[buckybadger]

Originally Posted by midwestbmwguy

Are you in Wisconsin? I figured with the name Bucky badger.
Can you tell me what the list versus net figure was on your custom build

I'm in California but I graduated from Madison.

MSRP of my build is $75,170.
Then take 13.5% off the price.

[houssammarwany]

I am assuming 13.5% off MSRP is total discount including incentives, correct?

[thereef510]

So I went to the dealer today, we gave them the build code and told them we wanted a pcd, but they sort of steered the conversation towards buying one from their lot or associated sonic lots. Their computer system died in the middle of our talk so the dealer is going to attempt to find as close a model as ours in their system. Because there was no agreed upon model, we didn't talk price.

But while there, we did see a bunch of tags on their cars: they had a X7 for 10k off, a X1 for 25% off. I didn't ask but are those specific to those cars or is this some sort of dealer special going on right now on certain models?

Also I feel like if they *really* want us to buy a car off their lot, for whatever reason, that should be worth more than the 10% we'd like if going the build route? what would be appropriate to ask in this case since I know we're gonna have to compromise on some features or colors?

[Marty in NY]

Originally Posted by thereef510

So I went to the dealer today, we gave them the build code and told them we wanted a pcd, but they sort of steered the conversation towards buying one from their lot or associated sonic lots. Their computer system died in the middle of our talk so the dealer is going to attempt to find as close a model as ours in their system. Because there was no agreed upon model, we didn't talk price.

But while there, we did see a bunch of tags on their cars: they had a X7 for 10k off, a X1 for 25% off. I didn't ask but are those specific to those cars or is this some sort of dealer special going on right now on certain models?

Also I feel like if they *really* want us to buy a car off their lot, for whatever reason, that should be worth more than the 10% we'd like if going the build route? what would be appropriate to ask in this case since I know we're gonna have to compromise on some features or colors?

We are at year end, dealers want to clear they inventory and will offer a higher discount. Just how much higher depends on a number of factors that will be different for each dealer. Mainly how many cars they want to sell from their inventory, they get incentives from BMW for selling what they already have.
Its going to come down to what you want, no amount of discount is going to give you the features you want if the car doesn't have them. So what's more important to you? Price or getting exactly what you want?

They already have your desired build, so be prepared to cave on features if they come up with one that is 80% or 90% of what you want. You should put a weighting on the features you want. For example, you might be willing to forego glass controls or the acoustic glass or your favorite wheels but not your color choices, or visa versa. Its better to know that before going back in because they will try to play with your emotions and bait you into buying from their inventory and tell you that you can be in the car of your dreams tomorrow.

I've always believed that soon after purchase, all the financial stress, thoughts, etc start to be forgotten but then you have to live with what you bought, day after day after day.

Good luck

Just after posting, this popped into my email, thought I'd post a screen shot - end of the year incentives have begun!

.

[thereef510]

Originally Posted by Marty in Bgm

So what's more important to you? Price or getting exactly what you want?

Its better to know that before going back in because they will try to play with your emotions and bait you into buying from their inventory and tell you that you can be in the car of your dreams tomorrow.

I've always believed that soon after purchase, all the financial stress, thoughts, etc start to be forgotten but then you have to live with what you bought, day after day after day.

Good luck

well the other thing they immediately said is that there will be no more new cars being made/delivered before the new year so building one wont start, at least for us, till january, so with pcd it would take another few months. The model I priced out pretty much has all the packages that i've read on here that are really worth it. They only have one model on their lot that costs more than what I've spec'd out but it doesn't have any tech stuff, just cosmetics pushed the price way up! and the rest of the cars on their lot are 10k below what i spec'd so I know it wont have much if any of the features we definitely want. So then it comes down to dealer trades, i guess? would they still be willing to make a deal for a model in their system even if its not on their specific lot (Sonic has a lot of dealerships in middle tennessee and beyond i think)?

[dan321]

One thing to think about if they do a dealer swap is how they will get the car to your dealer. Will they truck it or drive it. If it is being driven it's not just extra miles it how it is driven. You are not supposed to "nail" the accelerator for the first 1200 miles.

Also for a car on the lot is it a demo or does it have just a few miles on it.

[Marty in NY]

Originally Posted by thereef510

well the other thing they immediately said is that there will be no more new cars being made/delivered before the new year so building one wont start, at least for us, till january, so with pcd it would take another few months. The model I priced out pretty much has all the packages that i've read on here that are really worth it. They only have one model on their lot that costs more than what I've spec'd out but it doesn't have any tech stuff, just cosmetics pushed the price way up! and the rest of the cars on their lot are 10k below what i spec'd so I know it wont have much if any of the features we definitely want. So then it comes down to dealer trades, i guess? would they still be willing to make a deal for a model in their system even if its not on their specific lot (Sonic has a lot of dealerships in middle tennessee and beyond i think)?

