Dealer selling lower than PX

J

jaz4

Member
 derbyshire uk
Well thats interesting I PX my 10 plate 3.0 for shy of 17K. Glasses suggested top 18.3K in mint with dealer resale at 20K

Its up for sale at 17990

http://www.approved.bmw.co.uk/bmwuk/bmwauc/details/0,,1156___ask-4%40adm-xx,00.html?ch=_V0JBTE01MjAzMEUxNTkwNzM=&btp=1x24-distance_ASC|list

Now this is the cheapest 3.0 10 plate by over 2K. I am shocked that they did not start at 21K, How are they making money????. They seem to be selling some cars at PX value not franchised dealer. They will need to stick 12 months wty on it so over £500 (it was mint just serviced and new rear pads and rubber all round).
 
PX price is meaningless - it's only the "cost to change" that matters.

There are probably tax advantages for the dealership in offering a higher PX price and taking less (if anything) off the price of the car that you are buying.
 
Philip Yes the cost to change is key to the purchaser I have been carping on bout this.

Now I normally purchase a used car so unsure of the previous deal. HOWEVER

My new zd I swapped for the advertised is 4 month old pre reg 26 mile 2.8 msport. list over 37K for £24990. (already dropped by 1K in the past few weeks). This month June there is a deal on the Msport so larger dealer contribution so say £31K. This car has lost £6K already, no deal before it but dealer stock. So I had to accept slightly lower px of 17K as this car to me is a steal. SO why would they only put £990 on it, when they have to process it and put 12 months wty.

This assumes they will get screen price, but I think it will shift quick at that price.
 
Keep in mind its also coming up to the end of a 1/4 and dealers will be scrabbling to hit their targets, they my see your car as a quick sell with the weather being good
 
And realistically, they aren't going to be able to sell a 30k+ mileage, 3 year old car for circa £20k if they have pre-reg 28i's on the forecourt for a smidgen more.
 
I'm wandering if second hand car prices are perhaps lower as in many cases its actually cheaper buying new these days, especially on PCPs and reduced interest rates, so lowering forecourt prices gets you in the showroom and then the entice of dealer finance with higher APR on used cars? :|

Tim.
 
As previously mentioned, I have a 2009 3.0i fully loaded, albeit with high mileage from Sytner for just over £14k.
 
Z4_Gaz said:
As previously mentioned, I have a 2009 3.0i fully loaded, albeit with high mileage from Sytner for just over £14k.
Click to expand...

The guaranteed future value on mine is £12400 at 4 years, but then it will be 4 years old lol.

Tim.
 
jaz4 said:
SO why would they only put £990 on it, when they have to process it and put 12 months wty.
Click to expand...
Because they are a business, and (unlike many private sellers) they will know that what they paid for the car is utterly irrelevant when setting a price to sell it at.

In your instance, I can only assume that they made sufficient profit[*]from the car that they sold you that they would be happy even if they just broke even (or even made a small loss) on the Z4.

[*] or hit a dealer volume target, or mitigated their losses, or reduced their gearing, or gained some other pecuniary advantage
 
Nezzy
they dont have the 2.8 anymore I have it lol, also they had a 3.0 12 plate up for 26990 with 6.5K miles sitting next to the 2.8 so that theory does not make sense.
PS the 3.0 is down to 24990 now. This makes more sense as I would have been looking for a 12 plate / 1 year old 3.0 around July for £23K.

ZedfourM
profit on the one they sold me, I would have agreed but 37K list 26 miles 4 month old for £24990, cant see a lot of profit in that but who knows they may be given the car by bmw!!!.

So it must be a loss leader to get cash flow / targets then.
 
I agree wih jaz4. Its all about their targets. They make their money back off other sales or the ignorant people who just buy cars for the full price instead of haggling.

Williams in Stockport were selling the 13 plate 20is for around 28-29k after dealer contribution but in the showroom they had a brand new pre face lift model (62 plate model) for £36000 with £1000 dealer contribution. Now why on earth would anyone pay 6-7k more for an older model especially as there are loads of delivery miles models with only 10 miles on them selling for 24k!

Their pricing is odd but you do get the odd idiot who buys the 36k model as I found out by going in last week.
 
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