BMW Price increase on 1st Jan 2021

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Plantjuk
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Re: BMW Price increase on 1st Jan 2021

Post by Plantjuk »

Gazza55 wrote: Sat Oct 31, 2020 11:42 pm
TRL wrote: Sat Oct 31, 2020 2:43 pm
Justice wrote: Fri Oct 30, 2020 1:52 pm A large number of premium car manufacturers have had a reasonably good year considering the circumstances with Covid19, as such, incentives and discounts are short in supply.

I priced a M340i touring at the beginning of the year and was offered cars with 18% discount, most recently I did the same and the best I could obtain was 10%, although the finance rates are a little bit lower now than at the beginning of the year.

Im guessing Qtr 1 2021 will bring about some incentives as it appears the market is slowing again.

Hey Buddy. Just to explain how that works... there was a large chassis support contribution from BMW UK in Q1,2 and 3. But at 4.9% APR>
IN Q4 BMW UK moved to a standard interest charge of 2.9% APR on all new car product (as the law is about to change on charging customers different interest rates)... To fund that move to 2.9% BMW removed all of the chassis support (on nearly every model). Thats why you have seen the discount
shrink to what you are seeing now. The dealers margin has always been around 10-12% and thats the best anyone can hope for now.
Hey Buddy. Just to explain how that works... there was a large chassis support contribution from BMW UK in Q1,2 and 3. But at 4.9% APR>
IN Q4 BMW UK moved to a standard interest charge of 2.9% APR on all new car product (as the law is about to change on charging customers different interest rates)... To fund that move to 2.9% BMW removed all of the chassis support (on nearly every model). Thats why you have seen the discount
shrink to what you are seeing now. The dealers margin has always been around 10-12% and thats the best anyone can hope for now.
That's not entirely true, discounts have been as high as 15% in Q1 and early into Q2 this year e.g from Stratstone and Knights. The only way to currently secure a higher discount of 17% is from BMW ISSD but you need to be either with the forces, police, a diplomat or with a company that has a corporate account whereby you can secure a vehicle through an employee based work scheme usually through larger employer though. ISSD are currently still offering 17% but no PCP deposit contribution anymore.
I believe the corporate discounts are 18% least that’s what I was told.
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Re: BMW Price increase on 1st Jan 2021

Post by TRL »

Gazza55 wrote: Sat Oct 31, 2020 11:42 pm
TRL wrote: Sat Oct 31, 2020 2:43 pm
Justice wrote: Fri Oct 30, 2020 1:52 pm A large number of premium car manufacturers have had a reasonably good year considering the circumstances with Covid19, as such, incentives and discounts are short in supply.

I priced a M340i touring at the beginning of the year and was offered cars with 18% discount, most recently I did the same and the best I could obtain was 10%, although the finance rates are a little bit lower now than at the beginning of the year.

Im guessing Qtr 1 2021 will bring about some incentives as it appears the market is slowing again.

