BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M2 Forum > Pricing / Ordering / European Delivery / PCD > 2020 M2 Comp - Massively Discounted

Post Reply
 
Thread Tools Search this Thread
      03-26-2020, 09:23 AM   #23
Flatfoot
Registered
0
Rep
4
Posts

Drives: Golf R
Join Date: Mar 2020
Location: Pittsburgh, PA

iTrader: (0)

Thanks!
Appreciate 0
      03-27-2020, 07:48 AM   #24
mclarenmaniac
Lieutenant
mclarenmaniac's Avatar
United_States
86
Rep
490
Posts

Drives: Porsche, BMW, Mini
Join Date: Mar 2010
Location: NOVA

iTrader: (0)

Quote:
Originally Posted by shkswimming View Post
Can I get pm with info as well?

Thanks!
Done ..check your inbox
__________________
2019 Porsche 991.2 GT3 RS Lava Orange
2021 Mini CS GP3 AND 2014 Mini CS Countryman
2013 BMW F10 M5 Unique Havana Metallic - Sold
2018 Porsche 991.2 GT3 Lava Orange - Sold
2011 E92 M3 AND 2006 BMW E46 330ci - Sold
Appreciate 0
      03-27-2020, 07:50 AM   #25
mclarenmaniac
Lieutenant
mclarenmaniac's Avatar
United_States
86
Rep
490
Posts

Drives: Porsche, BMW, Mini
Join Date: Mar 2010
Location: NOVA

iTrader: (0)

Quote:
Originally Posted by Flatfoot View Post
trying to get this info myself, but not sure how to PM on here. I just signed up maybe that is the reason
Done ..sent you the info
__________________
2019 Porsche 991.2 GT3 RS Lava Orange
2021 Mini CS GP3 AND 2014 Mini CS Countryman
2013 BMW F10 M5 Unique Havana Metallic - Sold
2018 Porsche 991.2 GT3 Lava Orange - Sold
2011 E92 M3 AND 2006 BMW E46 330ci - Sold
Appreciate 0
      03-31-2020, 09:11 PM   #26
23109VC
Private First Class
49
Rep
153
Posts

Drives: 2016 X5
Join Date: Nov 2018
Location: SoCal

iTrader: (0)

I am wondering if with the COVID-19 issues - people losing income, people not shopping for luxury cars as much - if prices will come down even more. I am wondering if deals like this will be the norm for the near future...or if deals will get even better.

anyone get any quotes on in stock stuff? I wonder how much they will discount stuff?
__________________
Sean
2016 sDrive 35i
Future F80 M3 owner...
Appreciate 0
      03-31-2020, 09:20 PM   #27
chris719
Brigadier General
3298
Rep
3,674
Posts

Drives: '08 M Roadster
Join Date: Oct 2007
Location: NJ

iTrader: (0)

Quote:
Originally Posted by 23109VC View Post
I am wondering if with the COVID-19 issues - people losing income, people not shopping for luxury cars as much - if prices will come down even more. I am wondering if deals like this will be the norm for the near future...or if deals will get even better.

anyone get any quotes on in stock stuff? I wonder how much they will discount stuff?
I've been wondering myself. I got a ridiculously good deal on my Z4M in 2008. I imagine the same thing will happen this time around. If times are truly tough then people will not spend on luxuries.
Appreciate 0
      03-31-2020, 09:23 PM   #28
23109VC
Private First Class
49
Rep
153
Posts

Drives: 2016 X5
Join Date: Nov 2018
Location: SoCal

iTrader: (0)

Quote:
Originally Posted by chris719 View Post
I've been wondering myself. I got a ridiculously good deal on my Z4M in 2008. I imagine the same thing will happen this time around. If times are truly tough then people will not spend on luxuries.
I have been shopping for an M car for the past year...more researching with the expectation that I won't really be ready to buy for 6-12 months.but if super deals can be had now b/c dealers are starving for business I could see it making sense sooner. a lot of people are losing their jobs and some self employed people are seeing massive hits to their businesses... I would think the volume of people buying these cars is dropping quite a bit
__________________
Sean
2016 sDrive 35i
Future F80 M3 owner...
Appreciate 0
      03-31-2020, 09:28 PM   #29
chris719
Brigadier General
3298
Rep
3,674
Posts

