Price Manipulation, Fixing or Rigging BMW dealers

[Stormbitch]

I have noticed during new car registration times or something anyway!

i.e. March

The price of used AUC 7 series has been inflated massively.

Might inflating the prices of used cars way "over book" be a business tactic, or rouse, to make "new 7 series cars" seem better value and thus push sales of their current 0% finance offers.

Also I wonder if stock of used cars is 'held back' for the same reasons, creating more demand for specific spec and colours.

The example here:

https://usedcars.bmw.co.uk/vehicle/2...1-2f167f2bfb2a

This is £40,000 for a 2015 7 series with good spec and low miles.

The book rrp for this car is £34,000 - £38,000

The book part ex - or trade, buy in from HQ price is around £30,400

( without spec considered )

Example 2

This car was advertised at £35,200 during February and it is now £36,220 in March.

https://www.autotrader.co.uk/classif...ice-asc&page=1

Something is clearly going on.

I'd be curious to know how and why this is.

I have also collected screen shots of advertised cars

2015 and 2016 G11 - same spec - i.e. sunroof, harmon, etc.

November 2017
January 2018
Febuary 2018

All of the screen shots prove that 2015/ 2016 cars were:

£35,000
£32,000
£37,000
£38,000

-

So... how can a car "appreciate in value" in 4 months?

Is this suspect? Or very much like a clothing shop, that might increase or decrease prices at certain times. ( granted clothing shops don't increase the price of a dress by £5,000 - but you get my point )

In other words, some models are time specific in their purchase cycle.

--

Looking at other models during the same period all the other series in particular X5 X6 5 Series and M Cars, have not at all fluctuated.

[babaikram]

A good observation. Ordinarily March and September are supposed to be the best months to buy used cars as dealers usually have lots of traded in vehicles.

[FastLaneJB]

Do they need to tweak the price of used cars to sell heavily discounted new cars on 0%? I could get it if the new cars were on a poor deal but the new 7 series deal is extremely really good.

Maybe they are able to sell them on at the higher price used so have bumped them up a bit. Maybe the estimated book price is based on a certain amount of vehicles in the market but there's less so that's increased the price.

Who knows however occasionally cars to appreciate but it's rare.

[Stormbitch]

Whilst the deal is good. One is still agreeing to pay the full price of £80,000 odd for a car that probably isn't worth it.

The 0% was amazing deal when it was 499 plus 499 a month... that has now changed.

The last chat I had with a salesman said to me "I dont want to put you off our used car sir, but I really don't understand why people sink their own money into a car, for instance our 0% deal is way more attractive on a new car and we all know the residuals won't be worth anything anyway"

--- Is that so? I said.

Why not send me an email with the price - and that its makes financial sense and I will take your arm of no problem.

--- Strangely there was no email... and no explaination when I complained about being given what could be constituted as "financial advise"

So...

My theory is - if they are getting £X for registrations and less or NO support from BMW for moving numbers of used cars - they may need to inflate the prices to do one of the following.

1. Make the sale of a used one worthwhile for them.
2. Control the market more by showing on paper 0% is cheaper per month than PCP on used. If the car is £35,000 - £38000 then the PCP payment will be lower than that of the 0% car.

Either way if you see the screen shots your jaw will drop.

Reason I am hugely peaved is because some dick at a dealership told me last year my 2015 high spec G11 was only worth £32,000 to them as a business ( I paid £46,000 6 months prior )

This was during a "fault - buy back" process chat.... they then sold my car on for £37,000

15 M Sport
14,000 miles
Head up,
Harmon
TV
Surround
Sunroof
Park assist


I have been in hire cars ever since...... NOVEMBER. its now MARCH.

Had they valued my car higher on the phone, I would not have demanded my money back under my consumer rights. But something was up, that is for sure.

[FastLaneJB]

Not sure I can comment on the fault issue you had however it sounds like they brought your car back off you but at a price that has left you with an issue replacing the car on a reasonable like for like basis?

In terms of the new cars though, if your plan is not to actually own the car then the deals on a new car can workout very well. Obviously it's not often that case but BMW's deals can twist it as such sometimes. Take a look at the following article...

https://www.carmagazine.co.uk/amp/fe...an-a-used-one/

Certainly the nearly new M760Li my dealer has costs considerably more than a new one because it's not eligible for BMW's deposit contribution or 0% APR.

Roughly you'd be looking to get a car that lists at £135k for close to £100k on 0% and worth £45k at the end of 4 years. So you've got £55k to pay over 4 years for having the pleasure of driving a V12 monster, a great deal if you ask me.

For reference I had Mercedes buy back my C63S after 3 months of paying for it. I got all my money back minus 3 months of payments which seemed fair to me. It was in the dealers for over a month of that time however after complaining about having a C200 when I was paying for a C63S they put me in a E63. So overall they didn't make it all that easy but financially the end outcome felt fair.

Anyway hope you find a solution to your problem. That's a long time to be in hire cars

[Stormbitch]

Yeh thanks bro. I see both sides - I do...

If the monthlys are ok with you then great... my annual miles takes these quotes threw the roof...

Yes it has been!

No in the UK we get full price back under law in first 6 months - so you don't loose out. I also got compensation from B for the dealer pulling wool several times.

The compensation is useless if the prices are false inflated. But I am sure the stock situtation might change sooner or later, or I will end up in an XJ with 2 year warranty and spend my voucher with B another day.

[FastLaneJB]

Ah understand, if you did huge amounts of mileage then it does change things a bit.

It's all well and good knowing what the law says but at least in my experience the Mercedes dealer makes it extremely hard. I'd likely have had to take them to court to get a full refund. Not forgetting that they changed their tune in Peterborough and denied there was an issue. I had to take it to one of their other dealers in Norwich to get them to confirm there was a fault which they did straight away.

Not an enjoyable time so I feel for you.

[Stormbitch]

Mate, I went through 3 dealers before the result.
Yes Mercedes customer service is absolutely shocking, properly made me unwell, such a shame because they make such amazing cars.
How they can get away with it I do not know. Its only in the UK.
Worst ever experience and mind altering rudeness.
The more you google Mercedes Customer Service the more you find out, that as soon as you have bought a car, they don't give a hoot. There are a handful of good dealers in the UK now, literally a handful.
Such a shame, or I would have continued buying them.
At least BMW do try and look after their customers long after the purchase and even out of warranty. They are a solid bunch once you get past any franchise shareholder type morons.

[FastLaneJB]

Originally Posted by Stormbitch

Mate, I went through 3 dealers before the result.
Yes Mercedes customer service is absolutely shocking, properly made me unwell, such a shame because they make such amazing cars.
How they can get away with it I do not know. Its only in the UK.
Worst ever experience and mind altering rudeness.
The more you google Mercedes Customer Service the more you find out, that as soon as you have bought a car, they don't give a hoot. There are a handful of good dealers in the UK now, literally a handful.
Such a shame, or I would have continued buying them.
At least BMW do try and look after their customers long after the purchase and even out of warranty. They are a solid bunch once you get past any franchise shareholder type morons.

That matches my experience of Mercedes as well and BMW. BMW make me feel welcome and valued. Probably not just because I buy expensive cars now, they where just as nice at a different dealer way back when I was looking at a 320d / 330d.