This is for retail I take it?
Yesā¦āfinancing ratesā
Iām sure dealers get to depreciate their loaners and service loaners (equipment) as used for customer added benefits. I have no idea what rate of depreciation is used by each car, but Iām sure itās substantial. I wish I had a continuous flow of deprecated equipment for my biz. Anyway, this is profit that those cars provide prior to being sold. Businesses donāt do things to lose money. The baker doesnāt bake bread to feed his town.
Depreciation on a depreciating asset is a cost, not a profit center.
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Not on tax returns.
It gets made up somewhere down the line (Usually serviceā¦) I know Iāve fell for the āItās already at the shopā trap before for a thing or two when I could have taken car to an independent and done without a loaner.
I agree with you there, but in the case of cars, doesnāt the depreciation just help lower the price? I would be scared to buy a car that depreciated 20% in the first 2500 miles or so haha.
Depreciation doesnāt just happen in isolation. The cost is that the cars are sold for a lot lower than brand new cars.
NTM that lower corporate tax rates also really diminish the benefit of depreciation
I donāt know exactly what accounting methods are used, but I can bet they maximize the benefit of the depreciating right off. If it didnāt work out in their benefit, it would not be done.
assets = liabilities + equity
reduce asset by depreciation each year so you have to reduce equity by reducing income in the same amount each year
fyi 
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Hey bud, good post. What am I looking at payment wise for the 740e xdrive? Minimal down, no MDāS. I prefer a 24 month lease but would consider a 36. Lease.
They canāt be under 1k miles, if loaner. Punched demo is another story
Thanks for clarification, Q. Not that Iām after BMW (at least for 3 years) 
Which effectively eliminates CCA rebate.
Sorry donāt have any. But all the info you need is there. Now you just have to find a car and negotiate the selling price.
thats like my situation. bought and owned bmws since 2005ā¦treats me as if im a brand new customer, ended up getting a i3 for my wife and tesla for me
Dave you probably have a good reason for this but Iām wondering why you make a spreadsheet for each month. Why not just have one sheet with the new deals sorted to be at the top?
I could do that but I like people to see the progression. So that when someone says (and I get this literally every day)ā¦āTwo years ago, my uncleās best friendās dog groomer got a [fill in car here] for [ridiculous payment here] with zero out of pocket. If you can match that, Iām a serious buyerā.
The most common is the return customer whose 320 lease is almost up and they want a lower payment this time. Aside from the fact that there is no more 320, folks never seem to remember that rates are much higher (still) than three years ago. Programs have changed dramatically (corporate fleet for example) and on top of that, the one thing that is always consistent is inflation.
One thing I provide more so than any other dealer/broker on this forum is transparency. Sometimes that ends up costing me deals but I will continue this and I think having a historical record of the programs helps provide clarity for potential buyers.
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Datās why youda man, Dave. Upright and up front.
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Iāve seen some conflicting reports on OL and USAA stacking. Anyone have any insight here? TIA