Drives: '08 M Roadster
Join Date: Oct 2007
Location: NJ

iTrader: (0)

Quote:
Originally Posted by 23109VC View Post
I have been shopping for an M car for the past year...more researching with the expectation that I won't really be ready to buy for 6-12 months.but if super deals can be had now b/c dealers are starving for business I could see it making sense sooner. a lot of people are losing their jobs and some self employed people are seeing massive hits to their businesses... I would think the volume of people buying these cars is dropping quite a bit
I think a lot of people believe this will pass in a month or two. I'm not sure this situation is going to be back to normal until we get a safe and effective vaccine, so I figure up to a year. I'd guess deep discounts start showing up in a couple months.
Appreciate 0
      03-31-2020, 09:30 PM   #30
23109VC
Private First Class
49
Rep
153
Posts

Drives: 2016 X5
Join Date: Nov 2018
Location: SoCal

iTrader: (0)

Quote:
Originally Posted by chris719 View Post
Quote:
Originally Posted by 23109VC View Post
I have been shopping for an M car for the past year...more researching with the expectation that I won't really be ready to buy for 6-12 months.but if super deals can be had now b/c dealers are starving for business I could see it making sense sooner. a lot of people are losing their jobs and some self employed people are seeing massive hits to their businesses... I would think the volume of people buying these cars is dropping quite a bit
I think a lot of people believe this will pass in a month or two. I'm not sure this situation is going to be back to normal until we get a safe and effective vaccine, so I figure up to a year. I'd guess deep discounts start showing up in a couple months.
I guess it depends on how long this lasts for... if 60-90 days sales are still in the toilet we will see deals get better and better

They can't let the cars stack up too much on the lot
__________________
Sean
2016 sDrive 35i
Future F80 M3 owner...
Appreciate 0
      04-01-2020, 03:03 AM   #31
mbchris
Private
42
Rep
71
Posts

Drives: Volvo S90
Join Date: Apr 2018
Location: Dallas TX

iTrader: (0)

Quote:
Originally Posted by 23109VC View Post
Quote:
Originally Posted by chris719 View Post
Quote:
Originally Posted by 23109VC View Post
I have been shopping for an M car for the past year...more researching with the expectation that I won't really be ready to buy for 6-12 months.but if super deals can be had now b/c dealers are starving for business I could see it making sense sooner. a lot of people are losing their jobs and some self employed people are seeing massive hits to their businesses... I would think the volume of people buying these cars is dropping quite a bit
I think a lot of people believe this will pass in a month or two. I'm not sure this situation is going to be back to normal until we get a safe and effective vaccine, so I figure up to a year. I'd guess deep discounts start showing up in a couple months.
I guess it depends on how long this lasts for... if 60-90 days sales are still in the toilet we will see deals get better and better

They can't let the cars stack up too much on the lot
They also don't necessarily need to restart factories if demand is not there. Back in 2008 extended factory shut down was one of the things bmw did from memory as well as discounting.
Appreciate 0
      04-01-2020, 07:49 AM   #32
///AVM
Lieutenant
///AVM's Avatar
United_States
522
Rep
500
Posts

Drives: 718 CGTS
Join Date: Aug 2019
Location: U.S.A.

iTrader: (0)

With specific regard to car sales . . . everything from production to sales have all but come to a stop . . . both demand and supply are at a static nadir. Not sure how it can get any worse for dealerships from a sales perspective?

I am confident dealerships are willing make some great deals right NOW, but there is no benefit or impetus for them to sell cars at a loss – that does not help their cause. In other words, I am of the perspective that the best deals are available right NOW, and the deals are not going to get any better with regard to negotiating down from MRSP.

