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Discussion Starter #1
Hello all,

First time posting here but have been browsing for the past few weeks and I think I'm ready to make the move and lease a 3 series. I'm deciding between the 2016 328xi and 340xi. I'll know more about which car once I test drive both. However, I had a quick question and was hoping someone could help me regarding pricing and negotiation.

My company has an incentive program with BMW going on this month. If I purchase a 3 series the program allows $1,500 off the vehicle price and .00020 money factor reduction. My question is do I negotiate the selling price and money factor before bringing up this extra incentive program? I wasn't sure whether it is better to be upfront or wait until we agree on a price and then bring it up. The program allows for any sales programs going on this month as well.

Thank you in advance!
 

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Hello all,

First time posting here but have been browsing for the past few weeks and I think I'm ready to make the move and lease a 3 series. I'm deciding between the 2016 328xi and 340xi. I'll know more about which car once I test drive both. However, I had a quick question and was hoping someone could help me regarding pricing and negotiation.

My company has an incentive program with BMW going on this month. If I purchase a 3 series the program allows $1,500 off the vehicle price and .00020 money factor reduction. My question is do I negotiate the selling price and money factor before bringing up this extra incentive program? I wasn't sure whether it is better to be upfront or wait until we agree on a price and then bring it up. The program allows for any sales programs going on this month as well.

Thank you in advance!
What do the terms of this program say? Do they suggest that you have to let a dealership know about this program before you negotiate?

If not, I would negotiate a deal and then bring up these additional benefits.
 

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Hello all,

First time posting here but have been browsing for the past few weeks and I think I'm ready to make the move and lease a 3 series. I'm deciding between the 2016 328xi and 340xi. I'll know more about which car once I test drive both. However, I had a quick question and was hoping someone could help me regarding pricing and negotiation.

My company has an incentive program with BMW going on this month. If I purchase a 3 series the program allows $1,500 off the vehicle price and .00020 money factor reduction. My question is do I negotiate the selling price and money factor before bringing up this extra incentive program? I wasn't sure whether it is better to be upfront or wait until we agree on a price and then bring it up. The program allows for any sales programs going on this month as well.

Thank you in advance!
Its up to you, but neither of those incentives come out of the dealerships pocket (they come from BMW) so the dealer will not care. If you mention it first, the dealer may try to mentally get you to factor it into the discount they are giving you.

Something like " we are offering you 3k off the price" when what they are really offering is 1500 off + your corporate discount.

As for the money factor, that is an ADDITIONAL discount. They usually just try to apply that discount to the max money factor but you CAN use the corporate discount to reduce the money factor under the base. Base money factor in July was .00137-.00177 negotiable between you and the dealer (not sure what it is in august right now). the corporate discount of .00020 means that YOUR effective money factor is .00117 -.00157 negotiable between you and the dealer.

Dealers many times will just say " oh your money factor is .00157, and all they really did was apply your corporate discount, and not give you a discount on it. If you apply Multiple security deposits, those also go on top of the corporate discount. you can get your money factor REALLY low if you stack all that.

Max MSD reduce the money factor .00049, and that goes on top of the numbers above... so if you get base money factor, with MSDs and corporate discount, in july your money factor could be as low as .00068...or equivilent to 1.6 percent interest rate.

If it were me, I would let them know that you are eligible for the corporate discount program, but want to negotiate your price on the car then apply the corporate discount. This will let them know you know how it works.

I am not a fan of springing things on them at the end, because it makes the process more adversarial than it needs to be.

Also, that is a pretty hefty corporate discount associated with a 3 series. I would check that total to be sure. Usually 3s are a $500 rebate on a corporate discount, and more expensive vehicles are more..... but there are different tiers of corporate discounts.

One thing you said that I find strange is, why would you only be eligible for the discount this month? Is your company stopping participation in the corporate discount program?
 

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Discussion Starter #4 (Edited)
Sorry I forgot to hit quote and reply directly to you 328AL.

No it just states to fill out the certificate on our website (directs us to a BMW link). There are a few exceptions listed such as the incentive cannot be used in conjuction with the ultimate drive event, military discount, college program and a few others but neither of those apply to me.
 

