[g2g8969]

Originally Posted by The Sage

for the record he found out i was looking and told me "man im not even making anything on this." i didnt ask for it. i didnt imply it. i was told by him he would give me an awesome deal. Im going back to him tomorrow and talk to him about every thing. But this time i will be armed with my new found info and the advice from the great people in this forum. If he cannot get where i want then i will walk away and try a different dealer.

Good luck! Remember the goal is the best possible selling price relative with invoice. The rest is just plug and play

[MNBart]

good luck, dude! hopefully it works out and you drive it off the lot asap

[EnerJi]

Originally Posted by cchrisv

No, I'm not. If I was in their position I would sell the car for 0 profit but that is how I treat my friends. I don't take advantage of them like these people are.

You suggested that these guys should be selling him the car for below invoice. That's just not reasonable, especially if his friends are not the dealership owners, as they have bosses they need to report to and financial targets they have to meet in order to continue to be gainfully employed.

Plus, I get the sense these "friends" are not particularly close friends or they wouldn't have offered such a bad deal to begin with. If it were me, I would be completely transparent with my friends, and let them know the best deal I could offer and their odds of being able to negotiate a better offer elsewhere. If circumstances dictated that I was unable to offer a significant discount, I would tell them this, and give them tips on a reasonable offer they should try to negotiate elsewhere.

[The Sage]

I decided to get several deals together as "ammo" for my local dealer/ "friend." I have got several good offers and willl wait til next week to make a descision.

[g2g8969]

Sounds good! Any of the offers you get better than your initial offer? Let us know if you need help picking out the best one

[The Sage]

MSRP: $46,345 Invoice: $43603 Proposed Sale Value: $43,332 Acquisition fee: $725 Money factor: .00150 Residual 36/15k: 58%

Holiday Cash: $1,000 used as cap reduction

Base monthly payment: $554.27 + 5.023% sales tax = $582.11

1st payment of $582.11, $199.50 documentation fee, AL license, $60.25 sales tax due at delivery.

Trying to get the intrest lowered. This also isnt an msport.

[Orient330iNYC]

Originally Posted by The Sage

for the record he found out i was looking and told me "man im not even making anything on this." i didnt ask for it. i didnt imply it. i was told by him he would give me an awesome deal. Im going back to him tomorrow and talk to him about every thing. But this time i will be armed with my new found info and the advice from the great people in this forum. If he cannot get where i want then i will walk away and try a different dealer.

if he gets pushy, ask him how much profit he would lose if you didnt give him perfect 10s on the csi survey. i normally wouldnt even suggest opening that door,but if he's going to do the whole sob story about not making any money with 1K over invoice and max markups on MF and acq.....

[g2g8969]

Originally Posted by The Sage

MSRP: $46,345 Invoice: $43603 Proposed Sale Value: $43,332 Acquisition fee: $725 Money factor: .00150 Residual 36/15k: 58%

Holiday Cash: $1,000 used as cap reduction

Base monthly payment: $554.27 + 5.023% sales tax = $582.11

1st payment of $582.11, $199.50 documentation fee, AL license, $60.25 sales tax due at delivery.

Trying to get the intrest lowered. This also isnt an msport.

Not bad. What was the invoice price you calculatd on bmwconfig.com?
calculate your options on there and double check the invoice price provided from dealer

This is what I can recommend

change money factor to base .00130
36 month to 39 month at 57% residual

Those changes alone bring your payment to $542/month

[The Sage]

yeah i came back at him with that via email. This is adrian at this sending this deal. he also quoted me the wrong car. but its nice to know that i can get something greatly better that the original quote. also i dont have the options list for the vehicle. there site is as up-to-date as some.

[g2g8969]

Originally Posted by The Sage

yeah i came back at him with that via email. This is adrian at this sending this deal. he also quoted me the wrong car. but its nice to know that i can get something greatly better that the original quote. also i dont have the options list for the vehicle. there site is as up-to-date as some.

Adrian is good. Yeah that means you'll have an even better deal
Just ask him for the full breakdown. They have a worksheet that breaks down the options vs wholesale price. Keep us updated! Congrats on savings lots of money

[The Sage]

new deal. only give the detail i have now. ~44k car white m-sport, lighting, heated seats , moonroof, sat radio, and black kidney grilles. there was something else cant remember. with no deal working they said 590/ mo no money down. this will be the car

[g2g8969]

Originally Posted by The Sage

new deal. only give the detail i have now. ~44k car white m-sport, lighting, heated seats , moonroof, sat radio, and black kidney grilles. there was something else cant remember. with no deal working they said 590/ mo no money down. this will be the car

Nice! Its like you got lighting package, sat radio and black grills for free compared to your first deal!

Just remember to take advantage of all the holiday credit of $1000 and maybe the recent grad if you graduated within 12 months. There's also a few more if you are previous bmw owner

Let me see your final deal before you sign anything/put in deposit

[chrisv_335EBII]

Originally Posted by EnerJi

You suggested that these guys should be selling him the car for below invoice. That's just not reasonable, especially if his friends are not the dealership owners, as they have bosses they need to report to and financial targets they have to meet in order to continue to be gainfully employed.

Plus, I get the sense these "friends" are not particularly close friends or they wouldn't have offered such a bad deal to begin with. If it were me, I would be completely transparent with my friends, and let them know the best deal I could offer and their odds of being able to negotiate a better offer elsewhere. If circumstances dictated that I was unable to offer a significant discount, I would tell them this, and give them tips on a reasonable offer they should try to negotiate elsewhere.

