Dealing with Dealers

[Z4midable]

Hey Guys and Girls,
I’m hoping to join the Zed club in the next few weeks, probably with an AUC (as opposed to private) as I have been reading various threads regarding Approved Warranties and need for them. I have around 20k to play with and definitely want some peace of mind from any costly hidden surprises!
My questions to you guys are more aimed at the ‘dos and don’ts’ of purchasing AUC from a dealer, as I’m far from an experienced car buyer!
Are all dealer prices negotiable like it would be buying privately? What are their profit margins and room for movement? Ie if a car is up for 19k... what would be a realistic bid to start negotiations? Does it favour ‘for or against’ when paying for an AUC outright?
Also, what can I push for in the way of ‘deal sweeteners’ (if any)? (Discounted 2nd year warranty maybe? Years Tax?.... Tank of fuel..... CD single of Born to be wild by Steppenwolf??? )
I realise that these questions really depend on the dealer on the day, but just some (any) advise would be very much appreciated!

 

[Anonymous]

Dont assume because its AUC that it will be fault free or have had a problem free past, although you will get the remainder of the 3 yr manufacturer warranty, or at least 1 yr warranty I believe.

My stealer is tight as a ducks ass, and the most I've ever got out of them was a full tank of fuel.

Might get better if you go for finance cos they get back-handers for selling finance. If you can then afford to pay it off early you are allowed to do so - so if you have the funds to pay outright, consider finance to get any extra discount etc, then pay it off.

I think this is correct, but may be corrected.

 

[Smiler]

I took the finance and paid it off early with no penalty, it does give you more power to negotiate either money off or extras, I had money off and a wind deflector fitted.
Didn't make a concious decision to use finance as a negotiating tool at th etime though

 

[Z4midable]

Thanks for the reply, I wouldn't be as naive as to assume that a car would be fault free, I realise that with these technically advanced cars, the price you pay for these gadgets is that anything can go wrong at any time.. and when it does is likely to cost you an arm and a leg! Hence the warranty is a must for me!
I know it doesn't come with any guarantees as to its life with a previous owner but it would at least have had a (supposedly) 'professional service' with a BM name stamp, and having read some previous threads on here regarding the Warranty, it seems fair to say the majority of people appear happy and sometimes impressed with the service, should any faults occur?

Taking the finance for discounts and then repaying it is an interesting concept. Does anyone know if doing this would include the APR? Or if there would be any charges, like there would be with an early mortgage repayment for example?

 

[Z4midable]

I took the finance and paid it off early with no penalty, it does give you more power to negotiate either money off or extras, I had money off and a wind deflector fitted.
Didn't make a concious decision to use finance as a negotiating tool at th etime though

Thanks, just seen your reply regarding the 'no penalty' after submitting the same question. Appreciated.
Money off and a wind deflector is better than full price and no wind deflector!

 

[Anonymous]

I didnt mean future faults...I meant current faults! You assume that AUC means its been instpected and any problems rectified before delivery to new owner.

In my experience of several used BMWs that were all AUC, they all had faults when I took delivery that the dealer simply hadn't fixed or noticed....leading me to think any such pre-checks are fairly basic.

However...they were all sorted on warranty with no problems - it does seem to be a good warranty.

I dont know about any hidden costs with finance, but assume you took finance and got £500 extra off the car (a guess) then paid off the finance after 1 month, thats surely a saving, although how much negotiating finance is worth I dont know.

 

[gordongecko500]

Hi Z4midable,

My last 4 cars have been AUC and I have to say I have had mixed experience, mainly to with purchasing. The warranty side I've found to be excellent to the point where I now buy my cars from one dealer 60 miles away from me and get it serviced at my local dealer.

The actual warranty is element is fab, whenever I have any issues I take into my local dealer and it's fixed with little issue - the reason I buy AUC.

But don't assume that the car will be fault free - this varies from dealer to dealer which is why I now buy from one I trust. Most key faults will be repaired, but you have to point these out clearly otherwise they overlook them - eg tyres, scratches on the paintwork, A/C regas etc.
It's a used car, so approach it that way irrespective of whether it's a dealer or not - they want to max out their margin. Go over the paintwork carefully - I've been caught out on a "prepped" car.

Make no mistake, they make a healthy margin on their stock - as to how much you knock off is dependent on what car you're buying. More main stream vehicles there's a greater chance of discount as is stock that's harder to shift. I'm rubbish at negotiating, but knowing the margin they make, I've started to be cheeky and just drop in an offer. I manage to knock £500 off generally. It's easier if finance is involved. You should be able to discount extended warranty costs. I've managed to halve the cost of my GAP insurance and got A-glaze thrown in for free.

