M3 Second Hand Margins re: Main Dealer
Discussion
Hi Guys,
Due to order a second hand M3 Convertible tomorrow.
Im curious as to what would be the estimated average margin in an M3 car at the BMW Main Dealer would be if retailing at £28,995
The vehicle we are buying is not an SMG Model (Would this affect the resale value e.g does SMG demand a higher price over manual ?)
Its a 2002 convertible with 33,000 miles - Body Work is Silver with Red Leather interior and FSH.
The vehicle has the 19" Wheels and usual extras but not the Tv Upgraded Sat Nav.
The local dealer is collecting from Up North so to speak and states there is no margin on the retail price even though we are cash purchasers as my local dealer has to collect and warranty the car etc..
What would you guys offer (seriously) to buy a car as described above.
Im lost on these cars and would like a "good deal" so any constructive advice would be great.
Thanks for taking the time out to reply.
Pete
Due to order a second hand M3 Convertible tomorrow.
Im curious as to what would be the estimated average margin in an M3 car at the BMW Main Dealer would be if retailing at £28,995
The vehicle we are buying is not an SMG Model (Would this affect the resale value e.g does SMG demand a higher price over manual ?)
Its a 2002 convertible with 33,000 miles - Body Work is Silver with Red Leather interior and FSH.
The vehicle has the 19" Wheels and usual extras but not the Tv Upgraded Sat Nav.
The local dealer is collecting from Up North so to speak and states there is no margin on the retail price even though we are cash purchasers as my local dealer has to collect and warranty the car etc..
What would you guys offer (seriously) to buy a car as described above.
Im lost on these cars and would like a "good deal" so any constructive advice would be great.
Thanks for taking the time out to reply.
Pete
Hi,
Do a search on the BMW site mate (below). There is a 03/03 facelift M3 SMG vert up for £30k with 19k on it (silver, black leather at Godfrey Hall, Coventry). Has sat nav, but no 19s. Easy solution buy a set of 19" BBS LM from www.bbsdirect.co.uk. Offer £28k and take it from there. Might be a long way from where you are, but when spending £30k???? No real difference between SMG & manual price-wise, just a matter of taste (purists would go for manual , SMG can be jerky in town, but bearable). Forgot to say, on the M3 whether you need it or not, sat nav is essential for resale imo.
www.bmw.co.uk/apm/bmw_auc_profile/0,4200,1260___ex-as,00.html
Happy hunting
Baz
>> Edited by baz1985 on Tuesday 8th November 22:46
Do a search on the BMW site mate (below). There is a 03/03 facelift M3 SMG vert up for £30k with 19k on it (silver, black leather at Godfrey Hall, Coventry). Has sat nav, but no 19s. Easy solution buy a set of 19" BBS LM from www.bbsdirect.co.uk. Offer £28k and take it from there. Might be a long way from where you are, but when spending £30k???? No real difference between SMG & manual price-wise, just a matter of taste (purists would go for manual , SMG can be jerky in town, but bearable). Forgot to say, on the M3 whether you need it or not, sat nav is essential for resale imo.
www.bmw.co.uk/apm/bmw_auc_profile/0,4200,1260___ex-as,00.html
Happy hunting
Baz
>> Edited by baz1985 on Tuesday 8th November 22:46
maserati3200gt said:
Baz thanks for taking the time out to reply.
I couldnt get the links to work.
Pete
apologies, try the main BMW site www.bmw.co.uk then try the find a approved car search
Should work now www.bmw.co.uk/apm/bmw_auc_profile/0,4200,1260___ex-as,00.html
baz1985 said:
Baz thanks for taking the time out to reply.
I couldnt get the links to work.
Pete
apologies, try the main BMW site www.bmw.co.uk then try the find a approved car search
Should work now www.bmw.co.uk/apm/bmw_auc_profile/0,4200,1260___ex-as,00.html
Hi Baz,
Yep just checked the site.
what is the differences with the facelift model.
Had a look at at the 2001 model and 2003 and could not tell the difference.
is the SMG a good gearbox for Traffic on a day to day basis ?
Many Thanks Baz
Pete
baz1985 said:
Thanks Baz
Looks like im Going for the Silver Car with Red Leather.
Maserati Goingbut will not miss the reliability issues (touch wood!)
enjoy, hope it works out mate
Can't wait !
Hopefully it turns out to be as reliable as our 320 .
Thanks for your help mate
Gareth W said:
Are you really trying to tell me that there is an average
£4k margin (as in profit) in such a car as a M3 ??
He's not saying that.
He's making the unsupported assertion that there is £4K average on
*all* used beemers.
I'd guess less than £4K for a mainstream 3 series, more for
something a bit out of the ordinary like an M3.
They are specialist chariots.
I'd guess [ that's a guess ] at about 5-6K chalkup on an M3.
Alternatively, do it on percentages. Let's say 10% on mainstream,
20 % on M3, M5 etc
I bought a 330 sport not so long ago, my cousin is the service manager for another bmw dealership from where I bought mine, but told me:
They bought 330 back for around £12k
They spent about £1500 on service/bits
They re-sell to me for £17k
Margin £3500.00
He said the deal was excellent for main BMW dealer (Therefore I'd go off £3.5k-4k margin as a 'gestimate').
