Used BMW's and Car Buying in General

[COCA COLA COWBOY]

I just spent a few hours at the local San Diego BMW dealership to buy a used 2011 535i that fairly well equipped. I know they leak oil and there are other good cars to buy, but the wifey likes them and the used ones have 100k warranty. Anyways, I'm cheap as hell, but last I remember you could deal on cars? Literally, they would not budge on the marked down price so I had to walk. I also have spent a little time working on other dealerships online, but they seem to only be willing to sell at the online listed price.

I know there are members on here that buy cars for sport so was looking for a little help on this topic as I feel things have changed and no one told me. No matter what, I'm not paying listed price.

 

[JDKRXW]

If they don't make a move that satisfies you, write your best offer on the back of your business card, and walk away.
.... it's surprising how often you get a call later.

 

[Yellowboat]

I have been to 3 dealers in the last month, not one of them.budged even with 10k cash in their face.

 

[JB in so cal]

Step up to the mike:rolleyes

 

[whiteworks]

It's best to get their machine rolling, have them write up a purchase order and tell them you are going to acquire your own financing. Stroke them along, get them excited about the sale, let the sales guy spend the commission in his mind. Then leave, call them in 2 hours and let them know that your lender will only go to X amount (what your willing to pay) and you feel real bad but that's the deal now, right now, take it or leave it. That move is usually good for a couple grand:thumbsup

 

[JRS1939]

My best friend owns a few used car dealerships here in phoenix and specializes in BMWs. Unfortunately you are currently looking for a car at the WORST possible time of year. Literally. In the last 30 days values of cars have gone up $1,000 each solely bc tax refund time.

 

[RodnJen]

My best friend owns a few used car dealerships here in phoenix and specializes in BMWs. Unfortunately you are currently looking for a car at the WORST possible time of year. Literally. In the last 30 days values of cars have gone up $1,000 each solely bc tax refund time.

Good point.

I found similar treatment from the BMW dealers in OC. If you look online, like Bimmerfest.com, you can find plenty of stories of people getting good deals on new and used in other parts of the country. Some here as well. I talked to three different dealers that wouldn't budge until I found one that did. I didn't do anything different, just found the right guy at the right dealership. We did most of the negotiating via the internet. I probably didn't get the best deal but it was fine.

Just stick to your guns and be willing to walk. I planned on buying used, but between dealer incentives, good financing and a reasonable negotiation buying new worked better for us.

 

[ka0tyk]

go in with your own financing. knowing that you have a large amount of money in your hand to burn will make them budge. all the time for running credit, prequal, and the finance dept shopping for your loan is money out of their pie. walk in, say i want that, im willing to pay this, if you dont sell it ill just go somewhere else and they'll make money instead. they've heard every story in the book and dealt with every asshole trying to get a deal. just be straight up and forward no BS. realize the dealer owns the car and needs to make a %, theres little to 0 incentive for them to sell a used car other than you get people in the door for a low price and upsell them into a new one. so there might not even be a deal to be had at that dealership... with incentives and my special pricing they were able to come up on our trade in to private party value and put us in a new car versus a lower trade in and a used car...

 

[JB in so cal]

...and make sure you let them do the squares...:rolleyes

 

[COCA COLA COWBOY]

...and make sure you let them do the squares...:rolleyes

Huh? Squares?

I'm not in a hurry at all. I can wait. I might just go with the lease option (469/month) of the Lexus GS and buy it out at the end. It's not a big deal to me at all, but it is time for a different car. I liked the BMW for the 100k warranty and the cheap financing of .9% for 60 on used. However, if business continues, I'll just pay it off shortly. However, I like to keep money in my pocket for opportunities that make me money as opposed to having a depreciating beast in my driveway.

I did get an internet guy to come off a grand, told him if he came off another we had a deal. Still waiting to hear on that one, but I might lay off till the last day of the month and give it one more go.

I'd show up with $40k cash if I thought it would make a difference, but I don't think it does as I tried it on guy already.

 

[boatpi]

Don't feel bad. I purchased one of the last pre turbo 5 series, aside from the 525, in 2007 a 530i. The early 535's had oil pump and some fuel pump issues. I would think by 2011 it was mostly resolved.

That said, my car has been flawless, not one cent spent on repairs side from the usual, oil changes and the battery went dead. Tires lasted 38-42 K, and every part is still solid. I purchased the 100K warranty at 4 years, and it was for 2 years. As it turned out a waste of money, NEVER used it. I have premium, nav, side curtains, sport package, etc.. I enjoy it every time I get behind the wheel. One of the greatest sedans year after year ever made.

