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Serious question about dealer pricing.

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Old Mar 30, 2008 | 12:55 PM
  #1  
Jim Ray's Avatar
Jim Ray
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Serious question about dealer pricing.

This is not meant to be a thread about dealer bashing, or "Stealerships".

Here is the question for those of you who have been around dealers, or work or have worked for dealers.

Is the additional profit gained in markups by a dealer worth more than the customers lost?

Just bought my 5th MINI. We never have paid over MSRP, since day one. We went to the local dealer to buy our new Clubman, and were hit with a quote of a $1,000 non refundable charge for specing our MINI, and a vague statement of "around $2,000 Fair Market Value charge". We walked.

Later in talking to fellow club members, we have been told "If you are a repeat buyer, you can talk them down to MSRP". "If you just keep going back and beating them down you can get them down close to MSRP".

That is not the way we purchase cars. It bothers me to not buy from our local dealer, and I keep wondering if the extra profit on the few cars that they sell at this inflated price justifies the car sales they lose from people like me who just walk, and email another dealer who sells at MSRP and buy from them?

There are very few MINIs around here, and the dealers pricing policies have to have a lot to do with this, IMHO.

I do know about not getting free loaner cars, and no happy basket when we buy, but MINIs are really pretty good cars, and $3,000 pays for a lot of cheap rental cars.

Any thoughts, other than the usual dealer bashing?
 
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Old Mar 30, 2008 | 01:05 PM
  #2  
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cabriopilot
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From: Fernandina Beach, FL
Shop.. Shop.. Shop.. and then Shop some more.
Why is it important to buy it from your local dealer?
It is more important that they have a good service department.
There's a couple of MINI Dealers on this site that claim to have the best prices anywhere.
There's even some on EBay that sell new MINI's.
I would check with them and have the car delivered.
After all you are custom ordering it, so price is the only thing they can offer that the others can't.
I got a great price and great people at the sales and service end of it, but I'm down in South Carolina.

Good Luck..
For what its worth, I think many Car Dealers drive away their business with their tactics.
 
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Old Mar 30, 2008 | 01:13 PM
  #3  
MINIclo's Avatar
MINIclo
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From: Weeblegabber West (aka WLA)
Jim, I don't understand that dealer mentality, either.

I bought both of my MINIs from Long Beach MINI because they were the original MSRP dealership in SoCal, from day one, and they made my buying experience absolutely wonderful. They do not take deposits because any special-ordered MINI not accepted goes on the lot. I TRIED to give them money for a deposit, but they told me to put it in a bank account and get the interest!

I understand that there are still various dealers marking MINIs up, so go figure?

Are you considering buying elsewhere and having them shipped or flying there to motor the new one home like you did with the GP?
 
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Old Mar 30, 2008 | 01:27 PM
  #4  
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From: Greenville NC
The world is smaller these days and there is no need to have to deal with that from a dealer. I bought my new '08 Corvette from a dealer 900 miles away, who spec'd it out just the way I wanted and got me a build date in the first week of '08 production....All at invoice price. $300 for a few plane tickets (which was less than the local doc fees) and my wife and I had a great minivacation and trip home..

Find A dealer who will appreciate your business, not try to shaft you for extra margins and extras. Admittedly MSRP is the deal when buying a new Mini. I also tried to buy locally on the Vette, But my Dealer didn't want to "waste" an allocation on a low margin (only $2000!!) deal.....I drive by this dealer every day....Too bad for him actually......
 
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Old Mar 30, 2008 | 01:59 PM
  #5  
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STLMINI
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From: St. Louis
it's simple supply and demand. when they run out of people willing to pay over MSRP, they won't be charging it. nothing more, nothing less.
 
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Old Mar 30, 2008 | 02:01 PM
  #6  
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From: Nashville, TN
I use to work at several dealership and now sell to them. They think about the here and now not long term. If your dealer will not sell a MSRP shop around. If you want to call him back and tell him that ABC dealership will sell you the MINI at this price and does he want to match it you can. Other wise just purchase it from the one that will give you the best price. The local dealership still has to service the car MINI requires it.
 
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Old Mar 30, 2008 | 02:56 PM
  #7  
Jim Ray's Avatar
Jim Ray
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From: Las Vegas
You bet! Custom spec'd, built, shipped and on the truck right now. Picking it up in MN on 8 April, and driving it back. Understand internet shopping completely. I just want to understand how many buyers a dealer can afford to run off for that $3,000 markup.

The second part of it is that lots of first time potential MINI buyers are not as hooked on the cars, or as internet oriented as those who post on here. Those buyers will just walk, and go to a Scion, Honda, or the like. Then they will probably never be a MINI customer.

Originally Posted by MINIclo
Jim, I don't understand that dealer mentality, either.

I bought both of my MINIs from Long Beach MINI because they were the original MSRP dealership in SoCal, from day one, and they made my buying experience absolutely wonderful. They do not take deposits because any special-ordered MINI not accepted goes on the lot. I TRIED to give them money for a deposit, but they told me to put it in a bank account and get the interest!

I understand that there are still various dealers marking MINIs up, so go figure?

Are you considering buying elsewhere and having them shipped or flying there to motor the new one home like you did with the GP?
 
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Old Mar 30, 2008 | 03:01 PM
  #8  
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bcski
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From: Going downhill, fast.
I live in the middle of nowhere and have two dealers within 3 hours of me. Yet I pruchased from a dealer 4 hours away due to the reputation of the sales team. The closer dealer will probably see some of the work, but my money went where I was sure to be treated well...
 
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