I’m kind of a newbie here and just wanted to get some context. I’m about to lease a car and have been contacting dealers for a month or two. The dealer never gets close to 10% on the initial deal sheet. When i push for a bigger discount, the dealer claims that they will lose $x,xxx amount of money on the car.
Is this actually true? Does a dealer make money even with 10% off? Many of those same dealers who refused to discount also marked up the money factor.
The % off varies by manufacture, region, model, etc. You’ll need to research what you’re specifically looking for to determine the target pre-incentive discount.
I’d suggest taking the time to work out a target deal, based on other shared deals and the current lease programs, and then making an offer to dealers rather than asking them what they want you to pay.
Dealers make money on vehicles in a variety of ways, sales price is only one of them. At 10% off pre-incentive, yes, the dealer is losing money on the gross sales price, but may still be making money on other income streams from the vehicle.
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In addition to what Matt said, it’s about supply and demand.
Which particular BMW and where in NY?
the context will be important. For instance if they stand on invoice on a 330xi (5%) and others are getting 13% I have no idea besides increasing your search area. If they`re on invoice on an Alpina and you want more then double that then I get the dealers pov.