[rmukkai]

I have been writing to dealers to get their best offer for a custom build X5. What confuses me is, are people referring to price before taxes or after taxes.

For Example, here is a quote I received.


MSRP: $81,795
Selling Price: $74,429
Rebates: -3500
Selling Price After Rebates: $70,929
State Taxes Including Luxury Tax: $5,275
Fees;
$699.75 Doc Fees,
$410 Estimated DMV Fee,
$6 Tire Tax
OTD: (inclusive of all taxes & fees) $77,319.75

Which of these is the right way to evaluate the offer??
1. Selling Price After Rebates: $70,929 is 13.474% less than MSRP.
2. OTD $77,319.75 is 5.68% less than MSRP.

This is my first new car and my 2nd BMW overall. Any help is appreciated here. Thanks in advance.

 

[ard]

If the MSRP is 81795, what is the Invoice price?

% off is a dumb concept and of ZERO value

 

[rmukkai]

If the MSRP is 81795, what is the Invoice price?

% off is a dumb concept and of ZERO value

I dont know that yet. Do I just ask what the invoice price is?

 

[TheTurtleBoy]

The "standard" way of posting discounts on forums is to refer to just the dealer discount and not include any rebates or incentives since those can vary by customer.

OTD pricing is very rarely discussed as it is meaningless to anyone except the purchaser and those who live in the same taxing district, got the same options and are eligible for the same incentives.

In regards to the deal you posted, you are getting a little over 9% discount which is a pretty good deal given how discounts have dropped lately. You could always try for a little more but it is likely you won't get it.

 

[TheTurtleBoy]

I dont know that yet. Do I just ask what the invoice price is?

Invoice price means nothing and should not even be considered when negotiating since it is a made up number that usually does not represent what the dealer will actually pay for the vehicle. Best to stick with negotiating from MSRP and looking at how your discount compares with others in your region.

 

[rmukkai]

The "standard" way of posting discounts on forums is to refer to just the dealer discount and not include any rebates or incentives since those can vary by customer.

OTD pricing is very rarely discussed as it is meaningless to anyone except the purchaser and those who live in the same taxing district, got the same options and are eligible for the same incentives.

In regards to the deal you posted, you are getting a little over 9% discount which is a pretty good deal given how discounts have dropped lately. You could always try for a little more but it is likely you won't get it.

Thank you for taking the time to give this in detail. I am trying to knock out another 2.4k and get to a 12% discount from MSRP. Lets see how it goes given it is Presidents Day weekend.

 

[TheTurtleBoy]

Thank you for taking the time to give this in detail. I am trying to knock out another 2.4k and get to a 12% discount from MSRP. Lets see how it goes given it is Presidents Day weekend.

I hope you get it but keep in mind that very few people have gotten 12% (I think I remember 2 people all MY that posted) so far and dealer discounts have been falling. Regions where 9-10% was the norm have gone to the 7-9% range.

Let us know how you make out and what your location.

 

[rmukkai]

I hope you get it but keep in mind that very few people have gotten 12% (I think I remember 2 people all MY that posted) so far and dealer discounts have been falling. Regions where 9-10% was the norm have gone to the 7-9% range.

Let us know how you make out and what your location.

Will do. i am in NJ.

 

[TheTurtleBoy]

Will do. i am in NJ.

The NE region, and NJ specifically, generally gas the highest dealer discounts. You could consider 10% the norm but they have been coming down. Just read a post today on another forum where someone couldn't get over 7% in NJ.

 

[ard]

All this talk about 'some get 12" and '10 is the norm 'but some cant get 7'...'the range is this, but then is it that'...and 'who knows, let us know what you get'.

all this from the genius that says 'negotiate based on % off MSRP'


Have Fun!

(Id tell you how to get invoice, but whatever...go shoot for 20, but settle for 15. Send us pictures.)

Oh, post your question in Ask a Dealer. you will get actual buying advice.

 

[TheTurtleBoy]

^ 23,521 posts, you think by now you would gotten the hang of posting something that was relevant and useful rather than the misleading drivel and troll bait.

 

[BabyUnicornTaco]

^ 23,521 posts, you think by now you would gotten the hang of posting something that was relevant and useful rather than the misleading drivel and troll bait.

MSRP means little. Negotiate on MSRP rather than invoice? Make up a percentage. This was helpful advice. Trolling? Nope.


Sent from my iPhone using Bimmerfest mobile app

 

[TheTurtleBoy]

MSRP means little. Negotiate on MSRP rather than invoice? Make up a percentage. This was helpful advice. Trolling? Nope.