Hey Buddy. Just to explain how that works... there was a large chassis support contribution from BMW UK in Q1,2 and 3. But at 4.9% APR>
IN Q4 BMW UK moved to a standard interest charge of 2.9% APR on all new car product (as the law is about to change on charging customers different interest rates)... To fund that move to 2.9% BMW removed all of the chassis support (on nearly every model). Thats why you have seen the discount
shrink to what you are seeing now. The dealers margin has always been around 10-12% and thats the best anyone can hope for now.
Hey Buddy. Just to explain how that works... there was a large chassis support contribution from BMW UK in Q1,2 and 3. But at 4.9% APR>
IN Q4 BMW UK moved to a standard interest charge of 2.9% APR on all new car product (as the law is about to change on charging customers different interest rates)... To fund that move to 2.9% BMW removed all of the chassis support (on nearly every model). Thats why you have seen the discount
shrink to what you are seeing now. The dealers margin has always been around 10-12% and thats the best anyone can hope for now.
That's not entirely true, discounts have been as high as 15% in Q1 and early into Q2 this year e.g from Stratstone and Knights. The only way to currently secure a higher discount of 17% is from BMW ISSD but you need to be either with the forces, police, a diplomat or with a company that has a corporate account whereby you can secure a vehicle through an employee based work scheme usually through larger employer though. ISSD are currently still offering 17% but no PCP deposit contribution anymore.
Hi Gary. I appreciate that you are only ever trying to help but you are actually making the matter more confusing by telling people that.
The point that I am making (and only a dealer holding the BMW Tactical bulletin can confirm this) is that there is no BMW chassis support on most
models in Q4.... unlike any other quarter we have had this year. In Q1 I was actually quoting 20 to 22% off of the M340 range back then because of the additional money available as "chassis support" which is not publicly shared.
As for "how much a dealer wishes to discount" a new car by - indeed that part is variable - as a dealer has control over that part.
Thats why my deals on the M340 sit at around 14% currently for "any" customer that I quote.
I will point out that there is only 7% front end margin available on most of the BMW Range which is why most dealers will not go far beyond that amount, as the rest of the margin (known as "back end") is reliant on said dealer achieving all of his targets and goals set by BMW each quarter.
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Re: BMW Price increase on 1st Jan 2021

Post by Plantjuk »

Maybe you can answer a question for me TRL. Obviously people are looking for the best price and in a world with internet a lot of people will go into a dealer with quotes from sites like coast2coast looking to get the same sort of price from their local dealer. But in my own experience I’ve found that some dealers are happy to do a deal whereas others point blank refuse to even try. What I don’t understand is surely coast2coast deals are achievable as they get their cars through dealers anyway so why the reluctance to do a deal? Surely another car sold all be it a little less than maybe they would like is better than no sale at all?
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Re: BMW Price increase on 1st Jan 2021

Post by thatsjustanoise »

It’s all to do with supply. BMW will set there quotas based upon how much demand they forecast as well as optimum production costs etc. Dealers as I understand it must take a certain amount of cars each quarter. So BMW have already made their money whether said car has been sold or not. it’s then down to the dealer how much margin they want to make vs how much they would lose if they have to register it. This decision is one of managing risk , some dealers will want no chance of not selling Quotas, hence good deals throughout the year others will be completely opposite and hope to sell at list price , maximising margin , but risking unsold quotas. These are the guys who won’t budge unless they really have to. Coast to coast et all are just brokers who play the entire market and do the negotiations for us and take their cut of the margin. They probably have their quota with dealers to hit, promising a dealer x amount of sold cars per year in return for a discount. So all in all it very much depends on the dealer franchise and business model they operate.
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Re: BMW Price increase on 1st Jan 2021

Post by eyeMAJIC »

Interesting to hear mention of ISSD here.
I've bought my last 3x new BMWs from TRL despite having access to ISSD, primarily for customer service reasons.

I've had BASC membership for my shooting insurance for years, so I qualify for their vehicle purchase programmes.
(most of these are through Tyson Cooper, by virtue of the two organisations having a common Director)

Up until about a month ago, this included BMW ISSD. I've browsed over the years, but the best offers tend to be highly model specific, often changing rapidly, so clearly driven by stock supply/demand etc. as you would expect.

However, the BASC / BMW ISSD relationship has suddenly ended, with complete radio silence from BASC.
Not sure if this represents a "tightening of ranks" on BMW's part or not, but it looks likely.

