[nana516]

Okay, so my lease is almost up on my '06 325i. I'm looking to either buy out the car OR buy a new 328i. .. especially with the 0.9 financing and auto trans. deal being offered right now.

I started contacting every dealer in my area (around 5-10 dealerships) asking what they have on their lot that fits the bill: 2008 328i in black or white, leather interior OK, with auto trans. and power seats. (Since I'm a student, I really can't afford much more than base level so that's all I need.) Most dealerships that got back to me are either all out of '08 coupes, or have a few that don't fit what I'm requesting. Here's where I need your help.

HOWEVER, one dealership right by me just told me they have a white '08 328i in stock, but there are two issues: 1) it's a little over loaded for my budget--premium package, cold weather package, iPod and USB adapter, and satellite radio, and 2) someone has had a deposit down on it for the past week. They let me know about the car because apparently there's been some credit issues and they're not sure if the deal is going to go through.

The MSPR on the car is $42,845, invoice is $39,475, and the selling price the dealer's offering me is $40,115 ($640 over invoice).

Now, here's what I need your guys' input on. I know $640 over invoice would normally be a good deal, but shouldn't I expect more off considering they're phasing out 2008's now that 2009's are in production? Also, with the 0.9% financing BMW is offering, there's also something about adding automatic transmission at no cost. Could this offer apply to my case? Because then that brings the invoice down to $38,215.

Basically, I want to know how you experienced BMW buyers/negotiators would handle my situation. Keep in mind that there's another interested party who already has a deposit down on the car.

[methodtim]

I don't know if I fit the bill as an "experienced BMW buyer," but I recently bought a BMW and I'm experienced buying other types of cars, so hopefully I'm qualified.

Your instincts are good. You should not be paying anything over invoice on an 08, especially an 08 e90. All the quotes I received when I ordered my e92 were invoice. Some had an advertising fee attached to it, but the dealership I eventually bought from quoted me straight invoice (+ ttl of course) for the car I wanted, factory ordered.*

Go back to the dealer and offer him straight invoice for the car. I doubt he'll say no, especially if he can move it right away.

*After all this, I ended up going with an 09 model, but that's a different story for a different day.

[nana516]

If I were to offer the dealer straight invoice, do I offer the actual invoice of $39,475 or what the invoice would be with the free auto trans. deal BMW is offering ($38,215. )?

[methodtim]

Originally Posted by nana516

If I were to offer the dealer straight invoice, do I offer the actual invoice of $39,475 or what the invoice would be with the free auto trans. deal BMW is offering ($38,215. )?

If I was you, I'd go with in with the 38,215 number and explain your logic. If the dealer balks, work your way up to 39,475. Either way, you win, right?

[RyBMW]

It doesn't matter that it's an 08. Correct me if I'm wrong but I believe the E92 coupes are selling well in NY and NJ. If you don't buy it someone else will. I'm sure other customers already have their eyes on it.

[nana516]

The deal with the other party ended up going through so that's over.

But he just got back to me with news that he has a loaner car available that fits my requirements. I'll post back later with the information once I get in touch with him.

[nana516]

The same dealer--after informing that the previous deal did go through (read above)--just told me about a loaner car that is available that would apply for the 0.9% financing.

2008 328i LOANER
5,274 miles
Auto transmission
power seats
heated seats
iPod/USB adapter
Added benefits:
0.9% financing
extended warranty (til 1/30/14 or 100,000 miles)
SELLING PRICE: $35,900

Now, I emailed him asking about the free auto trans. offer BMW is doing along with the 0.9 fiancing--still waiting to hear back. But basically, would that be a good deal? The MSRP for an identical new model would be $39,645, invoice would be $36,560 (WITH the auto trans), and $35,300 (WITHOUT auto trans). Add in the factors that it's a loaner with 5,000+ miles on it, what would be a good deal?

[methodtim]

I had something really long-winded written out, but then I came to my senses...

Why are you even thinking about buying a used car for new car prices (no matter how good the deal looks)? That's what this loaner is, a used car. I would pass and I would try to find someone more honest to do business with. The end.

[nana516]

Originally Posted by methodtim

I had something really long-winded written out, but then I came to my senses...

Why are you even thinking about buying a used car for new car prices (no matter how good the deal looks)? That's what this loaner is, a used car. I would pass and I would try to find someone more honest to do business with. The end.

see I thought the same thing but since this my first time negotiating a car, I'm really unsure about the whole process and what's fair/ not fair. That's why I appreciate all your input.

I'm not opposed to the car he's offering though I am opposed to paying more than the fair price for it. How do you suggest I approach the dealer?

[methodtim]

Originally Posted by nana516

see I thought the same thing but since this my first time negotiating a car, I'm really unsure about the whole process and what's fair/ not fair. That's why I appreciate all your input.

I'm not opposed to the car he's offering though I am opposed to paying more than the fair price for it. How do you suggest I approach the dealer?

That's a tough one because I can't find any prices for used BMW's for MY2008 (although I only looked at kbb.com and edmunds.com, you may have more luck if you do more research).

If you really want this car, you should tell the dealer that you consider it used and you want a REALLY good deal on it, something way below invoice. I honestly don't know what would be considered a good deal, though, so I just punched in some numbers in kbb.com for MY2007. Here's what I got for a private party sale.

Excellent: $32,025
Good: $30,305
Fair: $28,080

Suggested retail was $35,475.

Please note, I just put in my zip code for these prices. Your prices may vary a bit.

If you're comfortable buying a loaner, I would use the suggested retail price as my "up the sleeve take it or leave it price" and start negotiating at the private sale price of 32k.

[nana516]

I also looked into used prices for a MY2007 vehicle with its milage and options on edmunds.com and got this:

OUTSTANDING:
Total Dealer Retail $34,161
Certified Used Vehicle $36,686

CLEAN:
Total Dealer Retail $33,066
Certified Used Vehicle $35,549

I just want to know what everyone thinks a fair price would be for the vehicle. Also, can anyone tell me the pros/cons of buying a dealer loaner. I posted this same thread on another forum and one poster said "DANGER PROCEED WITH CAUTION" after hearing that it was a loaner car.

[methodtim]

Danger is about right. But you've heard enough from me, so I'll shut up now. Have a good weekend and good luck!