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BMW 3-Series and 4-Series Forum (F30 / F32) | F30POST > 2012-2019 BMW 3 and 4-Series Forums > Regional Forums > UK > Why do we keep funding higher depreciation?
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      01-13-2019, 03:16 AM   #23
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When buying you also need to look at the ownership of the dealer. Why is this an issue ?

Well my understanding is that as an example BMW pays a very large annual bonus to dealers if they meet 105% of their annual sales target

If you belong to a Group owned by a PLC they report their results publicly each quarter so they prefer a business model that takes profit out of every single deal on top of the substantial commission for selling finance They know the targets set by BMW are so high that it is unlikely they will trigger the annual bonus so they are more conservative and take profit throughout the year

If you belong to a privately owned group you may take more risk. Sell a car at cost so a better deal for the customer and just take profit from any finance commission. They then go full steam for volume and take the risk of hitting the 105% annual volume bonus so their profit is back end loaded.

So good case for getting a quote from a privately owner dealer at least as a comparison to the big plc groups or approach a plc just before a quarter end
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      01-13-2019, 03:19 AM   #24
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It's rare to see a different point made in the buying/financing threads, nice one
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      01-13-2019, 04:31 AM   #25
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Quote:
Originally Posted by ossi1 View Post
I never pay list but will happily buy a pre reg. For example my 340i was 35% off list with a few miles on the clock , so under 30k. My previous was a 10 month Lexus with 1500 miles and 40% off list at 20k.

I appreciate that it will depreciate like no ones business but I'm getting the enjoyment of driving a new car. I'm also aware of the history and it will have a 3 year warranty, new tyres, discs, pads, never been tracked etc.

I don't see the problem with paying extra for that peace of mind...if you can afford it.
It’s BMW’s level of pre reg cars that are killing the used prices. The targets set by the manufacturer are so unachievable the only way they can get to them is to build and pre reg cars. Other manufacturers don’t do this so much, Audi being one of them which is why they retain more value in their products.
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      01-13-2019, 03:52 PM   #26
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Quote:
Originally Posted by ukbeemerboy View Post
Quote:
Originally Posted by ossi1 View Post
I never pay list but will happily buy a pre reg. For example my 340i was 35% off list with a few miles on the clock , so under £30k. My previous was a 10 month Lexus with 1500 miles and 40% off list at £20k.

I appreciate that it will depreciate like no ones business but I'm getting the enjoyment of driving a new car. I'm also aware of the history and it will have a 3 year warranty, new tyres, discs, pads, never been tracked etc.

I don't see the problem with paying extra for that peace of mind...if you can afford it.
It's BMW's level of pre reg cars that are killing the used prices. The targets set by the manufacturer are so unachievable the only way they can get to them is to build and pre reg cars. Other manufacturers don't do this so much, Audi being one of them which is why they retain more value in their products.
Yes and I've heard from a few sources recently sales staff are not that happy with the level of pre reg as in some dealerships they are restricted from handling the transaction as they can only sell new. Forecourts seem awash with cars

Anyone remember the days when new cars sat in fields unsold at the docks for months as no buyers.
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      01-13-2019, 04:19 PM   #27
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It’s because we live in a throwaway society.

The retailers/ producers get us to think their newer product is way better than the crap you’ve got at the moment.

Us being the way we are feel we need the latest model etc - look at the I phone .

Ps quite like the look of the new G series.
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