[DCG82]

Originally Posted by Brian @ Grayson BMW

Well, I read every thread on the forum. Im not just a sales person. I’ve been buying sports cars longer than I’ve been selling. Plenty of dealers out there you can on a wait list for MSRP. To get a slot and know when you will have it is another story. $2k is nothing for a $80-95k vehicle.

The same thing is happening with groceries. Prices are up. Same with the new Xbox and PS5. Good luck getting one, and if you want one you likely pay $200 over retail which is a way higher percentage than $2k on a 80-95k car.

Plenty of people don’t mind checking every single box of options on the car no matter what the cost is, but $2k is a deal breaker? Ok.

As for opportunistic behavior… selling this car out of state we will never see the service business, we will never see the warranty business, we will never see the return business once things go back to normal. Another point to that is the fact that someone could easily buy this car $2k over and likely get a higher amount off resell. The market is so stupid right now. I have about 9 cars on the lot. Most dealers have less. You are over paying for everything in your life right now.

This attitude is why I hate buying cars and many others as well. They believe because the car is 80 to 95k, your wallet is endless. If that were the case, perhaps all these wealthy people would be buying super cars and not a M3/4. Because people work hard and check the box on options on builds means they can just cut you an additional 2k check? BS. You can take advantage of people on one deal and never earn repeat business. Seems short sighted. Treat people fair and they come back. But I guess they don’t teach that at car sales school.

[DCG82]

Originally Posted by Brian @ Grayson BMW

The point is not about wealth. It's a comparison to the current environment of the economy and other goods.

I for one will remember this current environment and how I am treated for the next vehicle I purchase. So far my dealer has been fair but if the deal goes sideways, I will not only not buy a car from them, I also will take my service/warranty work somewhere else too. Good luck to you and your customers

[SpeedyATL]

Originally Posted by Brian @ Grayson BMW

The housing market is in the exact same boat. If you are a homeowner you are going to take bids for how much over market value someone is going to buy your house.

Firstly, dealers are a business and not state owned (yet), so I doubt anyone is arguing or suggesting that you should be stopped from asking whatever you want for your cars. That is absolutely your right, as it is ours to not buy from you or anyone asking over MSRP or any other more arbitrary amount.

However, what you are missing is that new cars are a COMMODITY, like FCOJ, Pork bellies, whatever....

The new BMW you are trying to sell to consumer 1 is exactly the same as the BMW the dealer down the road is trying to sell. So, service and professionalism is a way many dealers try to differentiate themselves.

By gouging people in these times (granted some may not care and are willing to be gouged) it tells your consumer base what you think of them and how you will act in times when things might be a little more difficult for you. It's a business decision, I get it. Some of here are just suggesting it might not be a wise one, that's all...

I for one, will remember. This will just save me some time in the future as I'm not that far from your dealership...

With respect to houses in this market, unless you are buying a mobile home, homes are absolutely NOT a commodity. There are actual physical differences that drive value differences over other similar homes. Most home sellers don't sell over and over again so they are not worried about market reputation. A good agent will help temper that a bit so the sale will actually happen because they do have a reputation to worry about.

Enough said. I do very much appreciate having dealers/CAs on these forums. Most add a ton a value and interesting insights from the other side of the desk. But I think there is also some learning that a really good CA can do from interacting here. Jon Shafer over at bimmerfest is a shining example of this.

Best of luck and happy holidays!

[eyim1988]

I for one wouldve paid the 2000 premium if I haven't found one already for a January allocation. Bunch of dealers around me have long waitlists for msrp.

[astroricardo]

I hope if anyone posting on this thread is selling their recently acquired car will sell it for the 'normal' 10-15K loss and not based on 'market conditions'

[gohawks23]

Originally Posted by astroricardo

I hope if anyone posting on this thread is selling their recently acquired car will sell it for the 'normal' 10-15K loss and not based on 'market conditions'

Good one! Yeah funny to see so many get bent out of shape on this. Supply and demand man! Very rare in car transactions to have 'loyalty' on either side. Pay the price or move on and keep looking. It's a highly one time transactional biz.