Tough times at the moment and discount certainly matters, but it always tends to be the same.... good cars still sell, humdrum cars don't.
As manufacturers go, I guess BMW has a higher proportion of perceived "good cars" than many other manufacturers, so they're not going to slash RRPs unless times become even more desperate. Which they might. Or might not.
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Re: BMW Price increase on 1st Jan 2021

Post by TRL »

thatsjustanoise wrote: Sun Nov 01, 2020 10:23 pm It’s all to do with supply. BMW will set there quotas based upon how much demand they forecast as well as optimum production costs etc. Dealers as I understand it must take a certain amount of cars each quarter. So BMW have already made their money whether said car has been sold or not. it’s then down to the dealer how much margin they want to make vs how much they would lose if they have to register it. This decision is one of managing risk , some dealers will want no chance of not selling Quotas, hence good deals throughout the year others will be completely opposite and hope to sell at list price , maximising margin , but risking unsold quotas. These are the guys who won’t budge unless they really have to. Coast to coast et all are just brokers who play the entire market and do the negotiations for us and take their cut of the margin. They probably have their quota with dealers to hit, promising a dealer x amount of sold cars per year in return for a discount. So all in all it very much depends on the dealer franchise and business model they operate.
Thats partly correct buddy. BMW do allocate a set amount of cars each quarter to every dealer, but they dont have to sell them and they can swap cars in and out of course. A dealer has up to 180 days to sell any new car in stock before he has to pay for it. Hence you being partly right.

But the way I see it is that Coast2Coast are mainly sourcing their new cars from a dealerships corporate department not the Sales department and as such they are working to a different set of numbers and a different pool of cars (fleet not retail). So for instance there is currently a very strong corporate deal on a block of built X3 M40i which a Sales retail department such as mine do not get access to. But once they are gone they are gone.

But moreover, the reason for such differences is more to do with how the dealer is performing overall.... if a dealer has a very large target and is a long way from achieving it then there is no point him discounting the cars hard, because he may not achieve his target and will not receive the "back end bonuses" that counteract the large discounts.
Whereas a high performing dealer will over achieve target and ensure that they do receive all of the money available, which means that they can pass that saving on to the customer.

I would like to stress (as always) that I have never claimed to be the cheapest out there. What I do is provide a level of service that car enthusiasts like myself want from a dealer. I still maintain that i treat every car i deliver as if it were my own. We also team up with the likes of MOTECH Performance and AC Schnitzer and Yiannimize to give another level of benefit. And we have 3 detailing companies on our books to handle the paint and protection.... most dealers just want to take your money and hand the car over... and very few will ever go to the lengths we go to ensure cars are perfect.... I could go on forever.... point is that all of that stuff I mention is standard to all my customers. Everyone pays the same price. And gets the same level of service and I have never had to sell to anyone - we are totally transparent. No assumptive selling of those insurance products, no parking the car against a wall so you cannot see it properly... you have all been there I am sure! And no waiting around for 2 hours in the showroom to be "processed" :)
please always email me TRLdeals@outlook.com rather than DM.
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Re: BMW Price increase on 1st Jan 2021

Post by carlover »

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Last edited by carlover on Wed Nov 04, 2020 1:04 pm, edited 1 time in total.
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Re: BMW Price increase on 1st Jan 2021

Post by Gazza55 »

TRL wrote: Sun Nov 01, 2020 4:32 pm
Gazza55 wrote: Sat Oct 31, 2020 11:42 pm
TRL wrote: Sat Oct 31, 2020 2:43 pm