What will likely happen is that, once things are on the upswing, BMW will likely offer stimulus to purchase/lease via financing options. . . but I do not believe dealerships will be any more willing to ‘deal’ than they are right NOW.

At the end of the day, they can only offer so much off MRSP before losing money on the sale. What is the break-even point for a M2C? I SUSPECT somewhere around 10-12% off MRSP, and that is not going to change moving forward.

///AVM
Appreciate 0
      04-02-2020, 04:41 PM   #33
JCZ5
Captain
JCZ5's Avatar
465
Rep
615
Posts

Drives: BMW X5 (G05)
Join Date: Mar 2019
Location: NYC

iTrader: (0)

Quote:
Originally Posted by ///AVM View Post
With specific regard to car sales . . . everything from production to sales have all but come to a stop . . . both demand and supply are at a static nadir. Not sure how it can get any worse for dealerships from a sales perspective?

I am confident dealerships are willing make some great deals right NOW, but there is no benefit or impetus for them to sell cars at a loss – that does not help their cause. In other words, I am of the perspective that the best deals are available right NOW, and the deals are not going to get any better with regard to negotiating down from MRSP.

What will likely happen is that, once things are on the upswing, BMW will likely offer stimulus to purchase/lease via financing options. . . but I do not believe dealerships will be any more willing to 'deal' than they are right NOW.

At the end of the day, they can only offer so much off MRSP before losing money on the sale. What is the break-even point for a M2C? I SUSPECT somewhere around 10-12% off MRSP, and that is not going to change moving forward.

///AVM
Always value your perspective and insights.

However, the dealer taking a "loss" number is always changing based on incentive, likes you mentioned. But also, let's not forget the decreases staffing that they no longer have to pay. Employee salary is one of the largest expenses for a dealer and that typically influences heavily on what is their drop dead number. Now that only a few employees are working, that allows dealers greater flexibility and decrease the drop dead number to move the vehicle.

I still think end of the this month and early next month would be great times to buy. There are currently over 300 new M2Cs nationwide. In an already niche market, that is a lot of vehicles to move. Not to mention when June / July roles around, hopefully Germany will reopen their manufacturing and more M2Cs will come abroad (saying June and July for Germany reopening is because they out of any of the western countries have the most control over this outbreak and their numbers are much lower than any comparable country. Here's hoping that continues and they can be the model to get things back to "normal")
Appreciate 0
      04-02-2020, 05:17 PM   #34
///AVM
Lieutenant
///AVM's Avatar
United_States
522
Rep
500
Posts

Drives: 718 CGTS
Join Date: Aug 2019
Location: U.S.A.

iTrader: (0)

Quote:
Originally Posted by JCZ5 View Post
Quote:
Originally Posted by ///AVM View Post
With specific regard to car sales . . . everything from production to sales have all but come to a stop . . . both demand and supply are at a static nadir. Not sure how it can get any worse for dealerships from a sales perspective?

I am confident dealerships are willing make some great deals right NOW, but there is no benefit or impetus for them to sell cars at a loss – that does not help their cause. In other words, I am of the perspective that the best deals are available right NOW, and the deals are not going to get any better with regard to negotiating down from MRSP.

What will likely happen is that, once things are on the upswing, BMW will likely offer stimulus to purchase/lease via financing options. . . but I do not believe dealerships will be any more willing to 'deal' than they are right NOW.

At the end of the day, they can only offer so much off MRSP before losing money on the sale. What is the break-even point for a M2C? I SUSPECT somewhere around 10-12% off MRSP, and that is not going to change moving forward.

///AVM
Always value your perspective and insights.

However, the dealer taking a "loss" number is always changing based on incentive, likes you mentioned. But also, let's not forget the decreases staffing that they no longer have to pay. Employee salary is one of the largest expenses for a dealer and that typically influences heavily on what is their drop dead number. Now that only a few employees are working, that allows dealers greater flexibility and decrease the drop dead number to move the vehicle.

