Why do dealers "punch the clock" ?

[akim47]

Interesting thing happened yesterday. First and foremost, let me say for all those in SoCal, that Crevier BMW is the biggest bunch of jerks (being polite) in the universe. I really wanted to drive the 3.5I and 3.5D again. I'm not window shopping, but really trying to decide on whether or not the new models are a better buy (I eventually got to drive them) than used variants (they are).

I waited around for about 30 minutes checking out the inventory outside. Then since no one was around, went inside only to have about 4 sales people look at me and walk right past me. I tried to stop and ask somebody but he was really not interested in speaking with me. After another 30 minutes, I went back outside and looked at the inventory again. My wife was calling me to see if I was coming home yet, and I had to replied (noone is helping me!). Finally, after an 1 hr and 20 min. I get a guy who seems like he doesn't want to help me, but decides he will. I ask him if I can drive the X5 35D. I get in and start driving, only to have him say "okay make a u-turn" after just about half a mile. "Feels great, right? so you want it?" I told him that I'd like to compare it to a 35I and he just says "why would you want that? this is the better car" He was fighting me, but I insisted. After another 30 minutes, I get into a 35I and he lets me drive TWO BLOCKS (I only got to the corner of Redhill and Edinger) until he says "okay you can see the difference, let's go back"... Really?

So I start asking him questions, I tell him I've been reading a lot on the new models, the incentives, etc. So the 35D I test drove has an MSRP of $64,125. He says the discount is the 3500 for the eco credit and 2500 for holiday cash. Period. ACTUALLY... he reminds me that Crevier adds $900 to EVERY CAR for lojack. I said, "I don't want it" - NO.. you get it. So I tell him that people are getting the car for $500-1000 over invoice BEFORE incentives. He basically says I'm full of ****, and that everyone in the world wants an X5, and that I'm lucky that they are not marking them up because of the high demand. At this point, he feels I am wasting his time (I guess I was since I am not paying $1,000 over MSRP (cuz of the lo-jack) for the car. I am now abandoned again and noone will even say hello.

Another salesperson left an inventory list in one of the cars I was looking at so I decide to take a look. I mean, it's the same list that you find on the internet so what the heck. This list, however, does show how many days a car has been on the lot and other notes. I noticed that for many of the X5s, the note is "Warranty Started 11/30/10"... which I am guessing is the clock is punched on the warranty. I AM CERTAIN, this is not something they tell the customer before he/she buys a car. Not that it is a big deal, but they should then state 47 months/ 50K miles. Why do dealers punch warranty clocks for new cars? Is there any specific reason? So if a car has been on the lot 50 days with a punched clock, wouldn't you think I'd have some bargaining leverage? Anyways, I'm not going back to Crevier. All the people keep saying is "largest volume dealer blah blah blah... get your car washed for free... " It just sucks that there must be so many buyers around here dying to pay MSRP for a car.... sorry for the long rant...

[motordavid]

Pretty good rant, imo...
Dunno about the warranty stuff; I thought it was date of 'in service', as in customer takes delivery.

Maybe all those sales guys are on salary, or reading too much ego stuff
on the net.

I thought I was the only invisible/uninteresting guy at any dlr...

[Richard in NC]

Every new BMW I've leased, shows a warranty start on the lease start date.

[BCA]

Dealers punch the clock because they get $ back from BMW when they punch the cars. The punch date becomes the "in service" date, which is a bunch of BS if you ask me but it happens all the time.

[jeremym]

Sorry to hijack your thread, OP, but what documentation do I need to see in order to tell when the warranty is in affect? I'm looking at a 2007 4.8 tomorrow at a dealer and I want to see what the warranty status is.

Thanks.

[JCL]

There are generally two reasons for the inventory to show a warranty start date.

First is if the car is a demo or staff driven. Warranty starts when the car is put in service. Those cars still show up on the inventory list. They usually aren't pretending that the cars are still new.

