Order Cancellation Letter Opinions
 

Hey X Outposters...after a lot of hand wringing, I have composed this letter to email to my CA later tonight...thought I would run it by you to see if I should tweak it anywhere:

Dear ---,
I learned some information over the weekend that affects our deal and I wanted to touch base with you to propose a plan. I have read that documents outlining the LCI for the E70 started reaching dealers in the last couple of days, so you may have already seen internal documents about this. It appears that production will begin in March for Mid-April delivery of the 2011 X5’s, which are receiving minor changes to the bumpers and lights. More importantly, I am hearing that the N55 twin-scroll turbo with 300hp & 295lb-ft of torque will be replacing the naturally aspirated 3.0 liter as the base engine. Not only is this a more powerful engine, it gets better gas mileage.

This is all new information for me, and so I would like to decline delivery of the X5 we ordered and instead, leave my deposit on hand with you and be placed on a waiting list to be first to order the ‘11 model. As a sign of good faith, I am more than happy to sign something making this a non-refundable deposit.

I realize we’ll lose the $2500 Holiday Credit and risk higher Money Factors and MSRP, but I would rather face that than take delivery of a model that will be mechanically outdated in 3 months. I have had a good relationship with the you (and ----Service Advisor)) for many years and look forward to purchasing our family’s vehicles from ---BMW Dealership Name--- for many years to come, so I hope you will be able to accommodate this change of plans. Please let me know how you would like to proceed.

Best wishes

My opinion, that's a personal visit. I wouldn't give up any negotiating position, and I certainly wouldn't allude to anything about a risk of paying MSRP (since that's what you'll most likely pay since you stated it was a risk) I would simply state that I've decided that I would prefer a 2011, cancel the deal you've entered into and leave your options open for the 2011. Separate transactions, cancel one and enter into the other.

Do it in person, an e-mail will be forwarded to the sales manager and discussions will ensue, a personal visit makes them act now as opposed to giving them time to think about it (and perhaps come up with an alternate plan that may not be to your liking).

If you feel you need something in writing, do it after a meeting.

The letter sounds excellent, hopefully they will not give you any grief and give you the new 11 model. That just makes sense.

Good point about not mentioning future cost, Lubehead. I prefer to do this in writing from the get-go, though. If they start to give me grief, I will remind them that I can go 70 miles South and get the car I want at $500 over Invoice all day long, but that I chose them out of loyalty.

In short: your letter and is horribly written. Start over.

I'd make it a visit. It's your money and your car. I'd think they would have no problem holding your deposit. If you are going with the letter, at a minimum cut out the last paragraph and last line of the second paragraph. Don't EVER give up leverage in a negotiation when you don't have to. Don't feel sorry for the CA, I'm pretty sure they will not feel the same for you...

Your letter makes it sound like you are giving them the upper hand "Let me know how you would like to proceed..." Letting them keep the deposit and signing something even though they didn't ask for it is just bending over for them! Let me remind you, YOU are the buyer and YOU are spending the money... THEY should bend over for you! Why would you be willing to sign and make it non-refundable when you don't even know what price the new car will be?? I agree you may have to start over and make it a little more firm and sure footed! Tell them you changed your mind and decided to wait for the newer model, period! Keep it short and simple...

Mainly I'm trying to keep the peace, but you're right about it sounding like I'm giving them the reigns with the last line. I've cut the wording about holiday credit/mf/msrp. I'll cut that last line as well.

I should clarify that our ordered car already arrived and is on the lot, but not prepped. My CA didn't tell me that...I stopped by when they were closed today to see if it had arrived early. I feel like I'm screwing them a bit by leaving this car for them to unload, so that is why I'm offering to give them a non-refundable deposit.

How often do people elect not to take delivery? Seems like a relatively rare event that requires some humility on the customer's part. No?

I stopped by and told the CA I didn't want the 2009 X5 Diesel they had ordered...and that had just arrived.

I told them I wanted a 2010 with the new idrive, and that I would not take the 2009. The new 2010 had the same $4500 eco credit and came with the new idrive for $200 more. Duh.

She called back that evening having asked the sale manager, told me it was $3000 more for the 2010...and said they had a buyer for the one I declined.


DO not be too apologetic.

Do not 'agree' that the pricing will be dramatically higher.

ZERO humility.

Look, it is a legitimate response to BMW's decision to release a superior powertrain... why 'humility'?

A

If the deposit is 100% refundable. I'd recommend that you get your money back - you'll feel a lot better if something does go wrong in the next few months.

Keep it simple - just call/email them and tell them that you are canceling your order and would like a full refund. No reason to feel guilty.

If you feel that it will ruin your relationship with the dealership, write a separate courtesy letter explaining the situation that you apologize for having to cancel your order which was due to the announcement by BMW's near term LCI changes. Once a firm US delivery announcement for these vehicles is released, I hope to reengage with your dealership. Thanks for your understanding in this matter.....


