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  #1  
Old 12-04-2012, 05:31 AM
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ErnestHouse ErnestHouse is offline
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Question Are there incentives for cash buyers?

When I look at TrueCar pricing various cars, it shows the incentives offered. The only ones there for the X3 are for leased cars. Are there any incentives for X3 cash buyers?
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  #2  
Old 12-04-2012, 05:56 AM
cchrisv cchrisv is offline
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Holiday Cash and Loyalty Cash is only if you finance through BMW.

The only thing BMW offers to everyone is Eco Credits. There are no Eco credits available for the X3.
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Last edited by cchrisv; 12-04-2012 at 05:57 AM.
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  #3  
Old 12-04-2012, 05:58 AM
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1. finance it to get incentives
2. wait a few months
3. pay it off
4. ???
5. profit!
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  #4  
Old 12-04-2012, 06:03 AM
vern vern is offline
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Quote:
Originally Posted by dealio View Post
1. finance it to get incentives
2. wait a few months
3. pay it off
4. ???
5. profit!
You will have to wait 6 months before you pay it off in full. Before that you will get hit with a penalty .Good luck
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  #5  
Old 12-04-2012, 07:03 AM
gpburdell gpburdell is offline
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Originally Posted by vern View Post
You will have to wait 6 months before you pay it off in full. Before that you will get hit with a penalty
What are the details of the prepayment penalty? Do you have the text handy?

If it's a significant penalty, just take the loan, pay first payment and all but five payments worth of principal in the first month. Contract runs six months with minimal interest charges and no prepayment penalty.

Last edited by gpburdell; 12-04-2012 at 07:08 AM.
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  #6  
Old 12-04-2012, 07:31 AM
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Chuck W. Chuck W. is offline
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Originally Posted by ErnestHouse View Post
Are there any incentives for X3 cash buyers?
Never. For those of us that do not finance and pay our credit cards off each month without carrying a balance over, we are not preferred customers. Car dealers make money when you finance just like credit card companies make money when you make payments.

Quote:
Originally Posted by vern View Post
You will have to wait 6 months before you pay it off in full. Before that you will get hit with a penalty .Good luck
cheers
vern
If I am not mistaken, the dealer will get hit with a penalty if you pay if off before five months, not you.
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  #7  
Old 12-04-2012, 08:20 AM
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ErnestHouse ErnestHouse is offline
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Quote:
Originally Posted by Chuck W. View Post
...Car dealers make money when you finance just like credit card companies make money when you make payments.....
Not if you buy a less expensive competitor's product; in this case, a Q5 with my desired features is several thousand less.
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  #8  
Old 12-04-2012, 08:28 AM
chrischeung chrischeung is offline
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Originally Posted by Chuck W. View Post
Car dealers make money when you finance just like credit card companies make money when you make payments.
Not necessarily. A lot of folks are able to get BMWFS financing at cost. There's nothing in it for dealers, other than a desire to give the customer what they want. I once offered a BMW dealer cash or lease at cost - they took cash. A lot of folks don't want to fork out $50K or more in cash, even if they have it, they value the flexibility that financing offers.

I'm not saying that dealers can't make money with mark ups, it's just that it's not a blanket case that they make money on every deal financed. On the finance company side, factor in that there are often costs to service a loan/lease, defaults, so it's not a given that the finance company will make a lot out of your loan.

The main thing a captive financing company like BMWFS wants, ahead of the profits (they certainly don't want to lose money if possible), is to keep selling you cars in the future (much more profit in that) - and having a financial relationship probably increases that likelihood. Given the choice between selling 3 cars to someone in 10 years with break even or small financing loss, or 1 car for cash, they'd probably choose to do 3 cars financed.
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Last edited by chrischeung; 12-04-2012 at 08:42 AM.
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  #9  
Old 12-04-2012, 08:53 AM
ard ard is offline
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Originally Posted by vern View Post
You will have to wait 6 months before you pay it off in full. Before that you will get hit with a penalty .Good luck
cheers
vern
Dealer gets a penalty, not the buyer. For there to be a penalty, it needs to be disclosed in the finance documents, and there is nothing there. Dealers will lie, to try and make YOU think there is, to protect themselves....

Op- if this purchase is a commodity, and either vehicle will satisfy you equally, just buy the cheaper one.. Of course
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Last edited by ard; 12-04-2012 at 08:55 AM.
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  #10  
Old 12-04-2012, 09:08 AM
chrischeung chrischeung is offline
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Dealers will lie, to try and make YOU think there is, to protect themselves....
Couldn't you sue them if that is the case - record the conversation? Why would any dealer open themselves up to potential lawsuits, and an employee to dismissal, instead of telling the customer to just pay it off later and that it would help them by doing so?

