Quote:
Originally Posted by ft1337
I would be happy to pay $500 over ED invoice for a 335i ED....... Well if someone knows a dealer that likes an effortless sale around the SE PA area let me know!!!
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I couldn't find anyone willing to go that low. There's a short list of dealers in the area even willing to do ED. I've yet to find one that was "effortless" to deal with! But in the end I had a good experience and, in my opinion, a decent deal given my special circumstance (ordered for ED with short notice).
Regarding everything else mentioned in this thread, BMW DOES have hold back and other incentives. This is the primary reason ED invoice is lower than US invoice - BMW recognizes that the dealer doesn't have to cover floor plan and other expenses, so they pass the savings to the consumer. Given the relatively high % of the discount, I would assume the dealers are getting some decent coin.
Also remember that the BMW dealer network is much smaller and more "controlled" than those of other mass-production manufacturers. It's very likely they're better able to keep the release of information as far as invoice pricing, etc. in check. For example, there's a pretty healthy amount of dealer incentives floating around right now, but you won't find details about any of them online.
Finally, if you're ordering a vehicle, it makes perfect sense that you could buy at invoice (if they have excess allocation) since the dealer gets to keep 100% of the holdback because it will never be in their inventory. The holdback is designed to assist the dealers with their carrying costs until the vehicle sells. A car sitting on the lot incurs interest and impacts the overhead operating expenses. I don't recall the specifics, but I think holdback is designed to carry a car 90 days.
The fundamental in ALL of this is the foundation of commerce - supply vs. demand. You can get a great deal on a run of the mill, higher volume vehicle. You'll be hard pressed to score a great deal on something that's tough to find and in high demand.