Unless you ordered some very weird color combination, I suspect they'll sell your car in under a month.

I wouldn't include this information unless you have evidence of these changes/timing. You must be reading something I haven't seen, because there has been nothing regarding timing that I am aware of. If there is something, can you provide a link? Thanks.

"I have read that documents outlining the LCI for the E70 started reaching dealers in the last couple of days, so you may have already seen internal documents about this. It appears that production will begin in March for Mid-April delivery of the 2011 X5’s, which are receiving minor changes to the bumpers and lights. More importantly, I am hearing that the N55 twin-scroll turbo with 300hp & 295lb-ft of torque will be replacing the naturally aspirated 3.0 liter as the base engine. Not only is this a more powerful engine, it gets better gas mileage."

Add anticipated before announcement and appropriate grammar changes - Fixed.

Personal visit. You can always follow up with a letter thanking or admonishing them for their customer service.

I agree with those who suggested a visit and I would also recommend that you get your money back first. Once it has been credited to you, start anew. Another dealer may give you a better deal or have higher priority builds. You have time why rush into another deal? Take your time.

Thanks for all the input guys...I chose to stick with email, made the recommended changes, and it appears all is well. My CA replied by asking where I got my information. He hadn't heard any of this. Then two minutes later, emailed me back saying that Production of the current X-5 halts in March, so that might mean a change. I also received the following email from a very good source at BMW this morning (which I forwarded to my CA):

Good to hear from you.

This is what I have on the specs:

1.) 4.4 liter 8 cylinder turbo charged gas

400hp (increase of 50hp)

2.) Valvetronic 6 cylinder 3.0 turbo charged gas (BMW TwinPower Turbo)

300hp (increase of 40hp)

3.) 3.0 Diesel engine with Common Rail 3 Technology

180 kW (increase of 7kW)

4.) 40d top-diesel engine (BMW TwinPower Turbo)

225 kW (increase of 15kW)

The launch date is scheduled for May 2010, so I would assume it would be a 2011 model.

Let me know if you have any other questions.

Best,
----

I'll let you all know how things progress!

That is great information! Thank you.

OP,
The news that's been floating around sounds great if it's true. However, until it's actually been confirmed by legitimate sources (i.e. actual BMW news releases), I wouldn't rely too much on the rumors. So, I wouldn't mention it as a reason to cancel an order. You only need to mention that you're interested in the 2011 now...that's it.

z2g, email was already sent and received without much skepticism. As I posted above, my CA went so far as to acknowledge the production line closing in March. I am trying to be totally transparent with these guys as they're the only game in town. Don't want to end up on a dealership blacklist! And, while these are still officially rumors, I consider a personal email from my source about as reliable as information can get without it being a press release.

If you had an original invoice written up, for less headaches later, I would get the dealer to void it and just write, "DEPOSIT TO BE APPLIED TO A 2011 FACTORY ORDERED UNIT".
This way, when they do receive your denied unit in, the won't call you and say, Your car is here! I've seen where the CA leaves and for all they care, they want to keep your deposit and claim ignorance. My two cents anyways.

That's fine. I don't think you would be "blacklisted" though for just saying that you want to cancel your order for now and wait for news on the 2011. Usually, you want to give the dealership the least amount of info as possible. It's only to protect yourself. In the end though, both approaches are fine because you're not lying in either instance.

However, if you give them too much info, it may give the impression that you really want the higher power in the 2011's. It can be a negotiating chip that'll be in their favor when you do order the 2011's.

That's true...I shouldn't be too eager about it. My trump card here is that I also have a good relationship with the dealer 70 miles South, and they're willing to sell anything to me at $500 over invoice...if my current dealer tries to stick me with a bad deal, I walk out and call the other dealer.

This is no rumor anymore, german dealers already have the LCI information. Production seems to start in April and it doesn't really matter if it starts a couple of weeks earlier or later.
Fact is: if you order specific models now and one month later, that specific model gets a 40-50 HP power jump, you'll be not only sorry but also pretty much p.ss.d off I guess. :D

Your letter will document the desire to cancel. Stop at that.
Get your money and wait until the LCI is out. Make no commitment to them.

Then go south and north for the best price and only then return.
They will meet your price. Don't let them beat you down.

RTC what about the 5.0 from the X-6...is it replacing the 4.8 for the 2011 LCI??

I agree that "in person" is the best way to deliver this message. As a friend of ours says, "It's all about the relationship." In person you get a read on where the CA is on this without the sales manager's input. I also agree that you don't give up anything until you get something. Good luck. Where did you find the info?

Hey All,
The email has already been sent & I'm good with my CA (as far as I know). Haven't gotten any angry emails or calls...the last one he sent was the one acknowledging production halting in March. I got the info off this and other forums...mainly from the Facelift Pics thread. I also got an email directly from a contact at BMW confirming engines and launch date.