The auto market has seen massive changes in the last few years. There are the COVID-19 pandemic, supply chain issues, and some automobile parts shortages. While car manufacturers and dealers were marking down and offering discounts, this is no longer the situation. This is not even helped by the fact that there is seemingly more demand for automobiles, and sellers have all the leverage. If you are planning on buying a new BMW, you may be wondering whether you can negotiate the price or not. We’ll look into that and more in this article.
You can negotiate BMW prices by getting quotes from different dealers and trying to get about a 10 to 15% discount on the lowest offer.
Don’t be afraid to haggle and remain polite throughout negotiations. Avoid entering negotiations with any salesperson that intimates you. The process should be comfortable for both parties, and you can always ask for a different salesperson.
Below, we’ll take you through the process of negotiating a new or even used BMW and getting a great price.
Is The New BWW Price Negotiable?
Yes, the price for a new BMW is negotiable. The same also applies if you are buying a used BMW. However, you need to be properly informed to negotiate a good or fair price.
Many people aren’t keen on negotiating things in general. They see negotiation as confrontational and will try as much as possible to avoid it when shopping. But if you know how to negotiate things the right way, you can save yourself hundreds or even thousands of dollars, especially when you are buying something as expensive as a car.
How To Negotiate New BMW Price?
As we mentioned earlier, you need to be informed to negotiate a fair price when buying a BMW. Salespeople have many incentives to raise the price, and knowledge is the key to getting a good deal.
Start by finding out the market price of the BMW model you want to buy. The market price will serve as the foundation of your negotiating strategy. The market value is what dealers are asking for the car, excluding fees and taxes.
Research automotive dealers in your area and find out their asking prices. If you are checking the website of a dealer, send an email or call their line to confirm the price. Some dealers are known not to update the prices on their websites. Pay attention to the trim level and other features of the car to ensure that you are making an accurate comparison. Also, ask if the car is in stock.
There are also different resources and websites where you can check the prices of cars. Compare this with the quote you get from nearby dealers.
It’s Better To Negotiate A Deal Online
Unless you like shopping at the dealership in person, we recommend you ask for the market price and negotiate online. This method is convenient and gives you more leverage in negotiation.
If you go to the dealership in person, you are already commuting your time without any guaranteed outcome. And this favors the salesperson as they aren’t losing anything. You, on the other hand, are the one spending precious time and may even leave the dealership feeling frustrated. But when you negotiate online, you are more ‘equal’ to the salesperson or dealership.
If you prefer to go to the dealership, have it at the back of your mind you may not go home with the BMW. This way, you won’t feel frustrated if you can agree on a deal.
Apply The 30-minute Rule If You Go In Person
As a general rule, don’t spend more than 30 minutes whenever you go onsite to negotiate a car. If you can’t agree to a deal in 30 minutes, chances are you won’t be able to agree to a deal at all. You’ll just end up wasting your time arguing. Some salespeople are genuinely charming and may end up convincing you to pay more you budget for. So, always follow the 30-minute rule when going to the dealership.
Lest we forget, avoid any offer of monthly payment from the dealership. It’s more difficult to track the cost of a car when it is offered to you as a monthly payment. So, focus on the asking price of the vehicle first and tell the dealer that financing options will be discussed later.
Asking For A Lower Price
The magic number for BMWs is about 10 to 15% off the market price. So, when you get the average market price from your inquiries from different dealers, reduce the 15% of the amount and what you get is your starting offer price to the dealer.
Tell the dealership you’ve shopped around and gotten different quotes. Present your starting offer price and increase the offer by a small amount if the salesperson doesn’t agree. Don’t increase your offer more than three times, as doing so may make you clueless, which is something the salesperson can take advantage of.
Don’t Be Afraid To Negotiate
Many car buyers are reluctant to make a low due to fear of offending the salesperson. Some people are afraid the dealership may laugh or make fun of them. But isn’t the salesperson doing the same thing to you by quoting a higher price and working their way down?
The key is to offer a low price with context. When you get quotes from different dealers, you have an idea of the lowest market price. And then going about 10 to 15% lower than the market price. So, you aren’t making a low offer without context. Instead, you are doing so from a knowledgeable position.
Invoice Is Not The True Bottom
Car salespeople are fond of saying they don’t earn anything when they sell at invoice price (their market price), but this isn’t true. Apart from the fact that they are running a business and their overall goal is to make a profit, BMW USA is known to support dealerships from time to time in the form of bonuses, rebates, and incentives.
It’s easier to negotiate BMWs that have been in the inventory for over three months. Dealerships are more willing to listen to lower offers as they may be eager for such vehicles to offer the inventory. You can have an idea of how long a car has been in inventory by checking the ID label on the car. Add one month to the date of manufacture to compensate for the time spent transporting the car to the dealership.
