Quote:
Originally Posted by wtwo3
Here, let me help you:
MSRP: $68,970
Sale Price: $62,100 (10% discount)
Incentives: $2k loyalty; $1k lease cash
Adjusted Cap Cost: $59,100
Monthly Payment: $658 (including tax)
Drive-Off Amount: $ 6,013 (7 MSD-$4,900 + 1st month payment-$658 + Fees-$455)
Months: 36
Annual Mileage: 12,000
MF (before MSD's): 0.00128
Residual:60%
I think you're confusing "quite often" to mean "most". I'm by no means saying most. For every 1 person that gets 10% off, there are likely 10 that pay close to MSRP. But to suggest that it's not really possible and that BMW (Again, the dealers do the discount, BMW only offers incentives) is not doing that at this point simply means you haven't done any research.
Further, dealers have what's called a "hold back" amount, below invoice, which is a cash amount awarded to the dealer for each sale of a new car by BMW. This hold back amount represents 2-3% below invoice. So even at 10%, the dealer isn't really "losing money".
Beyond that, volume dealers are in it for the cash bonus provided by BMW as incentive for meeting a sales quota, so if that means they take a few low to 0 margin sales here and there to hit that quota, they are more than willing to do so.
Doesn't take a magician to get 10% off pre-incentive with buy-rate money factor. Just takes a bit of effort and excellent credit. I emailed 21 dealerships across the midwest, majority of which thought I was crazy for asking that much off. However the 2-3 high volumes dealers that were willing to play ball.... I had them bid against each other for my business, and I went with the best offer.
You should check out Leasehackr.
Here's the calculation to my payment:
leasehackr.com/calculator?make=BMW&miles=12000&msd=7&msrp=68970&s ales_price=62073&months=36&mf=.00128&dp=0&dealer_f ee=85&acq_fee=925&taxed_inc=3000&untaxed_inc=0&reb ate=0&resP=60®_fee=400&sales_tax=7.25&demo_mile age=0&memo=&monthlyTax_radio=true |
M
S
D
!!!!
Missed to mention that little detail....
As I mentioned, impossible to get to that number without that....
I am done with that one