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Newbie question; Do I HAVE to pay MSRP?

Old Aug 17, 2005 | 08:02 AM
  #1  
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Newbie question; Do I HAVE to pay MSRP?

I'm planning on ording a 2006 MCS (Chilli red with pretty much everything but the sunroof and JCW package) soon and can't seem to find a dealer who will negotiate.

I realize demand is still high, but can't belive it. One dealer told me that they are trying to be "hassle free" like Saturn dealers used to be. Is this true?

Should I just swallow it and pay MSRP, or is there any hope to save any money?

Thanks for the help.
 
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Old Aug 17, 2005 | 09:32 AM
  #2  
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Originally Posted by SheaJeff
I'm planning on ording a 2006 MCS (Chilli red with pretty much everything but the sunroof and JCW package) soon and can't seem to find a dealer who will negotiate.

I realize demand is still high, but can't belive it. One dealer told me that they are trying to be "hassle free" like Saturn dealers used to be. Is this true?

Should I just swallow it and pay MSRP, or is there any hope to save any money?

Thanks for the help.
Sadly, not only do you have to pay MSRP when ordering a new MINI, but you should be thankful that you don't have to pay OVER MSRP...

MINI has intentionally kept production lower than demand in order to avoid flooding the market with cars... Thereby avoiding the PT Cruiser Syndrome. On the positive side for us, resale stays high because demand stays high. On the down side demand stays high which means there's no need for dealers to move on the price or for MINIUSA/BMWUSA to offer incentives either. Both are done when demand is low and supplies are high...

The only time I've seen dealer's negotiate on price is when a car has been on their lot for a while... as in 5+ months, which is very rare...
 
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Old Aug 17, 2005 | 09:42 AM
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Yup, paying MSRP is normal. If you want to negotiate you might get some free floor mats or something but that's about it. Just try to avoid paying over MSRP...I can't believe that is still going on. You could save some money by dropping some goodies on your MCS but I'm guessing that's not going to happen...no way.
 
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Old Aug 17, 2005 | 10:00 AM
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Just read a press release over on SSM that the new MINI head guy wants to double sales next year. The article stated that MINI only has 6 days worth of stock on hand and the factory is working at full capacity and then some. They also pointed out that employees have to pay full MSRP also because of the demand. They have a decent product and they know they don't have to stoop as low as GM, Ford, and Chrysler to move product. Sorry but it looks like MSRP is going to be the going rate for a little longer.
 
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Old Aug 17, 2005 | 10:22 AM
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Well, there *might* be ways to negotiate; depending on how you do things. Trade-ins, dealer financing, asking for freebies...that sort of thing. :smile:
 
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Old Aug 17, 2005 | 10:28 AM
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Originally Posted by SheaJeff
I'm planning on ording a 2006 MCS (Chilli red with pretty much everything but the sunroof and JCW package) soon and can't seem to find a dealer who will negotiate.

I realize demand is still high, but can't belive it. One dealer told me that they are trying to be "hassle free" like Saturn dealers used to be. Is this true?

Should I just swallow it and pay MSRP, or is there any hope to save any money?

Thanks for the help.
In my area the best you can do almost all of the time is to order a MINI at MSRP and wait 3 to 6 months for it to arrive. Do you HAVE to pay MSRP? No, you can pay more. I'd suggest paying MSRP and getting floor mats added for free. I paid for mine.

If you get something in stock it will have some interior and exterior dealer add ons that raise the price of the car by $100s and sometimes other upgrades like parts of the aero kit, wheel arch painting, optional MINI wheels, etc that raise the prices even more.

Rarely I have seen a show car done by the dealer for an event that sold at a small discount of a couple of $100s. It may sit in the showroom for a few months then to move it out it gets price adjusted.

After a year of use demo MINIs get sold at a slight discount but they often have 6000 to 10,000 miles on them or more.

Rarely I hear that classic MINI in Ohio has small discounts but then you pay shipping costs ($800-$1000) to your location.
 
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Old Aug 17, 2005 | 10:40 AM
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:smile: Welcome to NAM, Jeff. Where are you located? There are a few great dealerships in the US that do sell at MSRP. Some of us buy out of state, fly there to pick them up, then have a fun roadtrip home! MSRP is about the best deal you can get. :smile:


Clover
 
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Old Aug 17, 2005 | 10:41 AM
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Paying BELOW MSRP has been a very rare thing with the MINI. I remember this past year 2 people posted that they were able to negotiate about $500 under.

MAYBE if you find a dealer that has a lot of cars on their lot they want to unload before the 06' model arrives, you just might be able to negotiate...good luck!!

