Dealer markups for Mini SE

Dislike!

 

Purchased last month with no markup but had dealer add-ons and prep fees on top of MSRP in Houston, TX.

I was torn to between purchasing this (it was a 2022 in-transit model) or place an order for 2023. Dealership told me that the add-ons and fees would also be on the 2023 if I were to order. Both seemed negligible vs what I've been getting from other brands and dealerships. At least the add-ons weren't outrageous like $900 for tint.

Add-ons:
$259 Phantom Footprints (VIN stickers)
$599 Permaplate (Scotchgarde for interior and some kind of paint sealant)

Dealer Fees:
175.25 Doc Fees
270.28 Non Tax Fee

 

I have the luxury of a number of different MINI dealerships that are somewhat local to me. I called around before I placed my order. Two had doc/prep fees of $600 and a third was $900. No add-ons. Given what is going on with new car pricing across the industry and the fact price didn't go up for the 2023's, I didn't have a problem.

 

Different markets probably have different doc/prep fees, though I'm not sure. The dealers I contacted all had fees of around $900, but with no add-ons. My dealer's fee was $1000, but they also gave me $1750 off MSRP, so they were still much better out the door than other places. This was back in April of last year, so I'm sure the price would be higher now, but I think what's important is to compare those fees with what other dealers around you charge, and also to ask for and compare OTD prices. Then, go with whoever you like and/or gives you the best OTD price.

 

I shopped two dealerships (none local since there are none around here).

The first that I test drove at while on a trip had no mark-ups and a $599 processing fee.

The second, technically closer to me, dealership had no mark-ups but did include some BS interior protection on "all their vehicles". When I pushed, they did of course say "they would hate to loose a sell over it." They also had processing fees around $570.

I went with the first dealership since they're much larger and didn't have any "mandatory" add-ons or fees up front and were very transparent on all aspects from the start (e-mailing everything so it's "in writing", etc.)

 

When we pushed back on the add-ons they told us "You don't have go through with this deal."

 

wow - If I had any other options in that situation I would have immediately walked away (though to each their own).

I just can't stand those mandatory add-on practices from dealerships, especially on a custom/special ordered car.

If you're buying off the lot, well that's a little different. Still would stink, but I wouldn't be as aggressive about removing them.

 

Agreed. If I didn't get such a good offer on my Model Y Performance that was expiring then I would have walked away and purchased something else.

 

Most of the money is on the backend of deals (financing, protection plans, extended warranty). For the front-end of things there is roughly a 7-8% markup (dealer holdback) from the invoice and MSRP for the dealerships so you could AT LEAST get a 4% discount from MSRP. Dealerships LOVE custom orders because they get some extra funds (dealer cash) from the manufacturer to pay for car insurance and interest for cars that sit on the lot. This is on top of all the nickel and dime fees.

On the backend it's all about getting a commission from financing (don't think lease is available) and upselling extended warranties etc. If you want to really work it, you could pump-fake the financing route with your sales rep and negotiate as much as possible. Then when you go to the financing room to declare you are paying with cash (external financing). Be final deal at month end that can put the dealer into the manufacturer sales quota bonus and you have some serious negotiating power!

 

Mini of Plano (Texas).
Custom ordered base model Signature with no options.
No markup.
No unwanted add-ons.
No additional fees.
No uplift on regular fees (registration/docs etc).
No finance.
No extended warranties/insurances.
No trade-in.

Closed deal last day of November 2021.

 

It was ordered last week of August and delivered last day of a November.
And some places were marking up at the time so it’s not new but when we ordered we and our sales guy (Doug) was clear on the deal which was honored come delivery/payment time even though we didn’t have anything in writing.

 

After talking to two dealers, we negotiated zero doc fees, markups, or extras in writing before ordering. All we paid was MSRP plus destination charge.

After anxiously tracking the shipment sometimes several times a day for 6 weeks or so, the destination fee seemed like a bargain.

 

I do wonder what percent of total profit a typical car dealership makes on service. As EVs become a larger slice of sales, service revenue will fall. Dealers are going to try and make up that loss somewhere - perhaps with less willingness to waive the add-on fees at time of sale. Maybe even creating new fees like "EV surcharge". I assume the other primary sources of profit are the sale of the car, financing, extended warranties, and trade-in re-sale margin.

 

I ordered mine in Sept last year, and my mini was delivered in Jan from Seattle Mini. At least they did not have markups at all but charged me for prep fee ($350) and unwanted coating (around $400 USD). These fees were non-negotiable.

 

Dealerships alone can pretty much break-even as long as parts and service department is running at 80% capacity. Used vehicles is probably the second major source of income, then new car sales.

 

i dont want my dealer to detail the car. Dont screw in the plate bracket, i will risk the ticket. Just peel the tyvek off, rinse it, and give it to me. I will apply ceramic when i get home. The only reason i didnt ceramic the red one was because i was waiting for the hood stripes when things changed.

 

I ordered Iconic. As far as I understand, it is not about the trim level that influences your order. Actually, it is up to their dealer allocation.
Wow, now they added lowjack.