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Off lease cars (archive)

[ Follow Ups ] [ 3-series (E46) Message Board ] [ Msg. Board FAQ ]

Posted by MikeW on October 07, 1999 at 10:26:40:

In Reply to: Re: Kelly and NADA posted by Larry on October 07, 1999 at 10:03:08:

The reason that the dealers control the new end of the used market is because the vast majority of these are off lease cars. Think about it. If someone buys a car, they're not likely to get rid of it in 2-4 years. They'll usually hang on to it for 5+. But the mfgrs run these 2-3 year lease deals, so the cars boomerang back to the dealers. This is especially so because BMWs are expensive, so leasing is very attractive, particularly when you can turn over the car every 2-3 years. In the end though, the dealers have to move these cars off the lot (more are coming off lease every day). If you push them, they'll deal.

If you can get out there, try Halberstad out in Huntington. They had a pretty good selection, and their prices weren't too ridiculous.

: :Once again, Mike, you're dead on correct. When the source of pricing are those who have that sort of vested interest it's a no-brainer. I've been closely following the used BMW market for almost 8 months and it appears that the dealers control a good 80% of the late model ('96 and above in particular) to the point of something resembling price fixing and certainly collusioin.
: By inflating the prices on specific 3 series pre-owned they put you in a position to seriously consider buying a new one as the prices (without negotiation) are quite close between a used 328 and the new 323. The thought of paying 33k for a '97 vehicle with an msrp of 37.5k is apalling. I think the only other dealer with as many cars as Manhattan BMW sitting around is DiFeo with their wildly inflated pricing.

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