[DrPartagas]

Does it make sense to custom order a 2022 for a June-July delivery date or is it a better idea to wait a little longer and acquire the X5 at the beginning of the 2023 model year?

I'm wondering if I am in a stronger negotiating position to get a better msrp discount at the end of the current model year since the new 2023's will be forthcoming??

What is the best strategy?

[TurtleBoy]

Likely there will be no difference in negotiating power. We have seen in the past where dealers wouldn't give as big of a discount on the previous MY sitting on their lot as they would on custom orders. Obviously sometimes the opposite would occur depending on the dealer.

There is no correct answer to this question other than you doing what you feel most comfortable with. Good luck.

[Henry2020]

Originally Posted by DrPartagas

Does it make sense to custom order a 2022 for a June-July delivery date or is it a better idea to wait a little longer and acquire the X5 at the beginning of the 2023 model year?

I'm wondering if I am in a stronger negotiating position to get a better msrp discount at the end of the current model year since the new 2023's will be forthcoming??

What is the best strategy?

Are you getting a good discount if you order now? I doubt that it can get much worse so if you can afford to wait I’d give the market a chance to cool off a bit.

[jiggie]

Originally Posted by DrPartagas

Does it make sense to custom order a 2022 for a June-July delivery date or is it a better idea to wait a little longer and acquire the X5 at the beginning of the 2023 model year?

I'm wondering if I am in a stronger negotiating position to get a better msrp discount at the end of the current model year since the new 2023's will be forthcoming??

What is the best strategy?

I wouldn’t expect any discount based on that thinking, considering they can’t even build enough 2022’s to meet demand as is, there is no reason to discount them. Waiting a few months will net you a MY23, but as of right now there are no changes from MY22.

[DrPartagas]

I'm just wondering that for similar equipment on a custom order and equal MSRP discounts between the 2022 and 2023 model, at the end of the 2022 build year, is it a no brainer to hold off and buy the 2023 since the 2022 "year end" purchase will immediately provide me with a depreciation hit that can be easily avoided with a 2023 purchase should I wait for 2 additional months?

So, should I patiently wait for 2 additional months for the 2023 arrivals and spare myself from the 2022 depreciation hit or not? Thoughts?

Am I missing something?

[TurtleBoy]

I think you are over thinking it. You will immediately have the depreciation hit as soon as you pick up either one. While the MY22 will be a "year older" the difference will be minimal especially if there are price and finance rate increases. Besides, unless you plan to sell it soon after buying it what difference does a fw months or thousands make?

[Henry2020]

Originally Posted by DrPartagas

I'm just wondering that for similar equipment on a custom order and equal MSRP discounts between the 2022 and 2023 model, at the end of the 2022 build year, is it a no brainer to hold off and buy the 2023 since the 2022 "year end" purchase will immediately provide me with a depreciation hit that can be easily avoided with a 2023 purchase should I wait for 2 additional months?

So, should I patiently wait for 2 additional months for the 2023 arrivals and spare myself from the 2022 depreciation hit or not? Thoughts?

Am I missing something?

You’re on the right track. If all else is equal I would get the newer model. In December of 2018, I bought two Lexus RX 350 - one was model year 2018 and the second was 2019. One year later when I checked the cash value the 2019 was couple thousand higher even though both vehicles had about the same original MSRP and mileage.

[Wes335XI]

Originally Posted by Henry2020

You're on the right track. If all else is equal I would get the newer model. In December of 2018, I bought two Lexus RX 350 - one was model year 2018 and the second was 2019. One year later when I checked the cash value the 2019 was couple thousand higher even though both vehicles had about the same original MSRP and mileage.

But to TurtleBoy's response, what does that matter? Unless you plan on selling the car immediately, why does a couple grand matter for a $70K car that you plan on keeping for the long term? At least I'd assume he is if he's custom ordering it.