Donna
 
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Old Aug 17, 2005 | 10:41 AM
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Originally Posted by Ladidah
Well, there *might* be ways to negotiate; depending on how you do things. Trade-ins, dealer financing
In other words, you still pay MSRP, but they find a way to make it look otherwise.
 
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Old Aug 17, 2005 | 10:52 AM
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Originally Posted by Donna/Mike
MAYBE if you find a dealer that has a lot of cars on their lot they want to unload before the 06' model arrives, you just might be able to negotiate...good luck!!
This depends upon where you live. I see maybe 50 cars sitting in the dealers lot. Depending upon geographics, everyday those car sit there, they cost that dealer money.

If they 06 MINIs start delivery in October, I'd be willing to bet you could get a very good deal on an 05 say about the last week in september. You would have to be knowlegeable and firm but ... does the dealer want to take the chance of those 05s sitting around for more months and keep losing money on them or sell and just take a lower profit?
 
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Old Aug 17, 2005 | 11:42 AM
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I've heard of people in NJ and PA negotiating $500 off on IN-STOCK '05s this past March.
 
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Old Aug 17, 2005 | 11:51 AM
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Also keep in mind that the dealer's margin on these cars (before options) is very low, something like $1200-1500.
 
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Old Aug 17, 2005 | 11:56 AM
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I got $500 discounted from my last order, but it was MINI #3 (car #4)from the same dealer.
 
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Old Aug 17, 2005 | 11:59 AM
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The fact that demand has stayed high & resale value stayed high, is a direct result of a superior quality car (good thing for us!!) - unfortunately, that leaves you no (or very little) hope of applying leverage to the dealer. I mean, at most dealerships across the country there are still waiting lists for this car.

I paid MSRP, and so have all the other folks I know... ah, g'wan bite the bullet, and just enjoy the car!! If you wanna save money drive a chevy/GM/Ford.

- - m
 
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Old Aug 17, 2005 | 01:18 PM
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A discount would be nice, but I really enjoyed the convenience of ordering a car like a Dell computer. You see the options, the prices, no hassle, no trying to figure out how low they'll go, it's just stress-free. At least if you are having to pay MSRP it's a very easy process.
 
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Old Aug 17, 2005 | 01:42 PM
  #16  
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I've paid MSRP twice now and accept it as part of owning a car that's in demand. The good thing about dealer's sticking to MSRP is that our resale stays strong.
 
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Old Aug 17, 2005 | 01:47 PM
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Originally Posted by 2Miniacs
I've paid MSRP twice now and accept it as part of owning a car that's in demand. ....
Why accept it? Why not find the dealers with cars sitting there like door weights and negotiate a fair deal?

Of course, you could also pay MSRP on a new TV rather than going to a discount warehouse or buying over the Internet.

Everyone is different ...
 
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Old Aug 17, 2005 | 07:12 PM
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Originally Posted by MINIclo
:smile: Welcome to NAM, Jeff. Where are you located? There are a few great dealerships in the US that do sell at MSRP. Some of us buy out of state, fly there to pick them up, then have a fun roadtrip home! MSRP is about the best deal you can get. :smile:
SheaJeff, I live in the SF Bay Area and, believe it or not, our dealers are asking $3500 over MSRP for an MCS . I decided to purchase my MCS from Classic MINI in Cleveland OH at MSRP. They are great to work with.

In fact, right now I'm sitting in a Holiday Inn with my 11yo son, waiting for the car to be delivered to the dealer. Once we pick it up, we will be going on a great road trip to Atlantic City then back to Santa Cruz.

Saved $3500, got my car quicker, will have a killer road trip, and the dealer is great. Classic MINI is a sponsor of NAM and they have their their own forum here.
 
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Old Aug 17, 2005 | 09:46 PM
  #19  
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PAying MSRP is pretty normal, I read an article today that even employees are paying sticker. I kind of support this idea, because the fact that the car holds value, look at all these Suburbans with 9-10k off MSRP, they do not hlod value whatever you do, you buy for $10k less, and get another 20% hit right after you take off from the lot.

Mini USA is protecting the brand and value, and someone made a good point, there is really not huge mark-up on these cars, let them make their little money, so we can have super cool cars, otherwise we will have to settle for cheap plastics, and less quality.
 
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Old Aug 18, 2005 | 05:39 AM
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Originally Posted by chrisnl
Also keep in mind that the dealer's margin on these cars (before options) is very low, something like $1200-1500.
Check out the Mini on Edmunds.com. Invoice is closer to $3K less than base price, add options and the dealer can make another $1K. Percentage-wise, Mini markup is about the same as most other cars out there. I'm pretty amazed that any car can still command MSRP in its fourth year of production, that's definitely not typical.
 
