[cmorris975]

Hi there,

I am looking for advice on a realistic number to shoot for while negotiating my first ever new car, a 2016 228i coupe with just a few options. I am in Cleveland, OH and will have to factory order my car as all the current stock are xdrives and I want a RWD (hopefully that is not a stupid decision!). I am paying cash for the car with no trade-in.

I have just started negotiations with the dealer and only gotten him to take off the nitrogen in the tires and the wheel locks. Here is where we are at:

MSRP $36,345

Sale price $34840.00

Doc fee $250.00

Tax $2,807.20 8% Cuyahoga

temp tag n title $33.50

total $37,930.70


Should I go for a certain percentage off MSRP? Does the fact that I am paying cash up front plus ordering a delivery from the factory work in my favor and give me more leverage to possibly bring the price down some?

Thanks for you time!

Chris

[djarchow]

When asking for pricing help it is always good to spell out exactly what options you are ordering so we have a better idea of a fair price.

I don't think paying cash will help or hurt you. Ordering from the factory usually gives you less wiggle room on price than a car that has been sitting on their lot for a while and they want to get rid of.

Still depending on what options you chose, that price doesn't seem too far off from invoice so may be good but if you post the exact build of the car it will be easier for us to give an opinion.

[raleedy]

Start with MSRP; multiply by 0.92, then add $500. That's a good target price, net of tax and licensing fees, which should not be marked up. In your example, that would give you a pre-tax price of $33,937, including the doc fee but not including taxes and license. That's maybe $1,200 less than they've offered you. It might be helpful (a) to tell them specifically what price you want, and (b) to cross-shop with another dealer if you can.

As to RWD vs. AWD, I would do what you are doing, even in Cleveland. But I would plan on having a set of four winter wheels and winter tires (with TPMS sending units). Tire Rack is a good source.

[cmorris975]

Thanks guys. The options in this build are the technology package ($1950) and mineral grey paint ($550).

[overcoil]

If it's your first time negotiating I'd advise to take your time.
Also good advice above and April issue of COMSUMER REPORTS is helpful, their annual car buying issue - worth reading their car buying negotiating advice.
Have you thought about extended warranty or wheel and tire insurance, those are items they'll offer you when turning car over.

Is this a car u plan to keep for a long time or will you change out in 4 years?

[BEM-S4]

Originally Posted by ScottSinger

If it's your first time negotiating I'd advise to take your time.
Also good advice above and April issue of COMSUMER REPORTS is helpful, their annual car buying issue - worth reading their car buying negotiating advice.
Have you thought about extended warranty or wheel and tire insurance, those are items they'll offer you when turning car over.

Is this a car u plan to keep for a long time or will you change out in 4 years?

Regarding wheel and tire ins it's very expensive from BMW. Wheels aren't cheap but if you want another option a local tire shop will give you a policy on just the tires for around $100. You'd self insure the wheels at that point. Easy enough to pick up one used if needed.

I'd call around a few dealers go straight to sales Mgr. Tell them exactly what you want and that you are looking for their best offer up front - picking between a few deals and do not want any bs back and forth nonsense. Get everything in writing. Forward your best deal to wherever you prefer to buy - local dealer perhaps but up to you. Really for anyone who is close to the best. Tell them this is the best I have gotten, if you can do better we can do business. If not maybe next time.

[djarchow]

If you go to Edmunds.com, you can build your car with just your options and it will give you invoice pricing. At least for the '16 M235i I bought and the M2 I was considering, the Edmunds invoice prices exactly match the invoice price sheets my dealer gave me (I bought mine for invoice). As another poster mentioned, $500 over invoice ($33990 + $500)is a reasonable price.

One other thing to keep in mind is that there is currently a $500 incentive available through the end of the month, make sure the dealer is not factoring that into the price. That should be on top of whatever deal you can negotiate. If you do decide to order the car, have them run your credit with BMW financial as that will lock in the $500 incentive for 60 days.

Also one thing to check before placing an order from the factory, be sure the dealer has an allocation available so they can get into the production queue quickly. If not you could be waiting even longer for the car.

Good luck!

[gameaud]

Hey OP, my msrp was similiar to yours, 36,XXX. I was able to get it for 33.5K OTD. However, my state tax is about half of yours and i had $1500 in incentive rebates.

