[henryhsu]

I think I got a good price, but I'm not totally sure due to the lack of data transparency in the CPO market. I'm satisfied either way because I specifically wanted a Sparkling Graphite with Gray Interior (don't like tan).

2006 Sparkling Graphite 330xi Sedan, Auto Transmission
25k miles, 1 owner, off-lease, CPO
Final Price: $27000 + tax/reg/etc. - 0.9% financing special

Options:

• Auto Transmission*
• Premium*
• Cold Weather*
• Navigation
• Logic 7
• Xenon
• Comfort Access

* = "Must Have" option for me (I actually prefer no nav, because I hate iDrive).

If my calculations are correct, this is 57.5% off of original MSRP -- which given the 58% residual value of a 3-year lease seems on target.

Sequence of Events

Spent about 3 hours on bmwusa.com listing every 2006 330xi with my "must have" options in a 150 mile radius, and putting it in a spreadsheet.

Ended up with list of 6 cars with mileage around 27k - 30k. Of the 6 listings, cheapest on bmwusa.com was $28k -- which had only the "must have" options (no Navigation, Logic 7, Xenon, or Comfort Access like the target car had). Most were in the $28k to $30k range.

Dealer was asking for $32k. Car went off lease 63 days ago (but I did not know this during my discussions). Went in with a clear intent to purchase immediately, and desire to be "about $26.5k". The usual gasps of "that's impossible" ensued.

Ultimately the conversation could be summarized as follows, but it took like 1.5 hours:

Sticker: $32k
Me: I'd like to be at $26.5k range
Rep: Uh, that's tough... we can come down to $31k
Me: I don't think this is going to work, we're too far apart. Sorry for wasting your time.
Rep: [Escalate to manager].
Manager: Can go as low as $29.5k, but that's 0 profit.
Me: Above my budget, sorry. Please look out for any cars meeting above description in Monaco Blue or S. Graphite + call me if anything interesting comes off lease.
Manager: How about $27.5k? It would be crazy, but maybe I can work the numbers to do that.
Me: Honestly, I only wanted to spend $25k ("must have" options), but went up to $26.5k since this car is lower-mileage and has features that I don't actually want. Let's split the difference at $27k
Manager: How about $27.2k?
Me: [now it's just standing on principle] I'll think about and call you tomorrow.
Manager: If I do $27k, will you buy today?
Me: Yes.
Manager: Give me 5 minutes. [I spend the time looking at coupes which is what I really wanted but was vetoed by the wife]. Okay, $27k.

Like I said, I'm reasonably satisfied. Given the 0.9% financing, honestly the difference between $27k and my $26.5k target is basically nothing... which of course was the dealer's argument when he stood at $29.5k.

If I got a good deal, it would have been due to: (a) the list of comparable cars in hand; (b) true willingness to buy immediately; (c) true willingness to walk away.

If I got a bad deal, it's because I don't deal well with pressure / confrontation.

[JayReplay]

Congrats!! Price is about right for the fact that it's loaded!

[IDreamofBimmers]

ah!
did it have to be an xi?!
I would've sold my car to you for 5k less

[edl]

I would say you got a good deal. I listed recent wholesale data for 2006 330xi's in Sparkling Graphite below - once you add the auction fee ($250-300), transportation fees, CPO fee, and financing, the dealer made less then $1K.

01/28/09 UTAH Lease $23,500 21,372 Avg SPARKLIN 6G A Yes
01/22/09 MANHEIM Lease $23,500 24,853 Avg SPRKGRPH 6G 6 Yes (manual trans)
01/22/09 MANHEIM Lease $23,000 30,417 Avg SPRKGRPH 6G A Yes

I think you did well because of (b) true willingness to buy immediately; (c) true willingness to walk away. Dealers spend a lot of time weeding out serious buyers from flakes. Most people are flakes.