BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M2 Forum > BMW M2 Competition Model > Dealer Markups need to stop

Post Reply
 
Thread Tools Search this Thread
      09-03-2019, 05:06 PM   #1
GerryM5
Second Lieutenant
GerryM5's Avatar
United_States
250
Rep
257
Posts

Drives: BMW M2C
Join Date: Sep 2017
Location: Los Gatos, CA, USA

iTrader: (0)

I've owned eight BMWs over the years and 4 of last 5 have been M's. I'm an early adopter. But I stopped buying locally because the local dealer markups as high as $15K. I was hot to buy one of first 2019 M2C in HS but the dealer added $10K as a dealer adjustment charge. They do this all the time made it made me walk out immediately. I ordered my M2C out of state and had it shipped to me. Cost me some was a few weeks and only $300.00 extra for delivery. So for the 5th time in a row my local dealer got the middle finger from me.

It's a free market but I'm the one with the choice on how much I'll pay.
__________________
M2C 2019
135is Dinan S2
E60 M5
E39 M5 Dinan S2
E34 M5 Dinan S1
Appreciate 4
natmad667.00
BruceM983.00
      09-03-2019, 05:18 PM   #2
MystroX5
Major General
MystroX5's Avatar
6248
Rep
5,295
Posts

Drives: 2020 X7 M50i/ 911
Join Date: Dec 2018
Location: Central Pa.

iTrader: (0)

This happens all over but is random which dealer feels they can pull it off. In my little area they don’t want to lose their valued repeat customer so a discount is always negotiated in on any car they sell. I can’t pay retail for anything and I still managed to get rare items/luxury goods just fine. You just have to do what you did and cast a wider net. A “market adjustment” like Chevy dealers are doing with the new Vette is beyond cheesy used car sales tactics.
Appreciate 0
      09-03-2019, 06:43 PM   #3
seanhaus
New Member
5
Rep
14
Posts

Drives: BMW M2C
Join Date: Feb 2017
Location: San Francisco

iTrader: (0)

Part of living in the Bay Area. You should see some of the craziness Porsche dealers pull off around here.

That said, if you are looking to buy in state in the future, there are some great dealers down the coast a bit.
Appreciate 0
      09-03-2019, 06:52 PM   #4
DanG
Major General
DanG's Avatar
United_States
10449
Rep
6,878
Posts

Drives: 2018 M2 AW DCT
Join Date: Aug 2012
Location: Seattle, WA

iTrader: (1)

Garage List
2018 BMW M2  [7.68]
My dealer in Seattle never sells above MSRP. Maybe why I have bought from them over the last 30 years.
Appreciate 3
GerryM5249.50
BruceM983.00
Germanauto9665.50
      09-03-2019, 08:28 PM   #5
Malakas
Lieutenant
United_States
465
Rep
453
Posts

Drives: 2020 M2c
Join Date: Jun 2011
Location: Houston, TX

iTrader: (0)

It's surprising dealers still do this, as the car marketplace has become nation-wide with ... ahem, the internet...?!? But there are still people who walk in and impulse buy cars, and for those people who do not research, the dealership makes out huge.

I agree with the OP and find the practice insulting. Our local dealerships try to build relationships so that we come back and buy, and our friends buy, and our family buys ... from them.

My buddies and I were all buying M2c's so we could have matching track cars for DE events. We all race separately in arrive-and-drive events, but we wanted a fun car with more reasonable running costs for local DE fun. Looking around the country some dealers said they were all out of allocations (California), some wanted me to pay for allocations (Midwest), and in the end our Houston dealership locked in all 4 cars, no BS, and were awesome to deal with.
__________________
Ride: 2020 F87 M2C, 6MT Drive: Nine-Four Motorsports
Before:
2013 - 3.8L GTR, first DCT
2012 - 5.2L R8 v10, 6MT
2011 - 4.0L E92 M3, 6MT
Appreciate 0
      09-03-2019, 08:42 PM   #6
msdss
Banned
msdss's Avatar
United_States
498
Rep
697
Posts

Drives: Alpine White 2020 BMW M2C
Join Date: May 2015
Location: United States

iTrader: (0)

Garage List
Round Rock Toyota has a Supra with a "Market Adjustment" of $15,000.