The market is also all over the place right now. People are selling used vehicles for the same if not more than what they paid several years ago. For me it would be the design changes in the LCI. I've heard the headlights will get an update and a few other things. I personally would prefer a 2022 based on what I've heard.

[Henry2020]

Originally Posted by Wes335XI

But to TurtleBoy's response, what does that matter? Unless you plan on selling the car immediately, why does a couple grand matter for a $70K car that you plan on keeping for the long term? At least I'd assume he is if he's custom ordering it.

The market is also all over the place right now. People are selling used vehicles for the same if not more than what they paid several years ago. For me it would be the design changes in the LCI. I've heard the headlights will get an update and a few other things. I personally would prefer a 2022 based on what I've heard.

If he has a choice why take the hit? The difference will stay regardless of when he decides to sell. Not only is he going to pay a high price to buy the vehicle but also when he decides to sell/trade in a few years he’s going to take an additional hit for having a 1 year older vehicle. When the 2023 model is available I would demand an extra discount to get the 2022.

[DrPartagas]

Agreed. My thinking exactly. Dealerships may soften a little at year end to get more orders before the 2023 season begins, maybe not. Thus, they may discount a few more sheckles off MSRP. I could be wrong but this would be my argument in negotiating a price. If they are saturated with orders, then it won't matter. But, if depreciation is a concern, then it makes best sense to me to wait for the 2023 model year in order to purchase a new car if pricing is equal on 2022 and 2023 models.

[TurtleBoy]

Question - how does that depreciation effect you in any way?

[DrPartagas]

I'm thinking trade-in value down the road. If I order within close timelines, then I think the newer model becomes more desirable unless I can offset MSRP with better 2022 pricing. Then, it becomes a wash to me. I may be wrong but this is my current thinking.

[TurtleBoy]

Originally Posted by DrPartagas

I'm thinking trade-in value down the road. If I order within close timelines, then I think the newer model becomes more desirable unless I can offset MSRP with better 2022 pricing. Then, it becomes a wash to me. I may be wrong but this is my current thinking.

If you keep the vehicle for the same amount of time and mileage there should be no appreciable difference in value. I’m probably looking at it differently though, I never make a decision on a vehicle based on what it may or may not be worth in the future. I buy a vehicle based on my wants and needs and not on what it will be worth when I get rid of it. Of course we are all different.

[DrPartagas]

I may change my thinking. Good insight.

[Garycoral]

Originally Posted by DrPartagas

I'm just wondering that for similar equipment on a custom order and equal MSRP discounts between the 2022 and 2023 model, at the end of the 2022 build year, is it a no brainer to hold off and buy the 2023 since the 2022 "year end" purchase will immediately provide me with a depreciation hit that can be easily avoided with a 2023 purchase should I wait for 2 additional months?

So, should I patiently wait for 2 additional months for the 2023 arrivals and spare myself from the 2022 depreciation hit or not? Thoughts?

Am I missing something?

For what it's worth - I think waiting is the way to go... As soon as I can get an order in for a 2023 X5 45e WITH HK Sound I'm going to - Hard to take the lame HiFi system any longer than I have to.

[rpm50i]

If you don't need the vehicle at a specific time, and all else remains equal, getting the next year model by waiting another month is an easy choice. while the first part is easy to determine, 'all else remains equal' - not a chance.

'what will the market look like when i buy/sell?' - nobody can predict. for example, a ship full of VW group cars caught on fire , so guess who will be bumping up ADM? Similarly, dealer discounts are very 'in the moment' at any given time - someone in the food chain had a quota to hit that one day, and you get 8% in current market. next day, your suave negotiator buddy gets ADM. as for selling, all bets are off. for example, If EVs get some big federal push (like outrageous tax credits), our ICE vehicles will be

And yes, once you make up your mind and run numbers on a specific vehicle, dont let yourself numb your experience by worrying about depreciation and so forth. Because if depreciation is your priority, you should buy yourself a 2012 toyota and put the rest of the money in your investment of choice. A new BMW is a sinking ship when it comes to depreciation.