32 Votes

Boost it!

BMW dealer auctions new M3 for $60K on eBay, doesn't want to honor the deal

aston_martin submitted on 3/23/2008 Official Bell & Ross Timestamp: 3:20:21 PM

34 user comments | Category: Misc News | Source: | SOURCE: www.autoblog.com

Apparently all is not kosher in corn country.

BMW of Lincoln, Nebraska posted an auction on eBay for a brand new M3 Sedan for $60,000. Perhaps they were hoping for the kind of eBay madness that would push the price to six figures (something other dealers are doing right on the show floor). If that's what they were after, well, they didn't get it. The car was won by a gentleman in California for the listed price: $60,000.

The problem is that the dealer doesn't want to give him the car. Not long after the auction ended, the winning bidder got a call from BMW of Nebraska telling him the auction was "a mistake," and that he couldn't have the car. In spite of the fact that the dealership changed the Buy It Now price twice -- and so was paying attention to the auction -- and eBay rules that make it clear that if someone wins the auction then you must complete the transaction, the buyer is still trying to get someone to give him the car he won at the winning bid price. Follow the link for the full story, and to you, Dooma350, good luck.

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aston_martin

— aston_martin (View Profile)


User Comments

KZ258

wow thats really screwed up

— KZ258 (View Profile)

Posted on 3/23/2008 4:41:09 PM | reply to this comment | Votes: 14   

EnnNorak

I would like to know if BMW will disenfranchise the offending dealer. You just can't have shady dealers ruining a manufacturer's reputation now can you? The aggrieved customer should consult his attorney for a possible breach of contract action against the dealer. My plan would be to purchase the vehicle at asking price elsewhere and sue for all legal costs, personal expenses involved, and any incremental price difference between the original e-bay auction price and eventual acquisition cost. I wonder if he could even rent an M3 on a daily rental basis and charge that cost to the offending dealer as well while he is waiting for his own M3 to be delivered.

— EnnNorak (View Profile)

Posted on 3/23/2008 7:16:03 PM | | Votes: 10   

JRobUSC

The guy got jacked, but the "arrogance" was on the part of a dealer, not on the part of BMW. It was an auction by a dealer, not an auction by BMW. BMW has nothing to do with it. I know, I know, you like to mudsling at BMW every opportunity you get, whether it makes sense or not. But BMW had nothing to do with this, it could have just as easily been a Lexus dealer auctioning an IS-F or an Audi dealer auction an RS4. The manufacturer doesn't sell cars on eBay.

If it wasn't for the fact that you like Audi and not Lexus I'd swear you and Huu were the same person. It's hard to believe, and very sad, that there's actually two people on this site this blindly ignorant. I know there needs to be some anti-BMW people out there to make up for the ridiculousness of AmazinBimmer, sort of a yin yang thing, but you're bordering on the absurd.

— JRobUSC (View Profile)

Posted on 3/23/2008 6:15:19 PM | reply to this comment | Votes: 15   

EnnNorak

The industry needs a complete overhaul with the elimination of dealers who add no value to the process of purchasing a vehicle. One should be able to buy a car over the Internet direct from the manufacturer and specify a servicing/delivering dealer who will earn a nominal fully disclosed commission on the deal.

— EnnNorak (View Profile)

Posted on 3/23/2008 7:19:52 PM | reply to this comment | Votes: 3   

jpighetti

That sounds really well thought out. The only things you forgot to think about are:

Trade values
Financing for less than perfect credit
Responsibility if there's a problem with the order due to customer misinformation
Test drives

The list goes on and on. There's no other big-ticket item business that operates like that. What makes you think the automotive business, which can be extremely complicated, can run that way. Do you think the average buyer knows enough about cars to handle a transaction like that with no assistance from a professional? Well, they don't. Very, very few dealers use underhanded business practices, but some do, like these guys, and it gives everyone else a bad name. But guess what, there are bad seeds in every every kind of business. What happens then if your "specified servicing/ delivery dealer" is one of those bad apples, but you don't know it because you never went there before you bought your car online?

Think before you write. Please.

— jpighetti (View Profile)

Posted on 3/24/2008 9:51:30 AM | reply to this comment | Votes: 1   

tundrahq

To EnnNorak:

You've said this before:

The industry needs a complete overhaul with the elimination of dealers who add no value to the process of purchasing a vehicle. One should be able to buy a car over the Internet direct from the manufacturer and specify a servicing/delivering dealer who will earn a nominal fully disclosed commission on the deal.

