[Fastfwd]

What should I be asking for to make sure I’m not going to get screwed over before I hand over a deposit on an allocation? They bumped the deposit up to $2,500 from $1,000. So, I want to make sure if I do this I’ve got my ducks in a row.

I’ve seen it mentioned on Youtube recently that an unscrupulous BMW dealer took a guy’s deposit on an allocation and then sold his car when it came in after only one day of having it. I’m sure that happens at other dealerships too, but it made me slightly paranoid.

Is there anything I should do to lock in my price agreed upon, etc.? In full disclosure I’ve never actually ordered a new vehicle with my own specification. So, I don’t know what to expect and/or what I should be expecting to ask for.

[mrdudley]

Originally Posted by Fastfwd

What should I be asking for to make sure I’m not going to get screwed over before I hand over a deposit on an allocation? They bumped the deposit up to $2,500 from $1,000. So, I want to make sure if I do this I’ve got my ducks in a row.

I’ve seen it mentioned on Youtube recently that an unscrupulous BMW dealer took a guy’s deposit on an allocation and then sold his car when it came in after only one day of having it. I’m sure that happens at other dealerships too, but it made me slightly paranoid.

Is there anything I should do to lock in my price agreed upon, etc.? In full disclosure I’ve never actually ordered a new vehicle with my own specification. So, I don’t know what to expect and/or what I should be expecting to ask for.

It depends on state law. In CA, all deposits are refundable. Your build could be delivered to the dealership, and you could just walk away.

[Squidget]

You need to get a contract, in writing, signed by both you and the dealer, that the deposit is 100% refundable. if for any reason, you do not take delivery.

I can't give you exact legalize you need because IANAL and it varies by state.

[Squidget]

Originally Posted by Fastfwd

Is there anything I should do to lock in my price agreed upon, etc.? In full disclosure I’ve never actually ordered a new vehicle with my own specification. So, I don’t know what to expect and/or what I should be expecting to ask for.

Usually you can't get this, BMW HQ could change the price tomorrow and the dealer won't want to be on the hook to eat the difference. (This occasionally happens!)

Or if a person walks in waving $20K ADM, the dealer wants to be able to take your alloc away. Can't really blame them, TBH. Capitalism!

Because of stuff like this, the best you can usually expect is that if any of the above happens, you can walk away scot free. That's the leverage you need to negotiate if needed.

Or if they get the car and there's been a mistake, and it's specced wrong. You can walk.

Refundable deposit also allows you to place orders with multiple dealers and go with the one who gets you an alloc first. Then you can cancel the rest. (This is less of a problem today than the past, when the backlogs were crazy.)

[Fastfwd]

What has been relayed to me is that once the specification gets locked in the deposit is no longer refundable. Whatever the build status is for that. I'm not sure state law backs them up on that though. I should check.

The dealership told me they had one person put deposits down at multiple dealerships to see which one gave him the allocation first and he was able to get his other deposits back.

So, you guys think that even if I get a build sheet signed by the dealership and myself and a bill of sale signed by both of us that I could still end up empty handed if somebody comes along and pays over MSRP for my build?

I've talked to them while they had orders in production that they never mentioned that possibility, but I never asked either. They showed me the specification and status of other orders though.

[Fastfwd]

Originally Posted by Squidget

You need to get a contract, in writing, signed by both you and the dealer, that the deposit is 100% refundable. if for any reason, you do not take delivery.

I can't give you exact legalize you need because IANAL and it varies by state.

I'll see if that is possible. That's a big deposit.

[Squidget]

Originally Posted by Fastfwd

So, you guys think that even if I get a build sheet signed by the dealership and myself and a bill of sale signed by both of us that I could still end up empty handed if somebody comes along and pays over MSRP for my build?

There's no way (in my experience) a dealer will let themselves be contractually liable to deliver you a car. What if the car carrier sinks?

Most dealers really do care about reputation, so the odds of non-delivery are low. Usually you'll get your car. But legally, it can't be guaranteed. I don't think that's the target you want to aim for.

The answer is always to shop around, find the best deal. Nothing beats doing the work. It's a reasonable goal to get a contract with a refund clause, assuming your credit isn't a mess. I would even live with "non refundable as long as car is delivered to me, pristine, as I specced it." Because that's what you really want, of course.

Edit: and definitely google for "car buying laws" in your state. Find some guides, see if there are state protections.

[M_Power Rob]

I don't mean to be rude but if you are this concerned (especially over a YT video), maybe you shouldn't be buying a BMW.

[M2siast]

Originally Posted by M_Power Rob

I don't mean to be rude but if you are this concerned (especially over a YT video), maybe you shouldn't be buying a BMW.

Brother, at this point, maybe you’ll want to put the first phrase in your post as your signature… lol

[FrankWhite!]

Tell them you’ll give them the deposit when they give your the allocation and can produce the build sheet with your specifications and the production number. I’ve ordered many, many cars and SUV’s from Audi, VW and two in the last 5 months from BMW. There’s always been a similar process for all of them. They don’t want to get stuck with tire kickers or a build they can’t sell so it’s a two way street. If you’re for real and have the funds let them know it and they should be able to provide the build in writing with all the details and order info. If all they can provide is an allocation that should be in writing fully refundable.
There’s a difference between an allocation and a production number. The former leads a to the ladder…

[M_Power Rob]

Originally Posted by M2siast

Brother, at this point, maybe you’ll want to put the first phrase in your post as your signature… lol

Never been one to sugar coat things. Just calls 'em likes I sees 'em...

[rons e92]

When you put a deposit down, you should expect to leave with a "vehicle inquiry report". This would have your production number, your build week, and your full specification.

