R50/53 Dealer Penalty for Markup
#1
BMW has told the dealerships that if they charge a premium on the Mini's they will limit the amount of cars they receive as a penalty. BMW does not want what happened to the PT Cruiser to happen to the Mini. I would contact MiniUSA and report any dealers that are marking up the price. When I went to my dealer in South Florida the cars are selling for sticker and the deposit is $500.00. Very Reasonable.
Mini on.
Mini on.
#2
#3
#4
hi,
which dealer did you get it from? what's your spec?
>>I have a pre-spec MCS, shipping on Tuesday from GB and the dealer here in Atlanta is not charging me anything above MSRP and not making me buy any add ons at all. I have had a deposit on the car since last April so that may be why. I purchased the car from a dealer in Atlanta GA :smile:
which dealer did you get it from? what's your spec?
>>I have a pre-spec MCS, shipping on Tuesday from GB and the dealer here in Atlanta is not charging me anything above MSRP and not making me buy any add ons at all. I have had a deposit on the car since last April so that may be why. I purchased the car from a dealer in Atlanta GA :smile:
#5
:???: In St. Louis they are charging $500 over invoice and throwing in floor mats. It's a market adjustment based on demand and it's outlined on my purchase invoice as such. I didn't mind paying invoice price but was insulted by the mark-up. Simple greed hurts the buying experience and doesn't build brand loyalty for BMW. VW did the same thing when the new beetle came out. BMW should be concerned.
#6
Once again, let me explain exactly how it works. Jack Pitney, President of MINI asked all dealers not to mark up there cars. They cannot come directly out and tell the dealers who mark them up that they will get a smaller allocation. They also cannot tell them what to sell them for because that would fall under the illegal act of "price fixing" Sooner or later the top performing dealers will get more cars than the lower performing dealers, regardless of what the dealers are charging for their cars. The bottom line is, MINI and BMW want to move cars and they WILL reward the dealers who move the most. E.G. Crevier BMW in Southern Ca. sells M3s and M5s for over sticker, but since they are the largest in the country, by volume, they are earning more and more cars. :smile: null
#7
Trending Topics
#8
You guys are lucky! In the Los Angeles area one dealership tacks on $4,000 and gives you nothing for it. Another tacks on $2,990 (but at least they give you a CD changer, floor mats, and a lo-jac system). That's who I'm going with. I wish I could get the car at MSRP, but at least I'm getting one. It's a trade off- how badly do you want one? I guess everything is more expensive in California anyway.
#9
Don't get me wrong...It was very hard to pay the mark-up on my mini. I knew it would happen, I even saved extra for the damn thing. I think it would be great if dealers were penalized for the mark-ups. But that is not reality. Those of us who took the bait have something that is more than just added items on their minis. We have the fantastic satifaction of experiencing what it is like to drive a dream car(it is 4 me) and be one of the ONLY ones in town who has the pleasure to do so. This is a once and a lifetime ordeal for a lot of folks considering that most cars this cool cost WAY more than the average incomes can afford. Think of it as being priceless!! It has been three weeks of heaven so far. I live in San Diego, there are only approx. 4 Mini's here at the moment. How long will my priceless moment last. I'm sure, no I'm positive it will last much longer than that $1600.00 would have lasted in my pocket. One day when mini's cover the streets and highways I will divide the money by the amount of days it took for the thrill to subside and I know I will come out smelling like roses on this bet.
#10
I also live in San Diego. I opted to go to Phoenix for my MINI(currently on the boat ), as our dealer is not open yet and decided to use a lottery instead of a list.
I got on the list in Phoenix about a year ago. Just had to send a deposit last week when I ordered my car. It was MSRP, NO EXTRAS whatsoever. :smile:
I got on the list in Phoenix about a year ago. Just had to send a deposit last week when I ordered my car. It was MSRP, NO EXTRAS whatsoever. :smile:
#12
#13
I'm in San Diego as well, and not too happy about having to drive to LA to get my MINI. What's with that? How come San Diego proper has no dealer? I noticed that billboard ads for MINIs are mostly near dealerships, but San Diego's billboard was down in a nasty area by the shipyards!! Maybe another dealer will be nearer to more San Diegans someday. I'm expecting mine June 12th at Long Beach MINI. No added mark-up, but this will be my first, and last, time buying a car at MSRP. I'm only willing to pay it because I'll be driving a great car almost nobody else around has. When I get mine, we outta get together down here.
BCNU,
Rob in Dago
BCNU,
Rob in Dago
#14
I live north of LA and checked out a few dealers there - they all mark up about 4-5 K - so ended up buying from Pleasanton, CA - EastBay Mini - they do not mark up and are very nice - for all of you in CA - there are dealers out there who are not greedy - and that will pay off for them. Had to drive 6 hours one way to get it, but so what? Advise - get a rental car and drive it there and then drive your new mini back!
#15
#16
Funny about the markups. My wife and I have visited 5 or 6 dealerships, in NY, VA, and FL. Overall, the Orlando one had the most ridiculous markups, a few thousand above list. The NY dealerships are MSRP all the way, though they vary in how they deal with deposits and car choices. The dealer we bought from, Hassel Mini, was happy to do a BTO for us :smile: The one in Manhattan was more of a "this is what we're going to get, take 'em or leave 'em."
