Ordering a car vs buying off the lot

In April I purchased my first BMW, a 528ix. It had tech, premium, cold weather, bmw apps, and sirius and listed for 56,795 in Central New Jersey. I emailed 5 - 6 dealers and noted I was getting better prices via email, than when dealing in person. I eventually located a dealer with several of these cars, same config, similar color, etc and negotiated a price of 51,800, before the 1500 rebate, so landed at 50,300. I really wanted the luxury seats, problem is only 1 existed on the lot, and the dealer knew that and wouldnt come close to this deal. Ive noticed a lot of people "ordering" their cars, they way they want it, and then tracking the order. The benefits of ordering is obvious, you get your car custom, but my question is what negotiating power are you giving up? Is it significant? Do the dealers just give you a flat amount off sticker, or if any? I cant imaging paying list. Would be interested to know whether a deal is even possible when ordering and how people approach this. Love the car, replaced a G35, but getting a deal equally important.

I did $500 over invoice on a European Delivery. Happy with it.

For some buyers, it's not about getting the best deal, but getting the car they want.

I bought my last three cars via European Delivery. It's the best way yo buy a Bimmer or a Benz.

BMW and MB European Delivery make for some great deals. Until pretty recently, Porsche actually charged extra for the privilege..... They offer it free now, but you don't see any savings like you get from BMW and MB.

Dealer sponsors or other dealers that we know will give you invoice plus $500 or $750 on an ordered car, less invoice, no shenanigans.

The only drawback is the wait.

You get a pretty damn good deal if you custom order. Probably just as good as something from a lot (unless the dealer car was something undesirable and needed to be sold, such as Northeast-bound car without heated seats)

If you buy a car off the lot the dealer has to pay interest on the money he borrows to buy the car for the period of time the car sits on the lot unsold. If he orders the car for you he saves the money he would have to spend on the interest until he can sell the car. So, he makes more money on an ordered car if he sells it at the same price. That's why you can get as good or even better price on a car ordered from the factory as for one sitting on the dealer's lot. Also, when you order your car you get exactly the colors and options you want. Given the vast array of options and colors on modern BMWs it's unlikely you can get exactly what you want in something sitting on any dealer's lot. Of course, that means you have to think ahead as to when your lease is up or when you will need the new car. I always order my cars and the wait is usually less than 3 months.

The best dealers will deal on all cars. It's a big purchase. Make sure you get exactly what you want.

Originally Posted by swajames

BMW and MB European Delivery make for some great deals. Until pretty recently, Porsche actually charged extra for the privilege..... They offer it free now, but you don't see any savings like you get from BMW and MB.

No surprise there. Porsches ain't cheap. If you want a Porsche you are going to have to pay for it

Originally Posted by dunderhi

I bought my last three cars via European Delivery. It's the best way yo buy a Bimmer or a Benz.

Yes on the more expensive models the savings from ED more than pays for the trip.

I would have liked to custom order my last car, however it seems that timing seems to play a good deal in BMW deal-making.

They had a car on their lot that was built-up by them, shipped to them, and had very low test-ride miles. I put some on, and another guy (happen to know the other guy). I know the climate (no flooding or heavy rain). This plays a big role from me. One time, I had a car brought in (not BMW) and it was in an area that had heavy rain over a couple months period. Mold took root in the car and had heavy concentrations.

So knowing who's been in the car, how it's been stored and treated, and when it came into inventory has been important. I can tell for sure where the car has been and what the climate has been like. I missed a couple options, but as we went through the dealer searches, it quickly showed the car on the lot was appealing. Next time though I do plan on ordering.

Originally Posted by swajames

BMW and MB European Delivery make for some great deals. Until pretty recently, Porsche actually charged extra for the privilege..... They offer it free now, but you don't see any savings like you get from BMW and MB.

free????? really???? tell me more I did not know this

It's total BS to think that you get a better or worse deal one way or another. I've bought 58 vehicles in my life. I've done both and I've also dealt directly with owners and general managers on many of them. I have a close friend who has owned more vehicles than I have and is the best negotiator I've ever met in my life. It's all about your negotiating skills. Obviously, not all dealers will give the same deal at the end of the day regardless or whether they have the car in stock. Many of today's dealers are owned by large companies that own a lot of dealers and they have guidelines they have to follow just like any large company. But again, it's not about whether the car is in stock or not as a general statement.

You have to be prepared to walk away. If you can, and you know what a deal is, you'll get one. If not, you'll get hosed.

Originally Posted by sdg1871

Yes on the more expensive models the savings from ED more than pays for the trip.

