how to price a demo?

[mikemou]

i know i know, every car is different, and this is, like, the tenth question i asked and i haven't make up my mind... but, a salesperson just quoted me a demo w/ 1,500 mi at invoice+$500 and 5,000 mi extra warranty. i don't even have a source to check whether this is good/fair/bad/rip-of...

X3 2.5
Water Blue Metallic / Gray Leather
Premium Package
Automatic transmission
Luggage net
Heated front seats
Xenon Headlights
Satellite radio preparation
invoice: $36,440
asking: $36,940

it's got almost all the things i care about.

your thoughts?

 

[MrElussive]

Demo models are extremely hard to estimate the value. Dealerships try to sell them as "new" cars, but they're really not new and they've probably experienced the most abuse (how many drivers care about the break-in period of a test-drive car??).
$500 over invoice for a used car with 1,500 miles on it is a good deal, but still kind of high. The 5K mile extra warranty doesn't help much at all, either. Try to get it down to invoice or sub-invoice price. You should also look over the car thoroughly...make sure there are no scratches or dings or anything and make sure everything is working properly.

 

[Tom]

$500 over invoice is not a good deal at the moment since its the year end and you can get one with practically no miles for that price. Just shop around on the internet.

Tell them to keep their 5k extra warranty and give you a better deal on the car. This weekend is probably the best time to deal since most dealers are trying to meet their monthly quotas.

 

[mikemou]

Tom's right, I actually got a quote from another dealer to 'lease' a new X3 at straight invoice, but he insisted the 'buy' price would be higher for whatever reason i don't know.

 

[mikemou]

sorry to beat this dead horse thread again as almost everyone on this board is a proud X3 owner already, but it looks like i'll be getting a demo after all. has anyone bought/offered a demo very recently and what kind of a deal you've got/quoted? thanks.

 

[SFCA-325i]

Sorry, can't answer your question directly, but I paid invoice for a brand new X3 (picked it up the day it arrived). So, I think $500 over invoice for a used X3 is way too much. Tell them to keep the extra 5k warranty extension - that's virtually worthless.

Personally, I'd be starting from a sub-invoice number. Split first year depreciation with them and you are looking at $2k below invoice.

 

[mikemou]

...Split first year depreciation with them and you are looking
at $2k below invoice.

That's a great way to look at the value of the car. It's fair, objective and reasonable. Is there a depreciation calculator/formula out there? Anyhow, worth a try, I think I'll base my negotiation on that. thanks much!

...I think $500 over invoice for a used X3 is way too much...

Oh, no, it's a different car from a different dealer. I'd neve pay anything over invoice now!

...Tell them to keep the extra 5k warranty extension - that's virtually worthless...

Ok, this is the thrid time someone said that to me. But I don't understand why they're worthless. Is it because the build quality is so good??? Or because they'll always find a way to say it's not under warranty???

Thanks!

 

[SFCA-325i]

Ok, this is the thrid time someone said that to me. But I don't understand why they're worthless. Is it because the build quality is so good??? Or because they'll always find a way to say it's not under warranty???

You will already have the 4-year, 50,000 mile maintenance-free warranty. If anything is going to go wrong, it will likely occur during this time. The chances that you'll need to make a warranty claim between 50,000 and 55,000 miles are remote.

Of course, if they want to throw this in, that's fine. I simply would suggest that you don't ascribe a whole lot of "value" to it.