Bimmerfest BMW banner

1 - 16 of 16 Posts

·
Registered
Joined
·
8 Posts
Discussion Starter #1
I started looked at M240i's last month and its on my short list. I wasn't planning on buying a car until April, but noticed BMW is offering $4000 "Dealer Cash" on the M240i until the end of February.

I will be buying the car cash, so I think I should qualify for this.

My question is, historically, do these incentives continue as long as there's inventory and BMW is trying to move a slow selling model? Or put another way, should I run to my dealer and start talking about a purchase this month?

I'd rather wait. There's been a few articles have said this is going to be a slow car sales year. So hoping it won't make a difference on price if I wait.
 

·
Registered
Joined
·
1,799 Posts
Of the many threads regarding getting the "best" deal, the conclusions usually are about the same.
1. Calculate invoice and stack up all available known incentives
2. Assume there are various manufacturer-to-dealer incentives that may or may not be in play at any given point in time and that those incentives are always changing for better or for worse
3. Figure out the price/terms to which you would say 'yes' to a deal today and feel good about the value received, even if the next week you discovered that some new program was announced where you might have been able to do even better
4. Shop multiple dealers, honestly informing each one that you know what you want and intend to purchase/lease from whomever offers you the best deal
5. Make an offer to which you truly are prepared to say yes. Either the dealer can/will do your deal or they will let you walk
6. What one dealer won't do, another one might do, not necessarily because one dealer won't do aggressive deals, but rather because there are so many moving parts in play that different dealers are working towards different goals and are in different spaces regarding where they are climbing a certain set of stairs, so to speak.
7. In the end, we drive the cars, not the deals, so getting a decent deal on a ride you love, allowing the dealer to make something one way or another, usually works out.

Always remembering that acquiring a new car, that rapidly depreciates from the moment the paperwork is signed, is never really a good business proposition. So, find the car you want, make an offer you would say yes to, and see how it plays out, without worrying about the possibility of the better deal tomorrow, because every day you wait, while perhaps saving you a little more money, is another day in this transitory existence where you're not enjoying driving the car you covet. In My Humble Opinion.
 

·
Registered
Joined
·
39 Posts
1968BMW2800, Great advice and Wisdom as always! Hope all is well with you! Was sad not seeing any of your excellent and valued “Humble Opinions” lately.

Also, Many thanks to all the other coveted contributors on this forum (too many to list- do not want to leave any one out).

A Special shout-out to insider MJBrown for his knowledge, insight, time and dedication!




Sent from my iPhone using Bimmerfest
 

·
Registered
Joined
·
8,890 Posts
Other than 1968s' always excellent advice, the only thing I really have to add to this is your statement of "I think I should qualify for this dealer cash because I am paying cash", is not exactly accurate. Its not exactly inaccurate either, but...

"Dealer cash" is usually just that. Factory to DEALER (dealer, not consumer) cash that the manufacturer provides for "reasons" to move cars. There is NO (repeat no, none, zip, nada) "requirement" for a dealer to give you any of it, most of it, all of it, etc. They can CHOOSE to share it with you, or not. Im going to repeat this, because its important. "Dealer Cash" is an incentive TO THE DEALER to move a specific car model because of "reasons" that comes from the manufacturer.

Now, the dealer may share some with you, may share it all with you, or may share none of it with you. You dont "qualify" for it like you do with loyalty cash, for example.

Where people get tripped up here, is they find something like this, and think that this is a discount that a dealer is supposed to give, like factory to consumer cash is. NEVER "Expect" to get all of the "dealer cash" without some negotiation, or a relationship, etc. Most dealers are not going to just "throw it all in there" unless they need to move the car for some reason. This is not different from 1968's advice, its in addition to it.

Also, "cash" is NOT KING" in a car transaction, so if you think that because you are paying cash, you will get some sort of special consideration, its actually usually the reverse. Paying cash means that you likely will not be able to be talked into any of the dealers finance add ons (for example) and it also means they will not be making money off you for financing (obviously), so there is little reason to discount the car "to the bone" on a cash deal as they know up front they wont be making any money on this back end stuff.

