Dealing with BMW dealer, worth buying a demo car?

[Deactivated] on 25/02/2014 - 12:57

Preemptive apologies if there's another thread for this, was expecting something like https://www.ozbargain.com.au/node/133897 from search result but couldn't find one.

Was in a dealer shop yesterday to figure out models and pricing for budgeting purpose, no real negotiation involved. The initial quote that we received is:

320i $54,545
M Sport - $5,804
Sunroof - $2,041
Seat adjuster $1,503
Park sensor $489
Metallic paint $1,286

pre delivery charge $3,995
In total w/o tax $69,663

GST $6,966
LXT $376
Stamp duty $3,860
Rego $862
In total with tax $81,728

Dealer also mentioned there's an option to buy a demo car which is circa $70-75k for similar spec.

The question is, considering discount that I can get through some neg, is buying demo car still worth?
Assuming we are going after <6m old demo car. (I know there's huge discount for >6m old demo cars)

Thanks in advance for any advice!

P.S: I've impressed there's no hard sell like "I've spent this much time for you blah" which is a usual tactics in cheaper brand like Toyota..

Automotive

Comments

  • Shadowsfury on 25/02/2014 - 13:08

    What's stopping you from negotiating on a demo car too?

    • [Deactivated] on 25/02/2014 - 13:21

      it's doable but just want to know it's still cost-effective or even average discount percentage on new vs demo car. Just would like to hear from someone had similar experience.

  • steviee on 25/02/2014 - 13:44
    +2

    Hi make sure you are comparing Apples to Apples, i.e if the demo doesn't have the sunroof it should be $2200 cheaper anyway, personally i think buying a Demo would have to mean quite a decrease in price, keep in mind technically it is second hand, and has already been registered, so it may have already eaten into the first 3-6 months of the warranty, you are doing them a big favor buying it, not the other way round which is the way they will be describing it, oh look it is near the end of the month, might be worth a phone call to see if he can make it any more attractive to you, AVOID making an offer, let them make the first offer, if he takes $5k of his previous figure you know he can go another $1K, if he takes $10k of he can come even lower, good luck.

    • [Deactivated] on 25/02/2014 - 13:57

      Yea they mentioned warranty will be subtracted as if it's a second-hand car. Thanks for advice.

  • daewoo on 25/02/2014 - 13:59
    +4

    Been in this boat before for a similarly priced BMW. Here are my experiences, I'm sure there are people who have have haggled more or less off:

    A dealer I liked revealed (and take this purely as a guide):
    - A model they have to order in for you, you will be lucky to haggle a few thousand off (go for gold though).
    - New floor stock, you could haggle ~$7,000 off RRP.
    - A demo (in my case with almost 8,000km on the clock, 1 year old) saved ~$14,000 off RRP.
    - 2nd hand used dealer BMW's were quite bad value compared to the demo scenario.

    Find out what time of a month they have a sales target for. You will also find certain BMW dealers have 50+ new BMW's in stock just sitting there, which costs them money in interest and depreciation to hold. Expect to get options you may not like (e.g. I know someone who took cream interior) etc…

    • [Deactivated] on 25/02/2014 - 14:10

      Thanks for the advice. Tho unsure how to figure out "Find out what time of a month they have a sales target for" Don't think I can just ring them and ask "Hey, which date you need to meet sales target by?"

    • Almost Banned on 25/02/2014 - 14:49
      +2

      I think this is all very interesting and useful but just had to raise one minor quibble…
      I assume you mean when you say 'off RRP' you mean off the RRP off the RRP of a brand new identical vehicle.
      But this is not an accurate comparison because you are comparing the price of a used car against a new one. So it isn't a true 'saving'. I have seen this type of comparison before and it irks me.
      Its only a saving if the price is below the normal price of a one year old car.

  • Daabido on 25/02/2014 - 14:09
    +2

    A 320i with a few options has a list price of $80k+?

    I wouldn't even pay $55k for a 320i with those options, on the road, but I guess I am not the target market.

    The best price I have ever got on a car was when I didn't give a … Threw out some lowball figure, got no, no, no from lots of dealers, waited a few days, the original called back and said they could do it.

    I watched my Mum do that once. Sat in the dealership for a couple of hours until they agreed to her price. Then they tried to swap aftermarket air conditioning for factory air conditioning (this was a long time ago). That didn't fly naturally.

    Start at 20% below retail, more for the demo. When they say no, just wait and see what they come back with over a few days. This isn't a $20k buzz box you are talking about. There's some fat in there somewhere.

  • Aydin on 25/02/2014 - 14:11
    +10

    Many years ago I worked at BMW (in IT).
    Their demo cars get taken home by staff and are thrashed/raped/pillaged.

    Then again if you fall in love, it doesn't matter if twenty guys have been through her…

    • Ozfan on 28/02/2014 - 14:25
      +1

      May be they could offer him a pimped deal (with accessories ;)

  • mini2 on 25/02/2014 - 14:40

    Mate bought a 328i demo recently for $67.5k driveaway and that's not the cheapest one either…

    • cintamami on 25/02/2014 - 14:41
      +1

      still a heck lot better than $81k for a 320i.

  • cintamami on 25/02/2014 - 14:40
    +4

    Understand that you are currently in no stage of making commitment, but ………

    I don't know how your budget will look like when the time comes to sell for an upgrade if you paid $80k for a 320i.

