BMW Executive Demo Pricing Question

I have been shopping for a 328i Executive Demo. My question is how do I determine if there is further room in the price. Some dealers just list a price, others show MSRP less a dealer discount.

MSRP $49,100
Deal Discount $- 5,000
Internet Price $44,100

  1. How much room is there in these prices? Is it reasonable to get 8-12% off the internet price or listed price or am I looking at minimal movement from these numbers.

  2. I saw somewhere that you adjust the residual down by $0.20 per mile over 500. Is there a further discount?

Thanks

Most of the executive demos are in essence used cars because of the mileage and how long they’ve been in service/on the lot.

I’d take 80% of the MSRP and subtract the product of the mileage minus 500 and 20%.

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You could of gotten that car brand new when it came out for probably 45-46k at least, so yeah be a lot more aggressive. Aim for like 20% off.

Do others agree that 80% is the target? Is that realistic or too aggressive?

Well, I think 20% of MSRP is reasonable. Let us take an example, Today I saw a discount of $8900 on $63945 new 535i. Assuming that price is without BF $1000 discount. That brings the total discount to 9900. If you qualify for employee discount add 1500, that sums total discount to $11400.

The total discount(11400) is 17.8% of MSRP. When we can get close to 18% on new car, I guess we can aim for at least 20%. Do the math and show them before asking for the price.

The above car, I mentioned got sold out in the evening. I am going to start my hunt from Friday. Let us see how it goes. I am aiming for 5 series demos. X3 is my second option.

The problem with all these is the buying back of the miles. it often does not end up making sense.

I am selling the same cars for 10,000+ back.

Look at the BMW list I have posted.

I have, but often the lease does not work out because rebates are not included and buying back the miles reduces the residual quite a bit which pushes the up the price of the discount. It is easy to get below invoice on BMW’s, having said that. The X3 demos are leasing very well.

my numbers include the mileage penalty. These are leases that are 10,000 miles per year when you start the lease.

Ex.

if you buy a car with 5000 miles on it and do a 3year 30,000 lease on it.

The ending mileage on the car would need to be under 35001 before they hit you with a penalty.

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Would your numbers be cheaper if you don’t need the mileage penalty? In other words, in your example, starting with a car with 5,000 miles, and doing a 3 year lease, but only putting on 25,000 miles or fewer, would the payment be less than you have calculated?

I was able to get a little more than 18% off MSRP on a new 2016 328i this month, I say 20% at a minimum maybe more.

This is not how it works. The residual has to discounted and can not be counted against the lease mileage.

Definitely shoot for 20% off the msrp. I leased a 435i in October with 7600 miles at 21.78% discount

Got a quote for 455 per month on a 64K 535 demo. 5435 drive offs including 3500 MSD. Car has 3200 miles on it.

Is this okay deal?

@SUV i think you should aim for $4500 out of pocked incl $3500 which would be about $1000 for first payment, tax and tag.

I didn’t sign the contract yet but gave my credit card info and signed on the quote today. Now I feel bad about the deal. I could get new car for another $20 or $30. Can I walk away now? One option is going for a new car from same dealer. Any suggestions ?

@SUV u can walk if u haven’t taken delivery or signed actual lease docs with finance dept. quote sheet means nothing

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Thank you. I’ll say some nice words to the sales agent and walk away.

@SUV I agree with 305. For future reference, I wouldn’t sign anything or provide any type of payment info until you’re actually ready to complete the deal.

I think you should have already had one quote set for the new car and one quote for the demo, that way you already had two discussed scenarios, and if you wanted to pivot from one to the other, it would be a seamless pivot.

From what you said, it sounds like now you want to go back to the drawing board and figure out a whole new deal based on a new vehicle.

There’s nothing wrong with coming to a certain “understanding”, and saying that you think you’re close to a deal, but you’re going to give it a night’s rest to think about it or whatever it is that you need to do so that you can feel comfortable about making a decision, sometimes that little resistance works to your advantage, as the dealer will start offering a little more in terms of concessions to try to get a deal done.

The business has obviously changed; my dad was telling me the other day about a dealer he used to do with business with regularly, and the owner used to have a policy of not letting customers leave until they bought a car. He was just a guy who wanted to sell cars. It feels like now, especially where I am, dealers are just looking for the easiest prey they can rip-off, meanwhile they’re willing to let the educated consumers, the few and far between, take their business elsewhere.

At the end of the day, do what’s best for you. It’s your money, and they need to sell you the car, that’s what they’re in business to do.

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