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Discussion Starter #5
Its up to you, but neither of those incentives come out of the dealerships pocket (they come from BMW) so the dealer will not care. If you mention it first, the dealer may try to mentally get you to factor it into the discount they are giving you.

Something like " we are offering you 3k off the price" when what they are really offering is 1500 off + your corporate discount.

As for the money factor, that is an ADDITIONAL discount. They usually just try to apply that discount to the max money factor but you CAN use the corporate discount to reduce the money factor under the base. Base money factor in July was .00137-.00177 negotiable between you and the dealer (not sure what it is in august right now). the corporate discount of .00020 means that YOUR effective money factor is .00117 -.00157 negotiable between you and the dealer.

Dealers many times will just say " oh your money factor is .00157, and all they really did was apply your corporate discount, and not give you a discount on it. If you apply Multiple security deposits, those also go on top of the corporate discount. you can get your money factor REALLY low if you stack all that.

Max MSD reduce the money factor .00049, and that goes on top of the numbers above... so if you get base money factor, with MSDs and corporate discount, in july your money factor could be as low as .00068...or equivilent to 1.6 percent interest rate.

If it were me, I would let them know that you are eligible for the corporate discount program, but want to negotiate your price on the car then apply the corporate discount. This will let them know you know how it works.

I am not a fan of springing things on them at the end, because it makes the process more adversarial than it needs to be.

Also, that is a pretty hefty corporate discount associated with a 3 series. I would check that total to be sure. Usually 3s are a $500 rebate on a corporate discount, and more expensive vehicles are more..... but there are different tiers of corporate discounts.

One thing you said that I find strange is, why would you only be eligible for the discount this month? Is your company stopping participation in the corporate discount program?
Thank you very much for your feedback. I will just bring it up front to avoid any surprises but tell them I would like to agree on a selling price and money factor before applying the corporate incentives. It appears the discount is $1,500. The incentive link basically shows:

Level 2 - Car Allowance
Base - Best negotiated price off MSRP
Incentives - All sales support available at time of finance can be applied
3 series - $1,500 plus money factor discount

Poor choice of words on my end, I mentioned this month because I looked on our discount website and the incentive program was available starting today but it doesn't state an end date.
 

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Thank you very much for your feedback. I will just bring it up front to avoid any surprises but tell them I would like to agree on a selling price and money factor before applying the corporate incentives. It appears the discount is $1,500. The incentive link basically shows:

Level 2 - Car Allowance
Base - Best negotiated price off MSRP
Incentives - All sales support available at time of finance can be applied
3 series - $1,500 plus money factor discount

Poor choice of words on my end, I mentioned this month because I looked on our discount website and the incentive program was available starting today but it doesn't state an end date.
Great! ( the company I work for also qualifies for the BMW corporate discount, and I have leased a couple of BMWs using it... this is where my advice was coming from).

Make sure you check suspension options on Xdrive cars. Even with msport models you dont get the sports suspension on an X drive car according to what I have read here (I have rwd).
 

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If I am dealing with a trusted CA, like a forum sponsor, or one I have done business with several times - then yes I would bring up front.

If it is a new/unknown dealer - I am less trusting and would negotiate best price and then mention the corporate program. This money doesnt come from their pocket so it shouldnt make a difference and it shouldnt make it adversarial. On the other hand, if they know up front they will try to pocket as much of that incentive as possible, or hide other incentives in order to keep them. Sorry, but thats how many/most dealers work, unfortunately.

Good luck and nice corporate incentive.
 

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If I am dealing with a trusted CA, like a forum sponsor, or one I have done business with several times - then yes I would bring up front.

If it is a new/unknown dealer - I am less trusting and would negotiate best price and then mention the corporate program. This money doesnt come from their pocket so it shouldnt make a difference and it shouldnt make it adversarial. On the other hand, if they know up front they will try to pocket as much of that incentive as possible, or hide other incentives in order to keep them. Sorry, but thats how many/most dealers work, unfortunately.

Good luck and nice corporate incentive.
Thank you. This is helpful. It sounds like its better to wait and negotiate the best price like you mentioned since the incentives doesn't affect the dealership.
 
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