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Old 08-16-2019, 10:08 PM
xerovelocity xerovelocity is offline
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Custom order vs. dealer trade

Hi all,

Considering leasing a 2019 G30 with some decent lease incentives in place.

Does it change the profit margin or cost for the dealership if I do request a local inventory search and they do a dealer trade vs selling their own car on the lot?

I see some dealers are not interested in running a local search, even when I am willing to bring them business because of their more straightforward business practice. They instead suggest custom ordering the next model year to get exactly what I want. Although I have been flexible on what might work and end up saving me some money.

I am quite puzzled here, and could use some guidance!
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Old 08-16-2019, 10:55 PM
jjrandorin jjrandorin is offline
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If you are looking for advice better to just order what you want from the dealer you want to work with. Dealers can trade... but that means they have to give up something, AND the other dealer needs to want to trade with them (meaning you can not have contacted the other dealer for the car, and they cant be working on a deal for it already).

if the dealer(s) are in the same group it becomes easier. If the car is farther away, it becomes harder, with shipping charges. If the car (or configuration) is popular, then it becomes harder. You are best served not depending on a dealer trade. Either deal with the dealer who has the car you want, or make an order from the dealer you want to deal with if they dont have the car you want.

Advice is to ignore / forget about dealers trading for a car unless they bring it up to YOU (as in " we found the car you want and we can get it for you"). Not YOU searching for it and telling them "i found the car at such and such dealer, can you get it for me?").
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Old 08-16-2019, 11:11 PM
xerovelocity xerovelocity is offline
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Quote:
Originally Posted by jjrandorin View Post
If you are looking for advice better to just order what you want from the dealer you want to work with. Dealers can trade... but that means they have to give up something, AND the other dealer needs to want to trade with them (meaning you can not have contacted the other dealer for the car, and they cant be working on a deal for it already).

if the dealer(s) are in the same group it becomes easier. If the car is farther away, it becomes harder, with shipping charges. If the car (or configuration) is popular, then it becomes harder. You are best served not depending on a dealer trade. Either deal with the dealer who has the car you want, or make an order from the dealer you want to deal with if they dont have the car you want.

Advice is to ignore / forget about dealers trading for a car unless they bring it up to YOU (as in " we found the car you want and we can get it for you"). Not YOU searching for it and telling them "i found the car at such and such dealer, can you get it for me?").
Thanks JJ

Would you advise differently, if I have collectively leased 5 cars over last 9 years from the same dealership? Mix of custom ordering and dealer trade. Granted CAs change with time.
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Old 08-17-2019, 10:59 AM
1968BMW2800 1968BMW2800 is offline
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Originally Posted by xerovelocity View Post
Thanks JJ

Would you advise differently, if I have collectively leased 5 cars over last 9 years from the same dealership? Mix of custom ordering and dealer trade. Granted CAs change with time.
I agree with the main thrust of jj's comments.

Splitting the difference, how about engaging with the sales manager at the dealer where you've done business so many times before and simply stating, "Here's what I want for my next BMW. Can you find me such a car?" They can decide to search, trade, or steer you toward ordering a new 2020 custom build.

I just visited a local BMW Center this week after sending them a proposed build. We went for a test drive and the manager said he found a 2019 car identical to what we'd spec'd at another dealer and offered to try to bring it in, because the incentives on the 2019 were so much better.

However, after test driving the X2 he had on the lot, spouse and I decided then and there to order another MINI instead. X2 just didn't resonate with us at all.

Now we're hoping our 2020 MINI Priority 1 build will enter production before Brexit madness adds unwelcome twists.

But, to unhijack this thread and return to OP's question, I am a great believer in asking car dealers for what you want and giving them the opportunity to find a way to meet your needs, however they do it.
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Old 08-17-2019, 12:55 PM
jjrandorin jjrandorin is offline
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Originally Posted by xerovelocity View Post
Thanks JJ

Would you advise differently, if I have collectively leased 5 cars over last 9 years from the same dealership? Mix of custom ordering and dealer trade. Granted CAs change with time.
Given that information, I would recommend what 1968 recommends. Talk to the Sales Manager (not a regular salesperson) and tell them what you are looking for in a 2019.

Be clear about your non negotiable options (color? M sport? etc etc) Let the sales manager find one for you (or a very tenured salesperson, who has access to that information).

Give your preferred dealership a chance to find one, and if they dont want to find one and you dont want to order, then, well, you have an answer there too.

Your loyalty to the dealership may or may not mean something to that dealership. It likely does if you go up the chain enough (sales manager), or if you have been dealing with the same salesperson and they are still there.

If you have been happy with them give them a chance to make you happy and tell them what you want. Let them find it if they can. What I highly recommend you NOT DO, is search for it yourself and start telling them " I found the car I want at XX dealership, can you get that one?"

They may or may not be able to get it, but there could be reasons why they didnt bring it to you as an option... and many of them might have to do with the politics of the relationship or lack thereof between dealerships.

Long way to say that 1968 is correct, if you like the dealership and have a relationship with them through several cars, give them a chance to help you find one you want. If they dont want to, see what they can do for a custom order one if you are willing to do that.

