Selling Allocations??

henryr said:

greetings,

i have two spots reserved, #2 and #3, and got a call from my dealer and i need to spec them for late october delivery.

my intentions were to flip one and keep the other but i am tempted to sell both alloactions and wait for the 6 speed manual......... opinions???

will the 6 speed option be a credit over the SMG??

what should a reasonable expect to get for thse spots?

thanx.

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So do you think your dealer will transfer your purchase order and "spots" to some unknown third party that you decide on instead of selling them to loyal customers in line or at a premium themselves? I'd read the fine print on the purchase order. Usually, it is an agreement to buy between you and the dealer, not someone else and the dealer.

Duplicate

good question - don't know but i'll ask.

henryr said:

greetings,

i have two spots reserved, #2 and #3, and got a call from my dealer and i need to spec them for late october delivery.

my intentions were to flip one and keep the other but i am tempted to sell both alloactions and wait for the 6 speed manual......... opinions???

will the 6 speed option be a credit over the SMG??

what should a reasonable expect to get for thse spots?

thanx.

Click to expand...

I don't think that you are going to see any credit (or discount to the MSRP) for the 6 speed manual whenever it arrives.

The other point would be that there are PLENTY of other enthusiasts here on this site that would really enjoy if you just gave them a slot; especially since you have two! I know that dollar signs flash through your head, but it would be pretty big of you to simply provide one to someone who REALLY wants a build slot rather than someone with a big wallet instead. (IMO) :biggrin:

I've talked to my dealer about this very subject. I am No.#4 on the list and will take delivery in late October or early November. I asked about a 6 speed manual list and convinced them to begin a separate list of which I am No.#1. I'll drive my SMG car for a year and then sell or trade it for the 6 speed manual when it arrives.

AbruzziBoy said:

I've talked to my dealer about this very subject. I am No.#4 on the list and will take delivery in late October or early November. I asked about a 6 speed manual list and convinced them to begin a separate list of which I am No.#1. I'll drive my SMG car for a year and then sell or trade it for the 6 speed manual when it arrives.

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I just don't understand how dealers can blow smoke up peoples' rears. For the dealer to quote you a late october early november delivery means the car has to be a late september/early october build. For a car that is starting production in September, chances are really slim that a dealer will get 4 confirmed build slots (#4 on the list) on a niche car, especially the first month for the US market. As for a October build, it is just speculation as it is unlikely that allocations for october are out this early. Based on how E39 rolled out, a #4 slot at the biggest dealership meant 3-4 months out from the date of first delivery! Nevertheless good luck

i agree with your assessment of the delivery timing. i was told my #2 car would be late october and #3 would be along in the next shipment.

Maybe my dealer is bullsh*tting me, time will tell. I do know that in California every other car is a BMW or Mercedes and more German imports are sold here than any other state in the country. My dealer is also one of the largest in the state so maybe he's telling the truth.

Digi said:

So do you think your dealer will transfer your purchase order and "spots" to some unknown third party that you decide on instead of selling them to loyal customers in line or at a premium themselves? I'd read the fine print on the purchase order. Usually, it is an agreement to buy between you and the dealer, not someone else and the dealer.

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So long as the dealer gets paid the agreed amount (MSRP or whatever the contract says) why would he care who pays??
I can only speak to Florida. Unless the contract for goods prohibits assignment, it can be freely assigned. Contracts for personal services are handled differently. Look at the fine print for any restrictions on transfer.
Regards,
Jerry

AbruzziBoy said:

Maybe my dealer is bullsh*tting me, time will tell. I do know that in California every other car is a BMW or Mercedes and more German imports are sold here than any other state in the country. My dealer is also one of the largest in the state so maybe he's telling the truth.

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Actually, the biggest BMW dealership in the country is either in NY/NJ or Miami (I forget). If your dealer has promised you a car by late october, you should already have a production number. It's as simple as that. If he has prmoised you a car for November delivery, he is hypothesizing as allocation schedules are not firmed up that far ahead of time! Please don't get the intentions of my message wrong. I am not negating what you're saying, I just want to make you aware to not necessarily count on a time frame he's telling you, unless of course people ahead of you drop out

gsfent said:

So long as the dealer gets paid the agreed amount (MSRP or whatever the contract says) why would he care who pays??
I can only speak to Florida. Unless the contract for goods prohibits assignment, it can be freely assigned. Contracts for personal services are handled differently. Look at the fine print for any restrictions on transfer.
Regards,
Jerry

