In theory it is costing them money though if we take a hypothetical 5% interest rate on a $100,000 then it would cost them $5,000 to hold it a year still allowing for a good profit on the vehicle. At a certain point in time I’d imagine the dealership allows an employee to purchase it on an employee deal, the GM, GSM, or another person inside that dealership chain may pick it up, it could be dealer traded to another dealer and yes it could be discounted so that it ends up with a customer. All sorts of possibilities for the car to come off the books.
Got it, indeed a lot way. Still think selling go a customer would be the best for them lol. But M5 seems a better option financially
While 3-5 % off may be the going rate, it doesn’t mean that would make sense for you to pay. I personally would not and think in general x5m is a super niche vehicle that will drop like a rock over time.
Look at the best prices you see on an X5M from brokers (non-unicorn deals) and take an additional 3-5% off.
That would be for newer model (based on time now) or new order car right? If that is the case, my understanding is that for 2023 model that’s been sitting there would have another 3% maybe?
Agree, more towards spotting a M5 now
So I am getting super close on a X5M with 11% off out of state. I have some questions regarding some fees and would love to hear anything else I should be aware or be carful with.
- Clear shield fee $695
- Acquisition fee $925
- Non tax fee $ 1,099
- MF is 0.0025
- No MSD can be offered
Also, seems like I’ll need to do my own registration, the dealership can’t do it and I’ll have to pick up the car and drive it back.
So the registration/ document fee is unsure. Plus the process might be painful.
Any suggest or feedback pls? Thanks all!
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Bringing a car into CA isn’t that bad:
- smog check at any smog station - first
- VIN scan at DMV/CHP/AAA (only if AAA is also doing the registration)
- Registration - be sure you have all paperwork including MSO
You should be able to calculate the fees right on DMVs website.
This is worth $0 to me. If you’re stuck with it, consider the discount reduced by the same amount.
Isn’t this month’s buy rate lower? As a SS you can verify in the LH calcultor.
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Even with the add-ons and money factor bump this is still likely around 8.5-9% off which is excellent for an X5M (honestly it’s good for almost any BMW). You can try to push on the “clear shield” but realistically if you like the car, I’d take the deal. They’re probably not going to negotiate on the rate, finance has to get paid too on a loser deal.
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11% off? Im getting about 7.5% off msrp and I thought mine was a good deal for a x3 m40i…
I think your MF is high should be around .00190
Can’t really compare diff models. More people want an x3 m40 than x5m.
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BMW uses different money factors for different model year and or models now.
How about different MF for different regions?
I noticed that seems to be the case, at least from the info provided on Edmunds forums.
Is this a marked up MF for a X5m? They also sound like they don’t want to do MSD
Thanks, I understand this is a good deal, but I just don’t enjoy the way they are doing this. I’m comparing this with an M5 for the final run, they can get the car ship to me and taken care of the registration everything without these add ups. Plus they can do MSD.
M5 has higher residual.
And at the end of the day this is a car they can just hold on to and one day someone will walk in and pay asking price on.