I understand. You are caught in the classic case of Want It Now, and who wouldn't? This is an emotional event that in most cases can out weigh logic. Whether you buy or lease, you'll have your X5 for at least three years, right? What's the harm in waiting a few quickly passing months to be able to enjoy what you really want for at least three years?
Let's face it, 99% of dealers are not trustworthy, they deal with the car buying public every day of the year, they've seen it all, they size you up within 10 minutes of meeting you and have plenty of tactics to close the deal in their favor. They'll tell you all sorts of things to wear you down to the point where its just easier to say ok to the deal that benefits them the most. Let's not forget who the customer is here...you, not them.

Anyone willing to pay $75K+ for a car should get what they really want, without compromise just to satisfy a dealer who wants to move inventory and be able to wear a salesman of the year pin. So what will you save in the end? another 2%?

You do what you want, you have to live with it but for me, I'd stay hard and fast on the car I wanted to own and drive vs caving for a couple of % and the Have It Now emotion.

[thereef510]

well so I went on the sonic group website yesterday and did a global search for the G05, not a single one has close to all the features we want. Now its entirely possible that there are models in their inventory not listed on the website but there's very few fully loaded models in their inventory and a LOT of base and mid range ones. None of those are a 'go' for us.

We already have a f15 and we love it to death. We bought it off the lot and didn't know a thing about BMWs and they talked us into it. When I got home and started looking things up (and joining forums like this) I found out it had almost every option. So we're pretty spoiled right now as it is. I'm never going to accept a G05 with vernasca leather now that I've had nappa, etc.

The more I look at what's on the lot, the more I fall in love with the build I put together already. I don't really want to compromise on any of the features, but if they found a model without acoustic glass or IAS and was willing to take 25% off, maybe we'd consider that or something. So we'll see what he has to say about it when he calls us back but we're in absolutely no hurry to buy, but if their website is accurate, then the build route would seemingly be the only option at this point idc how good the discount is on their lot models with no features lol

[robby818]

I bought my first X5 off the lot because I assumed it was the way to get the best deal. I learned later that it really doesn't matter if you buy off the lot or order. You can get the same discount. If the dealership is willing to give you 10% off a car on the lot they can do the same on the order. You just have to wait 4-7 weeks for the car to arrive.

[Sgengaro]

10% off on 2020 X5. However dealer charged $995 in fees which I think is too high.

[thereef510]

Originally Posted by robby818

I bought my first X5 off the lot because I assumed it was the way to get the best deal. I learned later that it really doesn't matter if you buy off the lot or order. You can get the same discount. If the dealership is willing to give you 10% off a car on the lot they can do the same on the order. You just have to wait 4-7 weeks for the car to arrive.

not to make a thing out of it, but our discount for buying a F15 off the lot was around 15%. We bought it in December of the MY, so maybe it was something they were more willing to take a hit on. I'd be very happy with a 10% pre incentive custom build, but if I'm buying off the lot, I expect our discount to at least match what they gave us last time given we will surely have to compromise something that we'd otherwise get on a build.

[Marty in NY]

Originally Posted by thereef510

not to make a thing out of it, but our discount for buying a F15 off the lot was around 15%. We bought it in December of the MY, so maybe it was something they were more willing to take a hit on. I'd be very happy with a 10% pre incentive custom build, but if I'm buying off the lot, I expect our discount to at least match what they gave us last time given we will surely have to compromise something that we'd otherwise get on a build.

You have to be willing to walk away from the deal in order to maximize your discount and from reading your posts, I think you are.

[karateboi87]

People really really need to stop including incentives in price discussions. Not everyone qualifies for loyalty, USAA, or college grad. Most of us might qualify for loyalty but that's it.

I'm in the market and am targeting 10% off MSRP plus incentives on a custom build. The highest I've read (not verified) is 12% off MSRP before incentives on a 2020 custom build. Not sure if it's replicable ever if it is true. I'd say 10% is sufficient for me, but if I can get to 10.5 or even 11% I'd be grateful.

[rebekahb]

I just started working with the dealer today and going to ask for 12% + incentives and see where we end up. Will keep y’all posted.

[rebekahb]

Here was my response from the sales guy:
Also, I wanted to inquire how you arrived at 12% off. There are not any BMWS with that high mark up in them.

Here was my response from the manager right after:
Neil forwarded your email to me, which I’d like to respond to. I can do a 36mo / 15,000mi lease on the 2020 X5M50i listed below for $0 down and $1,232mo. I am discounting the car about 10%, to include the rebate. As for the multiple security deposits, I recommend against it. You’d have to give up over $6,000 which would only have about a $50-60 effect on your monthly payment. I’m sure that money can be better kept/spent elsewhere. I am giving you the base MF of .00128 as requested, along with a 55% residual, per BMW Financial. I’m making you a great deal. Let me know when you’d like to come in, I look forward to meeting you.

[TurtleBoy]

Originally Posted by rebekahb

H As for the multiple security deposits, I recommend against it. You’d have to give up over $6,000 which would only have about a $50-60 effect on your monthly payment. I’m sure that money can be better kept/spent elsewhere. I am giving you the base MF of .00128 as requested, along with a 55% residual, per BMW Financial. I’m making you a great deal. Let me know when you’d like to come in, I look forward to meeting you.

