Negotiating a finance deal for a 2025 BMW X5. Before even running my credit, dealer stated that the rate for NY/NJ is 2.99%. The dealer is allowed to mark up the interest rate and they are making the interest rate 3.99%, before any credit checks are done. Is this negotiable? I thought that the bank marks it up based on credit worthiness. I’ve always leased before this would be my first finance
Captives set a base rate and from that dealers are allowed to mark it up for additional profit if they so choose. It isn’t dependent on credit score. A high credit score makes you eligible for the base rate, not entitled to it.
You can certainly tell them they have a deal if they agree to the base rate, they can obv say no as well. Alternatively you could ask for a larger discount to offset the increase in rate.
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Didn’t know that, thank you
You could also skip all the dealer nonsense and just email me with what you want!
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I had a dealer tell me that the extra 1% is the correct rate, and that BMW needs to update their web site.
I hope no one is suggesting that they were trying to mislead me.
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FYI both of these are yellow/red flags that indicate a dealer will perceive you as someone to try all their tricks on.
You shouldn’t be negotiating on a massmarket car that literally every dealer of this franchise can sell and has in their possession. You should be making offers—in totality and with no ambiguity.
10.5% off before rebates, apply your tax rate, $175 doc fee, find out your DMV fees, find out on BMWUSA.com what your zip’s APR is, calculate the OTD price and monthly payment based on your desired down payment. Make offers.
If they match your offer with a lower price and higher rate that’s fine too, as long as the totality of payments is the same or lower.
At the moment this isn’t a realistic ask. Dealers are mostly wiped (or are sold orders) of in stock and inbound gas X5s that will arrive prior to year end. The likely end of the 39 month lease program (and 2.99%) has increased demand substantially being that you must take delivery prior to year end.
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This was posted yesterday
That did have a $799 doc fee, but regardless, I’d still tend to agree it’s an aggressive target, at least with the dealers who have been doing deals all along, all of my dealers have maybe 3 or 4 X5’s in stock.
The ones who held on to them like gold might be in a position to want to do a real deal in the next week, but we shall see, we shallllllllllllll see.
I believe the other driver is business owners rushing to utilize the Section 179 tax deduction before EOY. All the X5 variants (except sDrive) qualify.
And this is why everyone is asking for 10% off X5s when we are offering 8% off, especially on an order. If you want to take a sparsely-optioned X5 that has been sitting, we’ll talk, but if you want M sport, executive, DA pro, and merino leather, that obviously needs to be an order, and dealerships are doing those at far less of a discount. Dealerships have had far fewer X5 allocations than in the past, and people think they’re just “sitting.”
There fine print in that deal is that the dealer added an $1100 protection package.
I’m not sure what happened to BMW dealerships in NYC area the last 6 years but it’s impossible to find a deal. I got a BMW in 2015 no issues from Park Ave BMW. They are the biggest pain in the ass to work with currently. I got another BMW in 2018 from Paul Miller BMW. Having trouble working with them. BMW of Morristown is another stingy one. BMW of Brooklyn is also impossible to work with. I spoke with Rallye BMW in Long Island and the client advisor told me “well we are not just giving these things away.
BMW of Brooklyn also won’t take my lease back. I got it from a broker and it came from far away. Luckily I have some equity in it maybe I can use it as a trade in.
You’re in a densely populated area full of wealthy people, most of those dealers don’t “need” to discount and they know it.
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Those are all too close to the city or too close to affluent neighborhoods such as Short Hills etc.
You have to cast a wider net.
This implies you are asking for quotes and trying to negotiate. Is that the case?
10% all day in the tri-state with buy rate
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Ya I’m trying to get something done before new year’s. I’ll probably have to look further out from the city then. Appreciate the input.
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Got to 10% off, lease numbers are fine but finance they want the point. Not sure which is better lease vs finance.