Posted by Steve on December 26, 1998 at 11:00:28:
In Reply to: Re: WHERE ARE THOSE Market Forces at work?????? posted by sk on December 24, 1998 at 15:33:16:
The real market force is based on the "number of BMW dealers in a driveable area". In other words, if a dealer knows he's the only BMW dealer within a 100 mile radius, guess what...you'll probbably have to pay very close to MSRP for his cars. And that's on a model that is fully stocked. When the model is in demand, better be ready to pay for it...like full MSRP. NBow here's where the "real-deal' gets interesting. If you study these scenarios, the places that have very few dealers per square mile are also the same places that have real cheap car insurance. Thats right...the urban areas where car thefts are low and so on. And guess what, you'll save a LOT more than a few grand on car insurance in a 3-5 year period of time. So anyway, it all comes out in the wash so-to-speak.
Your friendly financial scientist;
: I wish that these market forces would work here in South Florida! I faxed a request for a lease to a number of dealers (as recommended by Frank Rizzo) saying that based on the BMW Financial Services on the web it should be around $244/month, when I would trade-in my 98 A4 for $23k. I also noted that they should actually do better because the BMW's estimate was based on the MSRP, which is about 12% above invoice, and that I would rather expect to pay 5-7%. The price of my car was $500 more than 97 model in the dealer's "Black" book - the book did not have data for my car of 98.
: Dealers did not even respond! When I called them, they told me that they cannot get me such a car, and that it has to be ordered, but when they would do that, than my A4 would be worth much less (like $16k(!) - that's 12k (40%) less for an one-year old car).
: Anyway, I did not want to haggle, so I told them if they find me a lease for about $250 a month I would simply come and "replace" my keys with theirs. No calls though, and I believe that they still have it too good here, so they probably will not even try...