A better strategy is to keep your options open and tell the dealer "right now I am considering paying cash, but am open to financing if it makes sense in the deal.. I have not made a final decision yet". Sometimes there are extra finance inventives that you get for financing. You can finance a small amount, say 7500 to 10k, then pay the car off if you want to 4 months later. That protects the dealer from charge backs on the finance incentive if there is one. You pay 4 months of interest on a small amount, but if there is a finance incentive, the amount of the incentive would normally be greater than 4 months of interest.

Sort of like joining the BMW Car Club and spending $140 on a 3 year membership, to get a 500-1000 rebate. easy math to see that spending that 140 saves you money in the end in that situation. Same thing on financing a small part of the deal if there is a finance incentive.

Its likely that you might need to go to a few dealers to get one to offer you the full 4k "dealer cash" incentive. Its entirely likely you could get a price that is 3k under invoice (for example), but is that you getting all the dealer cash? depends on how you choose to look at it. Many dealers would tell you absolutely yes. Many 'festers would say hmm well that means they are selling you the car at 1k over invoice minus the dealer cash". Depends on how you look at it.

Just save yourself a headache, and dont go into a negotiation expecting them to give you all of the dealer cash up front and thinking they are cheating you if they are not. its called "dealer cash" and not "factory to consumer" cash (which is a different category) for a reason.
 

·
Premium Member
Joined
·
2,120 Posts
1968BMW2800, Great advice and Wisdom as always! Hope all is well with you! Was sad not seeing any of your excellent and valued “Humble Opinions” lately.

Also, Many thanks to all the other coveted contributors on this forum (too many to list- do not want to leave any one out).

A Special shout-out to insider MJBrown for his knowledge, insight, time and dedication!


Sent from my iPhone using Bimmerfest
:bow:
 

·
Premium Member
Joined
·
2,120 Posts
...
"In the end, we drive the cars, not the deals, so getting a decent deal on a ride you love, allowing the dealer to make something one way or another, usually works out."

"... because every day you wait, while perhaps saving you a little more money, is another day in this transitory existence where you're not enjoying driving the car you covet"
And that coveted car gets sold to the person who was OK taking the deal you are thinking about.
 

·
Premium Member
Joined
·
2,120 Posts
BMW has changed terminology on us, unfortunately.

What used to be called dealer cash, as JJ states, was manufacturer-to-dealer money. Also known as "trunk money." Hard to know what cars have it, and what the amounts are.

An openly published "dealer cash" is different. It is an up front incentive given for vehicles being paid for by cash or outside financing. You have Lease Cash and APR Cash for people financing or leasing with BMWFS. You have Lease and APR Loyalty Cash if you have a BMW or had one in the past 12 months. There is Conquest Cash available on certain cars if you haven't had a BMW. And then there's Dealer Cash.

Trunk money still exists, but it's published only to dealer Sales management, and is on specific cars.

MJB
 

·
Registered
Joined
·
8,890 Posts
Thanks for the correction... BMW makes this clear as mud lol. So, after my long "explanation" ignore what I said about this specific "dealer cash". and substitute the words trunk money I guess, lmao
 

·
Registered
Joined
·
1,799 Posts
BMW has changed terminology on us, unfortunately.

What used to be called dealer cash, as JJ states, was manufacturer-to-dealer money. Also known as "trunk money." Hard to know what cars have it, and what the amounts are.

An openly published "dealer cash" is different. It is an up front incentive given for vehicles being paid for by cash or outside financing. You have Lease Cash and APR Cash for people financing or leasing with BMWFS. You have Lease and APR Loyalty Cash if you have a BMW or had one in the past 12 months. There is Conquest Cash available on certain cars if you haven't had a BMW. And then there's Dealer Cash.

Trunk money still exists, but it's published only to dealer Sales management, and is on specific cars.

MJB
So, MJB, a customer walks into a BMW Center on a sleeting, snowing last day of the month and hasn't a clue about dealer cash or lease cash or Johnny Cash.

He/she spots his/her coveted car on the showroom floor and says, "If you can get me a lease payment of $xxx per month for 36 months with only tax and first month's payment for drive offs, 15,000 miles/year, I'll sign right now.

If that customer is anywhere close to what is possible, he/she gets the car and maybe even a complimentary BMW leather key fob. That customer never needs to know what pile or piles the money to do the deal came from. The CA probably doesn't need to know either.