Meanwhile loads of dealerships currently have them for sticker.

They are catering to the "I need this right now" people, who have more money than sense.
Appreciate 1
Supernaut391.00
      09-03-2019, 09:28 PM   #7
pz619
Brigadier General
3276
Rep
3,254
Posts

Drives: F87 M2C 6MT, Tesla 3
Join Date: Oct 2013
Location: San Diego

iTrader: (1)

Frankly, I would happily pay MSRP every time if it guarantees I never have to work with a dealership ever again.
Appreciate 1
bri10425758.50
      09-03-2019, 09:59 PM   #8
KevinM
Brigadier General
KevinM's Avatar
2931
Rep
3,285
Posts

Drives: 2002 M5;2007 M Coupe;2020 M2C
Join Date: Jul 2011
Location: Tucson

iTrader: (0)

Garage List
2020 M2 Competition  [10.00]
2007 E86 M coupe  [8.38]
2002 E39 M5  [9.00]
I don't think anyone is trying for over MSRP on the M2C now, but certainly that was often the case for MY 2019 and earlier for 2020s. My local dealer occasionally does the markup BS, but they will remove it if you are serious. I didn't order my 2020 M2C from them because they didn't have an allocation when I wanted one,

What is shocking to me in the internet age is that anyone would pay above MSRP vs. buying out of state and having the car shipped (or picking it up). This goes both ways of course; consumers want a bargain (e.g., $500 to $1000 above invoice) and dealers want to maximize profits (at least MSRP or more if demand allows). Complicating the whole thing are the incentives ("trunk money") that dealers get from manufacturers for some cars. This information is not available to consumers (or at least not readily).

I think we'd all be happier if a reasonable transparent dealer profit margin was the standard. Telsa already does direct to consumer purchases (although I don't know the profit margin) and I imagine other car companies will follow.

P.S.: OP, nice stable!
__________________
2020 F87 M2C Hockenheim Silver/MT
2002 E39 M5 Sterling Gray/Caramel
2007 E86 Z4M Coupe Silver Gray/Black
2021 Kia Telluride (hauler)

Last edited by KevinM; 09-03-2019 at 10:01 PM.. Reason: P.S.
Appreciate 2
nomoracin758.00
dmboone254970.50
      09-03-2019, 10:22 PM   #9
Bimmer28312
Major
Bimmer28312's Avatar
United_States
341
Rep
1,122
Posts

Drives: BMW N55 335xi
Join Date: Oct 2013
Location: United States

iTrader: (0)

I refuse to take my business where they mark up and rob the consumer and I live in the bay area where they mark up candy bars lol. Last two M cars had to travel 3hrs away to snag MSRP. Don't care if I earned 7 figures I wouldn't let anyone tell my money
Appreciate 0
      09-03-2019, 11:07 PM   #10
Economatic
Second Lieutenant
United_States
174
Rep
218
Posts

Drives: 2020 M2 Comp
Join Date: Oct 2018
Location: Bend, OR

iTrader: (0)

I think of the markups as an indication to take my business somewhere else. For them it's about making a quick profit and not trying to establish a long term business relationship. And that's totally fine, at least I know upfront where they stand.
Appreciate 0
      09-04-2019, 06:46 AM   #11
nomoracin
Major
United_States
758
Rep
1,015
Posts

Drives: Porsche GTS 4.0
Join Date: Jun 2018
Location: Virginia

iTrader: (1)

Garage List
Unfortunately, it's the consumers fault. The dealerships only mark them up because they know there are consumers who will pay it. So, as long as those "more money than sense" people are out there, this won't stop.
Appreciate 3
MVista280.00
Supernaut391.00
Sedan_Clan24830.50
      09-04-2019, 10:56 AM   #12
MVista
Private First Class
MVista's Avatar
280
Rep
175
Posts