Hey Buddy. Just to explain how that works... there was a large chassis support contribution from BMW UK in Q1,2 and 3. But at 4.9% APR>
IN Q4 BMW UK moved to a standard interest charge of 2.9% APR on all new car product (as the law is about to change on charging customers different interest rates)... To fund that move to 2.9% BMW removed all of the chassis support (on nearly every model). Thats why you have seen the discount
shrink to what you are seeing now. The dealers margin has always been around 10-12% and thats the best anyone can hope for now.
That's not entirely true, discounts have been as high as 15% in Q1 and early into Q2 this year e.g from Stratstone and Knights. The only way to currently secure a higher discount of 17% is from BMW ISSD but you need to be either with the forces, police, a diplomat or with a company that has a corporate account whereby you can secure a vehicle through an employee based work scheme usually through larger employer though. ISSD are currently still offering 17% but no PCP deposit contribution anymore.
Hi Gary. I appreciate that you are only ever trying to help but you are actually making the matter more confusing by telling people that.
The point that I am making (and only a dealer holding the BMW Tactical bulletin can confirm this) is that there is no BMW chassis support on most
models in Q4.... unlike any other quarter we have had this year. In Q1 I was actually quoting 20 to 22% off of the M340 range back then because of the additional money available as "chassis support" which is not publicly shared.
As for "how much a dealer wishes to discount" a new car by - indeed that part is variable - as a dealer has control over that part.
Thats why my deals on the M340 sit at around 14% currently for "any" customer that I quote.
I will point out that there is only 7% front end margin available on most of the BMW Range which is why most dealers will not go far beyond that amount, as the rest of the margin (known as "back end") is reliant on said dealer achieving all of his targets and goals set by BMW each quarter.
So is Q1 2021 likely to see some good finance deals across the board as of January 1st?
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Re: BMW Price increase on 1st Jan 2021

Post by Gazza55 »

TRL wrote: Thu Oct 08, 2020 10:16 am Guys. On top of the current world crisis, the possibility of an EU tariff next year... now we also have to face our annual inflationary price increase
on most new BMW come 1st Jan.
No way to avoid this unless you buy a stock car and take it in December or you have placed your order with your dealer prior to 5th October 2020.

The models I sell that are affected are;

M135i increase of £545

M240 F22 increase of £580

Z4 m40i increase of £735

M340/M340d increase of £720

540i Touring increase of £830

M550i increase of £1015

M5 increase of £1475

X3 M40i/d increase of £790

X3M / X4M increase of £1195

Get a stock car quick if you want to beat this.
And remember that if you are ordering an M135i... the price may be under £40K now but come 1st Jan the list price may show its gone
over it.... dont get caught out. Its not the list price when you order the car that the DVLA look at.. its the list price the day you have your car
registered that they go by!
I take it the configurator already shows the 1st Jan price increase as the M135i seems to have gone up by the £545..or is there another one due?
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Re: BMW Price increase on 1st Jan 2021

Post by TRL »

Gazza55 wrote: Wed Nov 04, 2020 2:19 pm
TRL wrote: Thu Oct 08, 2020 10:16 am Guys. On top of the current world crisis, the possibility of an EU tariff next year... now we also have to face our annual inflationary price increase
on most new BMW come 1st Jan.
No way to avoid this unless you buy a stock car and take it in December or you have placed your order with your dealer prior to 5th October 2020.

The models I sell that are affected are;

M135i increase of £545

M240 F22 increase of £580

Z4 m40i increase of £735

M340/M340d increase of £720

540i Touring increase of £830

M550i increase of £1015

M5 increase of £1475

X3 M40i/d increase of £790

X3M / X4M increase of £1195

Get a stock car quick if you want to beat this.
And remember that if you are ordering an M135i... the price may be under £40K now but come 1st Jan the list price may show its gone
over it.... dont get caught out. Its not the list price when you order the car that the DVLA look at.. its the list price the day you have your car
registered that they go by!
I take it the configurator already shows the 1st Jan price increase as the M135i seems to have gone up by the £545..or is there another one due?
HI Buddy. Yep the configurator was amended to show the Jan 1st price a few weeks back, probably the safest way for BMW, as there is very little stock left at the old price in any case. No idea or advanced notice on what the plans are for Q1 yet. I believe BMW will have to stick to one APR across the range for 2021 as per the FCA ruling recently; But no news as to whether it will always be 2.9% - seems likely.
As the cost of finance is subsidised by BMW it could well mean far less "deposit contributions" in 2021. A lot will depend on the EU outcome, Tariff charges and whether or not the UK public have an appetite to buy a new car or not. Market forces and all that.
Its a very unpredictable and challenging time.
Best wishes buddy.
Tony
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Re: BMW Price increase on 1st Jan 2021