If they can't provide this to you, the dealership doesn't have any available allocations regardless of what they're telling you. I got the whole bullshit, "We're a high volume dealer we get allocations all the time.", while refusing to even confirm my place in line or if they had any allocations. The guy still willingly took a $1k deposit from me for nothing other than a hope I'd get to order an M2 sometime in the next 6-12 months.

This means you're not putting a deposit down on a car, you're putting your deposit down to reserve an allocation.

I wouldn't do that personally. I did that with my G87, and a week later drove back in my G87 I got from a different dealer to get my deposit back.

Never again.

I you can, get the sales manager to circle the MSRP on the VIR and initial next to it with the date to confirm that's the price you'll pay.

[Fastfwd]

Originally Posted by M_Power Rob

I don't mean to be rude but if you are this concerned (especially over a YT video), maybe you shouldn't be buying a BMW.

Well, I haven't followed BMW automotive content online in forums or otherwise (Youtube). I do rely pretty heavily on Youtube for reviews, etc. I started watching G87 content and this popped up:

https://youtu.be/8OabVKK3SI0

This guy seems to be a pretty serious BMW car guy to me. He's done a tune on his G87, etc. I'm a little disappointed in his aftermarket wheel experiment, but better him than me to figure that one out.

That's his opinion of one dealership anyway. It's enough to make me question what I should be doing to do my best to prevent anything like that happening. I don't frankly know my local dealerships reputation. I know my local BMW motorcycle dealer's reputation isn't great and I've personally experienced it. They have the only game in town and they conduct themselves likewise.

$2,500 is a big chunk of money to be asking for a deposit. I appreciate everyone providing your advice on what I should be asking for in return. The best I can ascertain it appears there are a variety of opinions. I'm going to start asking questions from my salesperson about what I can expect for that money. I'll let you guys know what they say.

I appreciate everyone being helpful!

[DarkNight707]

I follow CarEdge in youtube. They have a lot of videos and great advise. You should check them out.

[Fastfwd]

I got a text back from my salesperson stating that the deposit is only fully refundable basically if you are on the waiting list. Once the specification for an allocation in your name has begun production it is no longer refundable. That's how they are doing it. Not sure what state law says on this in my state. It might be worth finding out.

I honestly don't have the biggest problem with the deposit not being refundable after the spec has been put into production. I can sort of understand that. I'm actually intending to spec the car without a manual or carbon roof and that seems to rile some people up pretty hard.

The only issue I can see is if it's hurricane season or something and my car sinks to the bottom of the Gulf of Mexico or they pull some kind of scumbag move and sell it to somebody else. I'm pretty sure they don't intend to do that though.

Otherwise, they're being pretty vague about what they are offering me in writing. 'The build and prices will be listed, no surprises.' Not exactly a rock solid written guarantee of anything mentioned, but maybe we just haven't gotten that far for the salesperson to bother to be more specific in what they routinely provide along those lines. Except I did specifically ask what was provided in writing.

[m3ct]

I was able to order one without any deposit. They never asked for one so I didn’t bother mentioning leaving one

[Game]

Originally Posted by M2siast

Brother, at this point, maybe you’ll want to put the first phrase in your post as your signature… lol

[Carefree]

Ever consider working with another dealer?

[M_Power Rob]

Originally Posted by Game

[Fastfwd]

Originally Posted by Carefree

Ever consider working with another dealer?

Well, this is the only local dealer where I am. My salesperson is somewhat new and they're now saying that they are adding a $5k markup. She says she just didn't know and I believe her. They're trying to act like they can get $10k. That's what I wanted to make sure of before I handed over a $2,500 deposit.

So, yes, I will be contacting other dealers. I already have actually just to see if anyone was doing MSRP. I found a few. I found one that doesn't sell M cars out of state (Chapman in Arizona).

Production numbers into the 1600 range means like 19k cars per year. I seriously doubt that markups will be lasting that much longer with that kind of inventory in the queue. I'm seeing more than I've seen before showing up on CarGurus for whatever that is worth.

I'll be looking around again soon. I sold my Mustang and it is being picked up this week. I got a really decent price for it and the buyer is getting a well cared for highly optioned S550. So, I'm well positioned to make a deal, but I refuse to pay over MSRP.

Gives me more time to browse through here and see what I can learn... There is a huge stink about these manual transmissions and I'm frankly not sold on it. I think I like the auto with adaptive cruise, but I may become flexible if I have to pick from MSRP cars. We'll see.

[Carefree]

Originally Posted by Fastfwd

Well, this is the only local dealer where I am. My salesperson is somewhat new and they're now saying that they are adding a $5k markup. She says she just didn't know and I believe her. They're trying to act like they can get $10k. That's what I wanted to make sure of before I handed over a $2,500 deposit.

So, yes, I will be contacting other dealers. I already have actually just to see if anyone was doing MSRP. I found a few. I found one that doesn't sell M cars out of state (Chapman in Arizona).

Production numbers into the 1600 range means like 19k cars per year. I seriously doubt that markups will be lasting that much longer with that kind of inventory in the queue. I'm seeing more than I've seen before showing up on CarGurus for whatever that is worth.

I'll be looking around again soon. I sold my Mustang and it is being picked up this week. I got a really decent price for it and the buyer is getting a well cared for highly optioned S550. So, I'm well positioned to make a deal, but I refuse to pay over MSRP.

Gives me more time to browse through here and see what I can learn... There is a huge stink about these manual transmissions and I'm frankly not sold on it. I think I like the auto with adaptive cruise, but I may become flexible if I have to pick from MSRP cars. We'll see.

I’d walk.
Today

[RockCrusher]

"My salesperson is somewhat new and they're now saying that they are adding a $5k markup. She says she just didn't know and I believe her. They're trying to act like they can get $10k."

New sales person did you a favor. By informing you of a markup she has clearly indicated this is not the place you should place an order.