I still think end of the this month and early next month would be great times to buy. There are currently over 300 new M2Cs nationwide. In an already niche market, that is a lot of vehicles to move. Not to mention when June / July roles around, hopefully Germany will reopen their manufacturing and more M2Cs will come abroad (saying June and July for Germany reopening is because they out of any of the western countries have the most control over this outbreak and their numbers are much lower than any comparable country. Here's hoping that continues and they can be the model to get things back to "normal")
JC

When it comes to business matters, I'm not about to question your insight. I know you are quite savvy. On the other hand, I have admittedly never taken a business class in my life. So, I welcome some edification.

My impression over the years I have been purchasing vehicles is that there is the MRSP, then there is the price the manufacturer charges the dealership for the same vehicle. The difference between the two being the 'wiggle room' the dealership has to negotiate sales price.

The less the dealership negotiates off MRSP, the more they make, and vice-versa. What they 'make' contributes to overhead and profit margin.

On a different front, the dealerships do not finance cars themselves. This is handled directly through the manufacturer.

So, for example, BMW can set the APR wherever they want and it has zero direct impact on the dealership margin. I say 'direct' because it is not directly associated with dealership cost or gain associated with sales. Indirectly, of course, the APR has an impact on buyer interest/ability to make a purchase.

Based on your post, it seems things are not so simple as I have made them out.

Thanks brother

///AVM
Appreciate 1
JCZ5465.00

      04-02-2020, 08:30 PM   #35
JCZ5
Captain
JCZ5's Avatar
465
Rep
615
Posts

Drives: BMW X5 (G05)
Join Date: Mar 2019
Location: NYC

iTrader: (0)

@///AVM you have great perspective and I absolutely agree with you on the APR.

I just wanted to bring up the idea of manufacturer trunk money or any other applicable manufacture incentives for the dealer. Also, dealer invoice does not necessary mean what the actual dealer paid for the vehicle. Volume dealers or VIP dealers receive extra deals where they acquired the vehicle at much lower costs than maybe a competitor dealer across town. The unfortunate matter is as a consumer, we do not have price transparency, similar to the healthcare market.

So to play this out, let's pretend invoice for the M2C is $50K. However, a preferred dealer may buy this vehicle at $48K. Off the bat, this preferred dealer already has an additional $2K to play around with compared to someone across town.

In addition to the $48K, BMW offered applicable incentives, such as the $1000 dealer payout that was recently announced for each vehicle sold. Not to mention the additional tiered incentive a dealer may receive for X vehicles sold. In this example, let's assume the dealer has made the quote to receive an extra $300 for each vehicle sold.

Therefore, the dealer now as a potential of $1.3K. So if dealer is motivated, they may sell the vehicle at $47K (considered at a loss, since dealer paid $48K). However, the dealer will receive that $300 incentive from the manufacture. Now $300 does not seem much, but that certainly adds up for vehicles that the dealer have issues moving. And by and large, most consumers do not have the information to ask for that low of an amount. And even savvy negotiators on this forum usually ask for "invoice" + $1000. If we look at this math, the dealer would have happily sold at $51K, even though they may have also been willing to sell at $47K.

Now obviously I gave a very basic example. I keep referring to a tiered incentive approach at the end of the month or quarter. All that adds up to a relatively complicated model. However, a savvy dealer will understand how this works and a good percentage of their profit will come from manufacture incentives based on volume sales.
Appreciate 3
///AVM521.50
ewohar12.50

      04-02-2020, 08:36 PM   #36
flybigjet
Remove Before Flight
flybigjet's Avatar
United_States
1112
Rep
581
Posts

Drives: a light twin from Boeing.
Join Date: Dec 2019
Location: Denver, CO

iTrader: (0)

Sadly, I put down a $5000 deposit on an M2C Allocation order in January. The car should be here in a week or two, but I suppose I'm rather locked in on price.

