BMW used approved query

hawker1986 · 27 Apr 2018 at 09:59

Hi,

I am going to be heading down to view an F10 M5 at a main dealer and I was wondering what sort of negotiation room on price I should expect to be able to get.

The cars on at £36,500, its a 14 plate with about 19k miles.

I will be buying cash and have no part exchange but haven't ever bought second hand from a dealer and figure theres likely to be some room to get the price down but not sure how much and don't want to just take the Michael

.

Advice much appreciated

Thanks

wedrum · 27 Apr 2018 at 09:59

hit them with 30k and go from there

Psycho Sonny · 27 Apr 2018 at 10:15

main dealer won't move much on price on second hand. if you say £30K it's likely he may think your another tyre kicker and tell you to leave and stop wasting his time.

i would say at a push you might get free stuff thrown in rather than a drop in price. but if you get lucky you might get £1K-£2K off

so push for stuff like next 2 services for free and next MOT for free if they don't budge on price. unless you find faults with the car i wouldn't expect any money off tbh. as in scratches, or stuff broken, etc.

if i had to make them an offer i'd say £33K with 2 free services and see what they counter with. to say £30K would be an insult IMO. they probably paid £32K for it.

[TW]Fox · 27 Apr 2018 at 11:52

It's going to depend on how well its priced relative to the market, how much the car owes them and how many days they've had in stock.

Typically I've managed circa 10% on AUC cars from BMW over the years.

It's a waste of time going after a 'free MOT', its a trivial amount of money on a car of this value and not worth wasting peoples time even talking about. Instead, focus on something credible that has a higher value to you than it does the dealer - it means they need to give away less margin but you get a bigger benefit. Probably the biggest example of this is the second year warranty - dealers can apply up to 2 years of Approved Used warranty and the cost to the dealer of the second year is considerably less than the price you'd pay to renew it. So if you'd be looking to renew the warranty its absolutely worth trying to get some sort of deal to include that second year. Even if you eventually settle on paying them what it costs them rather than getting it chucked in its still a benefit to you.

In terms of where to start price wise IMHO you can start wherever you want, £30k is probably far too low but there is nothing wrong with starting there, judging from the reaction and quickly being able to retreat back with something like 'Figured it was worth a go, lets move on and talk about some proper numbers' or something.

Mercenary Keyboard Warrior · 27 Apr 2018 at 12:46

If you know the reg and you go to the DVLA site you can get a pretty good idea for how long its been off the road, ie sat at the dealers
Look for when the road tax expired, that is likely to be within a few days of when it left the road, they don't pay road tax on vehicles on the lot so they cancel the tax

Whilst they are not all exactly the same most dealers work roughly on the following. If they take in a car against a new manufacturer one, the manufacturer will give them a loan for the value of the trade in at 0%.
Ie the manufacturer will give them 3 months to sell the car, at the end of the 3 months they have to start paying for the loan and hence will want to move it on. Its why you get these regular sales at dealers, they need to shift certain cars quickly, and if they have been hanging around for 3 months they will often go close to trade in value, otherwise they will start paying to have it sat there.
They loose confidence in being able to sell a car if after 3 months its still not moved, its costing them depreciation and also finance at that point. They will want rid.

Minimum starting point is auction value (or trade in value) thats the rough amount they will have tried to buy it for, but at this point there will be quite some resistance obviously, they like to make money on every sale

eviled · 27 Apr 2018 at 13:00

also they get commission on finance so you can negotiate a better price on the premise of taking finance then pay the finance off in full with no penalty in the cooling off period (been there done that)

[TW]Fox · 27 Apr 2018 at 13:44

eviled said:
also they get commission on finance so you can negotiate a better price on the premise of taking finance then pay the finance off in full with no penalty in the cooling off period (been there done that)

Always tried that with used and it's never worked, they've always said it's not worth it.

Dis86 · 27 Apr 2018 at 13:46

Yeah...you aren't going to get much if anything off it if it's at a main dealers.

wedrum · 27 Apr 2018 at 13:48

My 30k was a bit tongue and cheek but seriously I would start there. Not everyone has 36k to drop on a car so I would push it as much as I could

rhysduck · 27 Apr 2018 at 13:56

wedrum said:
My 30k was a bit tongue and cheek but seriously I would start there. Not everyone has 36k to drop on a car so I would push it as much as I could

If you think anyone in their sane mind would sell a car 6k below asking you're a bit of a loon.

