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Discussion Starter #1
Looking for Xdrive 35i, imperial blue, packages - premium, driver assistance, plus, running boards. The dealership says that they have booked the vehicles and the warranty / maintenance package date has already started 30 days back, reducing it to 47 months instead of usual 48 months (2016 model).

They are offering $1000 discount for that.

Since it is mileage or time limit, does 47 months really matter assuming I would go over the mileage anyways in that time frame or the dealer is trying to trick me figuring out I am first time buyer

thanks
-MDM
 

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Looking for Xdrive 35i, imperial blue, packages - premium, driver assistance, plus, running boards. The dealership says that they have booked the vehicles and the warranty / maintenance package date has already started 30 days back, reducing it to 47 months instead of usual 48 months (2016 model).

They are offering $1000 discount for that.

Since it is mileage or time limit, does 47 months really matter assuming I would go over the mileage anyways in that time frame or the dealer is trying to trick me figuring out I am first time buyer

thanks
-MDM
How many miles is on this vehicle? Its rare for a dealer to "punch" (put into service) a brand new vehicle, unless its a loaner or was used by dealership personnel for something. Given this situation, I would ask them is this being listed as a new car or used car, and I would pay attention to how many miles it has on it.

Just FYI it could be a used car with like 70-80 miles on it, or a new car with 500 -5000 miles on it.

If you will go over the mileage during the warranty period, it really does not matter, BUT, and this is a BIG BUT, unless you are already at invoice and they are selling it to you for under invoice and THEN giving you 1k off, their "1K" discount means nothing (its no different than negotiating it down another 1k, UNLESS they are already selling it to you for under invoice to begin with, BEFORE the "extra" 1k).

If the car is punched, you need to know WHY its punched... and you should be paying a LOT less for a punched car to begin with than a brand new one, even if they have similar miles.

A punched car is not necessarily the best "first negotiation" on a car purchase because it can be hard to determine how far under invoice you should be. I would expect the discount on it to be at least 10 percent off of MSRP myself though for a punched car though... I dont think I would buy / lease one that was punched with really low miles. I would either want brand new, or a dealer demo with 4-5k miles for the applicable type discount.
 

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Discussion Starter #3
Thanks for super fast response.
When I spoke with the dealer
- he says the car is new not a demo one
- he says few 10's of miles not in hundred - did not give specific number
- he says they have punched lot of new cars beginning of July to get some sales
- Currently it is 8.82% of MSRP for all cash deal (this is after 1K discount for punching)


-MDM
 

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Thanks for super fast response.
When I spoke with the dealer
- he says the car is new not a demo one
- he says few 10's of miles not in hundred - did not give specific number
- he says they have punched lot of new cars beginning of July to get some sales
- Currently it is 8.82% of MSRP for all cash deal (this is after 1K discount for punching)

-MDM
That reason for punching the cars sounds strange to me. In any case, I would want more than 1k off for that. In fact, I would probably be willing to walk over it unless I got more than that.

So they are selling it to you somewhere around invoice, then giving you 1k for punching it (based on my napkin math). I think I would tell them the punching the car thing makes me uncomfortable because I wanted a new car with the full warranty. I would ask for 2k to 2.5k off for buying the punched vehicle since it is not something I wanted. So an additional 1k to 1.5k discount over what they have offered you.

I would be willing to walk over it actually, but this issue may not be as important to you as it would be to me. If its the perfect car for you, then it sounds like you are doing ok... but that 1k they offered you is not that special... you could probably get it on a brand new unpunched car too.

If I were taking a punched one, it would be because the financial incentive is impossible to resist, and 8.8% off MSRP is not it. I think I would for that additional 1.5k though, but like I said I would absoultely be willing to walk on the car if they did not offer it.

Remember, they now NEED to sell it, because each month it gets older and the warranty coverage goes down by a month, because they punched it. THEY are in a tough spot, not you.

I bet they would go lower, especially if you make a stink over it and "walk" on it. You have to be prepared to not get it though, but I bet they would come down.
 

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Discussion Starter #5
Thanks for the detailed tips. I am not set on this car, so let me push it and see if they are willing to go further down, if not as you said I will walk away as I am seem to find other choices in similar price range but obviously with different color and packages.

Let me give it a try :)

-MDM
 

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As always, due to the limitations of what info I can provide, there are multiple "punch" statuses that can be used. And even I don't always know what the dealers get out of it. Actually, nearly all of the time I don't!

That's one reason why it's done.

There was an occasion that there was no monetary gain; I think dealers might have been getting cars. And there may have been other occasions. Don't know.

So jj is right, previously reports cars are hard to get a handle on.
Another bit of arcane info. Some reporting statuses set the warranty and maintenance clock in motion. And for some, the reporting adds another 3 months and 5,000 miles to the warranty. But nothing to the maintenance.

So if you are getting or considering a previously reported car, find out the status of these plans for that car. Have them run a vehicle history and show it to you.

Michael
 
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