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Originally Posted by B-Line
I live a stones throw from Century West and have never bought a car from them. Nor will I ever buy a car from them.
- They have lost thousands of dollars of my business because if this $30k markup that they also had on the BMW M6 and M5 when they came out.
They do stand by their practice that they do sell cars at this price when new models come out. But they will never know what it actually costs the dealership in lost future business.
Beverly Hills BMW is no better btw. When I bought my X5 4.8is, Beverly Hills was insisting on a $10k markup above sticker. I bought my car for $500 over INVOICE that same week from Irvine BMW in Orange County. That's almost a $15,000 price difference. And because of it, I have bought two more cars from Irvine and refer them a lot of business. Beverly Hills has lost that business so in the long run, price gouging hurts the dealership in many cases.
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I would immagine that the dealer is not in the business of losing money. They must figure that losing some future buisness form customers like you or I who think a mark up like that is rediculous is worth it becasue the money they make off of the people who will pay it is greater. I am sure they want to maximize profits and they feel this is the best way to do it. This may really hurt a dealer in a part of the country that wasn't so affluent, but out there it seems like there is a ton of money and everyone is trying to one-up each other and or have hte newest toy first. This probably wouldn't work in too many other areas of the U.S., but I am not surprised that it is working for dealers in this particular area.