I understand where you're coming from, but I don't think you've thought this thru. Who's going to sell and service these cars? You might be willing to buy a car sight unseen over the net, but most people won't. Dealers are needed to complete the sale. Not to mention there's that whole multi billion dollar used car market that requires a dealership. It's a nice thought when you talk about getting rid of the middle man, but it's not realistic.

— tundrahq (View Profile)

Posted on 3/29/2008 7:44:58 PM | reply to this comment | Votes: 1   

EL34

If you think that's bad check this out!

Lexus of Newport Beach, California was raffling off a LS600h with another company and now they're only giving $25,000 dollars in cash to the weiner.

Here's the link:
http://www.coastkeeper.org//raffle/index.asp

BTW, the raffle is over.

— EL34 (View Profile)

Posted on 3/23/2008 6:15:32 PM | reply to this comment | Votes: 0   

EL34

They advertised the raffle for the LS600h constantly in the newspapers for months and all they could put together is 25k fir the winner.

I guess no one gave a damn.

BTW, I didn't win.

— EL34 (View Profile)

Posted on 3/23/2008 6:46:46 PM | | Votes: -1   

EnnNorak

This is a rip-off that should be investigated as a possible violation of California and federal fraud statutes, In any event, an LS600h is only worth $25K to me because I hate hybrids and if I were the winner, I would sell it immediately for whatever I could get for it.

— EnnNorak (View Profile)

Posted on 3/23/2008 7:23:41 PM | | Votes: 2   

jpighetti

Raffles like this ALWAYS have caveats written into the official rules. If they don't sell enough tickets to cover the cost of the car, they don't give away the car, they give away the value of the tickets sold. Also, cars are not generally given away entirely. The winner generally gets a prepaid lease on the car. It's not a violation of any laws. It sopunds like someone didn't read the rules,but a $25,000 return on what was likely a $100 ticket isn't a bad deal at all.

— jpighetti (View Profile)

Posted on 3/24/2008 9:55:52 AM | | Votes: 3   

Bored

I'm not sure of the proper term for this, but couldn't BMW NA void their contract with this dealer and set up an association with another in Lincoln, NE?

As for legal action, it would less expensive for all involved to just let the Cali guy have the car at the winning auction price. Hopefully, BMW NA will get involved.

...Besides, I could use a good laugh!

— Bored (View Profile)

Posted on 3/23/2008 6:58:25 PM | reply to this comment | Votes: 5   

Threepoint1415926

With the cost of attorney's this is my thought exactly. Might just be better to let the guy have the car. Otherwise the dealer might be out in attorney costs more than the value difference in the car. It's all a risk assessment at this point.

— Threepoint1415926 (View Profile)

Posted on 3/23/2008 8:24:23 PM | | Votes: 4   

Audiphile

I agree that from a PR standpoint they should just let the guy buy the car for the winning bid price. You would think that BMW would pressure the dealer to make good on its promise. However, based on my experience with both BMW and Mercedes-Benz corporate in the past, I wouldn't make any promises.

In addition, a car manufacturer will not terminate its franchise with a dealer over one isolated incident. Franchise agreements can be unbelievably complex. However, if BMW continue to have problems with this Lincoln, Nebraska dealer, they might very well "pull the plug".

— Audiphile (View Profile)

Posted on 3/23/2008 7:27:06 PM | reply to this comment | Votes: 7   

thisismyname

The dealership is not too smart to think Ebay will side with the seller not the buyer.. The buyer pays the $60,000 list price... the dealer then has to pay Ebay and take the remaining.. I'm not sure the price but typically it is a percentage..

Plus with this much bad press, loosing two to five high end BMW sales, would equal or surpass the money lost to a not-so-smart way to sell a car.. yeah you may loose a few grand now, but that's better than loosing a few new or more important return customers..



BMW should fine the dealership the cost of the entire M3 and give the car to the buyer... case solved! Great press for BMW corporate, the buyer is surely happy, the dealership is out the cost of the car PLUS they have to endure the bad personal press they have brought to their dealership, which will cost them more than the M3's cost..

— thisismyname (View Profile)

Posted on 3/23/2008 11:26:37 PM | reply to this comment | Votes: 7   

lexusis350

Sucks to be BMW of Lincoln.