If that's the case, why wouldn't a dealer tell folks that they'll get a check for $5,000 in a few months time, and when they don't, just point out that it's not in the contract and they'll be covered legally? Wouldn't they sell a lot more cars? I mean - if you're going to lie, and can get away with it, why not make it a big one?

Personally - I've never had a dealer deliberately lie to me. They may be not providing all the information, be ignorant, or hold back their best offer, but that's not the same as lying. If you expect the dealer to disclose everything, doesn't it work both ways - the buyer should also disclose everything, like the highest price they are willing to pay, their best offer from another dealer etc.?

Putting myself in the dealer's shoes, the choices are lie, and potentially be caught out as lying, and have the customer walk (what customer wants to buy from a liar?). Or be vague, evasive and non-committal. I think the latter is probably better for THEM than the former. Not a real big incentive to lie. And heaven forbid they are actually fully open, gaining the trust and respect of the customer. Yes - we can all dream.
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Last edited by chrischeung; 12-04-2012 at 09:39 AM.
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  #11  
Old 12-04-2012, 09:22 AM
zerovector zerovector is offline
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Quote:
Originally Posted by ard View Post
Dealer gets a penalty, not the buyer. For there to be a penalty, it needs to be disclosed in the finance documents, and there is nothing there. Dealers will lie, to try and make YOU think there is, to protect themselves....

Op- if this purchase is a commodity, and either vehicle will satisfy you equally, just buy the cheaper one.. Of course
According to Jon, it is the consumer that gets the penalty. See this post http://www.bimmerfest.com/forums/sho...43&postcount=3
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  #12  
Old 12-04-2012, 10:01 AM
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ErnestHouse ErnestHouse is offline
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Quote:
Originally Posted by ard View Post
...Op- if this purchase is a commodity, and either vehicle will satisfy you equally, just buy the cheaper one.. Of course
It's not about commodity. It's about marketing. BMW does not incent cash or first time buyers to buy into their brand.
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  #13  
Old 12-04-2012, 10:06 AM
chrischeung chrischeung is offline
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It's about marketing. BMW does not incent cash or first time buyers to buy into their brand.
Yes and no. Run a search for "conquest cash". I'm not sure they are running that promotion now, but they have in the past.
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  #14  
Old 12-04-2012, 11:42 AM
ard ard is offline
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Originally Posted by zerovector View Post
According to Jon, it is the consumer that gets the penalty. See this post http://www.bimmerfest.com/forums/sho...43&postcount=3
I'd need to see the finance contract...over the last few years it has always been a penalty to the dealer for these incentives. Indeed, they may have changed this recently, as Jon's post is new.

Again, people need to read and understand what they sign.

Thanks

A
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  #15  
Old 12-04-2012, 11:45 AM
ard ard is offline
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Quote:
Originally Posted by chrischeung View Post
Couldn't you sue them if that is the case - record the conversation? Why would any dealer open themselves up to potential lawsuits, and an employee to dismissal, instead of telling the customer to just pay it off later and that it would help them by doing so?

If that's the case, why wouldn't a dealer tell folks that they'll get a check for $5,000 in a few months time, and when they don't, just point out that it's not in the contract and they'll be covered legally? Wouldn't they sell a lot more cars? I mean - if you're going to lie, and can get away with it, why not make it a big one?

Personally - I've never had a dealer deliberately lie to me. They may be not providing all the information, be ignorant, or hold back their best offer, but that's not the same as lying. If you expect the dealer to disclose everything, doesn't it work both ways - the buyer should also disclose everything, like the highest price they are willing to pay, their best offer from another dealer etc.?

Putting myself in the dealer's shoes, the choices are lie, and potentially be caught out as lying, and have the customer walk (what customer wants to buy from a liar?). Or be vague, evasive and non-committal. I think the latter is probably better for THEM than the former. Not a real big incentive to lie. And heaven forbid they are actually fully open, gaining the trust and respect of the customer. Yes - we can all dream.
OK.

Take my post and replace "lie" with what you wrote. Semantics, in the end the consumer holds the bag.

And in terms of 'suing', the cost to prosecute a case will exceed the damages. Plus the document you sign will say something to the effect of "I am relying on no verbal assertions" and "only the written terms in this contract shall be binding".
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  #16  
Old 12-04-2012, 11:53 AM
chrischeung chrischeung is offline
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And in terms of 'suing', the cost to prosecute a case will exceed the damages.
You neglect to consider the effects of social media, reporting to business bureaus etc. There could also be an implication of a verbal contract. In these days where probably 70%+ of BMW buyers have a smartphone/technology that can unknowingly record a conversation, I doubt any dealership would be outright lying. Have you been pulled over by a policeman recently? Did you notice how polite they are these days?
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