[nicksbmw2]

Can someone explain this pricing policy to me.

When you walk into BMW dealer and you purchase a car, the moment you drive off the lot the car loses approximately 15% of its value from the MSRP. I buy my cars for several reasons.

BMW is selling 2023 5 series 540ix msport with 5, 6, 7 or 8 thousand miles at around 66k to 72k.

Are these cars used cars? Or is the mileage put on by just driving around the dealers lot…lol

The average MSRP IS approx. 72k. These cars should be selling around 61k.

In Trading in my car, BMW offered 5k less that Vroom. BMW wants to screw you in front end and in the rear.

No matter how you slice it it’s a lose-lose proposition for us the consumers.

Is it time to move on from this brand or is this the norm across all brands.

[HerkHealer]

Ever since Covid and the epic "chip shortage" fiasco, Stealerships have been raking in the cash. They can literally charge whatever they want and could care less about you because there are more buyers lined up behind you. Even used cars on their lots are selling for just a few thousand under the new car prices. They could give a shit. It's just the way it is right now.

[LogicalApex]

Pricing is all out of whack. I am glad I don’t lease. I am holding onto my current car until the market normalizes as it ultimately will.

Once the correction arrives we’ll have discounts tossed around again. Dealerships are putting on the fat while they can.

[NGT2]

Originally Posted by HerkHealer

Ever since Covid and the epic "chip shortage" fiasco, Stealerships have been raking in the cash. They can literally charge whatever they want and could care less about you because there are more buyers lined up behind you. Even used cars on their lots are selling for just a few thousand under the new car prices. They could give a shit. It's just the way it is right now.

Relationships have become more important for the customer, which is ass backwards.

It’s also created opportunity for smart dealers and SA’s to gain future relationships.

To the OP - time to talk to some other dealers and see who wants to gain a customer. Smart ones know they aren’t low on demand now, but they’ll need you later.

[BMW012]

the market wont ever be like the way it used to be - at least not anytime soon, as its very easy to keep current prices as it is now. the industry now knows all they have to do is manage/limit their production and car prices will stay up.

[G30 B58]

You don't have to pay MSRP. You can easily get 7-8% off a new car, especially if you order it. There are also rebates and incentives available for new cars.

2023 cars have been available since Sept of 2022. A good portion of the cars your finding with 5-8K miles are likely corporate cars or loaners.

Sell your car to Vroom then and you'll have more negotiating power but will lose out on tax advantages.

Put down the salt shaker.

Keep your current car and move on or find another brand.

[silverydragon72]

In general you aren't going to find massive discounts like you use to at this point. You may if you wait it out longer but car makers and dealers don't want it to go back to the way it was so there will be a bit of resistance to that. Also on trade ins you always get less at any dealer I have been to. Some are more reasonable than others but typically they won't offer you top dollar for your trade in. You can definitely shop around to see if you can find a reasonable priced used 2023 but I think you will find that difficult among most brands right now unless the vehicle is really undesirable. At this point a delayed new car might not be much more than a slightly used 2023.

[AP]

I traded my 2017 540 in a few months back against a new m550
I got 40% of the value I paid for it for the trade in which although a little below what various websites were stating , that’s still pretty good in my view for a nearly 6 year old car. Bmw we’re offering £8000 of the m550 presumably as it was end of run ( in fact officially discontinued in the U.K.) and I got a further £2000 off . In all reasonable

But yeh prices in general are high and it’s the price to change that’s always the important bit

I fear new car prices will continue to climb but presumably to offset that, used will also not go down quite as much .

[Joe-BMW33]

Nothing new here, COVID or no COVID, Chip Shortage or no Chip Shortage - it's all about the principles of Economics. Supply, Demand, Interest Rates, etc. Owners weren't complaining a few years ago when their car was worth $15,000 - $20,000 more than you paid for it the year before (Me).

That said, you can find a good deal either new or used. It's all about diligence and shopping dealers. Prices are certainly still high and getting thousands of dollars off the MSRP is a thing of the past. Just have to accept this. There could be a correction, but that will take a depression (not a recession). Problem is there are still a lot of people out there making a lot of money. People that aren't impacted by rising pricing or the cost of money.

Stick with dealers that don't take complete advantage of it and value you. I set out to buy a brand new X5 at the end of last year as 2023's were only $10,000 more than 2022 and 2021's. I ended up buying a 2021 because I could not find what I wanted new. They would not budge on the price and they wouldn't even throw in winter mats. That dealer gets a big fuck you from me. It will be serviced elsewhere.