That's the way the cookie crumbles, I guess.

I actually thought of walking away, but I figured I could always sell the car if need be and the loss would be close enough to a wash that I'm willing to take a chance that we'll pull out of this Klingon Death Spiral in a few months.

Last edited by flybigjet; 04-02-2020 at 09:23 PM..
Appreciate 0
      04-02-2020, 08:38 PM   #37
///AVM
Lieutenant
///AVM's Avatar
United_States
522
Rep
500
Posts

Drives: 718 CGTS
Join Date: Aug 2019
Location: U.S.A.

iTrader: (0)

Quote:
Originally Posted by JCZ5 View Post
@///AVM you have great perspective and I absolutely agree with you on the APR.

I just wanted to bring up the idea of manufacturer trunk money or any other applicable manufacture incentives for the dealer. Also, dealer invoice does not necessary mean what the actual dealer paid for the vehicle. Volume dealers or VIP dealers receive extra deals where they acquired the vehicle at much lower costs than maybe a competitor dealer across town. The unfortunate matter is as a consumer, we do not have price transparency, similar to the healthcare market.

So to play this out, let's pretend invoice for the M2C is $50K. However, a preferred dealer may buy this vehicle at $48K. Off the bat, this preferred dealer already has an additional $2K to play around with compared to someone across town.

In addition to the $48K, BMW offered applicable incentives, such as the $1000 dealer payout that was recently announced for each vehicle sold. Not to mention the additional tiered incentive a dealer may receive for X vehicles sold. In this example, let's assume the dealer has made the quote to receive an extra $300 for each vehicle sold.

Therefore, the dealer now as a potential of $1.3K. So if dealer is motivated, they may sell the vehicle at $47K (considered at a loss, since dealer paid $48K). However, the dealer will receive that $300 incentive from the manufacture. Now $300 does not seem much, but that certainly adds up for vehicles that the dealer have issues moving. And by and large, most consumers do not have the information to ask for that low of an amount. And even savvy negotiators on this forum usually ask for "invoice" + $1000. If we look at this math, the dealer would have happily sold at $51K, even though they may have also been willing to sell at $47K.

Now obviously I gave a very basic example. I keep referring to a tiered incentive approach at the end of the month or quarter. All that adds up to a relatively complicated model. However, a savvy dealer will understand how this works and a good percentage of their profit will come from manufacture incentives based on volume sales.
My man!

Way beyond what my simple business mind ever considered.

I'm calling you before my next purchase

///AVM
Appreciate 0
      04-02-2020, 08:44 PM   #38
Shield_F32
Second Lieutenant
United_States
25
Rep
236
Posts

Drives: F32
Join Date: May 2011
Location: New York

iTrader: (0)

Quote:
Originally Posted by JCZ5 View Post
@///AVM you have great perspective and I absolutely agree with you on the APR.

I just wanted to bring up the idea of manufacturer trunk money or any other applicable manufacture incentives for the dealer. Also, dealer invoice does not necessary mean what the actual dealer paid for the vehicle. Volume dealers or VIP dealers receive extra deals where they acquired the vehicle at much lower costs than maybe a competitor dealer across town. The unfortunate matter is as a consumer, we do not have price transparency, similar to the healthcare market.

So to play this out, let's pretend invoice for the M2C is $50K. However, a preferred dealer may buy this vehicle at $48K. Off the bat, this preferred dealer already has an additional $2K to play around with compared to someone across town.

In addition to the $48K, BMW offered applicable incentives, such as the $1000 dealer payout that was recently announced for each vehicle sold. Not to mention the additional tiered incentive a dealer may receive for X vehicles sold. In this example, let's assume the dealer has made the quote to receive an extra $300 for each vehicle sold.

