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Well, I might be wrong but it seems to me that the asking is too high. It is MY15, but for several months now they are selling 2017s, so that kind of makes it a 2 year old in a sense. Also, the number to look at is not the original msrp, but the original invoice (probably 7k or less than msrp), minus whatever incentives were available.
Interestingly, Carmax has priced the car at $55K and the local BMW dealer is offering $59K. KBB lists a private party value of $57K. The MSRP on it was $90K. This is a massive drop in just one year.
If it's only a year old, I guarantee you the dealership will charge $70k+ for it.
Where would I be without you?
Lawyers...never-failing sanctimony.
My point, don't take something in the 50ks.
They give $59,000. They spend $2500 on cleanup, inspections, and BMW certifications - it's a guess, but somewhere around there. That's $61,500. They list it at $69,995, and the buyer negotiates them down to $67,500. The salesman makes 12% on the profit of the sale, so the profit to the dealership is $5,280. That's an 8% profit margin. If most businesses ran on an 8% profit margin, they would be a colossal failure. Yet somehow, car dealerships are expected to run on that, or less.
That's an 8% profit margin. If most businesses ran on an 8% profit margin, they would be a colossal failure. Yet somehow, car dealerships are expected to run on that, or less.
Most business aren't selling $25/$30/$40,000+ goods. The higher priced an object is, the lower your profit margin can be and you will still make money.
They give $59,000. They spend $2500 on cleanup, inspections, and BMW certifications - it's a guess, but somewhere around there. That's $61,500. They list it at $69,995, and the buyer negotiates them down to $67,500. The salesman makes 12% on the profit of the sale, so the profit to the dealership is $5,280. That's an 8% profit margin. If most businesses ran on an 8% profit margin, they would be a colossal failure. Yet somehow, car dealerships are expected to run on that, or less.
Anyone notice the "universal branding" of car dealerships today? They all look alike, as in a BMW dealer in NY should be identical to one in Texas regardless of how profitable they are or how many cars they sell. This crushed the small town dealerships (even smaller Harley Davidson dealers) that were being forced to remodel to look like a "corporate store model!"
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