Hope this helps...and good luck!

 

[Z4midable]

I didnt mean future faults...I meant current faults! You assume that AUC means its been instpected and any problems rectified before delivery to new owner.

In my experience of several used BMWs that were all AUC, they all had faults when I took delivery that the dealer simply hadn't fixed or noticed....leading me to think any such pre-checks are fairly basic.

However...they were all sorted on warranty with no problems - it does seem to be a good warranty.

I dont know about any hidden costs with finance, but assume you took finance and got £500 extra off the car (a guess) then paid off the finance after 1 month, thats surely a saving, although how much negotiating finance is worth I dont know.

Ah I see what you mean, yes I guess I was naively presuming an AUC would be sitting on the forecourt trouble free, but based on what you're saying, and thinking about it now, they probably just hook it up to a diagnostic computer to check for faults and then give it a basic service.. they're not likely to give it a good road test which maybe when these niggles present themselves.

Of course any saving is good, I guess in my mind if say a car was up for 18k and you took finance on it, the overall repayment including the APR would exceed that, but it seems that may not be the case and definitely something i'll look into. Thanks

 

[Z4midable]

Hi Z4midable,

My last 4 cars have been AUC and I have to say I have had mixed experience, mainly to with purchasing. The warranty side I've found to be excellent to the point where I now buy my cars from one dealer 60 miles away from me and get it serviced at my local dealer.

The actual warranty is element is fab, whenever I have any issues I take into my local dealer and it's fixed with little issue - the reason I buy AUC.

But don't assume that the car will be fault free - this varies from dealer to dealer which is why I now buy from one I trust. Most key faults will be repaired, but you have to point these out clearly otherwise they overlook them - eg tyres, scratches on the paintwork, A/C regas etc.
It's a used car, so approach it that way irrespective of whether it's a dealer or not - they want to max out their margin. Go over the paintwork carefully - I've been caught out on a "prepped" car.

Make no mistake, they make a healthy margin on their stock - as to how much you knock off is dependent on what car you're buying. More main stream vehicles there's a greater chance of discount as is stock that's harder to shift. I'm rubbish at negotiating, but knowing the margin they make, I've started to be cheeky and just drop in an offer. I manage to knock £500 off generally. It's easier if finance is involved. You should be able to discount extended warranty costs. I've managed to halve the cost of my GAP insurance and got A-glaze thrown in for free.

Hope this helps...and good luck!

Hi and thanks for taking the time to reply, it’s great to be able to call on peoples experiences!
Having not bought from a main dealer before I’m really just looking at the AUC website and if something pops up that takes my fancy I know there’s another thread on here regarding ‘Dealers’ so I’ll have a search in there to see if there are any reviews on that particular one.
I’m sure it’s very easy to get caught up thinking about the larger gremlins and overlook things like tyres and scratches so I’ll be sure to drive the salesman mad as I probably literally spend hours examining it.. maybe he’ll give me a healthy discount just so I go away! Lol
I’m rubbish at negotiating too, which is why I was wondering what others managed to knock off, so thanks for that. I guess you can make any offer you like and all they can do it say no! 8)

 

[paulgs1000]

Buying an AUC can have it's advantages - I had new front discs and pads fitted and rear pads - asked for and had new fog lights fitted, wheels were refurbished and paintwork tidied up. I'm sure this is reflected in the eventual price but I felt that work had been done as it was an AUC from BMW. The 1 year warranty gives me some peace of mind as well. Not certain such work would have been done by independent dealers?

You've got a good amount to spend so should find your ideal Zed - good luck!

 

[Z4midable]

Buying an AUC can have it's advantages - I had new front discs and pads fitted and rear pads - asked for and had new fog lights fitted, wheels were refurbished and paintwork tidied up. I'm sure this is reflected in the eventual price but I felt that work had been done as it was an AUC from BMW. The 1 year warranty gives me some peace of mind as well. Not certain such work would have been done by independent dealers?

You've got a good amount to spend so should find your ideal Zed - good luck!

Hi Paulgs1000,
Were the disks and pads fitted as standard or did you negotiate this? Maybe noticed something not to your liking on the test drive?
I think i would have this satisfaction with an AUC rather than an independent (‘non specialist’) too, and definitely want the warranty (even if I bought privately would still take out a BM warranty) and am likely to extend it after the year is up. Which is why I was wondering if anyone had managed to negotiate a discounted 2nd year upfront.

 

[LeeZ4MR]

Five out of the six bmws I have owned have all been AUC all purchased from different dealers & it is surprising how some are far better than others in terms of service, I have been lucky as all the cars I have had as AUC have been really good examples & I like the piece of mind with the warranty & all the cars ive had have all had nearly new tyres or brand new tyres on & the expensive services have either been completed or are a way off which has been a bonus.