Therefore, the dealer now as a potential of $1.3K. So if dealer is motivated, they may sell the vehicle at $47K (considered at a loss, since dealer paid $48K). However, the dealer will receive that $300 incentive from the manufacture. Now $300 does not seem much, but that certainly adds up for vehicles that the dealer have issues moving. And by and large, most consumers do not have the information to ask for that low of an amount. And even savvy negotiators on this forum usually ask for "invoice" + $1000. If we look at this math, the dealer would have happily sold at $51K, even though they may have also been willing to sell at $47K.

Now obviously I gave a very basic example. I keep referring to a tiered incentive approach at the end of the month or quarter. All that adds up to a relatively complicated model. However, a savvy dealer will understand how this works and a good percentage of their profit will come from manufacture incentives based on volume sales.
are there such incentives for used cars or are these mainly for new cars?
Appreciate 0
      04-02-2020, 08:48 PM   #39
JCZ5
Captain
JCZ5's Avatar
465
Rep
615
Posts

Drives: BMW X5 (G05)
Join Date: Mar 2019
Location: NYC

iTrader: (0)

Quote:
Originally Posted by ///AVM View Post
Quote:
Originally Posted by JCZ5 View Post
@///AVM you have great perspective and I absolutely agree with you on the APR.

I just wanted to bring up the idea of manufacturer trunk money or any other applicable manufacture incentives for the dealer. Also, dealer invoice does not necessary mean what the actual dealer paid for the vehicle. Volume dealers or VIP dealers receive extra deals where they acquired the vehicle at much lower costs than maybe a competitor dealer across town. The unfortunate matter is as a consumer, we do not have price transparency, similar to the healthcare market.

So to play this out, let's pretend invoice for the M2C is $50K. However, a preferred dealer may buy this vehicle at $48K. Off the bat, this preferred dealer already has an additional $2K to play around with compared to someone across town.

In addition to the $48K, BMW offered applicable incentives, such as the $1000 dealer payout that was recently announced for each vehicle sold. Not to mention the additional tiered incentive a dealer may receive for X vehicles sold. In this example, let's assume the dealer has made the quote to receive an extra $300 for each vehicle sold.

Therefore, the dealer now as a potential of $1.3K. So if dealer is motivated, they may sell the vehicle at $47K (considered at a loss, since dealer paid $48K). However, the dealer will receive that $300 incentive from the manufacture. Now $300 does not seem much, but that certainly adds up for vehicles that the dealer have issues moving. And by and large, most consumers do not have the information to ask for that low of an amount. And even savvy negotiators on this forum usually ask for "invoice" + $1000. If we look at this math, the dealer would have happily sold at $51K, even though they may have also been willing to sell at $47K.

Now obviously I gave a very basic example. I keep referring to a tiered incentive approach at the end of the month or quarter. All that adds up to a relatively complicated model. However, a savvy dealer will understand how this works and a good percentage of their profit will come from manufacture incentives based on volume sales.
My man!

Way beyond what my simple business mind ever considered.

I'm calling you before my next purchase

///AVM
Let's not forgot who asked who what I should offer that CPO Cayman S...

Honestly, information asymmetry still remains and unfortunately to the detriment of the consumer. Knowing how car dealers work is great, but you will never know exactly what position the dealer is in and sometimes it's just the luck of the draw.

I bring this up because of the M2C that I almost bought. That dealer went between 12-13% MSRP two months ago, just so they can capitalize on the manufacture incentives. While I know other dealers who have a larger market cannot even come close to this.

In the end, you just have to be happy to pay whatever you set your target to be, at that particular point in time. And forget about getting the best possible deal, because that is just too stressful and someone with dumb luck will always beat the deal you have .