[H_T]

I’ve read some Ford dealerships was transferring new vehicles to a 3rd party company and reselling them “used” so they don’t have to sell them at MSRP.

I hope this isn’t the case here.

[xander_g]

Here in Ontario they created something called the luxury tax. See below

The tax will be calculated as the lesser of:

20% of the retail sale price above the relevant price threshold ($100,000 for vehicles and aircraft; $250,000 for vessels); or
10% of the retail sale price of the subject vehicle, aircraft, or vessel.

[NGT2]

Originally Posted by xander_g

Here in Ontario they created something called the luxury tax. See below

The tax will be calculated as the lesser of:

20% of the retail sale price above the relevant price threshold ($100,000 for vehicles and aircraft; $250,000 for vessels); or
10% of the retail sale price of the subject vehicle, aircraft, or vessel.

That’s some socialist redistribution bullshit.

[AP]

In the U.K. we something along the lines of that
If the car is valued at over £40000, the the first years tax is very high along with a further 4 years after which it goes back to normal levels
This catches quite a few cars and especially now with inflation .

[MelbourneFinn]

Well, Australia has what’s called a luxury car tax - 33% of the car sale price over something like $75k (or just under $50k USD). This was introduced a long time ago to protect local car manufacturing which was focusing on cheaper cars. Well, no longer car manufacturing in Australia (unless you count the 10-20 Brabhams they are planning on building - or carbon fibre Corvette wheels &#128519, but LCT remains - go figure…

[LuvMyE92]

Here in the USA we used to have a luxury tax. Probably none of you kids besides Joe are old enough to remember that.

Anyway...to the OP's lament: don't blame BMW, blame the dealer.

Then, blame the market. As others have said, that's just the way it is today.

However, if you are willing to do a little work and possibly travel a bit, you can obtain a car at a discount and get a decent price for your old one. It just takes more work now.

I was shopping for a new 540i before the G60 comes out, and I admit it was discouraging. Many cars listed as "new" were actually service loaners with several thousand miles on them. Now me, personally, I respect service loaners and don't drive the piss out of them or abuse them. Well, not much. But I know others do. And surely the guy/gal/person that never drove a six cylinder car before and wanted to "see what it will do" before the break-in period was finished isn't going to do me, the buyer, any favors. So I tend to avoid those cars.

What was my point?

I gave up on the G30 and we bought a G05 LCI instead (X5) with a fair discount and I actually got a decent trade-in price on the 550. I have no doubt that my phenomenal negotiating skills were nearly as important as the fact that we've bought a lot of cars from this dealership and they appreciate our patronage.

Plus I made no secret of the fact that I would go buy it through a broker if I had to.

[LouisChristensen]

Thank you for the info, I will keep it in my mind. I was actually searching for this https://fitmymoney.com/how-to-borrow...from-cash-app/ website because I want to know how to borrow money from a cash app and while searching for it online, I found your post as well. I want to buy 2023 5 series 540ix and that is why I took interest in your post.

[wakebord99]

Most of the dealers around here will use the kbb cash offer. Also just traded my 540i in for a cpo 550. Got 18,700 with 78k miles which is about right and within a few hundred of what other cash offers were.

[NGT2]

Originally Posted by wakebord99

Most of the dealers around here will use the kbb cash offer. Also just traded my 540i in for a cpo 550. Got 18,700 with 78k miles which is about right and within a few hundred of what other cash offers were.

Yeah, I made a similar transaction in March. I used KBB to get cash offers in town and then my local BMW dealer beat the best one by $500. And I wasn’t even buying the M550 from them. Took them about 6 weeks to sell it, I think, and I’m sure they made a few grand on it. Didn’t need much, maybe some brake fluid.

[BMW012]

Originally Posted by wakebord99

Most of the dealers around here will use the kbb cash offer. Also just traded my 540i in for a cpo 550. Got 18,700 with 78k miles which is about right and within a few hundred of what other cash offers were.

well lets see the 550 then

[weinerbarn]

Just swapped 2 cars (Audi's) for BMW's and the dealers all low balled me on the trades. Ended up selling one on Carvana and another Audi dealer offered to beat the Vroom price so we sold the other vehicle outright to them. The Caravana transaction was probably the easiest I've ever seen. It took 15 mins and walked out with a check in hand. BTW ... the prices on those sites fluctuate so you can keep checking the value over the course of days and it will go up and down. The prices are good for a week so regularly check before you pull the trigger. It can vary by thousands. Don't be afraid to look for your replacement vehicle online, even hundreds of miles away. The cost savings can easily outweigh the shipping cost or it can make for a fun road trip.