Yes, definitely meaningless when negotiating for a BMW, and likely other manufactures. Depending on options there will be about a 6% spread between MSRP and invoice but much better deals are had in most regions of the country so why bother with that number. The most effective way is to get an idea of the discounts that people are getting in your region and then reach out to a few dealers and go from there. Other than in the Pacific Northwest, specifically Washington, it would be unusual for a dealer to not sell you an X5 at invoice, They would love to do that and on the majority of deals that do and even over invoice.

A very small percentage of consumers are members of forums like this so the discounts posted/referred to are representing a small portion of the deals that actually occur. It certainly is worthwhile shooting for the highest percentage discount you can get. If XYZ got it by doing some emailing between dealers you may also since they are a bunch of folks who will just take that invoice + pricing that the dealer offered. From what I have seen from some CAs posting, the actual average discount across the country is probably in the 4-5% range, far under what most members of this and other forums are able to achieve.

 

[Nasty750]

My only advice here is if you work for a big company they may offer a fleet discount which could be another 3-5k off the invoice price. Can’t hurt to ask your salesman if they accept fleet discounts then tell him/her who you work for to see if it’s offered. Good luck.

Also why buy vs lease?

 

[codex57]

For some reason, all the BMW deals I've seen posted go by % off the MSRP. Not just this board, but all the various BMW boards I've been on over the years. That said, the Honda/Toyota/etc boards I've been on don't report deals anywhere close to what BMW dealers offer.

Whatever. The point is that % off seems to be the customary way to show a BMW deal. Naturally there's a spread, but since the discount across regions is an even bigger spread, it's helpful to gauge just how competitive your local offer is and see if maybe you want to buy from a dealer outside your region. Whether you go down from MSRP or down from invoice, it's still math and as long as you can figure out the numbers, you can tell if you're getting a good deal or not.

Generally, the top % deals are better than any "fleet" or prenegotiated discount I've ever seen. And some people can't lease for a variety of reasons (such as driving too many miles). In the case of the 45e, it makes very little financial sense to lease vs buy that car due to the various incentives and how BMW is structuring the lease on that particular car. The other X5 models are much more "normal" so it depends on what one you're getting.

 

[rmukkai]

I was able to get 12% off of MSRP. I guess shoot for the 12% always..

 

[TheTurtleBoy]

I was able to get 12% off of MSRP. I guess shoot for the 12% always..

Congratulations. Well done.

 

[rmukkai]

@TheTurtleBoy if I register at bmwcaa.org, will I be eligible for it's member rebate? I believe they have a $1000 rebate. Link

A membership requirement may be met in one of two ways:

• A membership of one year (365 days) or more immediately preceding the delivery date of the vehicle is required to take advantage of this program. A member in good standing cannot have any lapse in membership during that 12-month period.
• A non-refundable membership of three or more years can be purchased to reduce the 12-month waiting period to 6 months.

The above text is very confusing.

 

[Autoputzer]

There's a concerted effort to no longer publish "dealer invoice" prices. It's not just BMW; it's everybody. If you start from MSRP and work down, or start from "dealer invoice" and work up, you end up at the same place. That's how math works. Dealer's like to start at MSRP, so that's what I do.

The last time we bought a new BMW (2018), the "dealer invoice" was 93% of the MSRP base price of the vehicle, plus 92% of the MSRP of options, plus 100% of the destination charge.

If you're ordering an X5, it's not a hybrid, and you don't need the third row seating, don't forget to get the $150 spare tire option. You really need a spare tire for road trips, even with run-flats. Also, having a spare will give you the option to switch to non-run-flat tires when the OE run-flats are worn out (which will be soon, by the way).

You have to be a BMWCCA member one year to get that discount, or six-months if you pay for a three year membership up front.

 

[rmukkai]

There's a concerted effort to no longer publish "dealer invoice" prices. It's not just BMW; it's everybody. If you start from MSRP and work down, or start from "dealer invoice" and work up, you end up at the same place. That's how math works. Dealer's like to start at MSRP, so that's what I do.

The last time we bought a new BMW (2018), the "dealer invoice" was 93% of the MSRP base price of the vehicle, plus 92% of the MSRP of options, plus 100% of the destination charge.

If you're ordering an X5, it's not a hybrid, and you don't need the third row seating, don't forget to get the $150 spare tire option. You really need a spare tire for road trips, even with run-flats. Also, having a spare will give you the option to switch to non-run-flat tires when the OE run-flats are worn out (which will be soon, by the way).

You have to be a BMWCCA member one year to get that discount, or six-months if you pay for a three year membership up front.

Does it mean that I need to buy the car after my 1 yr or 6mo anniversary or I can submit the rebate form after 1yr or 6mo anniversary??