BMW 330xi M-Sport (in NJ)
MSRP: $52,510
Dealer’s sales price offer: $49,265 (doesn’t include any rebate)
This is only 6.2% off MSRP but just got off the phone with the sales manager who’s claiming his offer is $1500 behind invoice. This would suggest that there is only $1700 margin on a $52k BMW. As if.
I’m asking for a sales price before invoices of $47000 (11.5% discount).
Is that really doable? If not any idea what is?
Everything else has acceptable (no mark up on the MF or acquisition fee, doc fee I can live with).
I honestly think you’re doing ok in terms of discount amount. However I find that coming straight out and asking for that amount tends to scare CAs off for some reason. I usually try to just email as many dealers as possible and inevitably 1 or 2 get back to you with decent #s to start off with say 8-10% off. Then I go back to everyone that replied and say I have 2 or 3 quotes at 10% off if you can come to 11.5% or (whatever you’re looking for) i’ll give you a deposit right now. Sometimes they want proof of the quote which you’ll have since everything is over
email.
Keep checking with other dealers. BMW shows only 6% profit, but then has lots of holdback, so true cost is like 11% I believe. Might be more hidden money too that we don’t know about. Don’t mention a lease, just get the lowest selling price before incentives, then walk the finance department through the lease structure you want. Make sure they aren’t marking up the MF and you should be golden.
There are multiple ways to approach negotiating discounts but your ask 11-12% pre-incentive is in line with deals that have been happening here so far, nothing aggressive about it. The one thing I would add however is to know what your 11.5% discount, incentives, and base MF gets you in terms of monthly. I prefer to lay out all the variables of my proposed deals to the dealer and tell them this is where I need to be to close, no quote shopping required. In my first lease or two I focused so much on individual elements like base MF…or X discount that I couldn’t see the whole picture. Sometimes dealers will go deeper on discount but mark up the MF a bit or vice versa.
Sometimes you can counter the MF markup with buying product like UC+ (Useful on certain cars or if you’re likely to transfer the car before lease end and want to offer continued mx coverage as an incentive)
