BMW 5 series price drop

talkingdog

Can anyone tell me why the dealers selling new or nearly new BMW's on Carzone and cbg have not dropped their prices for new 520d. It is now 3 weeks since BMW announced the new prices.

I found a BMW dealer last week who will do a new 520d SE for €39k, yet I can buy a 2nd hand with low mileage for €49k.

I have an 05 520d and would like to move to an 08, I saw a lovely blue SE 08 brown leather auto for sale for 38k. I offered 28k and pointed out the new prices but the garage said they would just hold on to it.

What fairyland are these people living in.

Drummerboy08

Why dont you just buy the new 520d for €39k then, instead of the second hand one?

BrianD3

Probably hoping that some mug will walk in and pay full asking price for a 2nd hand car that is available cheaper new. If a more informed customer asks for a big discount based on the reduced new price, then the garage will either say "yes" or "no".

In early 2008 my mother made a preliminary enquiry about a new car that was going to be around 1500 cheaper in July 08 due to the VRT changes. She said this to the salesman and he claimed that there weren't going to be any VRT changes and that was "the first he'd heard of it". So he was either incompetent or a liar. Needless to say, she didn't buy a car off him.

talkingdog

BrianD3 wrote: »

Probably hoping that some mug will walk in and pay full asking price for a 2nd hand car that is available cheaper new. If a more informed customer asks for a big discount based on the reduced new price, then the garage will either say "yes" or "no". .

Yeah that sounds about right.

BrianD3 wrote: »

In early 2008 my mother made a preliminary enquiry about a new car that was going to be around 1500 cheaper in July 08 due to the VRT changes. She said this to the salesman and he claimed that there weren't going to be any VRT changes and that was "the first he'd heard of it". So he was either incompetent or a liar. Needless to say, she didn't buy a car off him.

Sounds like Liar to me.

petergfiffin

talkingdog wrote: »

Can anyone tell me why the dealers selling new or nearly new BMW's on Carzone and cbg have not dropped their prices for new 520d. It is now 3 weeks since BMW announced the new prices.

I found a BMW dealer last week who will do a new 520d SE for €39k, yet I can buy a 2nd hand with low mileage for €49k.

I have an 05 520d and would like to move to an 08, I saw a lovely blue SE 08 brown leather auto for sale for 38k. I offered 28k and pointed out the new prices but the garage said they would just hold on to it.

What fairyland are these people living in.

Don't work in the trade but I imagine the reason is that new car prices are often subsidised by the manufacturer and given the current climate BMW could be offering even bigger subsidies to buy new cars. The garage might have bought the 2nd hand car for 40K a while back and probably aren't willing to make a loss on it....just my 2 cent!

godtabh

petergfiffin wrote: »

Don't work in the trade but I imagine the reason is that new car prices are often subsidised by the manufacturer and given the current climate BMW could be offering even bigger subsidies to buy new cars. The garage might have bought the 2nd hand car for 40K a while back and probably aren't willing to make a loss on it....just my 2 cent!

Surely they would be making a lose on it if the car doesnt sell

petergfiffin

kearnsr wrote: »

Surely they would be making a lose on it if the car doesnt sell

They won't really recognise the loss until they actually sell it although they do still have a depreciating asset. Not saying it's a good idea on their part to hold on to it but they may not be willing to write off the loss just yet (even just for pride!)

xabi

Was in a similar situation myself recently, dealer tried to tell me that the drop in new car prices 'wouldnt have any bearing on 2nd hand prices'. :rolleyes:

Gumbo

talkingdog wrote: »

Can anyone tell me why the dealers selling new or nearly new BMW's on Carzone and cbg have not dropped their prices for new 520d. It is now 3 weeks since BMW announced the new prices.

I found a BMW dealer last week who will do a new 520d SE for €39k, yet I can buy a 2nd hand with low mileage for €49k.

I have an 05 520d and would like to move to an 08, I saw a lovely blue SE 08 brown leather auto for sale for 38k. I offered 28k and pointed out the new prices but the garage said they would just hold on to it.