Post by Southgate88 »

I have a standard car with metallic paint on order - currently £39035 and presumably £39580 after Jan 1 2022 ... delivery supposedly March 2022 (ordered Sept) - I don't know how often BMW hike their prices but ... another price increase between Jan 2022 and March 2022 and I'll be scuppered! Perhaps the EU tariff is applied won't be considered part of the RRP?
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Re: BMW Price increase on 1st Jan 2021

Post by Southgate88 »

Tiggstar1 wrote: Sat Oct 10, 2020 12:43 am
RichardM wrote: Fri Oct 09, 2020 8:44 pm
thatsjustanoise wrote: Thu Oct 08, 2020 10:58 pm Moving to Volvo after 15 years, more bang for buck I am afraid...
More bang for buck but terrible residues and only 2 litre engines
I think you will find the XC40 holds it’s value better then say the x1 but I find BMW’s don’t really old value either these days
completely different car - I can't see how you can compare - if you're into 4 X 4's get something reliable like a Lexus or a Toyota - Volvo's have a terrible reliability record according to Which Magazine - they used to be solid reliable cars made in Sweden 20+ years ago - now, in common with a few other big brands they're owned by the Zhejiang Geely Holding Group in China - I wouldn't touch one personally but good luck if that's what you want.
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Re: BMW Price increase on 1st Jan 2021

Post by Paul W »

holding their value only affects monthly payments now a days anyway

and before this craxy second hand market pricing i found Audi where the one that held their money better but thats because there discounts where less

when we bought our M135i from Tony back in the day when you could get one for 24k new essentially with a list price of 31k was never going to hold its value when you could drive it off the forecourt for 24k

we then bought a TT from stock and secured 19% off which was really unuusal - now have Audi calling my wife every weke begging us to trade in as they want the car and wil gurantte the price until June next year because of the low mileage we have. trouble is cars have gone stupidly expensive and nothing really floats my boats - to a point we may just go to a 1 car family as mine car doesnt go anywhere but the airport and with busines stravel next to zero doesn't get used. and in the future i would just use a txi to get to the aiport anyway

on the topic of TRL, the wife really wants to go back to BMW and TRL would be my only choice - if the TT hadnt been such a good deal at the time I think we would have ordered again off TRL
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Re: BMW Price increase on 1st Jan 2021

Post by X3man »

Paul W wrote:holding their value only affects monthly payments now a days anyway

and before this craxy second hand market pricing i found Audi where the one that held their money better but thats because there discounts where less

when we bought our M135i from Tony back in the day when you could get one for 24k new essentially with a list price of 31k was never going to hold its value when you could drive it off the forecourt for 24k

we then bought a TT from stock and secured 19% off which was really unuusal - now have Audi calling my wife every weke begging us to trade in as they want the car and wil gurantte the price until June next year because of the low mileage we have. trouble is cars have gone stupidly expensive and nothing really floats my boats - to a point we may just go to a 1 car family as mine car doesnt go anywhere but the airport and with busines stravel next to zero doesn't get used. and in the future i would just use a txi to get to the aiport anyway

on the topic of TRL, the wife really wants to go back to BMW and TRL would be my only choice - if the TT hadnt been such a good deal at the time I think we would have ordered again off TRL
Audi have been (not sure if at the mo) offering big discounts on the TT, as apparently nearing end of life, but is one of the best built models and interior is fantastic.

Mate of mine ordered a TTS with big discount, had it for less than a year and sold for more than he bought it for.

Maybe speak to Tony and get a BM ordered up for delivery 2nd half of next year I would have thought. Don’t think you will struggle to do well out of TT, especially if high spec.

I agree on the discounts, BMW tend to discount more than Audi, which is why M’s etc seem to drop like a stone in value unlike equivalent Audi RS models
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