[lonzwinery]

Hello,

Newbie here! I'm looking to buy my very first BMW (2025 X5 pretty well loaded up).

I see several posts saying that 7%-8% off of MSRP is difficult to attain, but not impossible. Before I head into the BMW dealerships, I want to make sure I have all the numbers below correct to help justify my offer.

MSRP: $84,845.

Invoice: $78,905 (7% of MSRP).

Holdback: $4,242 (5% of MSRP).

Doc Fee: $399.

Floor Plan Credit from Factory to Dealer: $300.

Based on the numbers above, if I were to offer the dealer $76,000 out-the-door (which is 10.9% off of MSRP), I think the dealer would still have top line revenue of $2,035 (please see math below).

The $76,000 includes doc fee but does NOT include taxes since we pay our taxes at the DMV when we title our vehicles here in Missouri.

Here's how I arrived at the $2,035 dealer revenue number:

Holdback ($4,242), plus doc fee ($399), plus floor plan credit ($300) equals $4,941 (this is dealer revenue we can tap into to get to 10.9% off of MSRP).

Invoice ($78,905) less HB, less DocFee, less FPC ($4,941) = $73,964 (at this number, the dealer would not make a penny of revenue).

My out-the-door offer: $76,000.

$76,000 - $73,964 = $2,035 (total dealer revenue).

Do these numbers look right?

Thanks!

[TurtleBoy]

The invoice is close, holdback depends on many factors and the floor plan doesn't really come into play. Either way those numbers won't really mean anything in your negotiations and pricing. You need to look at the market and the discounts in your area. It doesn't matter how much they can make according to those numbers but rather how much they can make according to the market.

Good luck and let us know how it goes.

[lonzwinery]

Originally Posted by TurtleBoy

The invoice is close, holdback depends on many factors and the floor plan doesn't really come into play. Either way those numbers won't really mean anything in your negotiations and pricing. You need to look at the market and the discounts in your area. It doesn't matter how much they can make according to those numbers but rather how much they can make according to the market.

Good luck and let us know how it goes.

Ok, thank you! That makes sense to me. I'll keep everyone posted!

Thanks!

[TurtleBoy]

Originally Posted by lonzwinery

Ok, thank you! That makes sense to me. I'll keep everyone posted!

Thanks!

You didn't mention what model you are getting? The discounts vary between the 40i's, 50e's and M60i's.

[lonzwinery]

Originally Posted by TurtleBoy

You didn't mention what model you are getting? The discounts vary between the 40i's, 50e's and M60i's.

This is for a 2025 xDrive40i.

[TurtleBoy]

Originally Posted by lonzwinery

This is for a 2025 xDrive40i.

Good, the discounts are usually higher on those. While 7-8% seem to be the norm we are seeing 10%+ in the SF area so it is doable, just have to pick the right time and right dealer.

[TheOriginalDude]

You able to get that 10% off anywhere near St. Louis?

[blockhead25]

Does anyone use Costco auto program to start a deal? That’s where I started and it had about 10% off 2024 which dealer honored for 2025 (prior to blowing me off). But that gave me a starting point for negotiations which I ended up beating.

[TurtleBoy]

Originally Posted by blockhead25

Does anyone use Costco auto program to start a deal? That’s where I started and it had about 10% off 2024 which dealer honored for 2025 (prior to blowing me off). But that gave me a starting point for negotiations which I ended up beating.

Yes, we have had some folks do that in the past. It really all depends on the dealer, many will just stick to that number and not offer more.

[lonzwinery]

Originally Posted by blockhead25

Does anyone use Costco auto program to start a deal? That’s where I started and it had about 10% off 2024 which dealer honored for 2025 (prior to blowing me off). But that gave me a starting point for negotiations which I ended up beating.

I tried Costco Automotive just now, and received the following message:

"Currently, we have not located a dealership in your area that has met our strict pricing criteria for the manufacturer you selected."

Bummer :-(

@blockhead25: Do you mind me asking how much you were able to beat 10% off by? And where? I'm assuming somewhere in California...

Thanks!

[lonzwinery]

Originally Posted by TheOriginalDude

You able to get that 10% off anywhere near St. Louis?

Not yet, but I'm going to try :-)

[blockhead25]

Originally Posted by lonzwinery

I tried Costco Automotive just now, and received the following message:

"Currently, we have not located a dealership in your area that has met our strict pricing criteria for the manufacturer you selected."

Bummer :-(

@blockhead25: Do you mind me asking how much you were able to beat 10% off by? And where? I'm assuming somewhere in California...

Thanks!

Los Angeles area. Ended up with 10.5% off. DM me if you want dealer and contact name. He was hugely helpful and extremely easy to work with so happy to send referrals their way.

[blockhead25]

Originally Posted by TurtleBoy

Yes, we have had some folks do that in the past. It really all depends on the dealer, many will just stick to that number and not offer more.