Unless one simply doesn't have the time or wants a model not available for ED, I can't think of a single reason to not go that route. The process was straighforward and if you negotiate well (read the threads on the ED board) your savings will more than pay for the trip (depending on the style in which you travel) meaning you get a car and a free vacation as well as a pretty amazing day at the Welt. Did I mention that the Beer in Munich is delish??

Originally Posted by Needsdecaf

You have to be prepared to walk away. If you can, and you know what a deal is, you'll get one. If not, you'll get hosed.

Exactly. That is why my friend is such a good negotiator. I've watched him walk away from a $100,000 car over $500. It can be painful to watch, but in the end he almost always gets what he wants. Obviously, doing a lot of homework tells you what is achievable if you are willing on walking away.

I can't get a oil change without leaving with a new ride...lol. I got my arse kicked trading my 328...
but it was worth every cent

Originally Posted by Needsdecaf

You have to be prepared to walk away. If you can, and you know what a deal is, you'll get one. If not, you'll get hosed.

That's the beauty about car shopping, you can walk. It's an assembly line item, if you don't buy it today, you can later on. BMWs will always continue to build cars. When you're house shopping, that's different. No two homes are alike...let alone lot location. Real estate is scarce.

Agree with the comment about being prepared to "walk away." When you do, it always prompts them to call me as I'm half way home. HAHAHAHA!!!! I have found that if I order it just like I want it, I'm more likely to own it longer. If I bought it off the lot, I'm always wishing I had some option that is missing. UGH!!! I'm waiting for my 528 that I ordered just the way I want it. Hope to own it more than two years - yeah right. HAHAHAHA!!!

Ordering exactly what you want is the best way. I got $500 over invoice before all the incentives that Bmw had going on at the time.

I find not many dealers in NY stock a lot of cars and chances are you will have to order it anyway.

Alan

Guys,

1. when ordering from a dealer for US delivery can you apply incentives (loyalty, financing cash credit)?

2. Incentives are applied to MSRP or Invoice?

Thanks.

Also found on the lot what I like:

2013 535i
Jet Black/Black
Sport package
Premium
Premium sound
Tech package

$61,300 What do you think? order in hopes of a better deal or buy from a lot at that price?

Thank you for your help.

Take a look at bmwconfig.com to compare "Invoice" with "MSRP". Invoice should be your reference point for negotiations.

$63k looks to me to be about $5k to $6k too high.

I believe most incentives are applied as "Cash Discounts" after the price is negotiated. Strike your price first, then work out the incentives. If the dealer you've found is not amenable to negotiating in that manner, then make contact with one of the board sponsors -- they will treat you fairly, and work to make your transaction easy.

Unless you are in a bind to close up a deal now, my advice is to take the time to find the car that has exactly the features you want in the colors of your choosing. Order if necessary -- the wait isn't that long in the scheme of things, especially for an East Coast delivery.

Originally Posted by SimiClyde

Take a look at bmwconfig.com to compare "Invoice" with "MSRP". Invoice should be your reference point for negotiations.

$63k looks to me to be about $5k to $6k too high.

I believe most incentives are applied as "Cash Discounts" after the price is negotiated. Strike your price first, then work out the incentives. If the dealer you've found is not amenable to negotiating in that manner, then make contact with one of the board sponsors -- they will treat you fairly, and work to make your transaction easy.

Unless you are in a bind to close up a deal now, my advice is to take the time to find the car that has exactly the features you want in the colors of your choosing. Order if necessary -- the wait isn't that long in the scheme of things, especially for an East Coast delivery.

Great pointers! Thank you!

made an offer to a dealer in Florida:

2013 535i for US delivery. Offer was $500 over invoice.
Their invoice came up to $350 more than bmwconfig.
Also, they want Dealer's service fee to be paid up for car prep on arrival $700. So, I'm over $1,000 where I thought I should be.

What do you all think?

Thanks in advance.

Originally Posted by darius7

made an offer to a dealer in Florida:

2013 535i for US delivery. Offer was $500 over invoice.
Their invoice came up to $350 more than bmwconfig.
Also, they want Dealer's service fee to be paid up for car prep on arrival $700. So, I'm over $1,000 where I thought I should be.

What do you all think?

Thanks in advance.

It's common for a slight price difference between bmwconfig and the actual dealer invoice due to the varying MACO fee. In your case, $350 difference sounds right.

I responded to your post on another thread here regarding the dealer service fee $700, that's total BS. We never had to pay that when ordering cars from MB or BMW.