[F87_LCI]

Originally Posted by 335BOY

WAAAAY easier to determiine MSRP EXACTLY than it is to determine dealer cost as they have all kinds of incentives etc. Dealer cost is NOT invoice by the way.

I left out the bit about factory to dealer incentives - and how you should not include these as "discounts" prior to settling on the price with the dealer, but aspiring335 was kind enough to cover that off...rather nicely too.

The bottom line (and it has been said) is that pretty much all mainstream dealerships operate on a dealer margin of between 7-10% - this includes most option packages as well. In most cases you can use this as the benchmark for your offer process. Keeping in mind that factory to dealer incentives are to be considered AFTER you settle on the price as the dealer is getting this discount from the factory and should be passing it onto the consumer. However, you might not know about the incentives unless you get the dealer cost info from a site such as carcostcanada. Not all factory to dealer incentives are advertised to the public.

The reason the dealer can be seen to give the car to you close to or "at cost" is because they are nailing you with a bunch of other high margin/BS fees like PDI and admin, and lest we forget the mythical (but very real) dealer holdback. Also there are factory volume discounts, monthly/quarterly/annual bonuses, etc.

[335BOY]

Originally Posted by LagunaSecaBlue

I left out the bit about factory to dealer incentives - and how you should not include these as "discounts" prior to settling on the price with the dealer, but aspiring335 was kind enough to cover that off...rather nicely too.

The bottom line (and it has been said) is that pretty much all mainstream dealerships operate on a dealer margin of between 7-10% - this includes most option packages as well. In most cases you can use this as the benchmark for your offer process. Keeping in mind that factory to dealer incentives are to be considered AFTER you settle on the price as the dealer is getting this discount from the factory and should be passing it onto the consumer. However, you might not know about the incentives unless you get the dealer cost info from a site such as carcostcanada. Not all factory to dealer incentives are advertised to the public.

The reason the dealer can be seen to give the car to you close to or "at cost" is because they are nailing you with a bunch of other high margin/BS fees like PDI and admin, and lest we forget the mythical (but very real) dealer holdback. Also there are factory volume discounts, monthly/quarterly/annual bonuses, etc.

THATS why you will never know exactly what dealer cost is. Go to 2 dealers and tell them that you are looking around. They won't hide anything. Make an offer. If they don't accept it leave your phone # and go home. If they want it/can do it at that price they will call. Everyone has to make some money.

[casualDIYer]

Lease or purchase you always need to work on the final negotiated price. Some believe it does not matter in the case of a lease but it does because the lease cost is tied to the residual value, which is linked to the price. Deals are easier to find on cars in stock rather than factory orders. In stock cars are a burden so getting them sold quickly means flex in the price to a reasonable degree..

Additionally, suggest contacting dealers by email. I am surprised people who think all dealers are dishonest and are selling cars at huge margins. Get an idea on approx price, contact 3-4 dealers and tell them what you really want, where you are flexible, and what you are looking to pay. For example, F30 sedan rear drive auto sport is a must. Want white but will go with silver or grey. If I offer 3k due on delivery can I get a 24k lease for under $600 a month taxes in? What about 625? Now the dealer can search for the car you want rather than trying to work out undoable deals.

FYI if you are a current member of the BMW Club of Canada for a year (or more) BMW Canada will currently offer another 2% off MSRP.. Membership is $ 62.

[meeru]

does anyone have a good contact at town n country bmw? who can give a close to invoice deal?

[meeru]

if not on the board, anyone can PM me

[JimmersBimmer]

...does it seem like every BMW dealership in Ontario, for the "same" vehicle ('13/'14 335i f30 in my case) - demo, low mileage used or new - wants to get the same amount of money out of my jeans every month?

The dealerships play with the MRSP, residual/balloon, lease/finance rate so that their price comes out to between $750 - $800 per month almost regardless of what vehicle you are looking at???!

I haven't gotten into "serious" negotiating yet, i.e. dealership cost + , but really? Anyone else in the same boat or have a comment?

Jimmer.

[aspiring335]

Dealerships have no flexibility to change the residuals or rates if it is through BMW FS. The incentives come from BMW Canada and should be passed through to the buyer. The only things they can do are reduce the selling price and discount or remove the various fees they charge.

Originally Posted by JimmersBimmer

...does it seem like every BMW dealership in Ontario, for the "same" vehicle ('13/'14 335i f30 in my case) - demo, low mileage used or new - wants to get the same amount of money out of my jeans every month?

The dealerships play with the MRSP, residual/balloon, lease/finance rate so that their price comes out to between $750 - $800 per month almost regardless of what vehicle you are looking at???!

I haven't gotten into "serious" negotiating yet, i.e. dealership cost + , but really? Anyone else in the same boat or have a comment?

Jimmer.

[335BOY]

Same as any business...they are trying to make money. Make an offer....if they can do it and make some dough they will, if not they won't . Simple.

[Ashbmw]

hi guys - i transferred my lease last month (15 months left) of 2012 335i. now will be going back for 435 xdrive. What do you think I can get off the MSRP. loyalty and any other discounts? I use the car mainly for work. are there any other discounts? MSRP on 2014 435x is 55600. does anyone know what is the invoice in Canada? looking to get with premium and possibly executive package (if get a good deal).

any help would be greatly appreciated!

[bobblehead]

just take your configured 435xdrive MSRP and divide by 1.089 and you will get the invoice price (per CCC report). Dealer gets more direct $ from BMW Canada as related to monthly sales target, yearly sales target, etc. On top of this, dealer also makes $ from those PDI, admin fees, other bogus fees.

Originally Posted by Ashbmw

hi guys - i transferred my lease last month (15 months left) of 2012 335i. now will be going back for 435 xdrive. What do you think I can get off the MSRP. loyalty and any other discounts? I use the car mainly for work. are there any other discounts? MSRP on 2014 435x is 55600. does anyone know what is the invoice in Canada? looking to get with premium and possibly executive package (if get a good deal).

any help would be greatly appreciated!

[JimmersBimmer]

ASHBMW,

If you are using the vehicle for work, you might be able to qualify for a fleet discount. There is Fleet Level 1 and Fleet Level 2. What I had to show was a letter from my employer stating that you receive a payment towards a vehicle and that more than 5 people at the company receive the same.

For me and the vehicle I was looking at, it was a $750 discount in addition to what was negotiated, but I think the range is between $500 and $1500 depending on the vehicle you choose.

Good luck!

[Ashbmw]

good info JimmersBimmer thanks. I missed on this one on last F30. I am really hoping there's some loyalty discount on 4 series.