[vj123]

Originally Posted by astroricardo

I hope if anyone posting on this thread is selling their recently acquired car will sell it for the 'normal' 10-15K loss and not based on 'market conditions'

True.

I have never paid over MSRP for any of my vehicles in the past. If i were in a hurry to get a vehicle, i wouldnt mind paying $2k considering MSRP increases which might come in the near future. Also BMW is removing standard features and options due to parts shortage.

[TrevorM3]

dealers are having their fun now, they wont forever..


Give it another year or so, then they will be back to calling you 3x a day telling you to come in.

[rak299]

On February 26, in the afternoon, I decided to buy my car. On the same day, I found a dealer with an allocation (120 miles away), gave him a build code, got a quote (MSRP), gave him a credit card for a $1000 deposit and arranged to bring my F30 in for an appraisal. I picked the car up on 4/24. At that time, I said to my wife that in 6 months, we could probably get the car 5% - 10% cheaper. Boy, was I wrong.

[vj123]

Things happening are slowly changing the whole way OEM are operating. For example, Ford is going to limit dealer inventory and focus towards building vehicles based on customer order. US customers are spoilt with tons of dealer inventory and incentives. Sadly, these might be things of the past and might never come back.

[JWBimmer]

Originally Posted by vj123

Things happening are slowly changing the whole way OEM are operating. For example, Ford is going to limit dealer inventory and focus towards building vehicles based on customer order. US customers are spoilt with tons of dealer inventory and incentives. Sadly, these might be things of the past and might never come back.

Yes. BMW and Mercedes CEO’s have similar plans. There may be some moderation but dealers will continue to have the upper hand if these plans are realized.

“Carmakers Daimler and BMW separately plan to limit the volume of premium models they ship even once the industry-wide chip shortage eases, in a bid to lock in the hefty price increases they have achieved during the pandemic.”

Full article:
https://www.google.com/amp/s/amp.ft.com/content/f55a1d96-1146-4e17-88a9-1a0fbaf57de6

[Tyga11]

Originally Posted by Brian @ Grayson BMW

MSRP = Manufacture Suggested Retail Price

There is a stigma that customers are allowed to use and abuse dealers and salespeople when buying a car. Some of the things people say and do will blow your mind and I have to just sit there and take the abuse.

Now, dealers are dictating the price and you are upset about it. Just like before, there is a dealer that will eventually sell you a car.

I bet you said a year ago "I will never buy a car for MSRP" and now you are happy to do it.

The housing market is in the exact same boat. If you are a homeowner you are going to take bids for how much over market value someone is going to buy your house. Try not to think only about the negative here because you are spending the money but also other markets and services that are the exact same way right now.

Again, my point is that the car buying process has a HUGE STIGMA behind it and it's quite sad, to be honest.

IF/When the market goes back to normal customers will have no problem beating up the dealers regardless of what they did during these times.

Why do you think that stigma is there? When most people go into a dealership, they are jerked around for hours with the salesperson going back & forth with their finance guy (Wizard of Oz)

We are dealt with, quite frankly, morons who have no idea what kinds of cars they are actually selling. The consumer is sick of the charade which is why you get blowback.

Now, perhaps you are different and one of the 'good guys' but don't play victim when historically your profession is a bunch of sleaze balls.

I don't fault you for selling the car over MSRP and $2K is fair but please, spare us the victim card and have some self awareness my friend

[elkid23]

Originally Posted by Brian @ Grayson BMW

Plenty of people don’t mind checking every single box of options on the car no matter what the cost is, but $2k is a deal breaker? Ok.

I’m in sales too, albeit Tech sales, so I hear some of what you’re saying. But I strongly disagree with the above. Come on man, your argument is essentially, “you’re fine with paying x, so you should be fine with paying x plus 2k”. I don’t ever remember ever closing a deal applying that logic!

I understand there are market conditions, but no one, no matter their wealth, wants to pay something for nothing (And that’s what the majority of buyers feel about paying above msrp). You said it yourself, people will tick options all day long, because they’re getting add on’s to car!

[TrevorM3]

Originally Posted by JWBMimmer

Yes. BMW and Mercedes CEO’s have similar plans. There may be some moderation but dealers will continue to have the upper hand if these plans are realized.

