This entire premise is flawed. The dealer never sees, smells or touches the Fed rebate. It goes to the buyer of the car, ie BMWFS in this instance.
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None of what you’re saying makes any sense. The federal rebate is a post sale tax credit handled when you do your taxes if and only if you purchase the vehicle. It is not involved in your discussions with the dealer at all, so it doesn’t factor in to the negotiation floor. Bmw doesn’t pass it on in the case of a lease, so if you’re leasing it is completely irrelevant to the conversation. It does not exist if you lease the 530e.
You need to properly separate out the incentives if you’re going to be cross shopping based on pre-incentive discount.
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Dealers don’t get to claim the federal tax credit, so you cannot negotiate that portion off. The only chance is balloon but that residual is horrendous totally negate the purpose of getting that credit. Otherwise you will have to live in IL or TX to use OC
Is that even an option for BMW?
BMWFS does have a balloon option called BMW Select with a hideous RV, but supposedly you should be able to get APR credit but I’m not sure. Speaking of which, I just come to think that you can’t even turn in the car so nvm…
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@max_g - I agree! in the lease scenario, this would go to BMWFS.
having said that, the fact that dealers able to give 12% discount pre-incentive makes me believe that incentive is passed from BMWFS to the dealer on the back end.
perhaps I’m wrong, but it wouldn’t be different than a “lease cash” that is going directly to the buyer vs backend cash/trunk money that is at the discretion of the dealer.
So I’m guessing at buy rate that was about 10.5% discount.
Was that on new or loaner?
Like you, I call BS on dealers offering 12% off new 530e’s across the board. That couldn’t be further from the truth.
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I’m also curious.
With base rate?
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I had similar situations when leasing out the GLC 350e.
wouldn’t say its uncommon.
I think some dealers overplayed the “supply shortage” with some models and now have more than they wanted to have on the lot.
with the new model coming out, its probably a time for them to get rid of the old one
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Please post your calculator.
With 3 I then have to ask why you haven’t taken even one.
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Maybe on the West coast, but not in the Northeast.
There are no major changes to the 2022 5 series compared to the 2021 model.
Waiting for your response on this. Are you saying multiple dealers have offered you 12% off MSRP + this month’s buy rate + all applicable incentives (you qualify for) on a new 530e?
So what you’re saying is the addition of whatever trunk money may or may not exist allows these dealers to go 12% off at buyrate, correct?
That’s $7,4xx on a 62k car. What makes you think there’s another $3,4xx worth of meat left on the bone?
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@max_g - you are correct. 7,500 to be precise.
what makes me think that there is additional 3,4xx to be had is my calculation above.
Why do you think invoice represents the max delta?
I am so confused. I’d like to see the data behind the claim of an over abundance of this model in the west coast, especially not in NorCal, because it doesn’t line up with my search right now of 3 dealerships in NorCal.
I also thought the 530e was refreshed in 2021 so now I’m curious to know what new model is coming out.
I think the fastest way to resolve all this is to see his calculator and get his reasoning why 3 very great discounts weren’t enough to move ahead. I’m guessing he’s accounting for something differently? Or maybe he’s actually about to do super well in his search and that should also be celebrated.
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Sample 10% off norcal calculator
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The notion or claim that the west coast dealers aren’t experiencing the impact of inventory shortages is far from true. Just yesterday I had a volume dealer tell me they’re anticipating one, maybe two, more deliveries for the remainder of the year.
Mine was on a new 530e. I believe it netted to an 11% discount at buy rate. I will post my deal metrics shortly.
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The only thing I see a lot of are 2 series out here. I don’t even know what those go for or if they’re good values, etc. because I never looked into it. And even that comment is anecdotal without any data so I wouldn’t be surprised if there’s a shortage there too and I misinterpreted.
OP is looking for 530e xDrive, there’s 15 of them within 500 miles of NorCal.
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And 3 of them are at a 12% discount?