[cmorris975]

Originally Posted by ScottSinger

If it's your first time negotiating I'd advise to take your time.
Also good advice above and April issue of COMSUMER REPORTS is helpful, their annual car buying issue - worth reading their car buying negotiating advice.
Have you thought about extended warranty or wheel and tire insurance, those are items they'll offer you when turning car over.

Is this a car u plan to keep for a long time or will you change out in 4 years?

Not sure to be honest but leaning towards keeping it a long time.

[BEM-S4]

Originally Posted by cmorris975@hotmail.com

Not sure to be honest but leaning towards keeping it a long time.

You don't need to do extended warranty now. Anytime before the original lapses. So wait.

[cmorris975]

Originally Posted by BEM-S4

You don't need to do extended warranty now. Anytime before the original lapses. So wait.

Good to know! Thanks so much.

[cmorris975]

Originally Posted by gameaud

Hey OP, my msrp was similiar to yours, 36,XXX. I was able to get it for 33.5K OTD. However, my state tax is about half of yours and i had $1500 in incentive rebates.

Thanks for the gameaud, sounds like you got a great deal then.

I decided to skip the technology package and just use my phone for directions as the $2k for that was just a bit much. My girlfriend gets cold very easily and she wants heated seats, so that was added in though!

The new MSRP is $34,895 and I sent an offer to two dealers. I took the recommendation of .92 x MSRP + $500, rounding it down a few dollars to $32,600. One offered back $33,550 while the other said my offer was a few dollars below invoice but said yes.

What do you guys think? Seems fair to me, but I am new at this! I really don't feel the need to haggle forever on this, just a fair price is all I want.

[pikcachu]

Originally Posted by cmorris975@hotmail.com

Thanks for the gameaud, sounds like you got a great deal then.

I decided to skip the technology package and just use my phone for directions as the $2k for that was just a bit much. My girlfriend gets cold very easily and she wants heated seats, so that was added in though!

The new MSRP is $34,895 and I sent an offer to two dealers. I took the recommendation of .92 x MSRP + $500, rounding it down a few dollars to $32,600. One offered back $33,550 while the other said my offer was a few dollars below invoice but said yes.

What do you guys think? Seems fair to me, but I am new at this! I really don't feel the need to haggle forever on this, just a fair price is all I want.

you can always try truecar.com and see what price they offer

[BEM-S4]

Originally Posted by cmorris975@hotmail.com

Thanks for the gameaud, sounds like you got a great deal then.

I decided to skip the technology package and just use my phone for directions as the $2k for that was just a bit much. My girlfriend gets cold very easily and she wants heated seats, so that was added in though!

The new MSRP is $34,895 and I sent an offer to two dealers. I took the recommendation of .92 x MSRP + $500, rounding it down a few dollars to $32,600. One offered back $33,550 while the other said my offer was a few dollars below invoice but said yes.

What do you guys think? Seems fair to me, but I am new at this! I really don't feel the need to haggle forever on this, just a fair price is all I want.

Go back to the guy who is higher with your best deal, be very clear that if he wants to beat it you can do business if not that's fine too. Finally tell the guy with the best offer you're close but not quite there. Assuming you'll want something like all weather mats and trunk liner, stainless pedals whatever get him to throw that in with the deal. Or a complimentary oil change at 1200. It's cheaper for him to give you free stuff than money since he's got margin built in, and it's all the same to you.

EDIT: actually rereading it since the guy accepted your offer, I wouldn't go back to him unless other guy beats him.

[F1HAMMY]

Okay okay, stop the madness. I was in the car business for quite a while before joining the Army. Hundreds of people waddle in to a dealership and ask for the "best price." Here's the problem. If you don't know what the best price is yourself then your asking for an elusive and time dependant deal. In other words, incentives from BMW change throughout the year and so does the dealerships incentive to sell a car at no profit or even a loss depending on how well sales have gone that month. Some of those things you can know, some you can't
So, get on Edmunds and other sources and do your research with regards to pricing in your area and what incentives are being offered by BMW. Be confident of what a good deal is in your mind and simply offer that to your CA. If they don't accept then move on. You're wasting everyones time [to include your own] by asking for the best price and not knowing what that is yourself.

[rainfall]

Dealers usually prefer financed over cash, because depending on the dealer, they get a commission if they help originate a loan. That's just FYI.

Honestly, for a factory order and like 7% under MSRP looks like a good deal. I think bargaining is fair business, but I wouldn't squeeze them too much. Otherwise what they can do is what I saw somewhere here in northwest. They list the price 5% over MSRP to make us bargain for like 4-5% under MSRP.