I would be surprised if a Sales Manager was not willing to look for something for you, not surprised at all a salesperson would not want to look too hard. They want to sell you something now (or easily).
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Old 08-17-2019, 01:23 PM
1968BMW2800 1968BMW2800 is offline
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jj is, as usual, spot on.

In an interesting and, I think, relevant vein, after we made an appointment and visited our closest BMW Center to test drive the X2 and decided against getting one, we told the CA that we were sticking with MINI. This BMW Center has a MINI store within the same building (the new wave of consolidation).

We showed the CA (who was wearing a MINI logo shirt) our MINI build which we had done on the German MINI configurator because the USA MINI site is still only allowing configuration of 2019's, even though EOP was June.

Anyway, the MINI we built has a color combination available in Europe but, we learned, not in the States. The X2 CA gave us the 'we're at a dead end' vibe. We think, as jj mentioned before, he wanted to sell us something he had or could easily get his hands on and didn't have the motivation, or perhaps the knowledge/authority, to get us what we were telling him we wanted.

We then contacted the General Sales Manager from whom we had leased our last MINI (a different dealer from where we test drove the X2 -- farther away and less convenient).

The GSM remembered us, said those magic words "let me see what I can do for you," made some phone calls deep into BMW/MINI corporate world and emailed us to report that he had arranged for corporate to manually override the system's automatic rejection of the paint codes and, shazam, we made a deal on the exact MINI we want on what, for the moment, will be a one-off car. And we were given a very reasonable discount on a 2020 vehicle for which there are no current manufacturer incentives. All that extra effort on the part of the GSM for a $42,000 car that he then discounted for us!!

I know -- all about my story. But the point is to reinforce jj -- go higher up the dealership food chain and find someone who understands and values a returning customer and, hopefully, has the inclination and capacity to make good things happen.

Last edited by 1968BMW2800; 08-17-2019 at 01:24 PM.
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Old 08-18-2019, 02:00 AM
xerovelocity xerovelocity is offline
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Great advice JJ and 1968, I will proceed accordingly. Lack of motivation from a sales person is something I felt, and also was attempting to understand in general how financially different it is for a dealership on trade vs on the lot sale vs custom ordering.

Let's see if I am able to get some traction, I am well aware not every vehicle in the 100-200 mile radius could be "traded" by the dealer of my choice, there are plenty of business aspects and limitations that may prevent some dealership to do it, even if they would like to help their customer and sell something to them. It is business after all, and not elements that exist play nicely always.

Thanks for your comments and sharing your experiences!
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Old 08-19-2019, 04:47 AM
rounderman rounderman is offline
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Just to add my 2 cents. My current car was a dealer trade after I couldn't find a dealer willing to d a great (in my feeble mind) deal. That included a big west coast dealer since I was going to do PCD. Long story short. They found a car that matched all of the main specs I had and color and had 400 (list price) of stuff I didn't want. Dealer split the list price with me and we had a deal invoice minus incentives which I thought was good. First purchase for this dealer but I got my 2013 serviced there.

JJ and 1968 are dead on if you don't ask you won't get

Oh and 1968 I love my X2 M35 it is a real hoot for me to drive but I did test a Mini (the hybrid) it was a great car just not fast enough for th child that lives in me still (at 65)
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Old 08-19-2019, 11:30 AM
1968BMW2800 1968BMW2800 is offline
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Originally Posted by rounderman View Post

JJ and 1968 are dead on if you don't ask you won't get

Oh and 1968 I love my X2 M35 it is a real hoot for me to drive but I did test a Mini (the hybrid) it was a great car just not fast enough for th child that lives in me still (at 65)
LOL. X2 is a very interesting vehicle in the M configuration. Just more car than we need and, at age 66, I guess I need to buzz around in my yuppified teenage go kart MINI.

As for the 'don't ask you won't get' point. Yessir.

I built a MINI on the German MINI configurator because the MINIUSA folks are still only allowing 2019 builds until the inventory on hand is sold down a bit more.

Anyway, I built a car with the new MINI Coral Red with Melting Silver roof and mirrors. Turns out that particular combo is not planned for USA consumption. I made several calls and sent some email to MINIUSA. Got a hard no back.

Contacted the GSM with whom I did my last deal. He knew who to call to get the necessary over ride done, and, more to the point, was willing to do it for us.
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Old 08-19-2019, 06:52 PM
jjrandorin jjrandorin is offline
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Originally Posted by 1968BMW2800 View Post
LOL. X2 is a very interesting vehicle in the M configuration. Just more car than we need and, at age 66, I guess I need to buzz around in my yuppified teenage go kart MINI.

As for the 'don't ask you won't get' point. Yessir.

I built a MINI on the German MINI configurator because the MINIUSA folks are still only allowing 2019 builds until the inventory on hand is sold down a bit more.

Anyway, I built a car with the new MINI Coral Red with Melting Silver roof and mirrors. Turns out that particular combo is not planned for USA consumption. I made several calls and sent some email to MINIUSA. Got a hard no back.