Second is if there are warranty claims soon after the car is received at the dealer, before it is sold. With another manufacturer I worked with (and I am assuming it can be the same with a new BMW) if a car came in and had a problem, the dealer had to start the warranty so that they could do the required repair and submit a claim to the manufacturer. The repair could be a campaign or update, for example. If the warranty wasn't started, they couldn't submit a claim. Then, when the vehicle is subsequently sold, the warranty start date was adjusted to the customer delivery date. Given that you were looking at an internal list, it is entirely reasonable that BMW has the same system.

Your warranty would be from the in-service date when you take possession.

edit: Saw the post from BCA, above, about BMW paying the dealer. That could work for any predelivery inspection or campaign work. With the other manufacturers I worked with, the manufacturer only paid up any sales rebates when the customer registration was done, and that required a customer name and address. You could put it in service for (interim) warranty purposes, but that didn't count as delivery without a name and address.

[JCL]

Originally Posted by jeremym

Sorry to hijack your thread, OP, but what documentation do I need to see in order to tell when the warranty is in affect? I'm looking at a 2007 4.8 tomorrow at a dealer and I want to see what the warranty status is.

Thanks.

Ask the service department to run the key through their scanner, and you can get a printout.

[deutsch100]

I have leased 8 new BMWs and purchased 1 since 2004. EVERY one has shown the "in service", warranty started as the day I signed the finance papers. I personally have never bought or leased a new car (any make or model) that had the warranty already started before I signed the paperwork.

[jeremym]

So if the X I'm looking at has 39k on the clock and has an 08/07 date on the VIN sticker, does that mean it's still under original warranty and then the CPO will start once I hit 50k? Or will the CPO start as soon as I buy the truck, if I do?

Also, it was a lease for a year and then someone bought it at 22k miles and owned it for a year and a half. Did the second owner (first buyer) still have the factory warranty or was it CPO'd back then?

It's a bit unclear how this works.

Again, OP, sorry to hijack.

[ukwildcat]

Yes, good rant. And a bad experience. I wouldn't buy from that dealer, for sure.

I won't hijack anything, just a quick note.. My salesman came here from a dealer in MD (DC area). I thought "well, you must have sold a TON of cars."

"Not so.." he said.
"The competition was amazing. Eight dealers in the area. We really had to work for it."

Since my sales guy is a Spaniard, I'm more inclined to believe he wasn't making it up. I know there isn't only one in greater LA.

I'm no expert, but if I'm not mistaken, it's not LEGAL to start a new warranty if it hasn't been delivered to a customer. In my business, it starts when it's "FOB" (Freight On Board, i.e. shipped) which is perfectly acceptable. In the car biz, that could still work, but it would be a BIT of a problem because cars are not necessarily shipped right away - they have to load the truck up to make it worth the while, but from the date it was on the truck, it could have said to be FOB and the warranty could start.

I understand what has already been said, and yes, that's all probably true.

In particular, as JCL said, if it were already "delivered" and used as a staff car or demo, but then it would be VERY illegal if they were to sell it as NEW.

I have seen with my own eyes dealers who will clearly tell you it was a demo, etc. and then sell it as NEW. Which is still OK as long as the manufacturer's warranty STARTS on the date you take delivery. That's really all the Mann Act means in the context of something called "NEW" or "USED." Naturally, the vehicle should be priced accordingly.

You should also have a realistic expectation of the resale value on a BMW. The old "it loses a third of its value when you drive it off the lot" is not really true.

Because it's the closest I could find..

From KBB I looked for a similarly equipped (all but the powertrain) 2010 35d (no 2011 listed) instead of a 35i, but with all the same options.. $59K, with 6500 miles. So it didn't lose a third, no.

And whether they want to punch a warranty or not, either it's sold new to you with a new manufacturer's warranty, the price needs to come down A LOT or I would try another dealer.

You're going to have to get your warranty service done at a dealer, but you'll only see them once a year, so for a NEW car, what you pay for it should probably be the overriding factor. And if you pay for NEW, get NEW.

Just my opinion.

(says the man that just took delivery on $20K of audio gear that was opened)
(but I did get a full warranty)