[GC4UrMom]

I have been lurking around the forum for a while especially the American forums. In there, people keep saying that if the dealer take 8-11% off MRSP price, its a good deal (that's close to invoice price). Does that apply to us Canadians as well? Any advice on what's a good or decent deal? Any advice on purchasing a brand new BMW?

[WhiteCollar]

from my experience you need to be a very good negotiator to get more than 8% discount on a new car.

[power-fade]

Originally Posted by WhiteCollar

from my experience you need to be a very good negotiator to get more than 8% discount on a new car.

8% was the best i could do and I'm pretty anal.

[bobblehead]

say for example, MY2016 340xi, there is a $2,000 factory credit allowance to clear the leftover. For a car that is nearly $60,000 (with some options & packages configured into the base price of $55,000).

$2,000 / $60,000 = 3.33% from the factory. If you can squeeze the dealer side of discount of say 8%, then the grand total discount would be just over 11%. Therefore, it is doable and you just have to shop around with all the dealers.

Since we don't know what model you are looking for, you can apply the same calculation to figure out.

On the sales quote sheet, all bmw dealers will have lots of bogus charges, if you are not being careful. They are:
- nitrogen air or green ride . Can be as much as $300. You can tell dealer to take it off and put regular air into the tires. Dealer cannot say it's mandatory.
- vin etching admin fee. Can be as much as $350. This is not a mandatory fee. Dealer has to take it off once you request.
- carpet mats. Can be as much as $300. Negotiate this to be a throw into the deal item
- wheel locks. Can be as much as $150. Same as above
- full tank of gas. Can be as much as $120. Same as above
- Carproof report charge. If you have a trade in and dealer pulls the report on your car and eventually you have agreed for the trade in. Can be as much as $40
- plate transfer admin fee. Can be as much as $100. New sticker is not included

[GC4UrMom]

Originally Posted by bobblehead

say for example, MY2016 340xi, there is a $2,000 factory credit allowance to clear the leftover. For a car that is nearly $60,000 (with some options & packages configured into the base price of $55,000).

$2,000 / $60,000 = 3.33% from the factory. If you can squeeze the dealer side of discount of say 8%, then the grand total discount would be just over 11%. Therefore, it is doable and you just have to shop around with all the dealers.

Since we don't know what model you are looking for, you can apply the same calculation to figure out.

On the sales quote sheet, all bmw dealers will have lots of bogus charges, if you are not being careful. They are:
- nitrogen air or green ride . Can be as much as $300. You can tell dealer to take it off and put regular air into the tires. Dealer cannot say it's mandatory.
- vin etching admin fee. Can be as much as $350. This is not a mandatory fee. Dealer has to take it off once you request.
- carpet mats. Can be as much as $300. Negotiate this to be a throw into the deal item
- wheel locks. Can be as much as $150. Same as above
- full tank of gas. Can be as much as $120. Same as above
- Carproof report charge. If you have a trade in and dealer pulls the report on your car and eventually you have agreed for the trade in. Can be as much as $40
- plate transfer admin fee. Can be as much as $100. New sticker is not included

Thanks for the detail explanation. I ask the quote for the MY17 4 series GC, and there are couple of things in there that I do not know what it is. Here are some of the things:

Vehicle Care Kit: $439
Admin Fee: $399.00
Other Dealer Options: $1,053.36 (WHAT THE HECK is this )

[bobblehead]

vehicle care kit - if I think what I think ... mats, wheel locks .. bundled together.
admin fee - dealer bogus fee for doing their paper work. LOL.

other dealer options - you need to get a break down. I don't know as this can be anything or the stuff I mentioned above which they lumped them together, in hope you won't catch it.

For MY2017 4 GC, there will be no factory credit at all and if you are leasing / financing, then the interest rate will be high for the summer months and gradually come down in late fall (probably by 1%). For this car, you should be able to get 6-6.5% off MSRP for MY2017, if not, then go to the next BMW dealer until you get this or the most % you can get.

[440xiGCMsport]

dealer cost is 9%of msrp. You should be able to get 8% + factory incentives pretty easily. Just go in and tell them you will offer them $500 above invoice which is about 8% discount + you also get the factory discount on top.

[discoboy1]

What should we expect if you are looking for a demo?

[bobblehead]

Originally Posted by discoboy1

What should we expect if you are looking for a demo?

depends on the mileage put on and what it really was used for at the dealer.

If you care about the car (for keeping), then I would not even bother with this so-called demo. For leasing, it will have to come down to how badly the dealer wants to get rid of it, after all, you are not going to own this in the end. Therefore, the cheapest you can get would be ideal.

[bobblehead]

real dealer cost will vary from one to the next. The higher volume dealer does not pay the same cost as the one with low volume dealer. One would think 9% is the general consensus but the high volume ones would be more like 11-12% range.

[DrifterX]

Originally Posted by siuolly

Thanks for the detail explanation. I ask the quote for the MY17 4 series GC, and there are couple of things in there that I do not know what it is. Here are some of the things:

Vehicle Care Kit: $439
Admin Fee: $399.00
Other Dealer Options: $1,053.36 (WHAT THE HECK is this )

For comparison, I got 6.2% for my made to order MY2015 428i GC at the end of Sept. 2014. You should easily be able to get more for a car off the lot.