That makes sense. The dealer with the Costco relationship wouldn’t go lower, but another dealer met and beat the price

[lonzwinery]

Quick update...

So far, I'm at 7% off of MSRP with a dealership here in St. Louis. I started at 10% off of MSRP, and the GM countered with 7% and said at 10% off MSRP he would not have enough margin/revenue left over to pay the salesperson or building overhead (seems plausible to me!), however, at 7% off MSRP, my numbers are showing dealer revenue at $4,710.25, so I think there's still room there, at least that's what the data is telling me :-)

Also, they will honor the 3.99% incentive from BMW, however, they add 1% to the rate. Not a fan of that little trick at all! I would do the 4.99% if I can get 10% off MSRP and then just pay off the loan within a couple of months :-)

I am going to keep trying. I'll keep everyone posted!

Thanks!

[LDT]

Originally Posted by lonzwinery

Quick update...

So far, I'm at 7% off of MSRP with a dealership here in St. Louis. I started at 10% off of MSRP, and the GM countered with 7% and said at 10% off MSRP he would not have enough margin/revenue left over to pay the salesperson or building overhead (seems plausible to me!), however, at 7% off MSRP, my numbers are showing dealer revenue at $4,710.25, so I think there's still room there, at least that's what the data is telling me :-)

Also, they will honor the 3.99% incentive from BMW, however, they add 1% to the rate. Not a fan of that little trick at all! I would do the 4.99% if I can get 10% off MSRP and then just pay off the loan within a couple of months :-)

I am going to keep trying. I'll keep everyone posted!

Thanks!

I think what you have is a good deal considering what others have negotiated. If you are a cash buyer? Just pay cash.

[lonzwinery]

Originally Posted by LDT

I think what you have is a good deal considering what others have negotiated. If you are a cash buyer? Just pay cash.

Thank you for the feedback!

Yes, I can be a cash buyer if need be. I was hoping to take advantage of 3.99% and leave my money the money market yielding 5.5%. Would make 1.5% on my money :-) Not a whole lot of money at the end of the day, but hey, it's better than nothing!

[NickyF25]

Originally Posted by lonzwinery

Thank you for the feedback!

Yes, I can be a cash buyer if need be. I was hoping to take advantage of 3.99% and leave my money the money market yielding 5.5%. Would make 1.5% on my money :-) Not a whole lot of money at the end of the day, but hey, it's better than nothing!

I am in the same boat and am just paying cash. Inflation and taxes will eat up the small additional $$$ you would make. IMO you need a much bigger delta to make it worthwhile. Also in my case, would lose $3,000 of incentive $$$ going with BMWFinancial, as I qualify for military incentive. I got 7% off and above average trade in allowance, which is a good deal by me.

[kyleenyc]

Quick Question:

I'm picking up a X6 40 in the NJ area. Sales Rep is telling me "No Discounts on X6's (Only $500 loyalty) and that they only get one in a month." I know each dealership is different, but I see a lot of people getting up to 7% off MSRP at other dealerships. So is there any validity to what he's saying? or should I just go elsewhere?

[TurtleBoy]

Originally Posted by kyleebdmg

Quick Question:

I'm picking up a X6 40 in the NJ area. Sales Rep is telling me "No Discounts on X6's (Only $500 loyalty) and that they only get one in a month." I know each dealership is different, but I see a lot of people getting up to 7% off MSRP at other dealerships. So is there any validity to what he's saying? or should I just go elsewhere?

Obviously you probably learned this but you always want to get the pricing prior to placing the order.

Could be true, X6 allocations are scare compared to the X5 ones. That said looking at Dan at Next Level Auto Brokers 's spreadsheet it is showing 8% discounts for the X6 40i. You may want to contact him and what he can do.

[kyleenyc]

Yeah, I originally spoke to the rep in early March before Production started for 25s. He gave me a ball park range of what my note would be, and allotted me a Week 20 build a few weeks later. He told me that by the time the car comes, incentives would kick in and that he would work the numbers.

I appreciate you for the info! I'll get in contact with them

[lonzwinery]

Originally Posted by NickyF25

Inflation and taxes will eat up the small additional $$$ you would make.

Yes, very good point indeed! I didn't factor in taxes and more inflation :-( Not worth it to carry the debt. I hate debt! I have decided to just pay cash :-)

[blockhead25]

Originally Posted by lonzwinery

Thank you for the feedback!

Yes, I can be a cash buyer if need be. I was hoping to take advantage of 3.99% and leave my money the money market yielding 5.5%. Would make 1.5% on my money :-) Not a whole lot of money at the end of the day, but hey, it's better than nothing!

Keep in mind it likely won’t stay at 5.5% for too much longer if just in a money market. Could easily drop down to 2-3% over the next 1-2 years. Haven’t seen many CDs longer than 12 months much over 4%.