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Because most dealerhips don't just see it as JUST a sale of a car, they would much rather build a relationship with members of the local community which can be more lucrative in the long run -> they will get their cars serviced there, they will buy future cars from them and they are more likely to refer their neighbors, families and friends to the same dealershhips. When you sell a car to someone from out of town, you are likely to lose on these added benefits. Actually, most dealerhips have regulations which prevents them from selling a car to someone with no geographic affiliation to the area. No dealer is worried having an M5 sitting on their hands. these cars sell themselves

Rezf said:

Because most dealerhips don't just see it as JUST a sale of a car, they would much rather build a relationship with members of the local community which can be more lucrative in the long run -> they will get their cars serviced there, they will buy future cars from them and they are more likely to refer their neighbors, families and friends to the same dealershhips. When you sell a car to someone from out of town, you are likely to lose on these added benefits. Actually, most dealerhips have regulations which prevents them from selling a car to someone with no geographic affiliation to the area. No dealer is worried having an M5 sitting on their hands. these cars sell themselves

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You may be right (although too few dealers worry about long term relationships, and I wish more dealerships thought like that), but that doesn't change the contract unless the agreement prevents the assignment; that can be a part of the contract.
If you lost your job, would the dealer let you out of a contract on a 5 sp. manual green X5? Maybe if he can resell, but you will be responsible for any shortfall, including all the floor plan until he unloads it. If you return a lease car early for a similar reason, do you get out from under the shortfall becasue the dealer wants to build a long term relationship?? cherrsagai
Regards,
Jerry

gsfent said:

You may be right (although too few dealers worry about long term relationships, and I wish more dealerships thought like that), but that doesn't change the contract unless the agreement prevents the assignment; that can be a part of the contract.
If you lost your job, would the dealer let you out of a contract on a 5 sp. manual green X5? Maybe if he can resell, but you will be responsible for any shortfall, including all the floor plan until he unloads it. If you return a lease car early for a similar reason, do you get out from under the shortfall becasue the dealer wants to build a long term relationship?? cherrsagai
Regards,
Jerry

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A deposit is NOT a binding contract. A lease IS a binding contract

Rezf said:

A deposit is NOT a binding contract. A lease IS a binding contract

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It all depends what the "deposit" says. If the "deposit" is a purchase agreement that specifies that the car will be sold at MSRP and that, in exchange for that commitment, the customer is giving the dealer $x to hold, it certainly is a binding contract.

MRichmond said:

It all depends what the "deposit" says. If the "deposit" is a purchase agreement that specifies that the car will be sold at MSRP and that, in exchange for that commitment, the customer is giving the dealer $x to hold, it certainly is a binding contract.

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It is not binding in the sense that after the agreement has been signed by both parties and then the customer decides to walk away, all that he will lose is the deposit, he is not BOUND to purchase/lease the car.
A lease is BINDING in every facet, you just cannot walk away from the lease mid-term

Rezf said:

It is not binding in the sense that after the agreement has been signed by both parties and then the customer decides to walk away, all that he will lose is the deposit, he is not BOUND to purchase/lease the car.
A lease is BINDING in every facet, you just cannot walk away from the lease mid-term

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Again, it all depends on what the contract says. Parties can choose whatever contractual terms they desire as long as their contract does not violate existing laws. A deposit contract could, for example, specify a refundable or non-refundable deposit. It also could obligate the customer to buy the car. If it does and the customer fails to satisfy that part of the bargain, the dealer could recover damages from the customer caused by that breach, which in the case of the M5 likely would be close to nothing because the dealer would be able to sell the car to a willing buyer.

MRichmond said:

Again, it all depends on what the contract says. Parties can choose whatever contractual terms they desire as long as their contract does not violate existing laws. A deposit contract could, for example, specify a refundable or non-refundable deposit. It also could obligate the customer to buy the car. If it does and the customer fails to satisfy that part of the bargain, the dealer could recover damages from the customer caused by that breach, which in the case of the M5 likely would be close to nothing because the dealer would be able to sell the car to a willing buyer.

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I am no lawyer and your argument makes alot of sense. It would make for a great academic discussion on contracts and the law, but I wil tell you that I have NEVER seen a deposit agreement from a dealership that obligated the customer to buy the car. These are standard forms with terms pre-printed. Every purchase order agreement (deposits) I have ever seen (roughly 70-100) only holds the deposit as collateral and when the car goes into production with the customer's option request, then iff the customer backs away, the contract stipulates that the customer will lose the deposit. Even then, I have spoken to many sales managers at dealerships, and they all agree that they can't penalize the customer and hold their deposits, it just is a scare tactic to make sure customer is serious.