agreement with many of you.

you need

[newtom3]

Originally Posted by par4bmw

According to much of the logic here, you would not be incredibly pissed off with this scenario?

Assume the M3 was a super hot mover and when the car came in the dealer renegotiated for $5000 more since there was a huge waiting list, that would be OK since supply/demand was good for the dealer.

A deal is a deal. Everyone whines and screams at the stealers when things do not go the way they feel is right but we have a right to screw them. I am not fond of dealers, but that just is not right. Remind me not to enter into a agreement with many of you.

Actually a deal is not a deal until you sign the contract. And yes the dealer could try and pull that on you, but word would get around and customers would avoid that dealer. However if the customer pulls that on a dealer, what's a dealer going to do? Post your picture an APB to all other dealers to avoid this guy...lol... the other dealers would instead call me trying to sell a car!!!

And your scenario is completely unrealistic... if the M3 was a super hot mover... guess what... you would have seen the markup sticker of $5000 BEFORE you ordered the car... surely you have been in a dealership and see this happen? That is how they adjust to 'pure demand and supply' .. .so you see that on both sides of the table, we play the exact same game. nuff said.

[AZ-BMW]

Originally Posted by par4bmw

According to much of the logic here, you would not be incredibly pissed off with this scenario?

Assume the M3 was a super hot mover and when the car came in the dealer renegotiated for $5000 more since there was a huge waiting list, that would be OK since supply/demand was good for the dealer.

A deal is a deal. Everyone whines and screams at the stealers when things do not go the way they feel is right but we have a right to screw them. I am not fond of dealers, but that just is not right. Remind me not to enter into a agreement with many of you.

+1 I totally agree with you!
I unfortunately ordered my 2009 M3 in August, did a pre-trade and finished paying for the car yesterday for my PCD next week. I guess we are from a different generation where a hand-shake on a deal is supposed to mean something to both parties.

[TLud]

Originally Posted by AZ-BMW

+1 I totally agree with you!
I unfortunately ordered my 2009 M3 in August, did a pre-trade and finished paying for the car yesterday for my PCD next week. I guess we are from a different generation where a hand-shake on a deal is supposed to mean something to both parties.

+1

Just took delivery of my car today. I negotiated the price back in June and got what was a good deal back then. We shook hands on the price. I paid that negotiated price today even though I could have gotten a much better deal. I felt that I wouldn't be honoring my word if I tried to re-negotiate, and I have no regrets. It's rare that you can trust someone enough to do a handshake deal. I will do what I can so that that practice does not become altogether extinct.

[schadenfreude]

If the dealer doesn't budge on the first agreed price, that's their option. You can't just demand a better deal. If the dealer moves more later on, it's because they know the next customer interested in the car won't pay the higher price.

Especially if the car hasn't been built or ordered yet, I see no problem in working for the best deal possible. When you order a car they give you an "estimated" interest rate, payment amount, etc. It's all flexible until the final deal. If the dealer feels shafted on a reneg, they can always do the same to you on the rate, extras, etc. I wouldn't expect my tint/mats/etc. to still be free if I negotiated the price down.