Dealerships overpricing cars like the M2

[zippy320]

So I read a comment on facebook where a guy complained to BMW SA about dealerships overpricing the M2 , and it got me thinking , are they allowed to do this?

I know that the M2 is a kind of allocation car and the only allocated a limited number for SA for 2016 , I also see that the Price on the BMW website for the M2 is around 850k and 906k , where as if you search autotrader and gum tree , you find BMW dealerships selling these cars ( Delivery mileage, brand new cars not approved used , Demo or traded in) for over 1.1 million a car , Which seems like they are buying up the allocation cars and reselling them at a huge profit , now buying them up means someone who wants to buy it and wait wont be able to get his car because , the dealerships already purchased every car that was to be allocated .

Is this allowed? Or is it like the norm for these type of cars and dealerships are allowed to do this?

Thats a huge profit on a car and I doubt once insurance is going to insure the car for that inflated amount paid will they?

 

[Iceman12596]

Welcome to the typical south african business structure, as far as im concerned dealshits are always out to screw people, they did the same BS when the RS3 came out, they call it "premium"pricing and if you want the car that is what you pay budz.

 

[tn002]

Yes it is absolute nonsense. But it comes down to the market forces: willing buyer, willing seller principle. If people are buying it at these inflated prices, than it is what it is.

A good analogy is when Man Utd bought Pogba for a world record fee. Is he worth that fee when you have players like Ronaldo & Messi that score goals for fun? Probably not. But United met Juve's asking price.

 

[Straight six]

@tn 002 Good exampleraise:

It's nonsense but a reality

 

[r0ckf1re]

Thats a huge profit on a car and I doubt once insurance is going to insure the car for that inflated amount paid will they?

Insurance companies are vultures as well, they will just charge the buyer what they deem fit for insurance.

 

[325iSmk2]

So I read a comment on facebook where a guy complained to BMW SA about dealerships overpricing the M2 , and it got me thinking , are they allowed to do this?

I know that the M2 is a kind of allocation car and the only allocated a limited number for SA for 2016 , I also see that the Price on the BMW website for the M2 is around 850k and 906k , where as if you search autotrader and gum tree , you find BMW dealerships selling these cars ( Delivery mileage, brand new cars not approved used , Demo or traded in) for over 1.1 million a car , Which seems like they are buying up the allocation cars and reselling them at a huge profit , now buying them up means someone who wants to buy it and wait wont be able to get his car because , the dealerships already purchased every car that was to be allocated .

Is this allowed? Or is it like the norm for these type of cars and dealerships are allowed to do this?

Thats a huge profit on a car and I doubt once insurance is going to insure the car for that inflated amount paid will they?

What was BMW's response? This is price gouging at its simplest, and franchised dealers should definitely not be allowed to sell "used" cars with 50km on the odo at a premium.

 

[zippy320]

This was the guys comment ( On the BMW South Africa facebook page )

Vashan Kambaran What's the point of your advertising if you are not able to meet the demands because there are none available in the country through your dealer network. The 2 that are available are at the private bmw dealers whom are robbing the client by marking the price up by 3 to 400K and they are advertised on Gumtree.

This was the reply

BMW South Africa Hi Vashan, We are sorry to hear that you've been disappointed. Our entire model range is communicated on our social media platforms to keep our fans and customers updated and informed. Production of the BMW M2 was limited and allocation for 2016 is already sold out. We understand your frustration and apologise for this. However, 2017 allocation for South Africa is currently being planned and we aim to meet demand as far as possible.

They never answered the guys question .

So I read a comment on facebook where a guy complained to BMW SA about dealerships overpricing the M2 , and it got me thinking , are they allowed to do this?

I know that the M2 is a kind of allocation car and the only allocated a limited number for SA for 2016 , I also see that the Price on the BMW website for the M2 is around 850k and 906k , where as if you search autotrader and gum tree , you find BMW dealerships selling these cars ( Delivery mileage, brand new cars not approved used , Demo or traded in) for over 1.1 million a car , Which seems like they are buying up the allocation cars and reselling them at a huge profit , now buying them up means someone who wants to buy it and wait wont be able to get his car because , the dealerships already purchased every car that was to be allocated .

Is this allowed? Or is it like the norm for these type of cars and dealerships are allowed to do this?

Thats a huge profit on a car and I doubt once insurance is going to insure the car for that inflated amount paid will they?

What was BMW's response? This is price gouging at its simplest, and franchised dealers should definitely not be allowed to sell "used" cars with 50km on the odo at a premium.

 

[r0ckf1re]

This was the guys comment ( On the BMW South Africa facebook page )

Vashan Kambaran What's the point of your advertising if you are not able to meet the demands because there are none available in the country through your dealer network. The 2 that are available are at the private bmw dealers whom are robbing the client by marking the price up by 3 to 400K and they are advertised on Gumtree.

This was the reply

BMW South Africa Hi Vashan, We are sorry to hear that you've been disappointed. Our entire model range is communicated on our social media platforms to keep our fans and customers updated and informed. Production of the BMW M2 was limited and allocation for 2016 is already sold out. We understand your frustration and apologise for this. However, 2017 allocation for South Africa is currently being planned and we aim to meet demand as far as possible.

They never answered the guys question .

So I read a comment on facebook where a guy complained to BMW SA about dealerships overpricing the M2 , and it got me thinking , are they allowed to do this?

I know that the M2 is a kind of allocation car and the only allocated a limited number for SA for 2016 , I also see that the Price on the BMW website for the M2 is around 850k and 906k , where as if you search autotrader and gum tree , you find BMW dealerships selling these cars ( Delivery mileage, brand new cars not approved used , Demo or traded in) for over 1.1 million a car , Which seems like they are buying up the allocation cars and reselling them at a huge profit , now buying them up means someone who wants to buy it and wait wont be able to get his car because , the dealerships already purchased every car that was to be allocated .

Is this allowed? Or is it like the norm for these type of cars and dealerships are allowed to do this?

Thats a huge profit on a car and I doubt once insurance is going to insure the car for that inflated amount paid will they?

What was BMW's response? This is price gouging at its simplest, and franchised dealers should definitely not be allowed to sell "used" cars with 50km on the odo at a premium.

Typical corporate response.

Sent from the Edge