What fairyland are these people living in.

surely the price difference is the difference between SE and M-Sport?
the M-Sport versions on carzone at the moment for 49k is in Joe Duffys, and its a 2009 520d M-Sport with full leather, bluetooth and 19" 172M wheels, the wheels alone are a 4k upgrade.

also, why offer28k for a 38k car? surely you know you wouldnt get 10k off a new car???

mickdw

kceire wrote: »

also, why offer28k for a 38k car? surely you know you wouldnt get 10k off a new car???

I think the OP offered 28k for a 2008 520d se which is not crazy given that he also pointed out that a dealer is offering a new 520d se for 39k.

I think some of the prices on carzone are dreamland but some of them would be down to spec although having said that bmw business edition is not a bad spec and they are giving that as standard (I think).

bazz26

There would want to be a decent price reduction or trade-in allowance on the current 5 Series for me to be tempted with the new model around the corner.

air

28k for the 08SE was on the slightly generous side if you ask me, prices on 2nd hand 5's have dropped in the UK and as bazz points out the dealer will take a further hit when the new model comes out.
As for Kceire, extras generally depreciate quicker than the base cost of a car. The alloys for example would probably be a lot cheaper to add as an afermarket accessory since you wouldn't then pay VRT on them.
For example they're here for £1780
http://www.alloywheelsdirect.net/bmw_alloy_wheels/5_series_e60_alloys/19_bmw_172m_wheel_439

Gumbo

air wrote: »

28k for the 08SE was on the slightly generous side if you ask me, prices on 2nd hand 5's have dropped in the UK and as bazz points out the dealer will take a further hit when the new model comes out.
As for Kceire, extras generally depreciate quicker than the base cost of a car. The alloys for example would probably be a lot cheaper to add as an afermarket accessory since you wouldn't then pay VRT on them.
For example they're here for £1780
http://www.alloywheelsdirect.net/bmw_alloy_wheels/5_series_e60_alloys/19_bmw_172m_wheel_439

totally agree but the wheels are 800 euro each from a dealer after you have bought your car. my 4k price was an all in price with tyres.

from the website you posted they are 1780stg excluding tyres, and the cheapist tyre option on that website puts them up tp 2500stg. still cheaper that here though!

air

Just to prove the OP was close to the mark here's a 08 520D SE for just under 28k.
http://cars.donedeal.ie/for-sale/cars/1047052
Granted mileage is a little high (60k) and it's a private sale but I'm sure there's bargaining potential.

And another without mileage listed:
http://cars.donedeal.ie/for-sale/cars/1009670

R.O.R

bazz26 wrote: »

There would want to be a decent price reduction or trade-in allowance on the current 5 Series for me to be tempted with the new model around the corner.

For €42,740 on the road (before discount) you can get a 520d SE Business Edition (Manual) in non metallic black. As well as the usual kit in the 5 Series (not great, but not appaling) you get full leather, integrated Nav and bluetooth. IMHO, that's quite a lot of car for the money, as long as you are planning on keeping it for 4 years +. If you are keeping it for a shorter period, the new model would make a big impact on re-sale values.

Before July 2008 a car to the same spec would cost in excess of €60k :eek:

Gumbo

air wrote: »

Just to prove the OP was close to the mark here's a 08 520D SE for just under 28k.
http://cars.donedeal.ie/for-sale/cars/1047052
Granted mileage is a little high (60k) and it's a private sale but I'm sure there's bargaining potential.

And another without mileage listed:
http://cars.donedeal.ie/for-sale/cars/1009670

thats alot of car for the money imo

R.O.R wrote: »

For €42,740 on the road (before discount) you can get a 520d SE Business Edition (Manual) in non metallic black. As well as the usual kit in the 5 Series (not great, but not appaling) you get full leather, integrated Nav and bluetooth. IMHO, that's quite a lot of car for the money, as long as you are planning on keeping it for 4 years +. If you are keeping it for a shorter period, the new model would make a big impact on re-sale values.

