www.wewillbuyyourcar.com
- Thread starter G14RRV
- Start date
In 2000 I bought a new 528i in the USA. Out the door it was 47,000USD/29,300 quid. The dealer was dropping the BMW mark. As BMW gave him the shaft and he was not happy. So I asked him straight up. What's your mark up over your cost. He told me $4,500/2,800quid. that's a little over 10% markup. Not bad really. I knew two fellas that owned a stereo shop. the average markup for hi-fi gear was around %100 or more. This was in the early 80's per the stereo gear.
the whole motor industry would steal soup from the salvation army :roll: its just numbers,figures & wages to them .
a close friend is on used at Bowker BMW & i bought my car private :wink:
the stories he has always make us laugh but ultimately it comes down to cash from the customer going to the dealer .
as with any product its " buyer beware "
a close friend is on used at Bowker BMW & i bought my car private :wink:
the stories he has always make us laugh but ultimately it comes down to cash from the customer going to the dealer .
as with any product its " buyer beware "
Before I moved to Germany. I spent about three years in the parts department at a motorcycle shop. Dealer profits in descending order were, Parts and accessories, service, used bikes, new bikes. In our bike shop. A $12,000 sport bike had a gross of $2,000. From that amount they had to pay the salesman, Tax, Pension, Utilities. And a few other things. Net after expenses wasn't much.
I have to be honest. The bum deal that BMW gave to the small dealership we had in South Dakota was terrible. This was in the late 1990's. BMW could not make enough cars to fulfill demand. As such they were fetching high prices. According to the owner of the dealer in South Dakota. At a US dealers meeting in Florida that was attended by BMW HQ. A proposal was put on the floor by the BIG dealers from New York, California, Florida. to make buying a BMW an upscale experience. To do this. They proposed that each dealer would have to install a new dedicated satellite link to BMW. In a multiline dealership. BMW would have to be sold in a separate area in the same building or build another one. At least three service bays would be dedicated to BMW only and would have to be tiled. In the end the main goal of the BIG BMW dealers was to financially squeeze the smaller ones out of BMW sales. Therefore having more cars available to themselves. The small dealer we had would have to invest a minimum of $1,000,000 for the upgrade. Now mind you. He sold on average 15 BMW's a year. Which was all BMW would let him buy. You do the math. He gave up. So not every dealer is a huge obscene money making venture making a kings ransom on each car. It's about volume. Which BMW does not have.
I have to be honest. The bum deal that BMW gave to the small dealership we had in South Dakota was terrible. This was in the late 1990's. BMW could not make enough cars to fulfill demand. As such they were fetching high prices. According to the owner of the dealer in South Dakota. At a US dealers meeting in Florida that was attended by BMW HQ. A proposal was put on the floor by the BIG dealers from New York, California, Florida. to make buying a BMW an upscale experience. To do this. They proposed that each dealer would have to install a new dedicated satellite link to BMW. In a multiline dealership. BMW would have to be sold in a separate area in the same building or build another one. At least three service bays would be dedicated to BMW only and would have to be tiled. In the end the main goal of the BIG BMW dealers was to financially squeeze the smaller ones out of BMW sales. Therefore having more cars available to themselves. The small dealer we had would have to invest a minimum of $1,000,000 for the upgrade. Now mind you. He sold on average 15 BMW's a year. Which was all BMW would let him buy. You do the math. He gave up. So not every dealer is a huge obscene money making venture making a kings ransom on each car. It's about volume. Which BMW does not have.
It's a shame and I'd feel really pissed if I were you. But you tried your best to sell it under your own terms and for whatever reason, it didn't happen for you.
I sold my last car (59 plate Jaguar XF) through a company who contacted me after I placed an advert in Autotrader. I waited until the advert ran out and had to decide whether to readvertise or accept a price which was probably £1,000 under the recommended value. I settled for the lesser price as it suited me and meant I could get on with my life.
Of course, when the phone rings and a potential buyer asks if it's still available before its actually been collected by the company it feels a bit like a kick in the happy sacks. But you quickly get over it. Don't look back!
I sold my last car (59 plate Jaguar XF) through a company who contacted me after I placed an advert in Autotrader. I waited until the advert ran out and had to decide whether to readvertise or accept a price which was probably £1,000 under the recommended value. I settled for the lesser price as it suited me and meant I could get on with my life.
Of course, when the phone rings and a potential buyer asks if it's still available before its actually been collected by the company it feels a bit like a kick in the happy sacks. But you quickly get over it. Don't look back!
My father in law was in the motor trade for 30 years. Came out of the merchant Navy with not a penny or a qualification to his name. Knew (and still knows) nothing about cars but has the gift of the gab. Opened a garage selling used prestige and performance vehicles, sold that and went to work for a franchise running regional dealerships. Retired before 60 a millionaire.
There is money to be made in it obviously. I have a few friends in the trade both at private and franchised dealerships and the mark up on a new car at a franchised dealership is way more than 10%. They can give you a 10% discount and still make healthy profit.
There is money to be made in it obviously. I have a few friends in the trade both at private and franchised dealerships and the mark up on a new car at a franchised dealership is way more than 10%. They can give you a 10% discount and still make healthy profit.
Putter Whore said:It's a shame and I'd feel really pissed if I were you. But you tried your best to sell it under your own terms and for whatever reason, it didn't happen for you.
I sold my last car (59 plate Jaguar XF) through a company who contacted me after I placed an advert in Autotrader. I waited until the advert ran out and had to decide whether to readvertise or accept a price which was probably £1,000 under the recommended value. I settled for the lesser price as it suited me and meant I could get on with my life.
Of course, when the phone rings and a potential buyer asks if it's still available before its actually been collected by the company it feels a bit like a kick in the happy sacks. But you quickly get over it. Don't look back!
i only expected to get around £7k private anyways as i knew it needed taxed and tyres
mini's are common as muck now and nobody really cared that it had relatively low miles
tough market
Stark said:
Mine was a 5 door, chipped by the dealer (307bhp through the front wheels is "entertaining") and was the dealer principles demonstrator when I bought it. It was a fantastic car and the only reason I sold it was I'd put galactic miles on over two years. The dealer bought it back from me and sold it the same day