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      08-19-2012, 08:39 AM   #1
Charlie Brown
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Dealer not offering normal 7% discount for ED on M5

This past Tuesday I attended the one day M School @ the Spartanburg PC. In a word.. FANTASTIC!! Yesterday (Saturday) I walked in to my dealer to order an M5 and take ED. I expected to get the discount BMW advertises and use it to pay for my trip and mini vacation to the Nurburgring. My dealer informed me that things have changed in the past two weeks and that an M5 with ED comes out of their allocation and thus they no longer offer the discount. My CA did say he would verify all this on Monday and get back to me.. So I'm anxiously waiting... Did any of you experience this? Even if BMW does take it out of the dealer's allocation, are their dealers that will still honor the discount?
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      08-19-2012, 09:23 AM   #2
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Originally Posted by Charlie Brown View Post
My dealer informed me that things have changed in the past two weeks and that an M5 with ED comes out of their allocation and thus they no longer offer the discount.
This is true. The separate ED pool is not available at this time, so any ED orders will come out of dealer allocations.

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Originally Posted by Charlie Brown View Post
Even if BMW does take it out of the dealer's allocation, are their dealers that will still honor the discount?
The 7% discount should still apply, so you should be able to place an order and at worst pay ED MSRP which is 7% below US MSRP. Your ability to obtain a better deal will depend on your relationship with your dealer and how willing they are to negotiate.
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      08-19-2012, 09:55 AM   #3
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The 7% discount should still apply.
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      08-19-2012, 01:13 PM   #4
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But for as long as they expect to be able to sell out their entire allocation at US MSRP (some may try for premium), why would they "waste" a precious slot on ED right now? I am assuming that dealers make much more money selling cars at or above full US MSRP.
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      08-19-2012, 01:32 PM   #5
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Originally Posted by cnicholson View Post
But for as long as they expect to be able to sell out their entire allocation at US MSRP (some may try for premium), why would they "waste" a precious slot on ED right now? I am assuming that dealers make much more money selling cars at or above full US MSRP.
They do make more money on the US MSRP vs ED MSRP. However look at how the 2012 M6 convertibles are sitting on the lots. Something tells me the demand isn't as strong as many of us thought it might be.
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      08-19-2012, 01:43 PM   #6
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Quote:
Originally Posted by cnicholson View Post
But for as long as they expect to be able to sell out their entire allocation at US MSRP (some may try for premium), why would they "waste" a precious slot on ED right now? I am assuming that dealers make much more money selling cars at or above full US MSRP.
The difference between MSRP and Invoice on US delivery is $7,190 and for ED it's $6,690. So dealers make $500 more on US delivery if they sell at MSRP. It's not so big of a difference that you couldn't get a dealer to work with you for ED delivery. If you really wanted to place an ED order immediately, worst case is you may have to pay ED MSRP+$500.
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      08-19-2012, 01:51 PM   #7
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So dealers make $500 more on US delivery if they sell at MSRP. It's not so big of a difference
I'm pretty sure that's incorrect. The dealer also gets a holdback payment (based on CSI scores) on US deliveries that they don't get on EDs.
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      08-19-2012, 03:11 PM   #8
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Quote:
Originally Posted by ucla95 View Post
They do make more money on the US MSRP vs ED MSRP. However look at how the 2012 M6 convertibles are sitting on the lots. Something tells me the demand isn't as strong as many of us thought it might be.
My dealer had a M6 convertible for over 2 months when they launched.
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      08-19-2012, 04:31 PM   #9
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Originally Posted by ucla95 View Post
I'm pretty sure that's incorrect. The dealer also gets a holdback payment (based on CSI scores) on US deliveries that they don't get on EDs.
The prices I quoted are correct on a per car basis. I have no idea how the holdback works for BMW dealers, and therefore could supplement their earnings on an aggregate basis.
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      08-19-2012, 11:03 PM   #10
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Quote:
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The 7% discount should still apply.
This is absolutely true. The only reason your dealer told you otherwise is because they are ignorant of this fact. Make sure that they check their facts again.
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      08-20-2012, 05:20 AM   #11
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Try a different dealer. I put in an ED order last week with a good discount from ED MSRP.

the dealer ties up 100K of working capital if the order an M withou a buyer, so some owners/GM's aren't looking to have M cars on the lot. They'd rather sell their allocation ahead of time or give it to another dealer. M buyers are pretty selective, and rarely buy a car off the lot-----they know what they want.
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      08-21-2012, 11:36 AM   #12
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On the flip-side, anyone getting discounts below ED MSRP?
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