Figure out the lowest reasonable offer you'll be happy to drive off with, then go a little lower and see if your friendly BMW dealer can make magic happen. Kiss enough frogs, you might just find a prince. How hard does this need to be???
 

·
Registered
Joined
·
1,799 Posts
Okay, Mr. Smarta** 1968BMW2800. So how does one know what the "lowest reasonable offer" should be??? If you don't know what offers are available, blah, blah, blah.....

Simple, really. Let's say these cars, if well-maintained without excessive mileage, lose half their retail value after 3 years -- most cars do.

So, if you're looking at a $60,000 car, then it's a matter of who eats the $30,000 of depreciation.


I'm a 50/50 kinda guy. It helps maintain balance in the universe if we share and share alike. ;)

So I think a $15,000 discount from MSRP on a 3-year lease of a $60,000 car keeps the karma in balance.

Some people feel they need a larger share, so they ask for the dealer to eat 60% of the depreciation.

Some people feel 5% net discount from MSRP is more than fair.

Only way I ever knew to get a girl to sleep with me was to ask for what I wanted. Some said no, some said maybe, sometimes I got some but not everything. Usually, I got more than I deserved.:angel:
 

·
Premium Member
Joined
·
2,120 Posts
... Only way I ever knew to get a girl to sleep with me was to ask for what I wanted. Some said no, some said maybe, sometimes I got some but not everything. Usually, I got more than I deserved.:angel:
Lol ... it's all about how much it costs ... mentally, physically, or financially!
 

·
Registered
Joined
·
8 Posts
Discussion Starter #13
Some great advice given, and I totally get that I'm not entitled to the $4000 "dealer cash". But if the dealer has access to it then it allows me to negotiate to a lower price. Maybe not $4000 lower, but lower.

I should have emphasized that I'm primarily interested the history of this dealer cash. Is it always there, every month (maybe the amount changes +/- $1500)? I could have a dealer tell me "you gotta make this deal by the end of the month before the incentive goes away". Normally I'd consider that a BS high pressure sales tactic and ignore it, but I'd be upset with myself if the claim turned out to be true and I did miss out on a potential $4000 incentive...

I'm trying to be prepared for that conversation as I talk to dealers about price.

Thanks everyone for the responses so far!
 

·
Premium Member
Joined
·
2,120 Posts
Some great advice given, and I totally get that I'm not entitled to the $4000 "dealer cash". But if the dealer has access to it then it allows me to negotiate to a lower price. Maybe not $4000 lower, but lower.

I should have emphasized that I'm primarily interested the history of this dealer cash. Is it always there, every month (maybe the amount changes +/- $1500)? I could have a dealer tell me "you gotta make this deal by the end of the month before the incentive goes away". Normally I'd consider that a BS high pressure sales tactic and ignore it, but I'd be upset with myself if the claim turned out to be true and I did miss out on a potential $4000 incentive...

I'm trying to be prepared for that conversation as I talk to dealers about price.

Thanks everyone for the responses so far!
Do me a favor ... reply with the link or PM it to me. I have to see the offer advertised to speak on it. You missed my point. If it's an advertised dealer cash for a cash deal, you are indeed required to get it. It's not hidden trunk money.

And to answer your question. All BMW programs are month to month. Even year long programs like USAA can be changed on as any given month.

mjb
 

·
Registered
2018 X5M
Joined
·
1,714 Posts
Thanks for the correction... BMW makes this clear as mud lol. So, after my long "explanation" ignore what I said about this specific "dealer cash". and substitute the words trunk money I guess, lmao
@JJ so glad to see you around, despite your DD being from Evil Musk.:thumbup:
 

·
Registered
Joined
·
8 Posts
Discussion Starter #16 (Edited)
Following up on my inquiry. Yes the incentives were real for both cash or financing. They'll on the MY2019's, which are ending production and can no longer be ordered. When the MY2020's (which cannot be ordered yet) come out there won't be incentives (at least according to dealer).

I put down a deposit on a M240i RWD with premium package and HK Audio and will be picking the car up Monday! And I got it for just shy of 15% off MSRP. Very excited!
 

Attachments

1 - 16 of 16 Posts
Top