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      02-17-2020, 12:08 AM   #1
Treozen
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Need help understanding how incentives & rebates stack

Hello all -

I need a little help understanding how rebates and incentives stack.

I looked up "special offers" for my region (zip 98321) and the following came us as applying to a 2020 X5 40i:

1)Dealer Allowance: $3,250 cash back on select BMW models

2)Dealer Allowance: $2,000 cash back on select BMW models when financing through BMW Financial Services

3)Loyalty Offer : $1,250 cash back on select BMW models

4)College Grad Offer : $1,000 cash back on select BMW models

There were also conquest and affiliate offers, but I don't qualify.

SO...to the question....does this mean that I would get $3,250 cash back just for buying the car (so even if I paid cash, for example) then another $2,000 if I finance the purchase with BMWFS, then another $1,250 for loyalty and another $1,000 for being a recent college grad? (I'm 40, went to college a bit later that some, lol)

Total so far with these staked would be $7,500 off MSRP. Is that right? And if so, does the dealer allowance account for their MSRP discount, or should I be looking for an MSRP discount on top of these figures? So for example - lets say MSRP is $70k, and I get a 4% MSRP discount, so now the price is $67,200. THEN I deduct the total incentives & credits ($7,500) so now the purchase price (excluding Tax, license etc) is $59,700.

Do I have this correct? I have no idea what sort of MSRP discount is realistic, I just picked 4% for a number to use.

Thanks!
Allan.
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      02-17-2020, 02:48 PM   #2
JasonX4MComp
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Quote:
Originally Posted by Treozen View Post
Hello all -

I need a little help understanding how rebates and incentives stack.

I looked up "special offers" for my region (zip 98321) and the following came us as applying to a 2020 X5 40i:

1)Dealer Allowance: $3,250 cash back on select BMW models

2)Dealer Allowance: $2,000 cash back on select BMW models when financing through BMW Financial Services

3)Loyalty Offer : $1,250 cash back on select BMW models

4)College Grad Offer : $1,000 cash back on select BMW models

There were also conquest and affiliate offers, but I don't qualify.

SO...to the question....does this mean that I would get $3,250 cash back just for buying the car (so even if I paid cash, for example) then another $2,000 if I finance the purchase with BMWFS, then another $1,250 for loyalty and another $1,000 for being a recent college grad? (I'm 40, went to college a bit later that some, lol)

Total so far with these staked would be $7,500 off MSRP. Is that right? And if so, does the dealer allowance account for their MSRP discount, or should I be looking for an MSRP discount on top of these figures? So for example - lets say MSRP is $70k, and I get a 4% MSRP discount, so now the price is $67,200. THEN I deduct the total incentives & credits ($7,500) so now the purchase price (excluding Tax, license etc) is $59,700.

Do I have this correct? I have no idea what sort of MSRP discount is realistic, I just picked 4% for a number to use.

Thanks!
Allan.
Allan,

All of those incentives are not stackable. The $3250 cash is the same thing as the $2000 APR credit and Loyalty credit. The APR credit and loyalty credit are rebates if financed through BMWFS opposed to the $3250 being used for cash or outside financing.

College grad can be stacked but has to be financed through BMWFS.

I hope that helps.
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      02-17-2020, 03:47 PM   #3
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There are two distinct MSRP price reductions: 1 Manufacturer rebates and 2. Dealer discounts.

1. Manufacturer rebates. These are non negotiable and fixed for all dealers in a region. (Not sure if they vary by region or country). All dealers in your state and probably neighboring states will give you the exact same amount of manufacturer rebate. The manufacturer finance rebate ($2K) is yours if you borrow at least $7,500 from BMW. You can pay it off after 4 months so worth getting. Rather than pay cash I borrowed $7,500 to be eligible for the $2K credit.

2. Dealer discounts. These are negotiable and generally range from 5-10%. This will vary based on local markets, time of month, model year, inventory level, etc. Also, the discount can be the same on cars on the lot vs those ordered. If the dealer happens to have a lot of cars in inventory he will try to push you in that directions so it's worth asking other dealers the same question to see if you get the same answer.

Good luck.
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      02-17-2020, 04:07 PM   #4
Treozen
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Yes, ok - thanks. That make sense. Stacking everything up seemed like it was to good to be true.

Allan.
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      02-17-2020, 09:20 PM   #5
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Quote:
Originally Posted by Treozen View Post
Yes, ok - thanks. That make sense. Stacking everything up seemed like it was to good to be true.

Allan.
I don't know what is true but my dealer told me that from 2020 onwards you don't have to finance through BMWFS to get the full 3250 BMW incentive.
So basically I am going through BOA as their APR are lower than BMWFS but still have the 3250 + manufacture discount off MSRP.

Hope this helps.
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      02-20-2020, 10:00 AM   #6
JasonX4MComp
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Quote:
Originally Posted by araje View Post
I don't know what is true but my dealer told me that from 2020 onwards you don't have to finance through BMWFS to get the full 3250 BMW incentive.
So basically I am going through BOA as their APR are lower than BMWFS but still have the 3250 + manufacture discount off MSRP.

Hope this helps.
That is true
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      02-20-2020, 03:10 PM   #7
Treozen
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Quote:
Originally Posted by araje View Post
I don't know what is true but my dealer told me that from 2020 onwards you don't have to finance through BMWFS to get the full 3250 BMW incentive.
So basically I am going through BOA as their APR are lower than BMWFS but still have the 3250 + manufacture discount off MSRP.

Hope this helps.
It does, thanks. As it happens, I decided to buy a 2016 F15 X5 50i instead - because I like visiting gas stations and it was about 48% less than a new one. My first venture into used BMW, traded by beloved but in need of retirement 535i that I bought new in 2012.
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      02-22-2020, 07:58 PM   #8
ChickinX5
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Quote:
Originally Posted by araje View Post
I don't know what is true but my dealer told me that from 2020 onwards you don't have to finance through BMWFS to get the full 3250 BMW incentive.
So basically I am going through BOA as their APR are lower than BMWFS but still have the 3250 + manufacture discount off MSRP.

Hope this helps.
My CA has also confirmed that 2000 is applicable with outside finance. Still I will be nervous wreck until I sign the papers.
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