Drives: 2020 M2 Comp.
Join Date: Aug 2019
Location: Los Angeles

iTrader: (0)

Garage List
Nothing wrong with dealership mark ups. Don’t like the price move on you don’t have to buy. That said I wouldn’t pay over msrp on a M car that’s going to depreciate but that’s just me, also I wouldn’t support that dealership. The only reason dealers are marking up is because people are paying. More power to em.
Appreciate 1
      09-04-2019, 11:34 AM   #13
GTIGUY1992
Private First Class
GTIGUY1992's Avatar
126
Rep
114
Posts

Drives: 2017 M2
Join Date: Oct 2018
Location: Houston

iTrader: (0)

Dealers are marking up M2Cs? Still? None of the dealers within a 150 mile radius of me have their M2 Comps. marked up, however availability seems scarce. Only a good 6-7 are available in my area (midwest US).

That said, the markup is fair and not infringing on any legality- but morally I dislike it, and I personally have little respect for quick buck middle men in any industry. If your industry exists solely thanks to endless lobbying then you're adding nothing to society.
__________________
2017 M2 6MT | 2018 C43 AMG
Appreciate 1
bobert858.50
      09-04-2019, 01:34 PM   #14
infinitekidM2C
Major General
infinitekidM2C's Avatar
United_States
4186
Rep
5,727
Posts

Drives: 2019 M2 Competition
Join Date: Nov 2007
Location: Orange County, CA

iTrader: (4)

Garage List
They won't. I like the enthusiasm and agree with you but this is just businesses trying to take advantage of the ol supply v. demand. Take your business elsewhere. A lot of people here in California have to look for dealers other than their local ones because of this. Let the sheep pay the markups.
Appreciate 1
Sedan_Clan24830.50
      09-04-2019, 05:55 PM   #15
Hankdoll
Lieutenant
Hankdoll's Avatar
United_States
136
Rep
423
Posts

Drives: M2/M3/4/5
Join Date: Jul 2005
Location: O.C., CA

iTrader: (0)

Quote:
Originally Posted by MVista View Post
Nothing wrong with dealership mark ups. Don’t like the price move on you don’t have to buy. That said I wouldn’t pay over msrp on a M car that’s going to depreciate but that’s just me, also I wouldn’t support that dealership. The only reason dealers are marking up is because people are paying. More power to em.
My local dealer puts ridiculous mark ups on their M cars. They also treat customers that did not purchase from them as second class citizens. As such, I can't even service my cars at my local dealer anymore and that is inconvenient and somewhat frustrating.
__________________
Appreciate 0
      09-04-2019, 08:46 PM   #16
KevinM
Brigadier General
KevinM's Avatar
2931
Rep
3,285
Posts

Drives: 2002 M5;2007 M Coupe;2020 M2C
Join Date: Jul 2011
Location: Tucson

iTrader: (0)

Garage List
2020 M2 Competition  [10.00]
2007 E86 M coupe  [8.38]
2002 E39 M5  [9.00]
Quote:
Originally Posted by Hankdoll View Post
My local dealer puts ridiculous mark ups on their M cars. They also treat customers that did not purchase from them as second class citizens. As such, I can't even service my cars at my local dealer anymore and that is inconvenient and somewhat frustrating.
How is that? The service department is usually completely separate from sales. Hell, my service department has never asked where I purchased any of my BMWs from. I haven't purchased a BMW from my local dealer for over 10 years, but I still get a BMW loaner for service, etc.
__________________
2020 F87 M2C Hockenheim Silver/MT
2002 E39 M5 Sterling Gray/Caramel
2007 E86 Z4M Coupe Silver Gray/Black
2021 Kia Telluride (hauler)
Appreciate 1
Sedan_Clan24830.50
      09-04-2019, 09:22 PM   #17
Msmall143
Lieutenant
269
Rep
486
Posts

Drives: BMW M4, BMW S1000RR
Join Date: Mar 2016
Location: Loudon VA

iTrader: (0)