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Old Aug 18, 2005 | 09:12 AM
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Originally Posted by mtbscott
Check out the Mini on Edmunds.com. Invoice is closer to $3K less than base price, add options and the dealer can make another $1K. Percentage-wise, Mini markup is about the same as most other cars out there. I'm pretty amazed that any car can still command MSRP in its fourth year of production, that's definitely not typical.
No it's not, but it's also not typical for a manufacturer to intentionally keep production below demand, and that's what MINI is doing. Yes they have been increasing production slowly, but still 90% of MINI sales are custom jobs and some dealers still maintain a waiting list...

MINI has been able to do something that both VW and Chrysler failed at... Keeping interest high in a car model for more than just the first year or so. Look at the Beetle or PT Cruiser, demand far outstripped supply for both models for the first few months after release. Both companies increased production to meet demand... and the floor fell out under their sales figures as they flooded the market... MINI has been able to manage this equation successfully and sales continue to rise...

As for dealers with a large inventory of cars on their lots... How many of those cars have been there for more than 30 days? How about 60 days? I'm guessing that the average time a pre-spec car sits on a dealer's lot is just less than 30 days... By then most cars are either sold off to customers or other dealers. MINI of Towson loves buying other dealers cars. It allows the selling dealer to keep their delivery allocations up, and it allows Towson to fill their lot with MINIs ready for sale. The average time a MINI sits on their lot... 20 days, with most gone in 15. When I placed the order for my MCS, Towson had just received 45 cars that they had purchased from Crown in Richmond and MINI of The Hamptons... That was on Dec 30, by February 1 they were ALL sold...

Yes some dealers do have showroom queens that they just can't get sold (MINI of Sterling had a 30k VR Cooper that sat for 10 MONTHS before it sold, and MINI of Towson had 3 MC40's that took almost as long to sell as well), but the number of cars that don't move is such a small fraction of the number of cars they do sell, that they aren't too concerned.

For those of you saying well it's just stupid that they won't negotiate with me on that car sitting out front, I mean I'm ready to buy NOW... Remember demand for MINIs is high, something that your dealer is acutely aware of. Your dealer knows that even if you won't buy the car they can probably find 3 other people willing to take you place as soon as you leave the showroom. That's the same reason why MINI doesn't offer rebates or promotional financing. Those incentives are intended to drive customers to the showrooms, however MINI dealers aren't having issues getting the customers in...
 
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Old Aug 18, 2005 | 11:55 AM
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I wish Edmunds would pay for my trade what they showed on their BS, which btw they are full of it. Any intelligent person would not fall for Edmunds deal.



Originally Posted by mtbscott
Check out the Mini on Edmunds.com. Invoice is closer to $3K less than base price, add options and the dealer can make another $1K. Percentage-wise, Mini markup is about the same as most other cars out there. I'm pretty amazed that any car can still command MSRP in its fourth year of production, that's definitely not typical.
 
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Old Aug 18, 2005 | 11:59 AM
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Originally Posted by SheaJeff
I'm planning on ording a 2006 MCS (Chilli red with pretty much everything but the sunroof and JCW package) soon and can't seem to find a dealer who will negotiate.

I realize demand is still high, but can't belive it. One dealer told me that they are trying to be "hassle free" like Saturn dealers used to be. Is this true?

Should I just swallow it and pay MSRP, or is there any hope to save any money?

Thanks for the help.
You could try a California dealer they will be happy to negotiate up from the MSRP, usually $1,00 - $5,000 above MSRP.

I suggest accepting MSRP and being happy. If you can't be happy at MSRP then buy anoter car. Simple as that!
 
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Old Aug 18, 2005 | 12:06 PM
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you know

downside: msrp
upside: not wait time

--you pay and enjoy.....I was amazed yesterday to see an S convertible at long beach mini in stock. too bad it was 30k and no navigation....!!!!!
 
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Old Aug 18, 2005 | 01:17 PM
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Shaking my head at markups...

Off on a tangent here...but I just don't understand how Crevier makes any deals, are people nuts here in Orange County? I can probably answer that question myself, but I consistently see Crevier branded MINIs around here and there, yet they still have 70 05' Coopers and Ss on their lot, all of them marked up $3,995 or more. I don't care if you have enough money to pay cash for a car on the spot and are from rich, white Orange County...if you do buy there without looking around anywhere else, you're stupid. Save the 4K you would have paid at Crevier, buy/custom order at LB MINI and take the extra money and go on vacation, or accessorize the MINI!
 
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