Fun fact, of all the vehicles I am considering. I have an elaborate excel built out down to the options level. It also includes various scenario management tabs with levers that I can model. It's pretty nuts...
Appreciate 1
///AVM521.50

      04-03-2020, 05:37 PM   #40
MikeD9
New Member
MikeD9's Avatar
United_States
6
Rep
19
Posts

Drives: BMW 740il
Join Date: Apr 2020
Location: New Jersey

iTrader: (0)

Quote:
Originally Posted by JCZ5 View Post
Quote:
Originally Posted by ///AVM View Post
With specific regard to car sales . . . everything from production to sales have all but come to a stop . . . both demand and supply are at a static nadir. Not sure how it can get any worse for dealerships from a sales perspective?

I am confident dealerships are willing make some great deals right NOW, but there is no benefit or impetus for them to sell cars at a loss – that does not help their cause. In other words, I am of the perspective that the best deals are available right NOW, and the deals are not going to get any better with regard to negotiating down from MRSP.

What will likely happen is that, once things are on the upswing, BMW will likely offer stimulus to purchase/lease via financing options. . . but I do not believe dealerships will be any more willing to 'deal' than they are right NOW.

At the end of the day, they can only offer so much off MRSP before losing money on the sale. What is the break-even point for a M2C? I SUSPECT somewhere around 10-12% off MRSP, and that is not going to change moving forward.

///AVM
Always value your perspective and insights.

However, the dealer taking a "loss" number is always changing based on incentive, likes you mentioned. But also, let's not forget the decreases staffing that they no longer have to pay. Employee salary is one of the largest expenses for a dealer and that typically influences heavily on what is their drop dead number. Now that only a few employees are working, that allows dealers greater flexibility and decrease the drop dead number to move the vehicle.

I still think end of the this month and early next month would be great times to buy. There are currently over 300 new M2Cs nationwide. In an already niche market, that is a lot of vehicles to move. Not to mention when June / July roles around, hopefully Germany will reopen their manufacturing and more M2Cs will come abroad (saying June and July for Germany reopening is because they out of any of the western countries have the most control over this outbreak and their numbers are much lower than any comparable country. Here's hoping that continues and they can be the model to get things back to "normal")
Just wondering, how do you know there are 300 in stock right now?
Appreciate 0
      04-03-2020, 07:10 PM   #41
JCZ5
Captain
JCZ5's Avatar
465
Rep
615
Posts

Drives: BMW X5 (G05)
Join Date: Mar 2019
Location: NYC

iTrader: (0)

Quote:
Originally Posted by MikeD9 View Post
Quote:
Originally Posted by JCZ5 View Post
Quote:
Originally Posted by ///AVM View Post
With specific regard to car sales . . . everything from production to sales have all but come to a stop . . . both demand and supply are at a static nadir. Not sure how it can get any worse for dealerships from a sales perspective?

I am confident dealerships are willing make some great deals right NOW, but there is no benefit or impetus for them to sell cars at a loss – that does not help their cause. In other words, I am of the perspective that the best deals are available right NOW, and the deals are not going to get any better with regard to negotiating down from MRSP.

What will likely happen is that, once things are on the upswing, BMW will likely offer stimulus to purchase/lease via financing options. . . but I do not believe dealerships will be any more willing to 'deal' than they are right NOW.

At the end of the day, they can only offer so much off MRSP before losing money on the sale. What is the break-even point for a M2C? I SUSPECT somewhere around 10-12% off MRSP, and that is not going to change moving forward.

///AVM
Always value your perspective and insights.

However, the dealer taking a "loss" number is always changing based on incentive, likes you mentioned. But also, let's not forget the decreases staffing that they no longer have to pay. Employee salary is one of the largest expenses for a dealer and that typically influences heavily on what is their drop dead number. Now that only a few employees are working, that allows dealers greater flexibility and decrease the drop dead number to move the vehicle.

