As a note to everyone this month:
You may be hearing a lot about âtrue discountsâ or people âhiding discountsâ vis-Ă -vis corporate and loyalty rebates with BMW this month.
Unfortunately, BMW has decided to advertise rebates now that require a dealer contribution to fund.
I donât think this has been clearly explained publicly, so let me give it a shot:
We will use the X5 as an example. The current Loyalty or Corporate rebate is advertised as $2,000 on the X5, however, in reality, $1,000 of it comes from BMWFS, and the other $1,000 is actually paid by the dealer, meaning it is part of the dealer discount.
I personally feel the the best thing to do here is quote the actual max the discount the dealership will give, and show the rebates that BMW contributes, so people have a true idea of net dealer discount vs BMW-funded rebates. While it will show differently on the contract, in a quote, it better represents where the money is actually coming from, in my opinion (some may not agree).
There really is no right or wrong way to do this. Itâs a pain in the ass to explain to people.
So, if I tell you I can do, say, 10% off an X5, that means I would be offering everyone, with or without Loyalty/Corporate, 10% off, and then whatever BMW will pay in rebates will stack on top of that, which in this case, would be $1k.
So, $80,000 MSRP, and you have loyalty would look like:
$80,000 * 10% off = $8,000 discount, minus $1k = 7k shown on paper
then $2,000 shown as rebates which is actually $1k from BMW, $1k from your dealer, which nets you back to 10% off.
Hopefully this is a helpful explanation to what youâve been hearing much about this month