As others have said the cars are not always perfect & i always give them a good going over but I can honestly say I have been more than happy with all the cars I have had from the main dealer.

 

[Z4midable]

Thanks LeeZ4MR that’s reassuring to know, especially with the expensive service and definitely something I’ll add to my ‘list of questions’

 

[bluestreak56]

All dealer prices are negotiable. Be prepared to fight hard and each are different. I got £1500 off the list price of my AUC car but took 3 months negotiating.
Miniumum profit margin should be £1000 on top of the PX value which you can check here: https://www.capconnect.co.uk/ConsumerValues/Ford.aspx?DB=CAR&CH=PWRTZ&New=1
Just stick to your bottom line and dont budge.
You'd be doing very well to get something on top of a price reduction but if you can get Tax or 2years warranty thrown in you will be doing fantastically well.
I walked in and looked and made the right noises and was offered £500 off my car before it was even advertised properly but they wernt willing to do a penny more. In the end they spent £1k getting it up to scratch and £1.5k reduction making me a happy bunny.. good luck

 

[Anonymous]

Also, if (ha - when!) they offer you GAP insurance, probably for £499, do a quote with ala.co.uk and see how much you can save...and get better cover.

The BMW one typically only offers £10k of cover, whereas the ala one covers as much as you want.

 

[Z4midable]

All dealer prices are negotiable. Be prepared to fight hard and each are different. I got £1500 off the list price of my AUC car but took 3 months negotiating.
Miniumum profit margin should be £1000 on top of the PX value which you can check here: https://www.capconnect.co.uk/ConsumerValues/Ford.aspx?DB=CAR&CH=PWRTZ&New=1
Just stick to your bottom line and dont budge.
You'd be doing very well to get something on top of a price reduction but if you can get Tax or 2years warranty thrown in you will be doing fantastically well.
I walked in and looked and made the right noises and was offered £500 off my car before it was even advertised properly but they wernt willing to do a penny more. In the end they spent £1k getting it up to scratch and £1.5k reduction making me a happy bunny.. good luck

Thanks for the link, that’s a good tip and at least provides a ballpark figure of what the dealer is making. (Obviously varying depending on what they have had to lay out to get the PX to AUC status).
It seems like you get more out of them in the way of cosmetics than actual cash discount, which still works in a roundabout way as you say.
I’ve also read on another thread that it can be beneficial to buy at the end of sales quarters... Just depends if I can contain myself til the end of March!

 

[Z4midable]

Also, if (ha - when!) they offer you GAP insurance, probably for £499, do a quote with ala.co.uk and see how much you can save...and get better cover.

The BMW one typically only offers £10k of cover, whereas the ala one covers as much as you want.

tbh I hadn't even considered GAP insurance (Told you I wasn't an experienced car buyer! lol) so thank you for the info and providing more food for thought! You guys have been beyond helpful!

 

[MickJ]

On my Zed I got around £1500 off the list price, plus to get it to AUC standard they replaced all pads, rear tyres and wipers and then when they MoT'd it they found a small split in one of the front tyres so they replaced both fronts they also found a front shocker weeping so both fronts were replaced (under the warranty) and I got a full tank of fuel, I did have to pay for the road tax though...... This was a cash deal.

When I recently traded my F11 Tourer against a 5 Series GT (2 months old) they offered £19k for the Tourer I then showed them a 'we buy anycar' offer for it which was £20k they matched that, I wasn't going to get anymore off the GT as it was £10k less than the new with options tag of £44k as I had money tied up until March we took out their Finance with the intention of settling in March but though there is no 'penalty' for early settlement there is a 'Admin fee' at the start and at settlement totalling about £325, again I got a full tank of fuel.

 

[cesela]

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[paulgs1000]

Hi Z4midable,

The discs and pads were done before sale - did not have to negotiate on them but was delighted that this was the case (the brakes are excellent) - the fogs were a pleasant positive when I asked if they could do anything as they were full of condensation - wheels paintwork - I was told they would be corrected as we walked around and I pointed out issues - and they were.

However - I negotiated new disc and pads on my sons second hand VW polo after a test drive and after feeling the lip of the disc - they were very worn and I said it pulled unevenly on the brakes - they were renewed as part of the deal for my son - so do check everything out on the test drive and ask questions and make comments if you feel anything is not right.

You've got the year warranty as well if there are problems.

My daughter recently bought a fairly new Fiesta diesel - the warranty was 2 months! Ford dealership. Couldn't believe that - some confidence in their product !