[fanofbmwe46]

Just curious. How much does a dealer make on the sale of a $70K X5 (sold at sticker price)?

[Protocol_10]

Originally Posted by fanofbmwe46

Just curious. How much does a dealer make on the sale of a $70K X5 (sold at sticker price)?

Wholesale price is about 66k on a 70k X5, so $4,000 plus any attached dealer processing fees. This doesn't include additional add-ons, coverages, or profit from service repairs.

Keep in mind that a dealership needs to make a certain amount of profit per car to pay all sales & service employees, management, maintenance of the building, security, & insurance. Less cars to sell means they need to charge more per car. When inventory returns to normal, expect prices to go down as well.

[TurtleBoy]

As far as I know, they are still using the same invoice calculations that they switched to in 2017. I think they are still getting a holdback of 5% of MSRP in certain situations. Of course there can also be bonuses, sales quota incentives, etc. that they can make.

BMW US Invoice Pricing calculation
Base vehicle US MSRP (from pricing sheets) multiplied by 0.93
+ MACO fee $500.00 (flat rate applied to all dealers)
= Base vehicle US BMW invoice price

To figure the invoice price of your BMW as configured add -
+ Option and packages (anything you can add to the vehicle) multiplied by 0.92
+ Training fee of $180.00
+ Destination and handling charge - Currently $995
= Total vehicle invoice price +/- $10.00

[soldes]

Originally Posted by TurtleBoy

As far as I know, they are still using the same invoice calculations that they switched to in 2017. Of course there can also be bonuses, sales quota incentives, etc. that they can make.

I believe they are still using the calculations they switched to in 2017:

BMW US Invoice Pricing calculation
Base vehicle US MSRP (from pricing sheets) multiplied by 0.93
+ MACO fee $500.00 (flat rate applied to all dealers)
= Base vehicle US BMW invoice price

To figure the invoice price of your BMW as configured add -
+ Option and packages (anything you can add to the vehicle) multiplied by 0.92
+ Training fee of $180.00
+ Destination and handling charge - Currently $995
= Total vehicle invoice price +/- $10.00

Darn Turtle, are you the son of the owner or something?, you always have all the right answers!

[Frenetic]

There’s also manufacturer’s incentives that can be substantial profits to the dealers. These are behind-the-scenes and are often based on volume or some other quota.

[Flying Ace]

Originally Posted by TurtleBoy

As far as I know, they are still using the same invoice calculations that they switched to in 2017. I think they are still getting a holdback of 5% of MSRP in certain situations. Of course there can also be bonuses, sales quota incentives, etc. that they can make.

BMW US Invoice Pricing calculation
Base vehicle US MSRP (from pricing sheets) multiplied by 0.93
+ MACO fee $500.00 (flat rate applied to all dealers)
= Base vehicle US BMW invoice price

To figure the invoice price of your BMW as configured add -
+ Option and packages (anything you can add to the vehicle) multiplied by 0.92
+ Training fee of $180.00
+ Destination and handling charge - Currently $995
= Total vehicle invoice price +/- $10.00

So there's still a 7% margin from printed invoice price. Makes sense, I got my G05 at invoice price

[Delrazdan]

Dealers make more money from used car sales. ‘Cpo’. New car sales helps with gaining new life long customers

[CarMan77]

Do BMW dealers have holdback?

[Frenetic]

I’m pretty sure they do. In fact, manufacturers tend to increase holdbacks and other behind-the-scenes incentives as “invoice pricing” becomes more mainstream thanks to the Internet.

[rmorin1249]

What US dealers actually "pay" BMWNA is a well kept trade secret. It is surely not anywhere close to published "invoice" prices. Many of us have bought new vehicles for thousands less than invoice.

[fanofbmwe46]

Originally Posted by rmorin1249

What US dealers actually "pay" BMWNA is a well kept trade secret. It is surely not anywhere close to published "invoice" prices. Many of us have bought new vehicles for thousands less than invoice.

Right. That's what I was thinking. Maybe not in the last 6-10months but prior to that it was common to get at least 5% off up to 7-8%

[aceman]

I suspect that used car sales and service are probably really good profit centers in addition to the 5-8% they make new car sales. Dont forget - they usually make money on the financing as well the other post sale add ons...

[rmorin1249]

Originally Posted by fanofbmwe46

Right. That's what I was thinking. Maybe not in the last 6-10months but prior to that it was common to get at least 5% off up to 7-8%

Exactly. I bought my current X5 for 13% off MSRP when factoring all rebates and dealer discount. How times have changed and this is why I am keeping my 2019 for a while longer. I have never paid MSRP for any of the 13 BMWs I've purchased and won't now.