 

[boatpi]

BTW; Look ta this low miler: http://orangecounty.craigslist.org/cto/4296649504.html I think a dealer will certify them for about 2K.

 

[JRS1939]

Had a bi turbo 750li 2011 white with black leather 60k miles a month ago and just sold it last week for 36k

 

[pronstar]

BMW leases so many cars, they move a ton of inventory as CPO.

Dealers make more money selling used cars (and parts and service for that matter) versus selling new cars.

If the dealer isn't budging on price, it's because he knows his market area and he knows that he will sell the car to someone else at a greater profit. It's really that simple.

The internet is your friend. Search used inventory at various dealerships, and submit your offer online. You should eventually find someone who will play, assuming your offer is within reason.

 

[callbob]

BMW leases so many cars, they move a ton of inventory as CPO.

Dealers make more money selling used cars (and parts and service for that matter) versus selling new cars.

If the dealer isn't budging on price, it's because he knows his market area and he knows that he will sell the car to someone else at a greater profit. It's really that simple.

The internet is your friend. Search used inventory at various dealerships, and submit your offer online. You should eventually find someone who will play, assuming your offer is within reason.

This is your answer boys and girls. Also, the dealer may have have high internals (money they put into it for repairs) or they simply had to pay high for that particular car to make the trade. They may have come as far as they can at this time. The longer it sits there, the more incentive they have just to move it. Leave a card. If it doesnt sell, you might just get a call with your price. Used cars are bringing premium right now. It's the economy remember?

 

[lakemadness]

The current BMW I have I bought at the dealer. I tried to haggle and at one point walked out. They wouldn't knock $20 off of the price, seriously it got down to that. I told them I'm paying you with a check, (which I did end up doing) cash or finance they did not care. I asked them to just knock something off to make me feel like I won. They wouldn't. They did throw in a full tank of gas (I drove 150 miles to this dealer for this car), two sets of floor mats (all weather and carpet ones) and tinted windows. At the end of the day it was the internet price that got me. I drove 150 miles for this car and I know I got a fair deal. I think dealers have more competition than ever before because of the net. They need to advertise the lowest price.

I have two buddies in the car biz. One has two dealers (ford and a used lot) Other friend has a jeep/dodge dealer. These guys both make most of their car sales income from trade-ins. They make more money on selling you financing compared to a cash sale (they don't care or really even want a cash sale). Banks pay them to sell car loans. They don't make shit on new car sales. They advertise the lowest price on the net to get you in.

I bought my wife a 2014 Jeep Grand Cherokee from my friend who has the jeep dealer. He sold the Jeep to us at his lowest possible "friend" deal. I shopped his price. It was only a tiny bit lower than his competitors price.

 

[454Rocket]

Something must have changed... I bought a CPO 335i (worst POS I ever owned by the way) about 3 years ago and they knocked off several thousand in about 1/2 second. I then preceded to get it down some more.

 

[530RL]

1) The 4 square method is a sales system that is used by most of the higher volume dealers. To understand what they are attempting to do to you, see it here. http://arthurfontes.hubpages.com/hub/How-To-Use-The-Four-Square-System-To-Sell-Cars

2) In most cases, for a main line dealer, you are better off not telling them you are paying cash. See the 4 square system above. You want to get the best cash price possible, while making them think you will need financing. By doing so, the dealer may agree to a lower cash price knowing they will make the margin back in the F&I department.

3) Most large main line dealerships have five distinct businesses. New, Used, F&I, Parts and Service. A modern owner has each business buys and sells services to the other businesses within his store to keep them all honest, gamesmanship to a minimum, and profitability to a maximum.

4) Dealers have access to a wide array of financing. Large dealer groups pool their paper each week and sell it off via auction. The largest dealer groups may or may not have the best financing for you, but they will make the most on a pool of paper due to volume.

5) Most people say they hate the car buying "experience", then try to figure out ways to buy stuff cheaper. If you want one price no haggle, try Tesla. You can get a very nice car that goes 220 miles for around 85K plus TT&L.

6) If you give an offer and they say no, one possibility is not that they think they can get more for it, but they have more into it than you are offering.

7) If you have really good credit, 750 and above, the financing available by the manufacturers, which is subsidized below an interest rate one could typically borrow for the same term, will in many cases work out to be an equivalent financial deal to buying one or two years old.

 

[mariley85]

I was in the market for a diesel excursion a few months back. Before I was able to dump my current ride the prices jumped from 14-18k all the way to like 20-23k. IN JUST A FEW MONTHS. Now I'm getting a 2001 740il and putting a 6spd manual in when the tranny goes.