You are making the assumption that selling the car below invoice means they are loosing money. Again, if I was to do a deal for friends I would do a 0 profit deal.

[The Sage]

called him today and backed out of the original deal. he exploded. but new car options list
alpine white, black leatherette, lighting package, sport auto trans, moonroof, heated seats, sirius radio and black kidney grilles.

mspr says 44786 then a discount down to 42450. at no money down im at 590month 39month and 15k year. will hash the rest when i go to the dealer. but this is the exact car i wanted in the first place. at port in jersey right now.

[chrisv_335EBII]

Originally Posted by The Sage

called him today and backed out of the original deal. he exploded. but new car options list
alpine white, black leatherette, lighting package, sport auto trans, moonroof, heated seats, sirius radio and black kidney grilles.

mspr says 44786 then a discount down to 42450. at no money down im at 590month 39month and 15k year. will hash the rest when i go to the dealer. but this is the exact car i wanted in the first place. at port in jersey right now.

Congrats! I'm glad you were able to get what you wanted! What did he say when you explained to him why you are backing out?

[The Sage]

he tried to back me into a corner than offered me a deal that was what i should have gotten. it wasnt a bad offer but like 550 a month 500 down. but that was after he got VERY angry talked about "you 've burnt this bridge dude" and how he stuck his necok out then blamed the sales manager for coming up with the numbers. i told him if he gets then new car i found already in port i would buy it from him. he said no and is giving my deposit back.

i cant wait to start making normal posts about normal stuff. modifications how much i love it and so on. cant wait.


i think we need to make a "sticky" type thread that people can post there cars and deals so it can help out people like me who are clueless to leases and well new car purchases.

[EnerJi]

Originally Posted by cchrisv

You are making the assumption that selling the car below invoice means they are loosing money. Again, if I was to do a deal for friends I would do a 0 profit deal.

I admire your generosity, but I still don't think you are being realistic. I am involved in running a successful small business and am familiar with the costs, decisions, and trade-offs which have to be made every day.

There are very real costs to selling every single vehicle. A dealership has a limited number of production allocations, which translates to a limited number of possible sales. Those limited sales have to cover a dealer's entire cost structure plus allow for some profit. Here's a made-up example for illustration:

Let's say a dealership gets 100 production allocations per month, and on average they sell exactly 100 cars per month. Let's set aside the service and pre-owned side of the business and just look at new-car sales. Let's say that it costs $30,000 / month to run the dealership new-car sales, factoring in rent, dealer floor-plan, electricity, fuel, cleaning supplies, salaries, benefits, telecom, IT, etc.

In this made-up example, a dealership has to make $300 in profit for every vehicle sold just to break even. ($300*100 cars = $30,000) However, a dealership owner has made a very large investment and shouldered substantial risk in owning a dealership, and he wants to make a profit. Let's say he needs to make a minimum of $20k/month for it to be worthwhile to continue operating the dealership (versus selling it or shutting it down and re-investing the tied up capital into a more profitable venture.) $20,000 / month, divided by 100 vehicles sold, adds $200 / vehicle of required minimum profit.

In total, the dealership has to make at least $500 in profit for each and every one of the 100 vehicles sold per month. As production slots are limited, if the dealership takes one of their limited 100 allocations and chooses to sell it for $0 profit, the remaining 99 vehicles have to sell for that much more.


Now, if you happen to be the owner of the dealership and you have a friend buying a car, you have to make a choice as to how to price the car. If this friend is a good friend, then perhaps the owner will choose to take a "loss" on the car by selling it at cost, which would be a nice gift to the friend. This is the owner's decision to make.

However, the sales and finance managers don't necessarily have that discretion. The owner has told them that if they don't make at least $500/car, they get fired. What can they do in this situation? It could be argued that $500 over invoice would be a very fair price, being the minimum amount of profit which allows the business to continue functioning, and allowing the sales and finance managers to keep their jobs.


The numbers in this example are made-up but hopefully the example is illustrative. Bottom line: just because someone is a sales or finance manager at a dealership does not give them unlimited discretion, they still have to answer to the dealership's general manager and owner.

[The Sage]

i was looking through the options list for the new vehicle i ordered and it has sirius radio as a standalone option for $418. seems high what would that include?

[EnerJi]

Originally Posted by The Sage

i was looking through the options list for the new vehicle i ordered and it has sirius radio as a standalone option for $418. seems high what would that include?

Sirius satellite radio and a one-year subscription. Extending the subscription can cost up to $200/year. I heard the Sirius sound quality is terrible, particularly on the HK audio, although I have not tested this myself.

[The Sage]

Car just showed up at the dealer today. Very very excited! Going saturday to finish up the deal and take her home. Havent seen it yet.

[g2g8969]

Originally Posted by The Sage

Car just showed up at the dealer today. Very very excited! Going saturday to finish up the deal and take her home. Havent seen it yet.

Awesome! Show us pics when you get it

[F30Alpine]

Originally Posted by g2g8969

Good luck! Remember the goal is the best possible selling price relative with invoice. The rest is just plug and play

Not really, i can give you the car for $100 under invoice and then charge you $925 bank, .0004 MF mark up, hit you with doc, prep and other misc bs fees but the selling price will still be $100 under.