Canadian Dealership Invoice Price?

[BrownBoy]

Does anyone know the invoice or wholesale price that dealerships pay for the 135i or its options? Every website I go to that has this information for other cars, doesn't have it for the 1-series.

Thanks in advance!

[1Ronnie]

Both dealers I went to said that list is 7% above their buy???

[BrownBoy]

So...

Invoice = $38,780
MSRP = $41,700
Profit = $2,920

Sounds about right...can anyone else can back up these numbers?

[osc]

I can confirm similar numbers - Have a quote from APA and they are providing invoice at 38,365.

[BrownBoy]

Originally Posted by osc

I can confirm similar numbers - Have a quote from APA and they are providing invoice at 38,365.

Sorry for the stupid question, but what's APA?

[koala]

carcostcanada.ca has the invoice numbers available now... well worth the cost if you're planning to negotiate price.

[BrownBoy]

I would like to thank arrons1969 and osc VERY much for their inputs here! I just used the $38K number and I got 2% off my 135i. Saved me $1055.05!!!

[1Ronnie]

I haste to be a bastard, but I got $1800 off (sorry) ... but I did get a lot of fruit, Premium, Comfort, Metallic, Leather and USB

[BrownBoy]

Originally Posted by arrons1969

I haste to be a bastard, but I got $1800 off (sorry) ... but I did get a lot of fruit, Premium, Comfort, Metallic, Leather and USB

Wow, congrats!

I only got Comfort Access, M Sport Package and Metallic Paint. My dealership has only had one allocation EVER, so they were very reluctant to deal. If I didn't pick up the car, someone else would instantly!

Thanks for your help again!

[1Ronnie]

Yeah ... welll that's the downside isn't it, I have to wait till late July as mine was an order

[xtrema]

I doubt they'll do much for a low margin car. May be until inventory goes up a bit.

I was offered $500 off MSRP but the high lease rate probably mean I'll wait for 2nd year.

[Riddler]

Are the numbers the same with a 128i? 7% dealer markup? Or if someones already got the info post it like they did in the US section.

[1erich]

Originally Posted by BrownBoy

I would like to thank arrons1969 and osc VERY much for their inputs here! I just used the $38K number and I got 2% off my 135i. Saved me $1055.05!!!

Sorry for the n00b question, but can you explain how you "used" this number in the negotiating process? Never purchased a new car before and would like some tips. I'll be ordering a 135i with sport and hi-fi.

[BrownBoy]

Originally Posted by 1erich

Sorry for the n00b question, but can you explain how you "used" this number in the negotiating process? Never purchased a new car before and would like some tips. I'll be ordering a 135i with sport and hi-fi.

It went a little something like this:

Sales Manager - Alright, so the car with all of your options and Freight/PDI will be $47,145 + Taxes.

Me - Hmm... I was hoping for a number closer to $45,000. (I really wanted $46,000).

Sales Manager - Well, do you really need all of these options?

Me - Yes, I do. I feel $45,000 is a fair price for the car as it is.

Sales Manager - What gives you that idea?

Me - Well, I know for a fact that this particular car only costed the BMW dealership around $38,000 and I understand this is a business and you're in this to make money but I feel that if you're making around $3,000 off this one car, the least you could do is cut me some slack. Let's cut split that $3,000 profit in half - you get $1,500, I get $1,500.

Sales Manager - Wow, you sure have done your homework! Let me see what I can do.

* A few minutes go by and he returns to his office *

Sales Manager - Well, I can't quite give you you're $1,500 but we can get you 2% off the $47,145.

* I pull out my blackberry and do some calculations as to monthly payments and total discount after interest *

Me - You have a deal.

If you just show your dealer that you know your stuff and know exactly what you want, they'll be easier on you as it's an easy sale for them. Be confident, but not rude. Show that you've "done your homework" and you will get something return. I'd also like to add that I'm 18 years old so its not like I was intimidating at all.

