This is exactly what they want you to think. When Minis were still hot I got $2,000 off the MSRP on my Clubman and probably could have done better. They aren't Saturn...you can deal.

 

Oh yeah there are. And then comes the classic "extended warranty and tire warranty" pitches lol. It gets to be like a time share pitch. We bought a Mazda once and by the time it was over with the guy was trying to sell the extended warranty for half of what he started at. I still didn't cave!

 

I am currently looking at a $3220 (13%) difference between two dealers for the same car ('14 base model hardtop) right now.

One being sold at MSRP with the best financing they can offer, the other being sold at a discount with a subsidized (has to be) finance rate.

Here's the deal, I am becoming very attached to the higher priced dealer due to their customer service and seemingly genuine attitude towards me. Because of that, I am willing to compromise by $500 or even $1000... but we are still way off the mark.

They know I am a numbers person so I'm really crossing my fingers that we will be able to meet in the middle.

 

@gtmotor
$3200.00 lower price and you'd chose to pay MORE?
You could always pay the lower price and then visit the dealership you say makes you feel better!
They have to honor all warranty work.
Plus they love service dept. business, that's how they make the big bucks.

That's a lot of cash to NOT save it, unless you have unlimited cash. Just saying.

 

I'll be real nice to you if you pay me $3200! I mean that borders on ridiculous as a difference. I never heard anyone get that much off the sticker price of a Mini. The most I've heard is around $2000.

 

That's because theres not even close to $3200 profit in the car to begin with.

I'd have a really hard time believing a dealer is taking a loss on a brand new F56. If so, they won't be in business long....

 

Please read my entire post. I am willing to compromise by $500 or maybe $1000 max.

The cost difference factors in a 3% interest rate at my local dealer vs. 0.59% using the other one about 400 miles away. That's why the dollar figure is so high.

The calculation isn't exactly rocket science :

2014 Mini

Price $ 25,745.00 $ 23,962.00 $ (1,783.00)
Tax $ 2,085.35 $ 1,940.92 $ (144.42)
Doc Fee $ 379.00 $ 80.00 $ (299.00)
TTL $ 495.00 $ 495.00 $ -
State fees $ 5.00 $ 5.00 $ -
Total OTD MSRP $ 28,709.35 $ 26,482.92 $ (2,226.42)

Cash down $ 10,000.00 $ 10,000.00 $ -
Financed $ 18,709.35 $ 16,482.92 $ (2,226.42)
Interest rate 3.00% 0.59% -2.41%
Loan term 48 months 36 months

Payment $ 414.11 $ 462.00 $ 47.89
Total loan $ 19,877.33 $ 16,632.35

Total paid for car $ 29,877.33 $ 26,632.35 $ (3,244.98)

First column is my local dealer right at MSRP. Second column is the discounted rate offered by the second dealership.

Total off MSRP is $1783, total saved on the purchase of the entire car is $3245.

I also disagree that there is that little margin on a car. I don't work in the financial sector but common sense dictates that the business has to make a certain profit margin in order for it to make sense to even be in the business of selling cars. Without a decent ROI on the end product (I would guess 12-15% minimum) why wouldn't the owners of BMW/Mini just invest their money elsewhere with a higher return? They aren't in the business of making cars just because it's fun...

Cliff notes: If my local dealer (whom I like) is willing to reduce the price of the car I will buy from them. Else I will buy from the cheaper source.

Edit: This isn't meant to be derogatory toward anyone. The "this isn't rocket science" comment was made because I actually am a rocket scientist at my day job.

 

Ahhh
The old finance percent conundrum.
After going back and reading your post, I'm not sure anyone would have sat down to figure out your percentage rate and then GUESS at your down payment.
We normally talk about the MSRP or the amount dealers discount off MSRP.
That's where your original post went sideways, too many percent sand what if's etc!

I guess if my decisions were to come down to pennies on the dollar over say a 4 year note, I'd never buy anything.
But since you stated that you ARE in fact a rocket scientist, it now makes sense.
Not to be derogatory or anything.

 

So?

I don't much care if it's BMW or Lyon-Waugh Auto Group eating it. Point is, there is a couple grand in play on the price a consumer buys.

Don't get me wrong — there has to be profit in the deal for the dealer. I used to work with a sales team and a chunk of my pay was commissioned. I think good service and good experience is worth paying for. But that doesn't change the fact that MSRP has a lot of wiggle room in there for a buyer who cares to ask for it. :-)

 

Nothing motivates a car dealer more than the possibility of losing a sale to another dealer. Also, IIRC, dealers can sell at cost (invoice) because they'll very possibly get a rebate from the manufacturer based on making quotas. As the story goes, most of dealer profit comes from the service department, anyway.

.59% is a really low interest rate (APR, I guess). When I ordered, my dealer said he was not prepared to quote an interest rate yet on the '14s. We were given the choice of .9% or 1.9% based on the number of months on a '14 Mazda we just bought -- cheaper than our credit union.

 

While that might be true with other brands, its not with MINI. The actual margin on a MINI is roughly half of your above percentages.

 

I picked up a new 2013 MCS for $3500.00 UNDER sticker. 0% 48 month BMW financing, no down.\
No add-ons, and F&I guy made no pressure to upsell me.
Yeah, they were blowing out 2013s to make room for 2014s, but Im positive no one took a loss.

 

Universal Mini, and Long Beach Mini both honored this ad.

 

They probably did take a loss, since prior model year cars tend to just sit. Better to take a loss and get it out the door than let it sit and depreciate more.

 

$3,500 off MSRP sounds very inviting

 

Agreed anyone that thinks differently is crazy. These cars are priced MUCH higher than the competition. I really like the mini, but the GTI or the Fiesta ST are much better cars for the money. They are making plenty of money on each car.

 

No chance. Sorry no one makes anything with 6% IMU on purpose. Maybe the dealer gets 6%, but they also pay mini/BMW at least another 6% on top of that. Look at the price of the car and then the parts that make it, the VW GTI is higher quality and much cheaper.

I am considering a MCS, but not because it is a good value.

 

And they are not taking a loss, that I would bet on.

 

I'm seeing:

$199.00 Platinum Security
$499.00 Administration Fee

I don't think so.

 

Yeah Scottsdale Mini adds something called Lojax to every car for maybe $500. I think it finds the car if someone steals it. I mean I can find my cellphone if someone steals it and the app is free. It's shameless I tell you. But the $300 stubby antenna takes the cake. Hell, I had one and the dealership lost it washing my car! They scrounged around and found one for me somewhere. I don't think it cost $300 either.

 

I guess I am lucky with my dealership. No add-ons and i get free tint. Add that to the USAA incentive, I am happy.

 

just inked a deal on a Countryman S with 8500 miles and a $31xxx sticker...was a loaner car the dealer swears they 'own the car'(remember it's a loaner so they 'own it' since new) for $25k - we are getting it for a good deal less that that. If that's true, they've got a lot more room on these vehicles than man are saying.

 

http://minispecialoffers.ca/Emails/indexeast.html

This dealer is also charging more for freight & PDI (freight is supposed to be the same everywhere in Canada), and more admin fee than MINI Canada allows in their ad.

 

Could be that MINI USA had too many they needed to move and gave dealers a real deal.

 

The free tint is awesome...I asked my dealer about USAA incentive and they couldn't find one.