Quote:
Originally Posted by pz619 View Post
Frankly, I would happily pay MSRP every time if it guarantees I never have to work with a dealership ever again.
teslas model
Appreciate 1
pz6193275.50
      09-04-2019, 11:44 PM   #18
c1pher
Primo Generalissimo
c1pher's Avatar
United_States
4546
Rep
3,996
Posts

Drives: All of them
Join Date: Jun 2009
Location: DC area

iTrader: (0)

Garage List
Anything is worth what someone is willing to pay. There is a BMW dealer in the DC area notorious for doing ADM and has a general snootiness about them. It’s easy to go elsewhere. They don’t have a lock on the product. But with that said, as Bobby Brown said, it’s their prerogative.
Appreciate 0
      09-04-2019, 11:45 PM   #19
1bmwaddict
No music no life....
1bmwaddict's Avatar
775
Rep
704
Posts

Drives: 22" F95
Join Date: Dec 2015
Location: West Palm Beach

iTrader: (3)

I live in florida... always buy my bmw upnorth.



Quote:
Originally Posted by GerryM5 View Post
I've owned eight BMWs over the years and 4 of last 5 have been M's. I'm an early adopter. But I stopped buying locally because the local dealer markups as high as $15K. I was hot to buy one of first 2019 M2C in HS but the dealer added $10K as a dealer adjustment charge. They do this all the time made it made me walk out immediately. I ordered my M2C out of state and had it shipped to me. Cost me some was a few weeks and only $300.00 extra for delivery. So for the 5th time in a row my local dealer got the middle finger from me.

It's a free market but I'm the one with the choice on how much I'll pay.
__________________
RETIRED: '18 SMB M3CS
RETIRED: '16 MB M4GTS
RETIRED: '16 BLK M2
Appreciate 0
      09-05-2019, 07:20 AM   #20
nomoracin
Major
United_States
758
Rep
1,015
Posts

Drives: Porsche GTS 4.0
Join Date: Jun 2018
Location: Virginia

iTrader: (1)

Garage List
Quote:
Originally Posted by c1pher View Post
Anything is worth what someone is willing to pay. There is a BMW dealer in the DC area notorious for doing ADM and has a general snootiness about them. It’s easy to go elsewhere. They don’t have a lock on the product. But with that said, as Bobby Brown said, it’s their prerogative.
which dealership?
Appreciate 0
      09-05-2019, 12:56 PM   #21
goku7
Second Lieutenant
goku7's Avatar
United_States
173
Rep
245
Posts

Drives: 2020 BMW M2C ED 08/2019
Join Date: Nov 2018
Location: Bay Area, CA

iTrader: (0)

Location: Los Gatos. That explains the markups lol. When there is demand there will be market for markups. It will stop when customers stop paying for it. But the young techie who is making 300k straight out of college and buying first car after googling best sports car will be easily gullible into paying 10k above msrp to get the best thing. The new hire in my team did that. Bought a hs m2c for 10k markup from Stevens creek bmw(heck a young product manager in next team just got a mclaren 570 from mclaren sf).I went to test drive m2c in BMW Mountain View. They were asking 5k markup and no option for ED. I said no thank you and placed an order out of state. Later they kept bugging me dropping markup + offering free add ons + 500 off msrp and so on. It got sold 3 weeks later with the markup.

Last edited by goku7; 09-05-2019 at 01:02 PM..
Appreciate 0
      09-05-2019, 01:53 PM   #22
Hankdoll
Lieutenant
Hankdoll's Avatar
United_States
136
Rep
423
Posts

Drives: M2/M3/4/5
Join Date: Jul 2005
Location: O.C., CA

iTrader: (0)

Quote:
Originally Posted by KevinM View Post
How is that? The service department is usually completely separate from sales. Hell, my service department has never asked where I purchased any of my BMWs from. I haven't purchased a BMW from my local dealer for over 10 years, but I still get a BMW loaner for service, etc.
They have it notated in their service database. They only offer loaners to customers that bought their car from them (so they need to know).
__________________
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 09:12 AM.




m2
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST