BimmerFest BMW Forum banner

1 - 20 of 24 Posts

·
Registered
Joined
·
50 Posts
Discussion Starter #1
My Northern California BMW dealer has offered the following as his first offer:



I have all the deal particulars so will spare you the car options, etc. unless you want to see

Basic deal parameters:

2016 340i
MSRP 53,395
Residual % 66
Selling Price 51,065 (stated as 1,250 over invoice)
Money Factor .00137 (which appears to be base rate from various posts)
Rebates 1,000 loyalty I believe

Let me know if you need more data

Also

If we order a 2017 car the offer is 500 over invoice.

Looking forward to all of your thoughts!

Charles
 

·
Porleau
Joined
·
1,537 Posts
Kind of weird that you get a better deal (to MSRP) on an ordered 2017 vs something they have in inventory. It should be the other way around. I would probably try to work an aggressive deal on the '16 as the residuals are much better than '17s. You should at least get the invoice + $500 deal less incentives. I would suspect you can even do better. The money factor is at the buy rate, so all set there. Grind away!
 

·
Drink the koolaid or else
Joined
·
2,691 Posts
Call Greg at Pacific BMW. The SouthernCal dealers are much more likely to offer you a good price. Over invoice on a 2016 seems "bad" right now.
 

·
Registered
Joined
·
984 Posts
Basic deal parameters:

2016 340i
MSRP 53,395
Residual % 66
Selling Price 51,065 (stated as 1,250 over invoice)
Money Factor .00137 (which appears to be base rate from various posts)
Rebates 1,000 loyalty I believe
I plugged in your 2016 deal above into the calculator here (there is a tab with your name on it):
https://docs.google.com/spreadsheet...RNEqa4abrPG9zwNVOU3AmuZPs/edit#gid=1035507117

The deal is 1250 over invoice - but there is no rebate, or worse, they are taking the rebate and putting it in their pocket, effectively making it a $2250 over invoice. Either way, it doesnt feel like a particularly competitive deal for a 2016.
 

·
Registered
Joined
·
3,243 Posts
bad deal
 

·
Registered
Joined
·
50 Posts
Discussion Starter #6
Deal sheet shows 1000 rebate under customer cash. I have printout from dealer computer screen.

Were the 2016 340i in demand enough new enough to justify over invoice?

I plugged in your 2016 deal above into the calculator here (there is a tab with your name on it):
https://docs.google.com/spreadsheet...RNEqa4abrPG9zwNVOU3AmuZPs/edit#gid=1035507117

The deal is 1250 over invoice - but there is no rebate, or worse, they are taking the rebate and putting it in their pocket, effectively making it a $2250 over invoice. Either way, it doesnt feel like a particularly competitive deal for a 2016.
 

·
Registered
Joined
·
984 Posts
Deal sheet shows 1000 rebate under customer cash. I have printout from dealer computer screen.

Were the 2016 340i in demand enough new enough to justify over invoice?
That just makes the deal even worse! They are pocketing the $1k rebate.
I updated the spredsheet to show it.

I dont know about demand on the car, but my guess is that there may be a lot of room to negotiate if you want to do so, or just go to other dealers and get quotes.
 

·
Resident Curmudgeon
Joined
·
23,358 Posts
Bad deal


I will bet that you've made it clear that there is a specific car on the lot you want... And the "500 over" is an empty ploy: you ask for specific quotes on that and they'll Jack around money factor and other to get the 3500 profit they are hiding in this deal.

Why aren't you using a sponsor??

;)
 

·
Registered
Joined
·
8,892 Posts

·
Registered
Joined
·
984 Posts
The doc you included just shows your dealer is crushing you... He may be saying he is giving you invoice less incentives and no markup but the doc doesnt seem to say that.

- MSRP is $53,395 - Invoice should be $49,815 (+- a few bucks) - But the selling price is $51,065 - the difference is dealer markup
- Under Cap Cost Reduction, look at Cash Reduction=3667.68 - where is that coming from? According to the doc, it is coming out of your pocket. The 5k you are talking about covers this cap reduction, plus first payment, and other fees.
- I updated the sheet and I am able to nail down the exact same calculation down to the taxes.
- BTW, I know why he refers to it "1250" over invoice - because it is, plus the 1k rebate going into their pocket.

There is a $2280 markup in this car. If someone else has a different take I am all ears but I am pretty confident my calculation is right
 

·
Premium Member
Joined
·
2,120 Posts
The doc you included just shows your dealer is crushing you... He may be saying he is giving you invoice less incentives and no markup but the doc doesnt seem to say that.

- MSRP is $53,395 - Invoice should be $49,815 (+- a few bucks) - But the selling price is $51,065 - the difference is dealer markup
- Under Cap Cost Reduction, look at Cash Reduction=3667.68 - where is that coming from? According to the doc, it is coming out of your pocket. The 5k you are talking about covers this cap reduction, plus first payment, and other fees.
- I updated the sheet and I am able to nail down the exact same calculation down to the taxes.
- BTW, I know why he refers to it "1250" over invoice - because it is, plus the 1k rebate going into their pocket.

There is a $2280 markup in this car. If someone else has a different take I am all ears but I am pretty confident my calculation is right
With what info were you able to plug in so much info? Did I miss a document from the OP that has more details than the first post? I didn't even see a payment.

And there is NO loyalty $1,000 available nationally. If indeed the dealer has a loyalty credit, I wonder where that is from.

At the top line, I came up with the selling price being $1250 over invoice.

What I don't know is the adjusted cap cost, which is more important than selling price.
 

·
Registered
Joined
·
8,892 Posts
With what info were you able to plug in so much info? Did I miss a document from the OP that has more details than the first post? I didn't even see a payment.

And there is NO loyalty $1,000 available nationally. If indeed the dealer has a loyalty credit, I wonder where that is from.

At the top line, I came up with the selling price being $1250 over invoice.

What I don't know is the adjusted cap cost, which is more important than selling price.
I think he is talking about the following document OP posted:

https://docs.google.com/document/d/1Ol1yRURrHelFtR3itYQZ4BvWCA3nVmsqJAf7QxepiCw/edit
 

·
Premium Member
Joined
·
2,120 Posts
If someone else has a different take I am all ears but I am pretty confident my calculation is right
They have detailed $6,000 in total cash at signing (not $5,000). It is paidf with $5,000 cash and $1,000 rebate. So all monies are accounted for, and it is accurate at $1,250 over invoice and buy rate.

The decision is whether $1250 over is a fair price. And that is often predicated on the inventory on hand, the objectives of the dealer, etc.

At my store, that's a reasonable deal.

MJB

and of course you will have the don't do cap reduction on leases discussion following.
 

·
Registered
Joined
·
984 Posts
If it's paid with $1k rebate then there was an extra $1k markup, no?

That's the way I read it, either you increase the markup to account for the rebate, or you just pocket the rebate as if it was cash. It's still an extra $1k to the dealer bottom line, no?
 

·
Registered
Joined
·
50 Posts
Discussion Starter #19
Ran numbers through my spreadsheet as well. You are correct - he is marking up my rebate so that I am not getting it. Will ask about that.
 

·
Registered
Joined
·
50 Posts
Discussion Starter #20
And is their an actual 1000 loyalty rebate for July? Any other rebates? I could not find it in BMW site. Thanks
 
1 - 20 of 24 Posts
Top