    Funny, I just had a look at a demo IS350 latest model with 4,990kms on the clock, yes, it has no sunroof, but the dealership is asking for $60k DRIVE AWAY.

    For $80k you can get:

    1. Audi A4 2.0T with some pocket money left;
    2. Audi A5 1.8T/2.0Tdi/2.0T with some pocket money left, the first 2 is actually only $70k drive away, maybe add $2-3k for a sunroof;
    3. Lexus IS350 demo or brand new if you bargain hard or they are desperate;
    4. Heck I am pretty sure you will get the brand new upcoming model of Merc C 200 Kompressor for that kind of coin.

    Either the above options, or…… you need to hire a professional who can milk the juice out of the stealership who clearly is going to steal your money at that rate.

  • Amaris on 25/02/2014 - 14:46
    +1

    The list price of a base 320i is 60k. In NSW the driveaway price is $65,680. This is on the BMW site.
    The recommended dealer delivery is $2500. According to the BMW the car comes with electric seat adjustment with memory so it should not be extra. In general it is said that you can get at the minimum 10% off the car price at this price range. I think he's quoted a high price to allow himself room to come down. I would be looking for this car for about $70k. Play one dealer against the other. You don't need written quotes. Have finance organised beforehand and get BMW Finance to match it.

    • cintamami on 25/02/2014 - 16:23
      +1

      BMW finance is normally is one of the most competitive car finance out there. I have a few clients who have been getting 6% something with them.

      The OP just needs to fix the purchase price.

      Value wise, I think the OP should be able to get all his options for $60k drive way, or $65k max.

      OP needs to play ball, remember…. you DON'T need a new car, but they DO need to sell it.

      • [Deactivated] on 25/02/2014 - 16:58

        Thanks for information about BMW finance.

        The only thing that I heard about them from the dealer is their guaranteed buy-back program that they will buy the car by the end of finance in agreed value, regardless the market price however need to set annual max KMs.

        Applies to both purchase and lease.

        • cintamami on 25/02/2014 - 19:21

          Buy back program shouldn't have any effect on how much you purchased your car for. Don't be fooled.

      • Amaris on 25/02/2014 - 18:21

        BMW CAN be one of the most competitive. They do need to be negotiated with though. The best way to negotiate is to have finance already pre-approved. I had IMB pre-approve my application. BMW's initial quote for me was $1190/- a month. Got them right down to $1025 a month after I fixed the sale price first and told them I will go with IMB unless they bettered the offer.
        Guaranteed value is something you need to agree on before you buy the car. This is not necessarily the best way to sell the car at the end though. You will 95% of the time be able to get a higher price if you sell privately. Otherwise their business model is a failure.

  • cloo on 26/02/2014 - 08:45

    That price looks like one they'd give to a walk in who isn't a serious buyer. There is a lot of room to move on that. Once they know you're serious you can negotiate. Also try another dealer, it's worth shopping around once you know exactly what you want.

  • [Deactivated] on 26/02/2014 - 13:43
    +1

    Thanks for all the inputs. I will target somewhere between $60-$70k for floor stock model and will update this with my experience when the time come.

    • mini2 on 27/02/2014 - 13:29

      Wait till June, it's not that far away either.

  • onlyletters on 27/02/2014 - 11:24

    I would only buy a demo if it had extended warranty with it and it was an automatic. Can you imagine how many times it was stalled as a manual car?

  • 1bug on 06/03/2014 - 01:20

    With negotiation, you can factory order a similarly spec'd 328i for less than $81K.
    To find out what Aussie forum members are paying, refer to F30post (go back a few pages and read the most recent posts)…

    http://www.f30post.com/forums/showthread.php?t=675348&page=2…

    You can even join F30post (free) and post a few questions there.

    Good Luck.

  • Foxtail on 06/03/2014 - 10:42

    I purchased a demo Mercedes 3 years go from Merc Dealer , had just 6000K's on clock, new was around $65K paid $48, still had 2 years warranty left, been an excellent car, so IMO I'd say why not a demo.

  • ChickenTalon on 06/03/2014 - 16:47

    Reading this is so depressing.

    My GF, just before we started going out, walked into a Mini showroom and ordered the basic mini with every option box ticked. $53k…. my ozb eyes still water when I think about how much money she burned that day.

    Didn't haggle, didn't upgrade to the S which included a lot of the options, didn't take any of the packages, didn't neg anything extra for paying cash. sigh

  • ChickenTalon on 06/03/2014 - 16:50

    I've heard that a good deal can also be had after a few weekends of rain? Apparently there is a lot less traffic into the dealships when the weather is bad, if you get a rainy month they'll be much more likely to deal at the end of it.

    Can anyone on the inside confirm this?

  • [Deactivated] on 21/10/2014 - 00:49

    So, just for someone will search this.

    I signed a contract today for new Mercedes Benz B250 with sunroof option.

    On-road cost is $54,439 with 3 years free service + roadside.

    Drive Away Price on homepage is $55,773.36 and sunroof RRP is $1,490 So got about 5% off.

    Someone in whirlpool says 10% off is doable but not really inclined to go that far. Esp. when there's free services.(over $2k savings)

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