Over in technical I started a dicsussion about getting a new car. After a long a laborious process I've decided on a MINI, and probably a Cooper.
I've spoken to four dealers who are all steadfastly refusing to discount the car, sticking to the list price. Their attitude seems to be - we don't discount these cars, and I think you'll find no-one else will. Am I paranoid in thinking this is some form of price rigging?
I'm not expecting to save a shed load of cash on a car with a three month waiting list, but cannot distinguish one dealer from another.
Does anyone have any ideas of how to save some cash here, apart from haggling a good finance rate?
Thanks,
Lee.
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Lee,
This was exactly what happened on that right car wrong car prog.
They could get nothing off the price and stopped after they got a low-ish finance deal.
How about buying off the dealer whom you are most likely to take the car for service warranty etc? ie build up good will?
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Lee, I don't think you are going to get a good finance rate at any garage, unless it is one of these "Pay List Price but interest free over 2 years", current Vauxhall promo is a case in point. With Banks and Building socs queuing up to lend money at under 8% I don't think you'll get better at a dealer - they get commission for talking you into 'their' finance deal. Shop around if you want a loan!
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Its just supply and demand. Mini C's are very popular being good cars and trendy. If the dealer doesn't sell it to you someone else will come along and offer him the price he wants. A dealer will probably get an allocation from BMW, once he's sold that he wont get any more for a while. Hence no point in discounting.
The factory will be churning out minis as fast as it can but until the demand is satisfied you wont get much of a discount. I can't see BMW deliberately throttling supply. They have different markets (i.e mini go all over the world) and may adjust the balance to effect price, but UK public seem to accept highest prices for cars therefore makes most sense to sell most cars at highest price (i,e in the UK)
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Hi Lee,
Despite what the law may say, the car dealers are operating a mini-cartel: The price of the Mini has been fixed by the manufacturer and the dealers have been forced not to discount the car. God help the dealer who offers the car cheaper than another dealer elsewhere! That's why you rarely see a UK dealer actually advertise "discounted" new car prices..when was the last time you saw a UK BMW dealer offer "Guaranteed to beat any price" advertisement?
But there is good news: If you can't discount the price of the car then get extras instead: A friend could not get a discount on a new old-shape Audi A4; instead he negotiated free servicing for 3 years - worth around £1,000. Or offer to pay for service parts only (free labour).
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Lee
Don't forget if there is a high level of demand new, then the depreciation will probably be less. I believe HJ commented on this benefit of new MINIs recently. This may make ownership over a couple of years less costly than getting something with a discount.
There's a special service deal on these (£100 for 5 years) - you may get that thrown in, or maybe some options, but frankly if demand greatly exceeds supply you won't get a mega deal.
Regards
John S
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This is typical BMW practice in the UK at any rate. You'd save around £1800 on an imported highly spec'd Mini compared to UK prices.
The car is over hyped and over priced.
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HJ wrote:
>>Actually the price of the MINI is fixed by supply and demand. Because demand exceeds supply dealers can sell the cars with an expensive list of extras for full list price
Fair enough, but in the showrooms I'm just not getting an answer to the question "Why buy from you rather than McBobbins BMW in the next town?"
Perhaps after years of Citroen dealers willing to throw their grannies in with the deal or cut the local competitions' throats, I cannot understand the steadfast attitude. And I've got A Level Business Studies!
Knowing that I'm buying the car, I don't understand why a dealer will let me take my money elsewhere. Surely it's better on his figures than someone elses, even if it does cost a set of mud flaps. Perhaps they do have limited allocations, or can't fit any more money under their beds.
I suspect the gain lies in finance - already a dealer has offered 7% without any pushing, around 1.5% less than the banks(Stuart, IIRC they got about 4% on the programme). Given the cost of interest, I might be better off concentrating on this rather than a free cupholder!
Thanks all,
Lee.
PS - my favourite quote from a Cambridge Economics Graduate friend on the subject: "If garages were any good at lending money, they'd be banks" Funny if I do end up using MINI finance
& Watcher, tried to resist but... yes they are pricey, and the hype might not be to many people's liking but BMW have hit my demographic square on with just about the best car I've ever driven, and for the price of an Astra.
& John, tlc is five years or 50k servicing but the warranty is only 3 - still excellent value given the first service is £87 alone.
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This scenario isn't new, any car in demand will not come with a discount, give it 2 years and discounts will start, problem is people make there minds up that they must have one and will even pay over the odds, Beetle lhd, Audi TT both cases in point, on the plus side if you trade in during the "in demand period" you should get a good trade-in deal. Personally i wouldn't buy one given the faults reported buy owners, again after two years revisions/facelifts usually sort these out, meanwhile how about a Ford Puma. Sorry to sound negative.
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