You should run the numbers yourself because generally using multiple MSDs you will get a return much higher than you can get in any other comparable investment (MM, CD's, etc.). If I remember correctly my effective return was about 7.5%.

[rebekahb]

Originally Posted by TurtleBoy

You should run the numbers yourself because generally using multiple MSDs you will get a return much higher than you can get in any other comparable investment (MM, CD's, etc.). If I remember correctly my effective return was about 7.5%.

Thank you for the feedback and will check into it. I found it strange that he is telling me what to do with it.

[TurtleBoy]

Originally Posted by rebekahb

Thank you for the feedback and will check into it. I found it strange that he is telling me what to do with it.

I think a lot of dealers don't want to bother with it since they don't get any benefit from it. Many also don't have a lot of experience working with MSDs since they just brought the program back this past January. My dealer's finance guy never did an MSD deal before and I sent him the rules as well as what my calculations were so he could match them.

Here they are in case you need them:

[thereef510]

So we went to the dealer today to see the car they had which had "90%" of the stuff we want. It's brand new black on black. It's missing the acoustic glass, the full merino blue/white interior, and IAS. What it has instead is the Msport package, 22" wheels with black rims, and the B&W sound system. They also said:

There are no more allocations (at least for them) to put any orders for new cars for this year. The earliest we can build would be to come back in feburary to get a slot then, so with the blue/white interior and PCD, we'd be looking at spring or early summer for delivery based on what I'm reading here.

We are 'okay' with the g05 they have on the lot. it's brand new and just peeled the stickers off and it has 12 miles on it. I think I was the only one to drive it. And we are now leaning towards leasing it instead of buying it outright, because I want my mom to upgrade to the next generation which will undoubtedly have more self driving tech.

anyway, we don't know anything about leasing since we've never leased. But the msrp was $87.9, marked down to $250 over their invoice price of 81.425. Anyway, the payments work out to $5000 down and 1200/mo for 36 months on 10k miles/year. I have no idea if this is a good deal or not. The manager was initially refusing to give us anymore than $500 off the MSRP and now has come down to $250 over invoice, if that's even their real invoice.

This is precisely the situation you guys have warned us about, buying off the lot because they want to move units. But we live in Nashville, TN, and there's only 1 BMW dealer here. I have no clue if they are lying about not having allocation slots... but we've pretty much decided we want to lease and not buy. If we go to another dealer and maybe build, we still want to lease. and it took our dealer 3 hours to come down to $250 over invoice. I have no clue if engaging another dealer in another state is possible to do all this over the phone. I certainly don't want to drive 4 hours to Atlanta on the off chance an unknown dealer would be willing to give us a better deal, or am i being naive?

Anyway as the post says, we're totally confused on what to do. We like the model they have and if its only a 3 year commitment, the things it doesnt have we can live with out for the things it does have. Does this lease make any sense?

Thank you!

[thereef510]

Originally Posted by TurtleBoy

I think a lot of dealers don't want to bother with it since they don't get any benefit from it. Many also don't have a lot of experience working with MSDs since they just brought the program back this past January. My dealer's finance guy never did an MSD deal before and I sent him the rules as well as what my calculations were so he could match them.

Here they are in case you need them:

hi, can you please explain what exactly this is, and how it is of benefit to leasees?


Edit: nvm I figured it out. we are definitely doing this.

[Auricom]

Originally Posted by thereef510

hi, can you please explain what exactly this is, and how it is of benefit to leasees?

With BMW FS, you can reduce your monthly payment by placing multiple security deposits upfront. Unlike a down payment (i.e., a capitalized cost reduction), you get this amount back at lease-end. MSDs work by lowering the money factor (MF) on a lease. MF is essentially the interest rate on a lease; lowering the MF reduces the finance charge you pay.

A security deposit is equal to your monthly payment (including tax) rounded to the nearest $50. A maximum of 7 security deposits are allowed up to a maximum of .00035. Each security deposit lowers the money factor by .00005. MSDs can be a good ROI.

Example:

Nov 2019 base lease MF (interest) rate is 0.00128 or 3.07%
With 7 MSDs you're lowering the base MF (interest) rate to 0.00093 or 2.23%

General BMW lease wiki on Leasehakr - some of the info is still relevant, some out of date but in general good information:
https://forum.leasehackr.com/t/bmw-leasing-wiki/10783

Bimmerfest also has excellent ELI5 (explain it to my like I'm five) info on Leasing 101:
https://www.bimmerfest.com/forums/sh...d.php?t=895604

[thereef510]

Thank you for explaining all that. I do have one more question:

our dealer arrived at the "250 above invoice price" based on a dealer model discount AND including the 1250 customer loyalty bonus. I thought that BMWNA kicked in the 1250 loyalty bonus and not the dealership itself. Should we go ask them to give us $250 above invoice as the dealer discount and then give is the loyalty bonus on top of it given that it doesnt come out of their end?