Let us know when you come to buy your next car and the price you go in with... I pretty certian the answer will be no.

IAmATeaf · 27 Apr 2018 at 14:16

It also depends how much work they need to do to get the car AUC ready, in theory they will have taken that into account when taking the car in but they always seems to use this as the main reason for lack of price flexibility.

[TW]Fox · 27 Apr 2018 at 14:22

IAmATeaf said:
It also depends how much work they need to do to get the car AUC ready, in theory they will have taken that into account when taking the car in but they always seems to use this as the main reason for lack of price flexibility.

Which is always fun as if someone traded in a wreck that needed a load of prep then I don't want it. I remember one dealer I tried to buy from explaining that it had needed loads of paint so they didn't have the margin to discount. I ran away.

Dis86 · 27 Apr 2018 at 14:24

[TW]Fox said:
Which is always fun as if someone traded in a wreck that needed a load of prep then I don't want it. I remember one dealer I tried to buy from explaining that it had needed loads of paint so they didn't have the margin to discount. I ran away.

I had the same. As if the fact that they paid over the odds for a wreck is something that should affect me!

Needed 4 new tyres and both bumpers respraying - ok, that's something you should have considered when you allowed them to part ex it...

IAmATeaf · 27 Apr 2018 at 14:33

Dis86 said:
I had the same. As if the fact that they paid over the odds for a wreck is something that should affect me!

Needed 4 new tyres and both bumpers respraying - ok, that's something you should have considered when you allowed them to part ex it...

They will have taken that into account when taking the car in but they seem to use it as a double-win-bubble.

Dis86 · 27 Apr 2018 at 14:41

IAmATeaf said:
They will have taken that into account when taking the car in but they seem to use it as a double-win-bubble.

I've no doubt. They wanted to knock 1k off mine because the alloys were a non-standard colour. I pointed out I'd bought them from BMW in that colour...and I certainly don't think they'd have repainted them or knocked anything off the sale price.

Scrutinize · 27 Apr 2018 at 14:54

Nothing wrong with 20% below asking as an initial offer. Very unlikely you will get it but no shame in going in hard. It's blindingly obvious if you are a serious buyer.

Approved used sticker prices are pretty fixed but they can drop APRs and up trade in offers considerably. Cash price will depend on how readily they need to sell the car.

These are car dealers, they are really quite happy up selling by massive margins to buyers without conscience. Based on where I moved number too in negotiations on 3 / 5 series at the end of last year I wouldn't feel bad about being tough on negotiations.

wedrum · 27 Apr 2018 at 15:16

rhysduck said:
If you think anyone in their sane mind would sell a car 6k below asking you're a bit of a loon.

Let us know when you come to buy your next car and the price you go in with... I pretty certian the answer will be no.

ok

hawker1986 · 27 Apr 2018 at 17:13

Thanks for all the advice guys, really useful to get an idea of what they may try and say.

Ive already been told they've spent £800 on it doing oil service, brake service, micro filter and air filter, which seemed a bit rich but also its got a service pack so its already been paid for

Think were going to go in at 32k and see where we end up, don't mind accepting extended warranty or services as those will be valuable to me.

Psycho Sonny · 27 Apr 2018 at 18:10

hawker1986 said:
Thanks for all the advice guys, really useful to get an idea of what they may try and say.

Ive already been told they've spent £800 on it doing oil service, brake service, micro filter and air filter, which seemed a bit rich but also its got a service pack so its already been paid for

Think were going to go in at 32k and see where we end up, don't mind accepting extended warranty or services as those will be valuable to me.

32K as a starting point. and if they want more then tell them you want more too. you want services, extra warranty, etc. i would then go for a cheeky MOT just because it's £50 and you can kill 2 birds with 1 stone. get service done same time as MOT.

if it's fresh in they won't budge on price. so ask how long they have had it or check yourself.

hawker1986 · 27 Apr 2018 at 18:55

I think it’s very new in so well we what happens, SORNd 13th April. They’ve already promised to MOT the car and the dealer told me that there is room to move on the price but who knows how much he meant!