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      03-29-2020, 03:02 PM   #1
lovelight
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Deciphering incentives

So I have a question on how to interpret manufacturer rebates/incentives on dealer websites. Not sure why it's not more clear cut.

We have an X5 40i on order and when I negotiated a price with the dealer, there was an additional $2000 rebate for financing through BMW and another $1250 for loyalty reward. However, when I go to the dealer website, I see that there is also a $3250 "Dealer Allowance" on selected models. Strangely, since the vehicle I ordered is technically coming into inventory for my dealer, this "Dealer Allowance" is literally on the VIN for my factory order.

The way I read the financing and loyalty rebates, these should be in addition to the "Dealer Allowance". It's just coincidental that they both add up to $3250. But I'm not 100% sure on this interpretation and wondering if anyone here can comment. Since incentives are regional, I'll add that I'm in 98008.

I don't plan on pushing this with the dealer until I see what the April incentives are. I'm sure they won't be any worse and I have it in writing that I'll get the best interest rate or incentives available until we close on the deal. Seems likely they will get better. I can also walk away from the deal if I have to but I doubt that will be necessary.
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      03-29-2020, 07:01 PM   #2
TurtleBoy
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The $1,250 and $2,000 incentives are from BMW and the dealer allowance should be the discount a dealer is offering. That said though, some dealers play word games with incentives and discounts. It wouldn't hurt to ask them if you are eligible but since you already made a deal they may not include any more discounts.
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      03-29-2020, 07:14 PM   #3
lovelight
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I guess the reason I assumed this "Dealer Allowance" is a manufacturer incentive is that every X5 on their web site has the same amount. Typically, when I see a discount from the dealership, it's some % and when I see something from the manufacturer, it's a fixed amount for any car within that model/line.

We've got a few days before we see what BMW does in April. I guess I'll figure it out then.
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      03-30-2020, 09:18 AM   #4
karateboi87
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My advice is, forget about anything that mentions "dealer" in it. 99% of dealers will play games with you on that.

Just go through the price thread for reference, and focus on the real numbers: % off MSRP, and rebates.
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      04-01-2020, 05:33 PM   #5
lovelight
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Sharing what I've been told here for anyone else trying to make sense of BMW incentives. The simple explanation is that unless you qualify for military or college grad programs, the most you can get is $3250 as a rebate. This appears to break into two scenarios:

1. You show up with your own financing or cash = $3250 rebate
2. You take BMW financing ($2000) and get a BMW loyalty rebate ($1250) = $3250

I was told you cannot combine the own financing/cash + BMW loyalty rebate, which sounds weird but makes sense if you are BMW and want to limit rebates to $3250 regardless of the scenario. I guess the way a person goes depends upon the rate BMW financing approves you for and if you are a prior owner.

It looks like they announced today that they are extending no payments for 90 days if you take delivery by June 30 which can help for some situations. I guess that makes sense considering the circumstances.
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