I still think end of the this month and early next month would be great times to buy. There are currently over 300 new M2Cs nationwide. In an already niche market, that is a lot of vehicles to move. Not to mention when June / July roles around, hopefully Germany will reopen their manufacturing and more M2Cs will come abroad (saying June and July for Germany reopening is because they out of any of the western countries have the most control over this outbreak and their numbers are much lower than any comparable country. Here's hoping that continues and they can be the model to get things back to "normal")
Just wondering, how do you know there are 300 in stock right now?
AutoTrader - Searched new M2Cs for sale nationwide. Over 300 available
Appreciate 2
      04-03-2020, 10:34 PM   #42
flybigjet
Remove Before Flight
flybigjet's Avatar
United_States
1112
Rep
581
Posts

Drives: a light twin from Boeing.
Join Date: Dec 2019
Location: Denver, CO

iTrader: (0)

So, my car made it to the dealer-- It was just a bit lost, as the delivery system from the port to the dealer is a bit of a scramble right now.

Anyhow, I talked to the GM/finance guy/sales reps for a bit today:

- They're surprisingly still selling a fair number of cars-- he estimates about half of normal volume. He was a bit surprised about that.

- Said lack of volume is impacting prices, but not in a good way. They are normally able to discount due to volume, but with no volume, no real discounts (at this point).

- Half of the staff has been put on "leave of absence". The other half of the staff is only working part time.

- The dealership (in Denver) is set up for "no-contact" sales-- there are barricades everywhere and areas taped out to stand in, avoid, etc.

- The "BMW Guru's" who give you the new car tour have been given leaves of absence. The finance guys said they were deemed "nonessential".

- I set up my loan paperwork today but didn't activate it-- The finance guy couldn't match the rate/term from my credit union, but he recommended we wait to finalize until Monday. He implied that BMW might be coming out with new rates/goodies in the finance area and we would know something on Monday.

- The I8 is a *damn* good looking car. And the M5 wheels are tasty as well.

- On a completely unrelated note, he said that the M2C prep took about 2.5-3 hours once they got it up on the lift.

- I talked to the tech for a while. I told him whatever you do, don't drill the front bumper. His response? "We NEVER drill M cars." He was pulling down the shipping blocks on the struts so we chatted a bit. I told him that I'd ordered the car in December. He said he'd figured it was a special order because they rarely see a MT M2C. Yay me.

- They had no problem installing a few goodies for me-- the steering wheel cf trim and the euro spec aspherical mirrors. I thought I'd get a bit of pushback from the mirrors as they're not DOT spec, but they truly didn't care. So again, yay me.

That's about all I remember. Picking up the car on Monday, doing a bit of work to it on Tuesday, dropping it off for detailing/paint correction/PPF on Wednesday, picking it up on Friday.

Last edited by flybigjet; 04-03-2020 at 10:42 PM..
Appreciate 0
      04-10-2020, 05:10 PM   #43
panda-R
Private First Class
111
Rep
185
Posts

Drives: 2011 M3 6MT
Join Date: Mar 2016
Location: Calgary, AB

iTrader: (0)

Quote:
Originally Posted by mbchris View Post
They also don't necessarily need to restart factories if demand is not there. Back in 2008 extended factory shut down was one of the things bmw did from memory as well as discounting.
You got it right bro. I'm wondering why everyone thinks these are going to be given away or something. Discounted yes but not given away.
Appreciate 0
      04-10-2020, 06:32 PM   #44
JCZ5
Captain
JCZ5's Avatar
465
Rep
615
Posts

Drives: BMW X5 (G05)
Join Date: Mar 2019
Location: NYC

iTrader: (0)

Quote:
Originally Posted by panda-R View Post
Quote:
Originally Posted by mbchris View Post
They also don't necessarily need to restart factories if demand is not there. Back in 2008 extended factory shut down was one of the things bmw did from memory as well as discounting.
You got it right bro. I'm wondering why everyone thinks these are going to be given away or something. Discounted yes but not given away.
I don't think anyone was being outrageous in their discount expectations. The trend seems to be around 10% off MSRP.

Expecting 15-20% is a little far fetched and unrealistic.
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 03:31 PM.




m2
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2020, 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