BMW loaner benefits for the dealer


Considering how much to ask off MRSP on a loaner X3 just below 5k miles. So to understand what is in the GM head, what are the benefits the dealer is getting from using a loaner. Is it some amount for month in the loaner service, or just a set amount ?

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The discount is proportional to the amount of farts discharged in the loaner



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I used this line almost verbatim with a dealer a few weeks ago after he told me that a demo was the same thing as a new car.


I don’t think selling a loaner is more profitable than selling a new one. My guess is loaner programs are stipulated by the manufacturers that dealers must participate and its costs are shared. Manufacturers contribute by making new car incentives available to the (now used) loaners and dealers pick up the depreciation in the form of a “deeper than new car discount”. This way they both provide a customer service perk with little cost to them. Another side benefit would be that dealers can purchase loaners when they need to hit the volume discount thresholds. There are probably more to it, these are just my guesses.

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Is there a fart per percent discount ratio? Farts per mile?

no, but i heard the silent farts and juicy farts are valued differently than dry-- tiered, i think.

I asked this question a few weeks back in a thread and BMW sales person said they did not know specifics but from what they had been told or surmised from GSM or SM it was $250-$350 a month BMW compensated the dealers to have a vehicle in loaner services depending on the model.

A bit a hear say, but thought I would share.

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Thank you, finally an useful answer.
Volvo has a program that rewards with an initial bonus and then for length in loaner status (there must be a minimal time spent in loaner)