March ECO Credit Status?

Can any dealer clarify whether there is an ECO credit and amount for March?

If yes, what if an order is placed in March for April production of MY 2012? Eco credit still applies?

what's the ECO credit?

I don't know what Eco actually stands for but it's a cash credit that BMW gives you to reduce the purchase cost for buying their diesel engine cars such as X5 35d or 335d.

Since no dealers here seemed to want to answer this question, I found my own answer -- Yes, the $3500 Eco credit continues for March.

As long as people are asking about acronyms, what's MACO? I've searched and haven't found an answer. Thanks!

Originally Posted by SD 335is

As long as people are asking about acronyms, what's MACO? I've searched and haven't found an answer. Thanks!

"market area co-op" advertising.

Thanks, I've been wondering about that for awhile.

Sorry for my ignorance, but I haven't bought a new car in more than 12 years and the only lease I've ever done was in 1996. I've never heard of this before.

I assume that this means that these are the advertising costs incurred by all BMW dealers in an area and split amongst them. But the customer is expected to directly absorb some of this cost by being charged for it as a line item when buying a car? Shouldn't this just be a cost of doing business, such as the lease on their buildings, utilities, salaries, etc.? Is this just a BMW thing, a leasing thing, or does it somehow get applied to purchases too?

Originally Posted by SD 335is

Thanks, I've been wondering about that for awhile.

Sorry for my ignorance, but I haven't bought a new car in more than 12 years and the only lease I've ever done was in 1996. I've never heard of this before.

I assume that this means that these are the advertising costs incurred by all BMW dealers in an area and split amongst them. But the customer is expected to directly absorb some of this cost by being charged for it as a line item when buying a car? Shouldn't this just be a cost of doing business, such as the lease on their buildings, utilities, salaries, etc.? Is this just a BMW thing, a leasing thing, or does it somehow get applied to purchases too?

Dealers can decide to develop a marketing pool for their region. If they do, all of the cars that they sell will have a fee added to the invoice price-- so everyone has to pay it, regardless of how they purchase the car. All dealers in that region that participate will have the fee charged on their cars. The advertising is more generic, such as the "visit your Boston area BMW dealer" and will list all the participating dealers at the end of the ad. Dealers still do their own advertising at their own expense, which is a cost that they absorb.

Well, the problem is that MACO, as well as Training, are line item charges on the dealer's invoice. So it is in dealer's cost and when you negotiate from the invoice cost that is part of the picture.

If you look at the MSRP it is not in there so theoretically you are not paying for the MACO and Training as line item charges if you purchase at MSRP and the dealer has absorbed the MACO and training cost (through his markup to MSRP of course).

You can insist to not pay for the MACO and Training on the dealer's invoice. This just means that you are asking the dealer to lower his invoice. Not a common practice since most Festers negotiate an $X over invoice, but there are some that said they have paid below invoice. It's a matter of whether the dealer is willing. It is certainly easy to do if there are BMW incentives out there such as the $3500 Eco credit right now. So if you negotiate $1000 over a $50,000 invoice, and then apply the $3500 credit you will end up paying $47,500 or $2500 under invoice.

When negotiating, make sure the dealer is doing the math as described above. Most dealers will show you a purchase price of $51,000 when you negotiate $1000 profit over invoice and then not talk about the $3500 credit they are getting. So their profit is actually $4500.