BMW supply/demand issue with dealers?

My experience is that dealers typically hate to lose deals to their competition, and I use that to my advantage. Of course this applies to when times are normal, and they don’t have 2-3 units of a core model in their inventory.

Thank you. I honestly wouldn’t be opposed to a broker. If there is a broker reading this and wants to work with me, I’m more than happy to. I tried to get in contact with a broker here ~1.5days ago and still waiting for a response.

I am rather mind boggled that my 15% inquiry is apparently radical. Not like I am well versed in this game but I didn’t expect that to be considered overplaying my hand in all honesty. I’ll change my ways and ask for the standard quote I suppose.

100% agree with this. If someone offers something that is on the limit of what we will discount, it is worth entertaining. Also keep in the mind the difference between 15% and 12% is about $2500 on a $80k X7.

Lol and the X7’s I wanted were the M50I and 50i so their MSRP’s were about 100k-112k. An even greater difference in that 3% difference!

The target pre-incentive discounts on most BMW products, during normal times is 10-12% off. At that price point, you’re scraping the bottom of the barrel of how much profit is left for a dealer. Baring any abnormal dealer profit streams, there’s no good reason for a dealer to go any deeper. At 15%, you’re cross the line of what would ever make sense, and then gone a few k deeper. By walking up to that line, you’re basically saying “I know where you’re limit is and want to be right at it”. By blowing past it, you’re basically saying “I want all the money off just cause!” It’s a big difference in how you’re interpreted as a realistic buyer.

Mind you that currently, there’s less incentive for the dealer to go deep, so they’re going to want to be further back from that line rather than open to going beyond it.

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Not to be a dick,
But even in heavy supply this deserves a reality check.

Best of luck in your endeavors.

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Fixed that for ya… yes one could get lucky but that’s not a strategy.

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Yea good luck getting anything beyond 5% since most dealers in the region will tell you to pound sand for any significant discount on a M50. That is a car we make money on to pay the bills and make up for losses on 3 series. My suggestion is to find a broker in another region and save yourself the headache. Edit: I just ran a locate to check inventory and there are only 24 new M50s in the central region and 122 in the country.

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When I shopped around last year, I contacted 15 dealers. Half of them didn’t move beyond 5-6%, and 3 of them got around 11%. So your luck really depends who you contacted.

Secondly, BMW mark-up is typically 6%. Volume bonuses / holdback is another 5%, totally, 11%. Anything beyond that, the dealer is definitely taking a loss. I am not sure how things are right now, but its reasonable to assume that most dealers arent hitting the volume bonuses, so 5-6% is all you may get

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Not to sound mean but if you did research and read up on some previous posts, you will realize that in “normal” pre-Covid times, 10-12% off MSRP on most new BMW models was attainable. 15% off would have been attainable on loaners. As it has been stated, with supply at an all time low, and demand going back up, some dealers are not going to want to lose $$$.

I would strongly suggest you do some more reading and check out the Marketplace for broker deals.

Just finished talks with another dealer who was open to pre-MSRP discounting on an X7 40i… How much? 3%.

Sales manager stated that anything above that he would be losing money on the car and wasn’t willing to budge. Lol.

If you really want an X7, I would stop talking to dealers in your area and work with a broker.

Good luck.

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I agree. Looking into the marketplace right now… is there a particular broker you recommend?

I’m honestly genuinely surprised that the main BMW brokers on here are still able to whore out cars the way they do through the BMW stores they have made their connections with…

Maybe the market is just completely different where they get the cars from but for a low volume store to be doing 12% off of MSRP is crazy IMO, especially given the conditions of the market right now.

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Present yourself as someone who is simply looking for a good deal, dealers will offer you their idea of a “good deal”. Present yourself as someone who actually knows what a (realistic) good deal is, willing dealers will respond in kind. Those who are unwilling will not. The only way to accomplish this is by brushing up on the wealth of information offered here

…Or work with a broker.

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I think I am giving up. The few conversations with dealers today made me remember why I disdain the car shopping experience.

…Broker it is.

@Bostoncarconcierge comes well recommended. I have not yet worked with him, but he is a straight shooter and always seems to have some strong BMW deals. He is located on the East Coast, in the Boston area. So if you go with him, you are going to have to ship the car back to Michigan at your own expense. I would suggest reaching out to him. Since end of the month is tomorrow, and usually busy for most dealers/brokers closing out the quarter, be patient if you don’t hear back from him right away. He is very responsive, btw.

Take a look at his deals page on the Marketplace and see if he has any X7s in stock.

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Thanks to all. Very insight comments on how to push for a great deal. Very helpful in framing possible deal parameters.

I would describe my early “deal expectations setting” experience on lease hackr as such:

A. There is a ton of deals and discussion to explore on a handful of premium brands: BMW, Audi, Volvo, Benz. Pre-incentive discounts seem to be well grounded on these names.

BMW 10-12% pre-incentive at the buy rate and current incentives

Audi 10% pre-incentive at the buy rate and current incentives

Volvo 10-12% pre-incentive plus current direct-to-dealer incentives at the buy rate and current direct-to-consumer incentives

Benz 9-11% pre-incentive at the buy rate and current incentives

B. There are fewer data points and discussion around more mainstream brands/models like Honda, Toyota, Mazda, Acura. When you have so few data points for your market (in my case SoCal, and I know Socal has more info on here short of the tri-state), it’s a little tougher to identify a solid aggressive (but attainable) pre-incentive range to deal around.

So this leads to my question. For the average person that turns their attention to a lease negotiation every 3 years what’s the best way to probe an attainable aggressive pre-incentive discount with a dealer when you just don’t have a bunch of data points for your make/model in your local market? Said another way, I don’t negotiate leases every week and I can’t find many deal reference points so how do I avoid the trap of “invoice less holdback plus another $1,500 behind that?”

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@WildFire24SO - 🦞 BostonCarConcierge June BMW....Updates 6/25: Handful of 3 series and a 5 series @ 17.5%. X2 @ 19.5%

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Find posts by @HondaSoCal about margins on Honda. The same applies to other non-luxury brands. Subaru only has 2% holdback, for example.