First, apologies if this has been answered elsewhere. I’ve tried searching and haven’t had much luck, but it’s possible I’ve missed it. If so, please just link me over to the answer.
Anyways, I know we talk a lot about BMW dealer demos/loaners, which have deeper pre-incentive discounts. Presumably this discount is because BMW provides the dealership with some kind of cash back or the like, either when the car is punched as a loaner/demo, or when it leaves service as a loaner/demo and is available for sale. Does anyone know how this actually works? Is it a flat percentage off MSRP?
I’m curious because, through estimates of invoice, holdback, and the like, as well as looking at other sales, we can estimate what a target pre-incentive discount is on a non-demo, new BMW. But, with demos or loaners, it seems we can only look at what others have been able to achieve. Is there any other information we can add to the calculus there?
On a full age loaner and barring volume bonus, (time and miles) 13-16% is more often not the bottom line without the car being a hard loser. If you’re getting more than that, they want it gone enough to take a loss on it.
In addition to whatever BMW pays out, most dealers have an internal write down they do to the vehicle, but you’ll never know what that amount is. When I got my loaner last year, 30% off apprantly was a $5k loser, so 20% was the bottom on that car (2018 320i). But that’s just what the salesman said, although he is honest in my dealings.
I was paying $238/mo, I transferred it after a year though, didn’t feel like paying the dispo/buying tires/windshield… Lol. Those costs alone just about covered the first years payments on my Bolt! It was a nice car, but nothing I was in love with.
The key to hacking a loaner is not getting hung up on options colors or even model. The one I got was an odd ball, it was a $48k 320i, probably made a loaner because no one would buy it new, you could have gotten a 330i for that money. I watched it on their site forever, and jumped when the discount dropped again, and ironically it dropped again while working numbers on it, was $14k off pre incentive, a complete unicorn
In addition to anything that BMW pays or gives credit for, I would think that the dealer has gotten value from the loaner vehicle by using it as a service loaner. Thus they should pay for that value by reducing the price to the buyer/leasee of that vehicle. That does not always happen, especially in today’s market when inventory is low. I’m seeing only a 10-12% discount on X3 loaners with 4-5K miles. In addition, the leasee has to subsidize the mileage in the form of a reduced RV.
Some dealer a while back(9-18 months ago) gave stats that it was usually $250-$350 a month for a lower priced car. $350-450 a month for higher priced cars in loaner service.
Couple the loaner usage discount with flagship money on higher end/priced models and you can hit a jackpot on a lease deal with a dealer that wants a vehicle gone.
I can see why it was made a loaner. And you got a great discount on it as well! Also, how did you go about transferring the lease?
