how to negotiate best discount on bmw m car
Discussion
Hi All, first time BMW buyer here in the UK looking for some advice on how to negotiate the best discount on an Approved Used BMW M car.
I’m in the market for an Approved Used BMW M3 Competition that’s at most 12 month old. The requirement for approved used & at most 12 months old is for the peace of mind that the car will come with (i) full main dealer service history and (ii) at least 24 months of Manufacturer’s Warranty remaining.
My research has shown that, for a 12-month old M3 Competition with around 10K miles on the clock, I can expect a ticket price of circa £70K. Unfortunately, like most people, I don’t have all of the cash available to be able to buy it outright and thus some form of loan is necessary.
I intend to HP the car with a deposit of roughly half the value of the car (i.e., £35K) and finance the remaining half.
I realise that the customer putting down a large deposit isn’t very attractive from the dealership’s perspective as it reduces the amount to be borrowed and therefore the profit they’d make in return off the loan.
With the above in mind, is there much scope for me to get much off the ticket price of the car? If so, what would be a realistic %? Lastly, how should I approach the negotiation with the salesman (should I tell him/her upfront that I intend to put down 50%)?
Thanks in advance!
I’m in the market for an Approved Used BMW M3 Competition that’s at most 12 month old. The requirement for approved used & at most 12 months old is for the peace of mind that the car will come with (i) full main dealer service history and (ii) at least 24 months of Manufacturer’s Warranty remaining.
My research has shown that, for a 12-month old M3 Competition with around 10K miles on the clock, I can expect a ticket price of circa £70K. Unfortunately, like most people, I don’t have all of the cash available to be able to buy it outright and thus some form of loan is necessary.
I intend to HP the car with a deposit of roughly half the value of the car (i.e., £35K) and finance the remaining half.
I realise that the customer putting down a large deposit isn’t very attractive from the dealership’s perspective as it reduces the amount to be borrowed and therefore the profit they’d make in return off the loan.
With the above in mind, is there much scope for me to get much off the ticket price of the car? If so, what would be a realistic %? Lastly, how should I approach the negotiation with the salesman (should I tell him/her upfront that I intend to put down 50%)?
Thanks in advance!
Pick your time, you are likely to get a better deal at month, quarter or year end when they are pushing to meet targets.
Other thing is taking the finance and paying off early if you are a cash buyer, cash is no longer king when buying a car, everything is about getting you on finance with the monthly payments.
Other thing is taking the finance and paying off early if you are a cash buyer, cash is no longer king when buying a car, everything is about getting you on finance with the monthly payments.
BMW finance are currently offering subsidised finance rates of 4.9% apr on new M3s.
There are also discounts to be had on new cars too.
So absolutely no point whatsoever buying a year old one if using their finance at 12% apr.
We were discussing this on another forum and a new M3 xdrive car worked out cheaper than a 2 year old non xdrive at £57k after discounts and finance rates were taken into consideration.
There are also discounts to be had on new cars too.
So absolutely no point whatsoever buying a year old one if using their finance at 12% apr.
We were discussing this on another forum and a new M3 xdrive car worked out cheaper than a 2 year old non xdrive at £57k after discounts and finance rates were taken into consideration.
Ed.Neumann said:
BMW finance are currently offering subsidised finance rates of 4.9% apr on new M3s.
There are also discounts to be had on new cars too.
So absolutely no point whatsoever buying a year old one if using their finance at 12% apr.
We were discussing this on another forum and a new M3 xdrive car worked out cheaper than a 2 year old non xdrive at £57k after discounts and finance rates were taken into consideration.
4.9% is crazy low, especially as you can get 5.2% in an easy access savings account!There are also discounts to be had on new cars too.
So absolutely no point whatsoever buying a year old one if using their finance at 12% apr.
We were discussing this on another forum and a new M3 xdrive car worked out cheaper than a 2 year old non xdrive at £57k after discounts and finance rates were taken into consideration.
It is a subsidised offer.
I just looked and it is showing on the BMW website...
https://offers.bmw.co.uk/?series=M
Hence why buying a 2020 non x-drive car at £57k works out more expensive if using finance currently.
I just looked and it is showing on the BMW website...
https://offers.bmw.co.uk/?series=M
Hence why buying a 2020 non x-drive car at £57k works out more expensive if using finance currently.
rix said:
Worth having a look at new prices - look up Tony Lewis at Berry Croydon BMW, you might be surprised given the generally better interest rates on new cars
Hi thanks for the reply!I'm aware that 4.9% is available on a new one and did consider this route. The cheapest new M3 Comp Xdrive I could find is approx £84K with a £1,000 dealer contribution. On a 48-month HP agreement with a £35K deposit this works out to be approx £89K in total with the finance costing me around £6K. On the other hand, I've found, for example a 12-month old used one for £69K and 10.9% finance. On a 48-month HP agreement this works out to be about £76K with the finance costing me about £7.5K.
My question was geared more towards how to approach the issue of getting £ off the ticket price. Do you have any advice on that front?
Ed.Neumann said:
BMW finance are currently offering subsidised finance rates of 4.9% apr on new M3s.
There are also discounts to be had on new cars too.
So absolutely no point whatsoever buying a year old one if using their finance at 12% apr.
We were discussing this on another forum and a new M3 xdrive car worked out cheaper than a 2 year old non xdrive at £57k after discounts and finance rates were taken into consideration.
Hi thanks for the reply!There are also discounts to be had on new cars too.
So absolutely no point whatsoever buying a year old one if using their finance at 12% apr.
We were discussing this on another forum and a new M3 xdrive car worked out cheaper than a 2 year old non xdrive at £57k after discounts and finance rates were taken into consideration.
I'm aware that 4.9% is available on a new one and did consider this route. The cheapest new M3 Comp Xdrive I could find is approx £84K with a £1,000 dealer contribution. On a 48-month HP agreement with a £35K deposit this works out to be approx £89K in total with the finance costing me around £6K. On the other hand, I've found, for example a 12-month old used one for £69K and 10.9% finance. On a 48-month HP agreement this works out to be about £76K with the finance costing me about £7.5K.
My question was geared more towards how to approach the issue of getting £ off the ticket price. Do you have any advice on that front?
Discombobulate said:
Different car ut last month I was offered a 9 month old M5 competition with 2k miles on the clock in good spec for £68K. From a BMW dealer. RRP was nearly £120K.
Now sold, but others available albeit at just over 7ok.
Hi thanks for the reply!Now sold, but others available albeit at just over 7ok.
Just did a quick autotrader check and it turns out that the M5 Comp in terms of price is not far off the M3 Comp xdrive! In some cases even cheaper!
However, for me it has to be the M3 Comp Xdrive, the M5 Comp would be too big for me!
FMOB said:
Pick your time, you are likely to get a better deal at month, quarter or year end when they are pushing to meet targets.
Other thing is taking the finance and paying off early if you are a cash buyer, cash is no longer king when buying a car, everything is about getting you on finance with the monthly payments.
Thanks for your reply!Other thing is taking the finance and paying off early if you are a cash buyer, cash is no longer king when buying a car, everything is about getting you on finance with the monthly payments.
Exactly, every time I make an enquiry the first question I get asked is "what's your monthly budget?". They are trying to get everyone on a PCP however I'm not going down that route as I want to own the car outright at the end with the freedom to sell it privately/PX for a new car.
I take it telling the salesman upfront that I'm putting down 50% deposit is not going to get me much off the ticket price?
My experience, albeit a few years ago, buying an BMW AUC was thus:
I gave a 20% deposit and took a personal loan for the rest, thereby avoiding BMW finance altogether.
I got 1.5% off screen price. Basically - the car is priced accurately, we don't have a lot in it after costs.....take it or leave it.
Going in with a Mike Brewer "'old out yer hand" will not get you far.
Now, on a premium car like an M3 and in the current market of caution, your experience may be different - especially if you're taking their finance in part. However, with finance rates at BMW running at 11% for used, I can't see why you wouldn't finance the whole thing somewhere else?
I gave a 20% deposit and took a personal loan for the rest, thereby avoiding BMW finance altogether.
I got 1.5% off screen price. Basically - the car is priced accurately, we don't have a lot in it after costs.....take it or leave it.
Going in with a Mike Brewer "'old out yer hand" will not get you far.
Now, on a premium car like an M3 and in the current market of caution, your experience may be different - especially if you're taking their finance in part. However, with finance rates at BMW running at 11% for used, I can't see why you wouldn't finance the whole thing somewhere else?
My recent experience of buying an approved used M car is that they won't budge on price at all.
I bought an M4 from a main dealer. Less than a month ago. I had an M240i to trade in and I'd arranged my finance via personal loan in advance.
In my case they had just knocked 1200 off the price, I knew that because I viewed it on their forecourt a couple of days earlier without speaking to anyone, I went in 2 days after when their price dropped on their website.
The only thing I got was the paint protection thrown in as part of the deal, they were very much the price is what it is.
I bought an M4 from a main dealer. Less than a month ago. I had an M240i to trade in and I'd arranged my finance via personal loan in advance.
In my case they had just knocked 1200 off the price, I knew that because I viewed it on their forecourt a couple of days earlier without speaking to anyone, I went in 2 days after when their price dropped on their website.
The only thing I got was the paint protection thrown in as part of the deal, they were very much the price is what it is.
Edited by Jamescrs on Tuesday 3rd October 17:27
ravippatra said:
Thanks for your reply!
Exactly, every time I make an enquiry the first question I get asked is "what's your monthly budget?". They are trying to get everyone on a PCP however I'm not going down that route as I want to own the car outright at the end with the freedom to sell it privately/PX for a new car.
I take it telling the salesman upfront that I'm putting down 50% deposit is not going to get me much off the ticket price?
But you are wanting to finance, and the only way to get 4.9% is to use PCP. Exactly, every time I make an enquiry the first question I get asked is "what's your monthly budget?". They are trying to get everyone on a PCP however I'm not going down that route as I want to own the car outright at the end with the freedom to sell it privately/PX for a new car.
I take it telling the salesman upfront that I'm putting down 50% deposit is not going to get me much off the ticket price?
Say you will use PCP, get the 4.9%. Then negotiate a discount. Aim for £5k which should be easy now. That gives you £5k to add options and leaves £84k to finance.
Then say you want to put in £35000 and leave £5k at the end.
That will cost you £5.5k in interest.
Compared to straight finance, £84k with £35k down is £11.5k in interest over 60 months at 10,9% apr that BMW is offering on used cars currently.
The only way to get the best price is call as many dealers as possible and tell them what you want to pay.
The thing is, if they give you £5000 off, you're only going to pay for it in higher finance rates at the mo.
You will either get it in discounts on used, or hidden discounts subsidised by BMW on a new car.
The reality is, M3 Xdrives will be starting at £55k by Xmas, and I think we will see some finance contributions or subsidised rates on their approved used cars too.
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