Inside BMW - Pricing Insights & Buying Process in Northeast

Signed Deals & Tips
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Hi Everyone - working a deal for new leased BMW 540xi. Leveraged Car Guru to identify who had my color combination and option preferences. It was easier than going to individual dealer websites. Wish BMW had national inventory database online for the public…Porsche has this search option. Casted a wide net about 200 miles. The color combo I wanted was not typical black or white.

Anyway my quotes came in from $878 to $638. All quotes used same criteria, similar MSRP, lease loyalty, 12k, $2500 DAS. Never went to dealership and refused their invites. Just explained buying car in next 24 hours and searching for best price…please quote stock # etc.

At one point sales advisory from dealer B challenges in professional manner my best and final price of $582 per month. He explains multiply MSRP by .94%. The result is dealer cost. 6% off gets you to dealer cost. Them multiply MSRP by 5% and subtract this amount from dealer cost. This five percent is dealer holdback. Than subtract loyalty and incentives in my case $5250. In the end 18.5 percent off MSRP. The sales advisor said dealer A is making $265 on the car just moving metal. He Continues to chat and puts numbers into BMW lease calculator again saying you sure they said $582. He agrees the lease numbers work again with small margin of couple hundred bucks. He said if dealer A can write the deal do it. 10 minutes later he calls me back. He has car with 5k in more equipment and is willing to do similar deal with higher price to compensate for 5k MSRP. I responded appreciate the offer let me first check back with Dealer A you will be plan B. Did not want the extra equipment but wanted this unique color combination and supply is running low on 540xi for this color combo. Dealer B says only 2 cars left in Northeast with my desired combination so, dealer B was real option about $40 higher for more equipment.

Did deal yesterday with dealer A. 18.5% off with incentives plus 1k from CCA. Thanks for everyone’s help and knowledge on the board wanted to share my process and results. Thanks for CCA tip!

Be as specific as possible in the title if you are posting a deal – include car model, monthly payment, and money down.

Include as much information as possible in your post, and even a celebratory picture. :wink:

Year, Make, Model, and Trim:
Saved Numbers on Leasehackr Calculator:

MSRP: $
Selling Price: $
Monthly Payment: $
Cash Due at Signing: $
MSD:
Incentives:

Months:
Annual Mileage:
MF:
Residual:

Region:
Leasehackr Score:

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Nice write up but you never put the final numbers for all to see…

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As mentioned above, all that unnecessary writing but no numbers.

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Agree, will post numbers after new Car is delivered at end of July. Also wanted to share my process have purchased many lease cars using same method sans broker fees.

Focused on monthly payment with same DAS, similar MSRP with tax baked into payment. Always comparing an apple to an apple. Just kept control of deal for easy comparisons when using same DAS. No need to worry over my lease hacker score.

18.5% off MSRP for new car is fine with me.

5

That’s a lot of text just to say ask for 11% off MSRP before incentives.

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Brevity the soul of wit, or something like that.

:bat:

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Keep in mind they can go lower on loaners because they get a monthly loaner stipend.

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Could be wrong here, but isn’t 5% dealer holdback a little high, isn’t it typically between 2-3%?

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I’m not very familiar with how bmw is (currently learning the ins and outs while shopping 4 series) but most other brands are 3%. I think 5 is a bit high too.

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BMW is 5%…

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Is the holdback in addition to volume incentives? Because those vary per month and depend on how many cars dealers can sell.

What I was told last time I visited a dealer was that invoice was 6%, then flooring holdback is about 1%, then the volume incentive that particular dealer was expecting for this month was $3,000 per car.

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From what I hear, the 5% “holdback” (if you can call it that) is not guaranteed. It’s dependent on the dealer hitting aggressive volume targets set by the manufacturer, and it’s an index that factors in customer survey results as well. A dealership that doesn’t get excellent survey scores, or doesn’t sell enough cars, loses this 5% bonus, or so I’ve been told.

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It’s not 100% guaranteed as you said, so a dealer could potentially lose money if they don’t hit their volume and survey goals.