The Florida ones had stock, but the Orlando one had the highest prices by far. The West Palm Beach dealer seemed really nice to deal with (talked with them for about an hour); they had some kind of accessory package that's standard, and were willing to customize. The one in South Miami also had markups, but not as bad as the Orlando one.
I think the ones in VA were MSRP, but I don't remember anymore.
The Florida ones had stock, but the Orlando one had the highest prices by far. The West Palm Beach dealer seemed really nice to deal with (talked with them for about an hour); they had some kind of accessory package that's standard, and were willing to customize. The one in South Miami also had markups, but not as bad as the Orlando one.
I think the ones in VA were MSRP, but I don't remember anymore.
#17
I love my new Mini but will never buy from San Francisco Mini again: They charged me $1500.00 over MSRP
they treated me the way a Dodge dealer or GM dealer would treat you. For instance, BMW America provided me a 6.9% auto loan over 5 years, approved and authorized by BMW/Mini in advance-guanranteed. But when I went to pick-up my new Mini I was told I couldn't take possession of the car unless I was willing to pay an additional 1.1% on the auto loan for a total of 8.0%. I would gladly have paid in any case but I hate it when I am lied to and treated like a jerk. BMW of San Francisco's Mini division keeps alive that old rip-off dealership tradition of "bait and switch"!!
Dogbottompie
they treated me the way a Dodge dealer or GM dealer would treat you. For instance, BMW America provided me a 6.9% auto loan over 5 years, approved and authorized by BMW/Mini in advance-guanranteed. But when I went to pick-up my new Mini I was told I couldn't take possession of the car unless I was willing to pay an additional 1.1% on the auto loan for a total of 8.0%. I would gladly have paid in any case but I hate it when I am lied to and treated like a jerk. BMW of San Francisco's Mini division keeps alive that old rip-off dealership tradition of "bait and switch"!!
Dogbottompie
#18
>>BMW has told the dealerships that if they charge a premium on the Mini's they will limit the amount of cars they receive as a penalty.
>>>Would love to know the source of that statement. Manufacturers, distributors and dealers have specific agreements and I drafted one years ago for a well known luxury brand. Never heard of limiting the max you can charge. The market will do that. Distribution agreements might address the minimum price a dealer could charge. Besides BMW has always created the MSRP "plus" enviornment with their cars. That's always been their marketing strategy to hold back production, start a frenzy and then slowly increase supply. They did it with the X5, Z3, Z8 etc. All those cars were selling for over MSRP 'sticker' when they came out and were extremely hard to find. I think there is now 6 X5's on my street. they're every where. I don't think that will happen with the MINI only because it has a virtual world wide distribution which I don't believe the X5, Z3 etc. have and so with continued limited supply, the dealers will continue to charge whatever the market will bear, especially in big cities where there's lots of demand. I also think this is somewhat of a bogus issue. The MSRP was just set too low. It should be more in line with a GTI and everyone wouldn't be so upset. Plus if dealers keep getting these big prices, I cannot believe that BMW won't get into the act and raise the MSRP and increase their "take". Right now though they almost need to let these dealers get whatever price they can so as to recoup the expenses BMW laid on them to have a dealership. I understand those costs were pretty steep> If you notice, there are many BMW dealers in Los Angeles that did not take on the MINI line especially on the West side cause they couldn't afford the expansion costs.
>>>Would love to know the source of that statement. Manufacturers, distributors and dealers have specific agreements and I drafted one years ago for a well known luxury brand. Never heard of limiting the max you can charge. The market will do that. Distribution agreements might address the minimum price a dealer could charge. Besides BMW has always created the MSRP "plus" enviornment with their cars. That's always been their marketing strategy to hold back production, start a frenzy and then slowly increase supply. They did it with the X5, Z3, Z8 etc. All those cars were selling for over MSRP 'sticker' when they came out and were extremely hard to find. I think there is now 6 X5's on my street. they're every where. I don't think that will happen with the MINI only because it has a virtual world wide distribution which I don't believe the X5, Z3 etc. have and so with continued limited supply, the dealers will continue to charge whatever the market will bear, especially in big cities where there's lots of demand. I also think this is somewhat of a bogus issue. The MSRP was just set too low. It should be more in line with a GTI and everyone wouldn't be so upset. Plus if dealers keep getting these big prices, I cannot believe that BMW won't get into the act and raise the MSRP and increase their "take". Right now though they almost need to let these dealers get whatever price they can so as to recoup the expenses BMW laid on them to have a dealership. I understand those costs were pretty steep> If you notice, there are many BMW dealers in Los Angeles that did not take on the MINI line especially on the West side cause they couldn't afford the expansion costs.
#19
Join Date: Jul 2002
Location: Weeblegabber West (aka WLA)
Posts: 36,087
Likes: 0
Received 3 Likes
on
1 Post
> If you notice, there are many BMW dealers in Los Angeles that did not take on the MINI line especially on the West side cause they couldn't afford the expansion costs.<<
:smile:
Again, I agree with you. Where would the Westside dealerships be built? There may be a few possibilities on Santa Monica Bl., in Santa Monica, but I can't, off-hand, think of too many other locations.
Cheers!
Clover
:smile:
Again, I agree with you. Where would the Westside dealerships be built? There may be a few possibilities on Santa Monica Bl., in Santa Monica, but I can't, off-hand, think of too many other locations.
Cheers!
Clover
Thread
Thread Starter
Forum
Replies
Last Post
elverado
R56 :: Hatch Talk (2007+)
2
01-18-2022 02:51 AM