They should give that guy his car though. He rightfully bought it. How do you mistakingly put a car up for sale for several days?

— lexusis350 (View Profile)

Posted on 3/23/2008 11:50:19 PM | reply to this comment | Votes: 3   

cdoke

Lol. A so-called mistake is it? When one willingly engages in an act that does not turn out as one expected, it may very well be a mistake- the mistake that was the illusion, but it is still a mistake for which you are responsible. If you roll the dice you are responsible for your gambling losses.

Can you imagine such a world as this dealership would like to live in? In a rational world only the dealership would face scrutiny for this, but the psychology of it is that BMW corporate does get tarnished a bit- for the consumer the dealership acts as proxy for the company itself. Having said that I doubt BMW would want to do damage to the dealerships reputation, simply because the dealership is their actual customer.

— cdoke (View Profile)

Posted on 3/24/2008 12:19:28 AM | reply to this comment | Votes: 5   

dbs600old

It may not be the popular view, but I see the dealer getting out of this jam for some reason. Please keep us updated!

— dbs600old (View Profile)

Posted on 3/24/2008 12:42:07 AM | reply to this comment | Votes: 1   

daytonaviolet

It wasn't a "Kraut" that made the mistake, It was a "hard working American" at the dealership that made the mistake.

— daytonaviolet (View Profile)

Posted on 3/24/2008 8:23:44 AM | reply to this comment | Votes: 3   

jpighetti

If you're going to be an idiot fanboy, please don't be a bigot as well. The dealer was in LINCOLN, NEBRASKA, not Munich. How many fresh-off-the-boat Germans do you think are working there?

— jpighetti (View Profile)

Posted on 3/24/2008 9:59:39 AM | reply to this comment | Votes: 3   

AgentOrange

GoObama appears to have sh1t for brains...

— AgentOrange (View Profile)

Posted on 3/24/2008 11:47:57 AM | reply to this comment | Votes: 4   

KZ258

LOL! goobama you have lost it!!

— KZ258 (View Profile)

Posted on 3/24/2008 12:14:05 PM | reply to this comment | Votes: 2   

xj13

goobama
An is-f is not fit to wear the wheel nuts of an 1988 M3 let alone the current M3.

PS GO Hilary.

— xj13 (View Profile)

Posted on 3/24/2008 9:00:50 AM | reply to this comment | Votes: 3   

markanthony0419

BMW dealers are a bunch of crooks. I went to a dealership on saturday to get a 335i with not a dime down they came back to me with a payment of 850 a month i was so annoyed i called the manager when i got home he offered the car to me at 650 a month. I would have lost 7200 over the life of the lease. If i went with the salesman you tell me whats wrong here.

— markanthony0419 (View Profile)

Posted on 3/24/2008 9:57:35 AM | reply to this comment | Votes: 4   

jpighetti

What's wrong is you didn't do your research or get additional quotes. Car dealers are in the business of turning a profit, similar to every other for-profit" business. Maybe one day UNICEF will open a car dealership and you'll be all set.

— jpighetti (View Profile)

Posted on 3/24/2008 10:03:12 AM | | Votes: 3   

markanthony0419

i did do my research thats why i walked out of the dealership. I guess they either one thought i couldnt afford the car and wanted me out of there or 2 wanted to rip someone off. now they are calling me nonstop to take the car for 650. I say if you can drop 200 a month in a phone call you can drop another 50 or 100 if i start to negotiate.

— markanthony0419 (View Profile)

Posted on 3/24/2008 10:14:24 AM | reply to this comment | Votes: 2   

Doukas

You stupid customer, you don't want to play games..but if you knew the prices from your "research" when you reading your newspaper in your throne room.. then should of just made an offer and go from there...all dealers start high to make the most..

— Doukas (View Profile)

Posted on 3/24/2008 2:42:14 PM | | Votes: 1   

JRobUSC

You realize $50-100/mo on a 36/mo lease is $1800-3600 difference in sale price, right? Good luck finding a dealer who can miraculously discount a car with $3200 in markup an additional $1800-3600 on top of whatever that dealer was discounting it.

— JRobUSC (View Profile)

Posted on 3/24/2008 4:35:53 PM | | Votes: 0   

answer

That is pretty damn sad.

Why would the dealer think its OK to back out of an agreement?

— answer (View Profile)

Posted on 3/24/2008 12:36:16 PM | reply to this comment | Votes: 3   

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