Lotus350

Funny thing is that, BMW has a network that allows one to purchase say from NY, and take deliver in CA for an extra few hundred dollars. So, there is no need to pay MSRP if you just shop around a bit. But, it works on good well basis. So, you need to be in good standing with the delivering dealer before they will help you out. With that, I am sure dealers who are asking for $30K over MSRP will deny or say NO to this dealer network delivery process.

I know it's there because I had a Dec. built M5 allocation in NY that was supposed to be delivered in CA. I backed out because I am thinking about getting a 997 instead. More fun...

fast1

I know I'm in the minority with my view, but I have no problem with a Dealer selling a car for whatever he can get for it. Lots of guys who complain about $10K Dealer markups would not hesitate to sell their homes for $100K more than they paid for it a year earlier.

On the other hand I would never pay over MSRP for any car. Come to think of it, I've always paid a lot less than MSRP for all of the cars I've owned. Of course I've never felt the need to be the first guy on my block to own a new model.

OCBen

To slap on 30k to the list price and call it "California Market Adjustment" is a
slap in the face to any potential customer. What an idiotic and stupid strategy
of the management of this dealership! For one thing, it lets everyone else know
loud and clear that you are one greedy SOB and have no qualms about letting
anyone know it either. Second of all, you destroy what little trust prospective
customers might have had in you as they now cast a leery eye on anything they
might buy from you, wondering if they're being taken when purchasing other
models as well.

They and other dealerships that do this pretty much know that in affluent SoCal
there is bound to be at least one sucker who is willing to pay the jacked up
price just so he can be one of the very first to have such a car. Well, they
are simply going about it the wrong way. They're trying to use what is referred
to in marketing as a "skimming" price strategy, where a new product that is
expected to have a high demand is overpriced just so only those buyers who
absolutely have to be the first on the block to have it are foolish enough to
pay the ridiculous price. Apple uses this strategy, as well as other
manufacturers of innovative products when launching initial releases. But the
difference here is that the high price IS the MSRP. And after the product has
made sufficient market penetration, and competitors catch up and jump in for a
piece of the action, the price is usually lowered. Yet, even at the reduced
price these manufacturers still have the upper hand in that by now they have
honed their production efficiency and reduced their costs and are still
able to generate decent profit margins.

But this price strategy doesn't work well for resellers of a product that
already comes with an MSRP stamped on the outside. It's not called skimming in
this case, it's called gouging, and the consumer knows he's being taken since he
can clearly see the marked up price.

A better price strategy, I think, would be to use the strategy that has been in
use here in the hot SoCal housing market. The dealer can simply state that the
price of the car is MSRP or best offer, and that interested buyers are to
submit their best offers with the understanding that the car will be sold to the
buyer with the best offer. He could also simultaneously list it on ebay to see
what it might fetch there. If the best offer comes in at only 5k over, then he
sells at that without pissing anyone off, and while preserving his good
reputation (assuming he had one).

But to seriously believe that a potential buyer will actually feel good about
getting a negotiated discount off the jacked up price is pretty naïve and
stupid. Buyers with that kind of disposable income are usually not that stupid.

boolala

I actually have no problem with dealers selling cars at what the market will bear. I don't want anyone regulating my income either (although they do it all the time). I just won't pay above MSRP. Period. If everyone felt this way the problem would disappear.The most sucessful retailers, historically, are those who have suceeded at underpricing the market not selling at a premium. So I think that this is stupid from marketing standpoint but, hey, it's their business.

LVDell

"The most sucessful retailers, historically, are those who have suceeded at underpricing the market not selling at a premium."

Only problem with that statement is that most retailers are NOT bound to allottments like the car dealers are. And therin lies the problem. If they only get "x" number of M5 slots (or whatever new model) then they are determined to take advantage of what they have.....and that is what they do since there usually is one sucker willing to pay the "market adjustment". Just sad.

OCBen

That's a very good point. I didn't think of that.

JSMDMD

The local dealer in Valencia has an M5 in the showroom.
90K sticker.
25K markup.

115K for the pleasure of driving an M5 with the I-Drive.

I'll pass thanks.

Holli82

Sorry guys, there is absolutely no reason to pay over MSRP. A few phone calls and maybe trip out of state to another dealer does not cost $25K. Worse case scenario is you pay $1000 to a trucking company. You still keep $24K.

OCBen

Yeah, I don't think anyone here, or their close friends or family member, would be stupid enough to pay over MSRP. I guess the only ones who would are those who are insecure with really big egos, who feel the need to show off to others in order to gain some measure of self worth in their eyes. And after the novelty wears off they sink into depression and become insecure once again after they realize how stupid they really were to do such a thing.

Either that or they just won $315M in the Mega Millions lottery and don't care at all about wasting money! Either way I wouldn't be able to comprehend the mindset.

teflon_jones

What a joke. I'd much rather have the last model anyway, it's a much nicer looking car, has a manual tranny, and still kicks @$$

Crazy Canuck

My business partner & I have a philosophy "Never pay retail". As you can infer I would never pay over MSRP.

I got a discount on my 997S when at first I was told "S's are all sold at MSRP" A little later it was "we will make sure we don't lose a deal" Bingo. I also ordered my car in a snowstorm, over the phone/fax, a week before Christmas and the day before I was going away for 2 weeks.

An M5 isn't a limited edition Ferrari. They will build more. A dealer who inflates the price of a car to gouge is a dealer I would not buy from. But realistically how often does a customer know that if they are in to buy a 330 or a Boxster. Do they really pay attention to what a dealer is doing on their more desirable product. I would say no. I think in this case it's a numbers game and that a dealer bets on the fact that they will lose limited business because of this practice because the number of people who knowledgable are dwarfed by the number who don't have a clue.

Lotus350

You are right on. Supposely, there are over 1,000 M5 allocation still available through the BMW dealerships. Demand is just NOT there...PERIOD. I am sure in the next 90 days or so, there will be so many M5s sitting in dealer lots that DISCOUNT is what will be needed to move them.

Let's face it, $95K for a 5sr is ALOT of money...even for a M5!! There are so many choices out there now at this price point.

I also always wonder about buying first year cars like the M5 (high tech with too many toys in it). In most cases, you don't get a discount, and you get to put up with all the recalls, frustrations and issues with first year cars, than when it comes time to sell, most buyers tend to shy away from first year built cars resulting in lower resell value.

gr8330

Same thing happened to me so I walked next door, Porsche Dealer, and drove every thing they had and bought one.

NoSubEDU

There is one dealer somewhere in the country willing to sell at MSRP or lower. Period.

I did. And I even enjoyed the ride back. ;-)

dark knight

selling at higher than MSRP hurts the buyer at resale and creates animosity, the dealer has a duty to represent the Marque and that includes providing good service in both the sales and service dept. I wont pay more than MSRP, I can wait, most shrewd people wait or buy elsewhere, for those of you willing to pay more and not wait a few weeks/mos for MSRP or less thats your choice, sometimes having it early is part of the fun, but for the rest of you I highly reccomend a trip to the Porsche factory,there you will see that they build these cars to sell, not to limit production or to use as artwork, that everyday they build more and if you wait a little bit, they'll build you one just the way you like it, I loved it (sarcasm) when dealers told me the 996 TT was a "limited production vheicle" and they were only importing 2000 into the USA and I had to pay extra because only 32 of those would be black and this dealer could get me the last unsold one at 15k over list, patience is a virtue and the reason most of you have the money for this kind of thing is the ability to invest time and delay gratification when necessary