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      02-25-2012, 12:09 PM   #1
QTPie
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Anyone who "upgraded" from SE to M Sport during order?

.... Did you get a discount on your upgrade?

We got a reawsonable discount when we ordered the X3 (almost 8%).

Have been dithering about changing the order to a M Sport (husband not so convinced!), but popped into another dealer today (ours currently has no X3s at all in stock!) and saw an X3 M Sport in Carbon Black (I know, impractical colour, but the lines look so good! Maybe with aluminium exterior trim I would look a bit less like a pimp or a drug dealer... ) - sort of fell in love

Still not sure that I have convinced husband, though....

Those posters here who originally ordered an SE and then, mid-order, changed to an M Sport, did your dealer "carry over" any original discount to the "upgrade" or did they hold firm and charge the full price difference?

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      02-25-2012, 01:33 PM   #2
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There is no reason why your negotiated discount shouldn't carry over.
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      02-25-2012, 02:39 PM   #3
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When I changed over from an SE to an M Sport, I was charged the difference in book price between the two.
I wasn't able to negotiate the discount that you got - but then my dealer is able to supply the vehicle quite quickly as I think they have a good car allocation quota with BMW.

Like you, I thought that Carbon Black is a great colour choice so I changed to that too. I felt the car would look too dark with the black roof rails and window trim - so I changed them back to aluminium instead. I know that the high gloss shadowline trim is an expensive option - and I effectively gave it away for free - but I just felt that the car would look better with aluminium than black trim.

Good luck with your deliberations
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      02-25-2012, 02:48 PM   #4
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I achieved a little over 8% but subsequent upgrades including to M Sport were at book price difference and I did not try to negotiate this. I still ended up with 8.0x% overall which I was happy with.

Remember, once you have signed your order form the dealer has the upper hand in negotiation. Up until that point, you do.

You could try and spin it as "I'll increase the spec if you carry the discount" but tbh it will make so little difference to his margin that it's hardly worth the time.

I would just bite the bullet and be happy that a) you are getting the spec you really want and b) you are still getting a discount significantly better than 95% of UK orders...
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      02-26-2012, 03:43 AM   #5
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Quote:
Originally Posted by QTPie View Post
.... Did you get a discount on your upgrade?

We got a reawsonable discount when we ordered the X3 (almost 8%).

Thanks
QT
One hell of a discount - you must be talking 'all options boxes' ticked for that? - well done. Dealer must have taken that order at 'zero profit'.

I was looking at some P&L figures for the large quoted UK dealer groups in the UK and the profit margins are tiny. It must be a case of almost nothing on the vehicle price but much higher on the service work and a little bit overall.
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      02-26-2012, 04:28 AM   #6
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Quote:
Originally Posted by tank531 View Post
Dealer must have taken that order at 'zero profit'.
They will have still have had a few percentage point margin at least. I believe they are on around 12% in the UK. Even a few percent on a 40-50k order is not exactly breadline

Plus there will be volume bonuses from the manufacturers for hitting certain quarterly sales targets. Those volume bonuses really come into play on new models where the manufacturer wants orders before the demonstrators have landed. One of the kosher* brokers I keep an eye on was offering over 12% on new 1er and 3er orders in the couple of months after they were announced. This must have been due to volume incentives - they were definitely zero margin on an individual order basis.

At the end of the day it is a private negotiation between you and your supplying dealer, precedent and what others have achieved does not come into it although may help you set your targets.

*(by kosher I mean ones that introduce you directly to a BMW dealer with whom you sign your orderform, not the dodgy ones that act as middlemen for the whole process that have screwed a couple fellow UK forum members)
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      02-26-2012, 10:56 AM   #7
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Yep, 9.89% in Canada... so even a little meat on the bone if the deal was done over here.
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      02-27-2012, 04:44 PM   #8
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I tried to change my order to Msport about 3 weeks after I placed it. I really didn't give it much thought when I ordered because I was ok with either the Msport or SAP. But when I thought about how much I was spending on the X3, I said why not upgrade. I would have got the carbon black too. My status was still in "order proceess' at the time but was told I wouldn't be able to change. I suppose I could have escalated it up the chain but it wasn't worth it. I could use that extra money to buy snow tires and wheels. I'm waiting for the 2 door version of the X4
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      03-14-2012, 09:49 AM   #9
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Just an update - has taken a while to finalise things....

We managed to "maintain" our total order discount through the upgrade

Now expecting a Carbon Black (with aluminium exterior trim and standard 18" M Sport wheels) 2.0D M Sport.

Delivery seems to be a lot slower than some (ordered mid-Feb): originally told "6 months", then told "June", now told "early July, but could be sooner"... Wondering/waiting if the M Sport might improve the wait time.

QT
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