The Vehicle Care Kit is not required, you can get them to remove it. (Don't take BS that it's not removable and you have to take it). I believe they give you a canister of engine oil for top-off reasons in the break-in period and some interior leather cleaner/protector and that's it... not worth the ridiculous price at all.

I find it's hard for them to budge on the admin fee. Other fees may include Lug Locks for $89.50 which you can tell them you don't want, AC Tax which is $100 and is required, some other smaller fees of $48.36 which are also required. FYI, They might bulk in Freight ($985) into "Other Dealer Fees" to save space on the quote so make sure you ask them to show you the breakdown of the other fees.

Make sure your negotiations are outside of any factory credit that may be available otherwise it's more money in their pocket...

[GC4UrMom]

Thanks everyone for those great tips.

[GC4UrMom]

Another quick question. Does Canadians have BMW port installed accessories (PIA)? If I order couple of M Performance parts, can I request to install at the vehicle delivery center (VDC) instead of need to pay another fee to the dealer for installation?

[bobblehead]

dealer installed options. We are not like US.

[bobblehead]

MY 2016 4 GC

July factory program -
factory credit $2,000

+

leasing - 1.4% for 36 months; 1.9% for 39 months and up

financing - 0.9% up to 72 months

[overkill1125]

Thanks for all the great info!
I'm assuming that the outgoing 428/435 will be discounted even more to make room for the 430/440.

I'm I out of whack to ask for a alpine white 2016 435xi with m performance and premium essential package. 48mth lease at 20k KM, 0 down and with a 0.75 rate reduction for existing customer loyalty. I'll pay the freigh and PDi on delivery.
All for $715/month all in?

Is it safe to assume to knock off 9% of the monthly premiums from the online quote we get at BMW.ca or calculate 9% of the MSRP and enter that amount like a down payment to show your potential monthly payment of the car.

I could be totally wrong from my calculations.

[bobblehead]

Originally Posted by overkill1125

Thanks for all the great info!
I'm assuming that the outgoing 428/435 will be discounted even more to make room for the 430/440.

I'm I out of whack to ask for a alpine white 2016 435xi with m performance and premium essential package. 48mth lease at 20k KM, 0 down and with a 0.75 rate reduction for existing customer loyalty. I'll pay the freigh and PDi on delivery.
All for $715/month all in?

Is it safe to assume to knock off 9% of the monthly premiums from the online quote we get at BMW.ca or calculate 9% of the MSRP and enter that amount like a down payment to show your potential monthly payment of the car.

I could be totally wrong from my calculations.

In the current scenario, if you want to be on the aggressive side of your offering. Based on your description of your configured car, I feel you can do $649.50 per month + taxes (14.975%) = 746.75 per month

The freight/pdi and all the fees are rolled into the lease payment. Therefore, due on delivery would only be first month + Security (if applicable).

Total 48 months obligation = $35,844


Vs your proposal of $715 taxes incl + $2400 + taxes of freight/pdi due on delivery

Total 48 months obligation = $37,080 (or effective $772.50 per month, taxes included)

Difference of 1,236 or 25.75 per month. In other words, you may still have the potential room to reduce your $715 per month by another $25 per month

[overkill1125]

does unhaggle really show the true invoice pricing? Based on unhaggle, the difference between it's invoice and mrsp is at 8%. So when asking 9% off would make it below invoice on the 435xi coupe.

[bobblehead]

Nobody has the True invoice price of the car because there high volume dealers will get a slightly preferred cost from BMW Canada vs a much lower volume dealer. If one is to take an estimate, the high volume dealers will likely have a gross margin of nearly 11% or a bit more vs a general consensus gross margin (on average) of around 9%.

The only thing you can do is to offer what you feel is fair and go from there. For sure, dealer will not lose any $ on any deals. Period. Unless the car has been sitting for many months and well into the next model year. In this case, dealer may sell it at cost or slightly at a loss (per se) to get rid of the car.

[power-fade]

Originally Posted by bobblehead

Nobody has the True invoice price of the car because there high volume dealers will get a slightly preferred cost from BMW Canada vs a much lower volume dealer. If one is to take an estimate, the high volume dealers will likely have a gross margin of nearly 11% or a bit more vs a general consensus gross margin (on average) of around 9%.

The only thing you can do is to offer what you feel is fair and go from there. For sure, dealer will not lose any $ on any deals. Period. Unless the car has been sitting for many months and well into the next model year. In this case, dealer may sell it at cost or slightly at a loss (per se) to get rid of the car.

Here is real sample invoice price for 2016 340iX drive that BMW Canada submitted to the dealer and I took a scan at it:

2016 340iX drive $50,280
Metallic paint $825
M Performance package $1750
Premium Package enhanced $5980
Total $58835
Dealer freight $1390
Air excise tax $100
Subtotal $60325
Total including 5% GST $63341.25

[bobblehead]

don't forget PDI of another $1100 and dealer admin fee as well. The taxes is much more for @overkill1125 (Quebec).

@Overkill1125 did not mention he wanted metallic paint.

[overkill1125]

No metallic paint required.

All I want is a 435xi alpine white with m performance 1 and essential package.

It would be nice to have it fully loaded with the other packages but then it will be over the price that I'm willing to go.