Before July 2008 a car to the same spec would cost in excess of €60k :eek:

ive seen them in the flesh, filling them with some options to get rid of existing stock before the new model comes in. nice piece of kit though.

i was in an 09 M-Sport Business Edition last week and it was smashing! had everything you could want except for xenons, but it was going for 48k.

air

28k for a 08SE still only represents a 30% discount on the (current) new price of one of those though. Given that it's now an outgoing model and the amount of mileage (on the first one anyway) it's not amazing value IMO. This is exacerbated by the fact that both will soon be out of warranty too.
For example theres one on autotrader for £12,300 with similar mileage to the first one.
Add VRT & you'd have that landed for under 20k.
Granted it looks like there could be damage to the l/h sill.
http://www.autotrader.co.uk/classified/advert/200946345764782/sort/priceasc/usedcars/make/bmw/model/5_series/maximum-age/up_to_1_year_old/transmission/manual/fuel-type/diesel/keywords/520d%20m%20sport/postcode/sw193rq/page/1?previous=%2Fsearch%2Fresults%2Fusedcars%2Fpostcode%2Fsw193rq%2Fmake%2Fbmw%2Fmodel%2F5_series%2Fkeywords%2F520d%2520m%2520sport%2Fmaximum-age%2Fup_to_1_year_old%2Ftransmission%2Fmanual%2Ffuel-type%2Fdiesel%2Fpage%2F1%2Fsort%2Fpriceasc&anchor=advert200946345764782&logcode=p
Oh and it's an M-Sport aswell

talkingdog

air wrote: »

28k for a 08SE still only represents a 30% discount on the (current) new price of one of those though. Given that it's now an outgoing model and the amount of mileage

air wrote: »

28k for the 08SE was on the slightly generous side if you ask me, prices on 2nd hand 5's have dropped in the UK and as bazz points out the dealer will take a further hit when the new model comes out.
As for Kceire, extras generally depreciate quicker than the base cost of a car.

I know and they laughed me out of the BMW garage.

kceire wrote: »

thats alot of car for the money imo
i was in an 09 M-Sport Business Edition last week and it was smashing! had everything you could want except for xenons, but it was going for 48k.

I can buy same 09 Msport car in UK for £26,000 stg. VRT €6,000 approx. No VAT as car is 6 months old zero mileage. Vat difference on new would only be another €1,500.

xabi wrote: »

Was in a similar situation myself recently, dealer tried to tell me that the drop in new car prices 'wouldnt have any bearing on 2nd hand prices'. :rolleyes:

Dealers must think that we are all muppets.

air

I think the new car needs to have a minimum of 6k miles on it also to avoid the VAT.
http://www.boards.ie/vbulletin/showthread.php?p=55110596

I think you'd be better off waiting until the start of 2010 to be honest. The revenue's OMSP's will have to be cut drastically to reflect the lowered new prices and this will make an import even better value. I've no problem seeing dealers going out of business if they're not prepared to sell at market rates.

talkingdog

air wrote: »

I think the new car needs to have a minimum of 6k miles on it also to avoid the VAT.

Yea, I think you are correct, but that would be a fun drive. I would gladly drive to Alicante for a weekend than give the cash to Cowen for Berties pension.

air wrote: »

I think you'd be better off waiting until the start of 2010 to be honest. The revenue's OMSP's will have to be cut drastically to reflect the lowered new prices and this will make an import even better value. I've no problem seeing dealers going out of business if they're not prepared to sell at market rates.

My fear is that revenue will realise they made a b0ll0x of band B cars in the budget. No dealer is selling here at market rates. Everyone knows how much cars are in the North and the UK now.

I will be out looking again today for 08 and 09 520d SE or Msport. If anyone here works in BMW dealer in Dublin, and will tolerate an offer under 28k for a PRISTINE auto Msport or SE then let me know please.

air

Good idea on Alicante
You could be right on your fear regarding the B band cars alright, bit of a gamble either way. I'd imagine road tax will probably be increased across the board also.
On the other hand there could be even further discounts on new old stock of the current 5er once the new model begins to ship in quantity.

reverandkenjami

talkingdog wrote: »

Everyone knows how much cars are in the North and the UK now.

Everyone knows that EVERYTHING is cheaper in the UK/NI!

Gumbo

talkingdog wrote: »

I can buy same 09 Msport car in UK for £26,000 stg. VRT €6,000 approx. No VAT as car is 6 months old zero mileage. Vat difference on new would only be another €1,500.

i just done a check and for a jan registered 2009 BMW 520d M-Sport Business Edition with 7000 miles on the clock, VRT is 8100e.

so cost price is 26k stg = approx 28000e (XE) plus the 8100 and you have a great car imo.

can i ask where you seen this car for 26k?
was it a dealer or private? any links?

genuinely asking, as were still looking for a car.