04-24-2013, 07:24 AM | #1 |
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BMWCA's real invoice margin
in reference to shag's post here
ergo, invoice margin (47850-42504=5346) is really 11% of MSRP as opposed to 8% as dealers claim. if someone in the GTA is able to negotiate down to 5% off MSRP, that leaves the dealer with a profit of - $3,000 for every car worth $50,000 - $399 Ride Green - $299 Admin fees - $200 freight/pdi markup (2195-1995) - % cut off all BMW protections plans, tire insurance, etc. - % cut off all financing deals (lease and purchase) while i do not oppose businesses making money, i do expect to get my money's worth, i.e. best customer service, loaner fleet, best lounge facilities and most of all no BS-ing dealer personnel Last edited by CanadianDriver; 04-24-2013 at 07:46 AM.. |
04-24-2013, 05:13 PM | #2 |
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Not surprised... I always thought the dealer line of 'we are only making a few hundred bucks on the car' with 7-7.5% discount was bogus.
If that was true how would they still be in business with these grandiose dealerships, staffing, cars on the lot, etc. That costs a lot of money. They want us to believe that can be done making $500-$1,000 per car? Several thousand sounds much more realistic. This whole 8% invoice pricing was always a farce. I'm sure there are tons of factory incentives and rebates the dealerships get for meeting sales targets that are not talked about on the internet. |
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04-24-2013, 07:51 PM | #3 |
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I just checked my stuff again, and the wholesale price is above $42504 for the base model Touring... that value reflects the Sedan's wholesale price.
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04-26-2013, 08:15 AM | #4 |
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Sign up for Car Cost Canada and check the numbers. Dealers DO receive back end funding because if they continuous dish out discounts of 7.75% off, they won’t be in business long. The extra fees are just another way of staying in the Black.
Why can’t I pay cost price for gasoline? Lol |
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04-26-2013, 09:31 AM | #5 |
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It all depends on when you buy the car.
I bought mine in August 2012 and I wanted an XDrive with a lot of options. Because the 2013 models were just starting to show up, the dealer had no incentive to lower the price to 92% of the MSRP. Comparatively, a Mercedes-Benz dealership was willing to give me a HUGE discount on a 2012 C350 4matic, way more than what I received from BMW. I believe I received almost 10% off for the Baby Benz comparatively to 4% off for the Bimmer. Consequently, I believe that you can get to within the 10% discount if you buy towards the end of a model year. Can they give you more? There is always room for that but in the end the CA's job is to make you leave satisfied with the offer you got. Haggling to the last $100 just to brag that you received 11% off is a bit extreme. That being said, I know a lot of bargain hunters who don't buy unless the price is right... |
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05-03-2013, 07:14 AM | #7 |
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Not at all. If they don't like your offering, then get up and walk.
The 3series is a volume car and dealer now has started to clear the MY2013 and the car is actually considered to be almost 1 year old already as MY2014 is only 2 months or so away. |
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05-03-2013, 09:46 AM | #8 | |
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They know we have access to carcost information, and the 3 series is a volume car, so they rather sell what they have on the lot. The problem is finding the dealer with the right car with the options you are looking for. When I was looking for my 335i, I went through 3 dealerships, and the starting point was always 7% off MSRP. It came down to the dealer that had the 335 with the options I was looking for and the colour. |
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05-03-2013, 10:27 AM | #9 | |
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+1. It all comes down to when you buy the car. I bought my 2010 E91 right at the end of the model year and was able to combine discounts with incentives and a loyalty credit to get almost 12% off (if my math and memory are correct).
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05-03-2013, 12:17 PM | #10 |
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i feel ripped off i got my like 4 months ago for 6.5% off MSRP. Do you think they will offer more then 8% off on a 2013 335i? I just want to see not interested in buying another.
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05-03-2013, 02:57 PM | #11 |
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05-03-2013, 04:17 PM | #12 | |
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In the grand scheme of things, that .5% really didn't amount to much, and you get to enjoy your car for 4 months. |
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05-03-2013, 08:46 PM | #13 | |
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Mine was premium package, msport, m sport brake, M Adap Suspension, and VSS |
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05-03-2013, 10:41 PM | #14 | |
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Nice setup you got there. Mine is almost the same setup except I am missing the VSS. It has the BMW Assist instead. There were 2 cars with almost the same options in the Estoril Blue, one had the VSS, the other had the BMW Assist. I went with the BMW Assist. I enjoyed that option with my E90. How do you like the VSS, do you feel there is a difference on the steering? |
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05-03-2013, 10:58 PM | #15 | |
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05-04-2013, 11:31 AM | #16 |
pullin a boat
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A guy who works at a BMW stealer told me recently that they have a 7% profit margin. Yeah right...
Once again, be careful with that wholesale price, 42504 is the Sedan's wholesale price - not the Touring's.
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