Contacted the GSM with whom I did my last deal. He knew who to call to get the necessary over ride done, and, more to the point, was willing to do it for us.
To totally close the loop on this one.... its probably because you were courteous(tm 1968) in your last dealing with him
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Old 08-19-2019, 08:00 PM
1968BMW2800 1968BMW2800 is offline
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To totally close the loop on this one.... its probably because you were courteous(tm 1968) in your last dealing with him
I was gonna mention the courtesy part but, fearing the wrath of ard, and, of course, in an attempt at modesty.... but, yes, since you bring it up, we did receive a follow up email from the GSM on Saturday, and I quote, "It is an honor to serve great customers like you folks." I believe he was mostly referring to my wife, who said that for once in my life I should allow them to make $500 over invoice. It's killin' me, but, after all they are doing for us, and they are indeed doing a lot, I suppose $1,500 gross profit, including the wimpy 2.5% MINI version of AVP and before deducting sales expense and overhead, is reasonable. So, yeah, courtesy.
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Old 08-20-2019, 04:56 AM
rounderman rounderman is offline
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Courtesy is always a good thing. I try and keep emotions out of a deal. My approach is to be pleasant (it kills me to do that) lay out my numbers (tons of great advice on this forum about this) and go from there. I don't begrudge the dealer making a profit if I feel I am getting what I want. They run a business and at least ti me they expressed appreciation for my business and understanding the realities. Did I squeeze every last dollar out of the deal , probably not. Did I compromise, absolutely. Am I having blast driving the car, oh YES. As a wise sage on this board once said (sorry I can't remember which one) we drive the car not the deal

1968, that looks like a really sharp car, enjoy
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Old 08-20-2019, 05:52 AM
jjrandorin jjrandorin is offline
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Courtesy is always a good thing. I try and keep emotions out of a deal. My approach is to be pleasant (it kills me to do that) lay out my numbers (tons of great advice on this forum about this) and go from there. I don't begrudge the dealer making a profit if I feel I am getting what I want. They run a business and at least ti me they expressed appreciation for my business and understanding the realities. Did I squeeze every last dollar out of the deal , probably not. Did I compromise, absolutely. Am I having blast driving the car, oh YES. As a wise sage on this board once said (sorry I can't remember which one) we drive the car not the deal

1968, that looks like a really sharp car, enjoy
If I remember correctly, "we drive the car, not the deal" is a quote from 1968.. maybe I am mis remembering this but thats what I remember.
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Old 08-20-2019, 07:37 AM
1968BMW2800 1968BMW2800 is offline
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If I remember correctly, "we drive the car, not the deal" is a quote from 1968.. maybe I am mis remembering this but thats what I remember.
Yes, thank you for the attribution. I do say that quite frequently.

As we were driving away from the MINI dealer and I was still obsessing that we had left money on the table (like, maybe $300~$400), my wise better half did mention to me that I will be driving the exact car I want, if not the exact deal I wanted. Turns out it's much easier to give that pearl of wisdom than it is to receive it.
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Old 08-20-2019, 07:39 AM
1968BMW2800 1968BMW2800 is offline
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1968, that looks like a really sharp car, enjoy
Thank you.

But we overpaid.
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Old 08-20-2019, 08:50 AM
rounderman rounderman is offline
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Thank you.

But we overpaid.
I truly LOL ed on this one. If you or JJ ever make it back east (or I get out there) first beverage of choice is on me

I always know I overpaid. I am glad that I have liked the cars I have owned in their own way (even the 99 Camry) so it softens the blow
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Old 08-20-2019, 11:55 AM
Alpine300ZHP Alpine300ZHP is offline
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Custom order vs. dealer trade

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Originally Posted by 1968BMW2800 View Post
Thank you.



But we overpaid.


I know your statement was partially in jest, but you did not overpay and your wife is correct and you know it. You got exactly what you wanted at a very decent price. I too believe that itís better to get exactly what I want at a higher price than to get a lower price on a compromise having done the later several times.


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Old 08-20-2019, 02:16 PM
1968BMW2800 1968BMW2800 is offline
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I know your statement was partially in jest, but you did not overpay and your wife is correct and you know it. You got exactly what you wanted at a very decent price. I too believe that itís better to get exactly what I want at a higher price than to get a lower price on a compromise having done the later several times.


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Old 08-20-2019, 02:20 PM
1968BMW2800 1968BMW2800 is offline
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I truly LOL ed on this one. If you or JJ ever make it back east (or I get out there) first beverage of choice is on me

I always know I overpaid. I am glad that I have liked the cars I have owned in their own way (even the 99 Camry) so it softens the blow
Yup.
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Old 08-20-2019, 08:47 PM
jjrandorin jjrandorin is offline
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I truly LOL ed on this one. If you or JJ ever make it back east (or I get out there) first beverage of choice is on me

I always know I overpaid. I am glad that I have liked the cars I have owned in their own way (even the 99 Camry) so it softens the blow
If I make it back east again I will hit you up. Always up for a nice beverage with good company :-)
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Old 08-23-2019, 09:17 AM
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