[jad03060]

One thing that affects their cost is whether they can pay cash for the vehicle or finance it. Many of the vehicles being sold now are ordered for a customer or sold before they arrive, so there isn't much of a finance cost as they don't seem to have much in inventory these days.

[Luminor513]

Originally Posted by rmorin1249

What US dealers actually "pay" BMWNA is a well kept trade secret. It is surely not anywhere close to published "invoice" prices. Many of us have bought new vehicles for thousands less than invoice.

Exactly what he said. I received 14% off MSRP on both my G05 and G07 when factoring in all discounts and incentives. It was a different world back then. We all know the dealer was still making money on my two units despite these discounts. The profit per unit today is sky high by comparison to two years ago.

[256M330]

Originally Posted by TurtleBoy

As far as I know, they are still using the same invoice calculations that they switched to in 2017. I think they are still getting a holdback of 5% of MSRP in certain situations. Of course there can also be bonuses, sales quota incentives, etc. that they can make.

BMW US Invoice Pricing calculation
Base vehicle US MSRP (from pricing sheets) multiplied by 0.93
+ MACO fee $500.00 (flat rate applied to all dealers)
= Base vehicle US BMW invoice price

To figure the invoice price of your BMW as configured add -
+ Option and packages (anything you can add to the vehicle) multiplied by 0.92
+ Training fee of $180.00
+ Destination and handling charge - Currently $995
= Total vehicle invoice price +/- $10.00

I'd love to talk to you more if that's okay...my family is currently looking to purchase and we want to make sure we get the best deal. Can I DM you? I think I tried but because I just registered as a newbie, I doubt I'm able to private message you.

[MassWholeBimmer]

I got 19 % off my 2019 XLT F150. Different world now. Ford always heavily discounted their XLT trims.. Higher profit margins and higher sales volumes compared to higher trims. You would have never got that much off (even back then) on the higher trims.

I bought my 2023 X5m50i a few months ago. I suppose it was a leftover (if they still use that word), since it was sitting next to the 2024 M60's. Being a leftover may have had something to do with it (good discount imho) .. with the mildly redesigned M60's also on the lot... but I got 12+% off. Comparing to my 19% f150 discount of 4 years ago.. was very happy

[T3PO]

Originally Posted by TurtleBoy

As far as I know, they are still using the same invoice calculations that they switched to in 2017. I think they are still getting a holdback of 5% of MSRP in certain situations. Of course there can also be bonuses, sales quota incentives, etc. that they can make.

BMW US Invoice Pricing calculation
Base vehicle US MSRP (from pricing sheets) multiplied by 0.93
+ MACO fee $500.00 (flat rate applied to all dealers)
= Base vehicle US BMW invoice price

To figure the invoice price of your BMW as configured add -
+ Option and packages (anything you can add to the vehicle) multiplied by 0.92
+ Training fee of $180.00
+ Destination and handling charge - Currently $995
= Total vehicle invoice price +/- $10.00

I can confirm that invoice pricing on the base price is 7% less of MSRP. Most options and Manufacturer add ons are essentially all 7% as well. I was unaware that BMW was still doing dealer hold backs? Volume sales goals are typically the big bonus makers especially end of year. Good info for sure, I’m curious to find out more about the dealer holdbacks.

[TurtleBoy]

Originally Posted by 256M330

I'd love to talk to you more if that's okay...my family is currently looking to purchase and we want to make sure we get the best deal. Can I DM you? I think I tried but because I just registered as a newbie, I doubt I'm able to private message you.

Welcome to the forum. You can if you want but it may be more productive, and beneficial to others, if you ask any questions in the forum so there can be a variety of input. Discounts vary by region, model, dealer, timing etc. The best deal in one area may equate to a poor deal in another.

My advice is always to shop as many dealers in your area as possible. If you are interested in having the vehicle shipped or picking it up at PCD then you can shop dealers nationwide. Another popular approach is to engage a broker and let them do the shopping. Good luck and let us know if you need anything else.

[Mixitt]

Originally Posted by Luminor513

Exactly what he said. I received 14% off MSRP on both my G05 and G07 when factoring in all discounts and incentives....

Ditto! I "stole" my X5 back then. With a trade, taxes, discounts, etc., on the road for $44,538. Added goodies like the Tow Package, which I love.

I made an offer on a LCI custom build a few months back and they wouldn't budge off MSRP. OK, "screw you".

I paid invoice for my Z4. Took the salesman out to lunch and asked him "how much did you really make on this sale?" Said "$200".