I received the offer below on a new 2022 X3 and am looking for thoughts. I am less interested in “is this a good deal” (never going to be a good deal paying MRSP) vs. “is this off market”.
MRSP: $53.3k (includes acquisition fee)
Actual Price (before trade in, after incentives): $52.6k
Residual: 56%
MF: 176 (may be able to negotiate down to 140)
Trade In: $2700
Cash Down: $0
Monthly Payment (Pre-tax): $696
This is over MSRP
How do you figure that?
Well, your MSRP is shown including the acq fee, which means the actual MSRP is closer to the selling price. Your selling price includes incentives, so if it’s about the same as MSRP after the incentives are rolled in, it has to be more before. and Then your MF is marked up by another 2% of MSRP.
In that case, yes. What’s reflected above is the sticker price, less a small incentive, plus the acquisition fee. If your point is cap cost is different than MRSP, I concede.
My point is that you’re likely talking several percent over MSRP here, it’s just being hidden in the math and made to look better than it is. By normalizing the data, you can compare the actual discount to what the market supports.
I think we’re talking semantics. They are selling the vehicle to me at MRSP - no market adjustment / premium . Every vehicle is going to have an acquisition fee applied to base MRSP. In this case, it’s $995. The incentive is $750. These are all incorporated into the payment I mentioned above.
As far as MF and mark-up’s, yes, that is going to impact the financing component of the monthly payment, and also baked into my math above.
What is “hidden”?
I would consider reaching out to @Bostoncarconcierge before signing this.
Thank you! Will do.
Them marking up the MF by .0004 and them selling it to you for $1000 over MSRP are the exact same thing.
The problem is people look at an at msrp sales price with a marked up mf and think “they are selling the vehicle to me at MSRP with no market adjustment/premium”
Yeah, no one here is saying these guys aren’t making more money on this deal vs. what they would have made pre-pandemic / supply chain challenges (whether through lack of discounts, incentives, squeezing the trade-in value, jacking up the MF, etc.). I am asking whether the terms above are representative of “market” terms today.
Noticed this was in MA, is this from BMW Of West Springfield if not check them out!
And the first step in establishing that is working out what the actual deal is and normalizing the data so you can actually compare against other deals/broker listings/etc.
Looking at the monthly payment doesn’t tell you anything.
No. Discounts on X3 are attainable and depending on the market I am discounting between $1,500-$3,000 on them.
Interesting. Are these tied to a specific incentive (loyalty, other) or straight reduction to price outside of any national programs?
What data are you missing mllcb42?
Just raw discount.
Well, if we want to properly break it down, what is the actual msrp and selling price before any incentives/included fees/etc?
Take the amount in my post and carve out the $995 acquisition fee.
Wow. In the NE?