07-03-2020, 10:27 PM | #1 |
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9% off MSRP becomes 6.5% off MSRP
Interesting story out of Houston. Originally was in contact with a dealer about an order for a 2020 X5 xDrive40i. Received offer for 9% off MSRP before incentives - pending the confirmation of availability of the luxury seating package. Several days later the luxury seating package could not be confirmed and I decided it would be best to wait for a 2021 order when I could get all options that I wanted. No big deal for either side as we had not exchanged any deposit and they knew finalizing the deal would be dependent on that package.
A few weeks pass - and I start to see what's NOT going to be available in the 2021 (soft close doors, temp cup holders, drive recorder, change in glass controls, etc, etc) A sales rep from a different dealer checked in to see how my shopping was going, got me searching again and I found what was a close to exact match to my 2020 build (except for luxury seating). It was listed at a dealership in the same brand chain as my original order so I reached back out. With incentives being strong I figure, "eh - I won't miss the ventilated or massaging seats". Turns out - it's the order we originally discussed, with my name still attached, now in production. I express my renewed interest and figure they would at minimum extend the original deal, if not better, since the car will quickly be sitting out on their lot. But because of "inventory issues" they won't let the car go for any discount at the direction of the general sales manager who was approached about the situation. The sales rep talks to the sales manager and they conclude that they can do the deal for invoice which is 6.5% off MSRP. I walk away - again. Now, I understand we never signed the deal the first go around but I'm surprised that in 2 weeks they've taken that position when the car has not even reached their dealership yet. Part of me wants to wait for it to sit on their lot for a couple months before reaching back out with an offer. Part of me never wants to work with them again out of principle. I guess back to waiting for a 2021 build? |
07-04-2020, 08:36 AM | #2 |
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It’s possible that dealer incentives changed between the original discussion and the present and they are simply not able to make their margins work with the original discount. Those hidden incentives change all the time, and we are not usually aware of what exactly they are. Remember that they are in the business of making money, so they won’t sell you a car if they lose money on the deal.
If you don’t have paperwork saying they will honour that price through now, and you didn’t sign a deal, they’re well within their rights to sell the car for whatever they want now, as I see you’ve recognized. You may want to see if another dealer in your area is willing to get you a better deal. They may even be able to do a dealer trade for the original car once it hits the lot! |
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07-04-2020, 10:07 AM | #3 |
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9% off MSRP becomes 6.5% off MSRP
I lean strongly towards no longer working with them out of principle. I can't stand dealer games like this. In my mind, it isn't complicated: provide an exceptional customer experience, honor the price, and hey maybe earn a long term customer or the service business at the very least. But you know what? Better to see their true colors early on. I know it sounds cliché, but I completely believe things work out like they're supposed to.
I say move on to a dealer that's much more transparent and see if they're willing to play ball. And trust me, you're not missing a thing with the "ventilated" seats - they're pretty useless in my opinion. |
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07-04-2020, 11:30 PM | #4 |
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1. Walk away from that slimy dealer!
Try work it with this broker, i don't have personal experience with him, seen some member made deal with him. https://g05.bimmerpost.com/forums/sh....php?t=1712911
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07-08-2020, 12:36 AM | #5 |
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Well, everyone thought the sky was falling months ago and that you would not be able to give away high-end cars. That obviously has not come to fruition in the least bit and I think dealers just aren't going to give these cars away like people thought. The residuals on leases were the first indicator of this. I don't think they have even changed since the Spring.
You passed on the car at 9%.....I don't see why they need to offer that to you still. I doubt you would be applying the same principle of paying that 9% off if the dealer had come back instead the second time and said they would give you 12% off. Dealers are a business, the purpose of which is to make money.
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2022 M8 Comp GC, 2021 AMG GT53, 2022 X5M Competition, 2021 X7 40i, 2019 M5, 2018 M550I, 2017 Audi Q7, 2014 M6 GC, 2013 Mercedes CLS550, 2011 750LI, 2008 M6 Cabrio, 2008 Porsche Cayenne S, 2004 Mercedes SL55 AMG, 2003 Mercedes SL500, 2000 Mercedes CL500, 1993 Lexus SC400, 1989 525i, 1985 318i
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07-08-2020, 04:28 PM | #6 | |
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Dealer inventory is shrinking quickly and dramatically in some places. The manufacturers can't even come close to normal production levels right now. Some are doing better than others with new vehicle production but it will take them a while to get inventories back to a normal level. Hopefully, inventory improves in the next 45 days +/-. I would think that is why the dealer doesn't want to do 9% anymore. Supply and demand, but you would think they would want to keep the deal so you come back again...and again. Short-sighted. |
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07-08-2020, 05:27 PM | #7 | |
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Fingers crossed this is a "COVID" thing and not a "BMW" thing. |
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07-09-2020, 12:50 PM | #8 |
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Surprised they didn't honor it but I understand. Vehicles are very hard to come by right now, especially X5's. My company has 3 BMW stores in MD, including one of the largest, and we have a total of 28 X5's between all stores.
With plants being shut down for 2-3 months and no new supply in the near future, its going to take months for inventory levels to get back up. |
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07-11-2020, 06:38 PM | #9 |
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For what it's worth...
My favorite feature of my X5 is the Luxury Seating Package, in particular, the massage feature. It is great for keeping the blood circulating on long trips. I wasn't sure about it, but I would not buy another BMW without this feature. In my opinion, I would select the options I wanted and then look for a deal. |
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07-11-2020, 10:51 PM | #10 | |
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Production capability of not only BMW, but parts manufacturers too, have been so hampered by all of this. Trying to place an order now wit my lease coming up soon, but deals are scarce. Considering doing a swapalese for a year and come back when things are back to "normal". |
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