04-05-2020, 08:22 AM | #1 |
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More incentives coming due to the COVID-19 situation?
Hi all,
I am seeing that some dealers are posting some decent deals on new and used 3-series. Mostly lowered interest rates but even some lowered down prices on the car itself. The deals are only on 320d and 330i mostly right now. Have not seen anything announced yet about the M340i (uncommon here). Do you guys think that if the current Covid-19 situation takes more time or gets worse, that the deals will become better? Or will BMW just choose not to sell over lowering prices? Also, has anyone of you got a good deal on an M340i these days that you didnt get before this pandemic? |
04-05-2020, 08:29 AM | #2 |
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Many have different opinions on this, but I think that for the next few months we will see 10-12% MSRP discounts easy, probably even more on stock units. We've been seeing those pre-pandemic but now due to the desperation to move cars the incentives should be better.
Some people say that discounts depend on overall units sold and I don't see the correlation. Sedans don't sell as well as SUV's, but they still have to move sedans. |
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04-05-2020, 08:52 AM | #3 | |
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If, for example you compare the incentives offered on the M340i vs. the X5: M340i: $1,000 Lease Credit; $2,000 Loyalty Credit X5: $500 Lease Credit; $1,250 Loyalty Credit On top of that, 10-12% off pre-incentive has been much easier to get on the G20 than on the G05. Pandemic or not, there is definitely an inverse correlation between demand and discount.
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04-05-2020, 01:38 PM | #4 |
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I can only agree, sedans are easier to get better deals with due to lower demand than for ex SUVs.
Also I am heraing that right now there is in general lower demand for new/almost new cars because of people being unsure of their jobs in the near future, so that should affect prices as well I guess? |
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04-05-2020, 11:43 PM | #5 |
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Could go both ways. I could see a scenario where dealers aren't willing to discount more than usual b/c stock will be limited for some time.
We'll know more tomorrow for sure when the new leasing/financing numbers come out. |
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04-06-2020, 09:57 AM | #6 |
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Factories are currently closed. There is no need to offer more manufacturer incentives until they're making more cars to sell.
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04-06-2020, 01:54 PM | #8 |
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Another thing to keep in mind is that volume bonuses will be non-existent for dealers during this time (due to obvious reasons), so that also decreases their motivation to hand out generous discounts.
So with little to no new inventory coming in, no hope to score volume bonuses, dealers don't have much benefit to moving cars at a deep discount. That being said, short answer is, nobody really knows if great deals will come out of the current situation. It's all just speculation at this point.
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04-06-2020, 04:10 PM | #9 |
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Everybody else is doing 0% for 84 months and no payments for 6 months???
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04-07-2020, 09:39 AM | #10 | |
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04-10-2020, 05:21 PM | #11 | |
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Dealerships are not just handing out huge discounts for shits and giggles. These are calculated deals where the juice has to be worth the squeeze for the dealership. |
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04-11-2020, 03:56 PM | #12 | |
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04-13-2020, 11:05 AM | #13 | |
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04-13-2020, 12:00 PM | #14 | |
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But my thought is on a dealer's P&L, the top 2 items under the expenses bucket are payroll and inventory. With no new inventory coming in, and thousands of sales staff furloughed, it's not yet imminent that they begin offering deep discounts to liquidate remaining inventory. Perhaps that'll change in another month or 2, but right now it doesn't seem to be the case.
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04-13-2020, 12:26 PM | #15 | ||
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04-15-2020, 09:38 AM | #17 |
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What rates are you referring too? The M340i lease rate in Canada was 3.9% in Feb... same rate now. Someone mentioned in the forum that money factor was slightly better in the US in April but residuals slightly worse. The incentives are different but value is the same in Canada as well.
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04-15-2020, 12:05 PM | #18 | |
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04-16-2020, 12:23 AM | #19 |
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04-16-2020, 11:04 AM | #20 | |
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04-18-2020, 12:05 AM | #21 | ||
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04-18-2020, 08:04 PM | #22 | |
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Someone earlier mentioned manufacturers have no incentive to sell because factories are closed, but that's far from true. Just like the dealers and any other business, there are a ton of liabilities and cash flow is important. Obviously every company's financial situation is different so incentives and what not are going to depend on many factors. |
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