They bought 330 back for around £12k
They spent about £1500 on service/bits
They re-sell to me for £17k
Margin £3500.00
He said the deal was excellent for main BMW dealer (Therefore I'd go off £3.5k-4k margin as a 'gestimate').
stockhatcher said:
With respect stockhatcher you haven't got a clue what you are talking about.
Are you really trying to tell me that there is an average £4k margin (as in profit) in such a car as a M3 ??
If you saying that I'm afraid that you are very mistaken indeed....
i'm not mistaken, i work for bmw uk, and i used to work in a bmw dealership in car sales. a rare car like a m3 vert if it the right spec will be bought at approx 4k less than it is sold for retail. that is not 4k profit, but it is what they have in it, and knowing dealers they will spend as little as they can get away with, if it need a warranty that's about £160 trade price, some tax at about £160 ( and that's a negotiable) and then whatever else is required in terms of a service, which could be a £1000 or so. but they won't do the service if they can get away with.
so unless you happen to be a current bmw used car sales man, i think you will find that i am right.
You cannot generalise about dealer margins as some dealers choose to allow a fat margin whilst others take the view that it is better to be at the 'top' of the AUC page and achieve a faster turnover of stock. So they advertise their stock differently. I have bought and sold enough cars in recent years to see the margin on the cars I have traded in and sometimes it's as little as £2-3K. Also some cars owe the dealer more than others (of the same type) due to the way in which they are bought (for example paying more a a trade-in against a much higher value car). But you will only know what a fair price to pay is when you've taken a deal to the point where the dealer is prepared to walk away. Sometimes it's also worth ringing around a few dealers with the car you intend buying, and seeing what they will pay for it.
margins are wide and variable things... here's an example or two
when you buy a car, be it in part exchange or cold you start with the price you can sell it for - lets use the M3 in question. £28995.
Now, start off every M3 that goes through the workshop is going to cost about £1000 to get it up to AUC standard, which if done correctly will be as good as you'll ever get. Also you have to buget in things like tyres and warranty's at that age. Lets just say for now it needed only a warranty - on that car it could be about £600 - its been a while someone can correct me...
So far you have a recon bill of £1600 ish. I'd try and buy it for anything under £25k I could do but lets say it was a part exchange and I had to give you £25000. After all the prep the car now owes me £26600 plus anyway chipsway and valet and anything else. £26700.
between the sale price and what it owes me is the margin - in this case £2300. Of which I have to pay VAT. So if you got £500 off the dealer ends up with £1800 less the Vat.
When I was there Used Car Profit per Unit averaged at about £1270 a car.
All cars are different, the longer they have been there the less the margin will be as they've dropped them and the car has gone down in value each month... The cheaper the car the smaller the margin...
What i'm getting at is it all depends on the car.
when you buy a car, be it in part exchange or cold you start with the price you can sell it for - lets use the M3 in question. £28995.
Now, start off every M3 that goes through the workshop is going to cost about £1000 to get it up to AUC standard, which if done correctly will be as good as you'll ever get. Also you have to buget in things like tyres and warranty's at that age. Lets just say for now it needed only a warranty - on that car it could be about £600 - its been a while someone can correct me...
So far you have a recon bill of £1600 ish. I'd try and buy it for anything under £25k I could do but lets say it was a part exchange and I had to give you £25000. After all the prep the car now owes me £26600 plus anyway chipsway and valet and anything else. £26700.
between the sale price and what it owes me is the margin - in this case £2300. Of which I have to pay VAT. So if you got £500 off the dealer ends up with £1800 less the Vat.
When I was there Used Car Profit per Unit averaged at about £1270 a car.
All cars are different, the longer they have been there the less the margin will be as they've dropped them and the car has gone down in value each month... The cheaper the car the smaller the margin...
What i'm getting at is it all depends on the car.
stockhatcher said:
having re read the post, that car defo has about 4k in it, he's just playing a game with you, offer him 2K less asking price, cash in the hand and see him squirm - be prepared to walk though.
I bid 27k on a car offered at 29k. It has been at a main dealer for 7 weeks, and he would not budge one pound. In fact, he told me that he would sell it to trade rather than to me. I assume trade is around 25k (25k miles 2003/53, base model car, one missing service in the boook), so he prefers to lose an extra 2k than lose face by selling it to me at my level.
Had he said he thought he could get more, that could have made sense, but I don't understand why he would cost himself more money just to say he did not give me the satisfaction of buying at the price I was willing to pay.
I thin tomorrow I will call the manager and try again. Nothing to lose.
northernboy said:
having re read the post, that car defo has about 4k in it, he's just playing a game with you, offer him 2K less asking price, cash in the hand and see him squirm - be prepared to walk though.
I bid 27k on a car offered at 29k. It has been at a main dealer for 7 weeks, and he would not budge one pound. In fact, he told me that he would sell it to trade rather than to me. I assume trade is around 25k (25k miles 2003/53, base model car, one missing service in the boook), so he prefers to lose an extra 2k than lose face by selling it to me at my level.
Had he said he thought he could get more, that could have made sense, but I don't understand why he would cost himself more money just to say he did not give me the satisfaction of buying at the price I was willing to pay.
I thin tomorrow I will call the manager and try again. Nothing to lose.
In that case i would ring the dealership manager and ask why one of his sales staff is prepared to give £2k of the dealerships money away?
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