Dealer Cost of Importing vs Sale Price

[OneSeventy 1]

Hi guys, I'm looking at an E87 130i as my next car and have come across one I like the look of, only the price is in my opinion a bit steep.

Being a bit cheeky, I looked up the Japanese auction history and came across the exact car and alongside it, the price the dealer paid for it in Japanese Yen. Converting this to NZD, I know the dealer paid pretty much bang on NZD $10k, yet they're selling the car for almost twice that.

So my question is, what are the rough costs for a dealer to import and comply a car and how much cut do they generally take as a minimum profit? If I know this, perhaps I can sort out a realistic bargaining price to know whether the car is worth continuing to pursue.

Any information here would be appreciated.

[charles28 136]

Shipping + GST on the total amount is probably 4k on top of that 10k for the car mentioned.

I would assume they aim for 5k profit approx, of course once they pay staff and other expenses the true margin is a lot less than that.

They also have to cover the car under the CGA for the first 3 months, which is why they push those mechanical warranties, as this is a way of avoiding any liability.

[allan 295]

Try this http://bimmersport.co.nz/topic/27444-vehicle-importing/?hl=%2Bimporting+%2Bcars+%2Bfrom+%2Bjapan it has been discussed many times.

[OneSeventy 1]

Shipping + GST on the total amount is probably 4k on top of that 10k for the car mentioned.

I would assume they aim for 5k profit approx, of course once they pay staff and other expenses the true margin is a lot less than that.

They also have to cover the car under the CGA for the first 3 months, which is why they push those mechanical warranties, as this is a way of avoiding any liability.

Thanks, so you'd say the car at $19k is covering their costs and profit and doesn't sound overly inflated?

Try this http://bimmersport.co.nz/topic/27444-vehicle-importing/?hl=%2Bimporting+%2Bcars+%2Bfrom+%2Bjapan it has been discussed many times.

Thanks, but yes I did use the search. There's some good info on the forum but I didn't see my question completely answered. The post you linked is six years old so info might change.

[Haitoman 110]

Thanks, so you'd say the car at $19k is covering their costs and profit and doesn't sound overly inflated?

Thanks, but yes I did use the search. There's some good info on the forum but I didn't see my question completely answered. The post you linked is six years old so info might change.

That's the deal. There is also the possibility that the dealer, if small, paid marine insurance. Do it yourself and save 5k

[OneSeventy 1]

Do it yourself and save 5k

Yeah that's my other option. Been watching the auctions for months! 130s are fairly rare in the right spec which is why I'm fairly keen to push for this one.

Edited January 31, 2016 by OneSeventy

[Olaf 3321]

yes, for the cost of the car yard, they need to turn over x units with a $5k margin to make costs. They'll balance that with some units with higher $$ return (prolly same margin) and on it goes.

I've a friend who's brought in a few cars through IBC, you take on the risk, and save a little money - if it all goes your way.

PS - today's the end of the month, today's the day to SEAL THE BEST DEAL. Tomorrow (1 Feb) is a new month, and your salesman is starting again on his rush to meet budget. First car of the month he'll be fighting to retain margin.

Edited January 31, 2016 by Olaf

[OneSeventy 1]

PS - today's the end of the month, today's the day to SEAL THE BEST DEAL. Tomorrow (1 Feb) is a new month, and your salesman is starting again on his rush to meet budget. First car of the month he'll be fighting to retain margin.

Good tip. I'm not rushing this but I'll keep in mind the end of the month thing if I do go the car yard route!

[Gaz 1061]

Dont forget they'll have to build in some haggle room. I always add about 10% to my asking price to accommodate for all the low ballets

[ssx5 1]

Hi Guys..

New here joined up as I deal/sell a lot of different import cars..lots of BMW'S.. been lurking for info etc on here on and off occasionally!

Have owned a few myself great cars BMW.. Personal cars are an X5 M/Sport, 335I M/Sport but then again they are all mine inc the ones I import so I drive different ones daily.. perks of the job I guess!

Your question is one that pops up on many forums asked by lots about importing a car personally ex Japan.. if it was that easy there would be no dealers!

Costs are basically cost of car + Japan agent fee's + fob costs Japan side + shipping & insurance + NZ GST 15% = landed cost

(that's if you buy a non damage high auction grade car!)

Then factor in NZ compliance costs + any parts that need replacing ie snow tryes or rotors/pads etc for compliance etc = total cost to land.

If the vehicle has no other issues such as being a damaged import! (which would open more worm cans! if you had a dodgy Japan side agent!) say a $10k NZD BMW 130i for arguments sake, would have cost around $16 - $17.5k to land & comply.. don't forget exchange rate costs etc also.. they don't always sell for $10k in Japan!

A good reputable dealer would aim for a $2.5 - $3k margin.. Some over price it to allow for yard costs, marketing costs, low ball hagglers etc

There's not heaps in it for most dealers.. specially when there's so many competing with same cars in this country.

My advice is get one of a good dealer locally.. you may just save yourself from loosing a lot more than the $3k or so dealers make on cars!

Hope that gives a bit more of an insight

Cheers

[Contrails 317]

You also can't do a PPI on a car you are planning on importing yourself, whereas the one from the dealer you can do a PPI for peace of mind.