Good luck and happy negotiating! :thumbup:

[koala]

I usually email a few dealers asking for their best price by a certain time (usually give them til noon on the next business day).

typically 70-80% of dealers reply with a good quote. The most recent time I used this was to buy my girlfriends Yaris... we received an offer to purchase it at about $120 below invoice price, this after a few other dealers saying "no one discounts the Yaris!!!" (a GM at one dealer we tried to negotiate in person with even said "we're only making $200 on this car, you don't believe me, I'll show you" (which is a silly claim to make when I've got the invoice pricing printed out right in front of us, and I even knew about the secret factory incentive on the car at the time).

Anyway it pays to do your homework. I've never paid anywhere close to MSRP for a vehicle, and I never would (more out of principal than being a cheapskate).

I also really prefer emailing them asking for *their* best price... you're not lowballing them in this fashion. It's solely up to that dealer to decide what *they* want to sell the car for. There is no undue pressure, all they need to do is put their best price forward and hope for the best. I've always liked this method the best.

[1erich]

Thanks guys. I'll try emailing first and see if that gets me anywhere. Koala, did you email a CA that you had talked to previously or a general email to the dealership or department?

Nice negotiating BrownBoy. I'll be sure to try for something... what have I got to lose.

[koala]

Originally Posted by 1erich

Thanks guys. I'll try emailing first and see if that gets me anywhere. Koala, did you email a CA that you had talked to previously or a general email to the dealership or department?

Nice negotiating BrownBoy. I'll be sure to try for something... what have I got to lose.

I never email sales people, I always email the GM or some type of manager.

Typically they're going to assign a salesperson to you anyway (and they rightfully should-- someone should make the commission on the sale), but I find they take you as a more serious shopper when you approach it this way.

[1Ronnie]

Originally Posted by Riddler

Are the numbers the same with a 128i? 7% dealer markup? Or if someones already got the info post it like they did in the US section.

Mine was $1800 off a 128i, but I did have a few extras. The dealer said it was 7% for all BMWs, but again, who am I to know.

[looking]

I really think only a 7% mark up on invoice is way to little. I use to work for a car dealership and I can tell you that we would have staff discount of 50% plus.

[koala]

Originally Posted by excel

I really think only a 7% mark up on invoice is way to little. I use to work for a car dealership and I can tell you that we would have staff discount of 50% plus.

staff discounts of 50% off the gross profit I would imagine. There isn't a car on the market (including Ferrari and other such brands) that have anywhere close to a 50% markup.

And if you're talking about accessories their profit margins on these items is usually closer to 40-50% margin.

Most cars (doesn't matter what brand it is), have between $2000 and $5000 added on top of invoice to arrive at the MSRP. It all depends on the brand, the market segment, the price of the car, etc.

[looking]

^^^^

no it was in voice price +100 (for paperwork), which equal about 50% off the MSRP. I clearly remember some one at the dealership paying around 20something for a 40+ car.

[koala]

Originally Posted by excel

^^^^

no it was in voice price +100 (for paperwork), which equal about 50% off the MSRP. I clearly remember some one at the dealership paying around 20something for a 40+ car.

There would need to be other circumstances to facilitate such a deal.

a $40,000 car does *not* have an invoice of $20,xxx.

Go to an invoice pricing website like carcostcanada.com and pay the membership fee so that you can get vehicle invoice pricing... if you can find a car with that large of a disparity between invoice and MSRP, I'll re-imburse your membership fee.

The only time I've ever heard of cars going for "half price" is when a lot of the big newspapers in Canada do the auction mart dealie (auction.canada.com) -

The reserve price on all products on the auction mart is 50% of retail (every product put up for auction is given 100% of its retail value in advertising credits through the newspaper - I know this because my business also participates in this programme every year).

Anyway, in a scenario like that it's possible to get a vehicle for 50% off MSRP, but even then they're usually bid higher.