“Carmakers Daimler and BMW separately plan to limit the volume of premium models they ship even once the industry-wide chip shortage eases, in a bid to lock in the hefty price increases they have achieved during the pandemic.”

Full article:
https://www.google.com/amp/s/amp.ft....9-1a0fbaf57de6

#thankscovid

[DCG82]

Originally Posted by Tyga11

Why do you think that stigma is there? When most people go into a dealership, they are jerked around for hours with the salesperson going back & forth with their finance guy (Wizard of Oz)

Don’t forget the all important “let me talk to my manager”. Listen, I have purchased MB vehicles from a sales guy that was straight up and no nonsense. Their service dept was also out of this world. I wish I liked the C63 as much as the M4. If I did I would go back. But after purchasing numerous cars over the years and dealing with numerous dealerships, the sleaze ball car saleman stereotype is there for a reason. The over MSRP pricing feels like a lot of the same.

[jwt2440]

Originally Posted by Brian @ Grayson BMW

MSRP = Manufacture Suggested Retail Price

There is a stigma that customers are allowed to use and abuse dealers and salespeople when buying a car. Some of the things people say and do will blow your mind and I have to just sit there and take the abuse.

Now, dealers are dictating the price and you are upset about it. Just like before, there is a dealer that will eventually sell you a car.

I bet you said a year ago "I will never buy a car for MSRP" and now you are happy to do it.

The housing market is in the exact same boat. If you are a homeowner you are going to take bids for how much over market value someone is going to buy your house. Try not to think only about the negative here because you are spending the money but also other markets and services that are the exact same way right now.

Again, my point is that the car buying process has a HUGE STIGMA behind it and it's quite sad, to be honest.

IF/When the market goes back to normal customers will have no problem beating up the dealers regardless of what they did during these times.

I'm the only one in this thread that agrees with you. And no I'm not in the car business. The dealership has every right to charge above, below or at MSRP. I also have the right to shop around. I don't hate on the dealership, they aren't running a non-profit. I've been on a waiting list for the GT3 for 3 years and doubt I will get one. I think ones on the lot nationwide right now are selling for $100K or $150k over sticker? Anyone try to buy a Rolex or an AP recently?? I personally have never paid sticker for a car and I am paying MSRP for my M4. Such is life. Also, I'd say people are full of it saying that dealerships are losing business in the long run. People go to where the deals are. Like someone said, cars are a commodity.

[Mac Daddy]

I was at my dealer last Thursday - they had a M4 allocation that wasn't spoken for at the time. MSRP. It might be gone by now, but PM me for details if you would like.

[elkid23]

Originally Posted by Brian @ Grayson BMW

Another CA sold this allocation for $5k over to a local customer.

That’s great. All the comments, for and against this practice, still stand.

[SintAFM]

Originally Posted by vj123

Things happening are slowly changing the whole way OEM are operating. For example, Ford is going to limit dealer inventory and focus towards building vehicles based on customer order. US customers are spoilt with tons of dealer inventory and incentives. Sadly, these might be things of the past and might never come back.

Maybe for the luxury/performance market. I don't think the major manufacturers want to squeeze college grads, early career professionals, new families out of the new car market entirely. Dealer inventory for those who aren't too picky and just want something relatively inexpensive and reliable definitely has its place.

In a perfect world we would just nix all dealerships and go for a factory direct model like Tesla. Who really needs a dealer or sales person anyway?

[vj123]

Originally Posted by SintAFM

Maybe for the luxury/performance market. I don't think the major manufacturers want to squeeze college grads, early career professionals, new families out of the new car market entirely. Dealer inventory for those who aren't too picky and just want something relatively inexpensive and reliable definitely has its place.

In a perfect world we would just nix all dealerships and go for a factory direct model like Tesla. Who really needs a dealer or sales person anyway?

Future is going to be a mix of both for traditional manufacturers.

Limited dealer inventory to satisfy regular customers who wants to drive the vehicle off the lot on the same day. On the other side, OEMs will prefer customers placing an order. They might even offer incentives in the beginning to promote this.