2,500 miles but new 45e

90sgunner · 05-07-2021, 05:37 PM

Interested in a 45e. Located in IL and saw one on a dealer's website that I really liked. The dealer told me the car is "new" since it's never titled but it has 2,500 miles on it and it has an "owner". How exactly does this work? If I were to pull the trigger on this one, how much % off should I be aiming for? MSRP around 84k. Thanks!

TurtleBoy · 05-07-2021, 06:09 PM

More than likely a loaner, test drive vehicle or manager's car. In normal times you would want to shoot for 15-20% off MSRP as well as get all the incentives. Unfortunately discounts are way down in general so you may end up in the 7-10% range. I personally would stay away from it but my brother bought one last year and they are very happy with it.

Ebomb808 · 05-07-2021, 06:13 PM

You'd be foregoing the $7,500 tax credit, so you'd need to factor that on top of the value of the vehicle if you are comparing to a new vehicle. Let's say you buy this vehicle brand new and get a conservative 5% off MSRP, you have a loyalty credit ($1K) and APR credit ($2.5K) and federal tax credit ($7.5k). Not factoring in taxes, you'd be at around $69K, if purchased new and financed. This vehicle coming with 2,500 miles means I would need a discount beyond that to stop me from buying new.

TurtleBoy · 05-07-2021, 06:17 PM

Quote:

Originally Posted by Ebomb808

You'd be foregoing the $7,500 tax credit, so you'd need to factor that on top of the value of the vehicle if you are comparing to a new vehicle. .

He should be eligible for the tax credit since it is considered a new vehicle. BMW considers the vehicle new if it has less the 5k miles on it so all new car incentives apply as well.

90sgunner · 05-07-2021, 06:29 PM

Quote:

Originally Posted by TurtleBoy

More than likely a loaner, test drive vehicle or manager's car. In normal times you would want to shoot for 15-20% off MSRP as well as get all the incentives. Unfortunately discounts are way down in general so you may end up in the 7-10% range. I personally would stay away from it but my brother bought one last year and they are very happy with it.

Thanks for your input! Any particular reason why you would stay away from it? It looks like people are already getting 6-7% off their custom orders, and I thought cars on the lot generally get better deals. Supply is really that tight?

Ebomb808 · 05-07-2021, 06:41 PM

Quote:

Originally Posted by TurtleBoy

He should be eligible for the tax credit since it is considered a new vehicle. BMW considers the vehicle new if it has less the 5k miles on it so all new car incentives apply as well.

Certainly the BMW incentives apply. The tax credit is murkier, but if it has a license plate and has been driven for 2,500 miles, it suggests it has been registered. Talk to a tax accountant.

TurtleBoy · 05-07-2021, 06:45 PM

Quote:

Originally Posted by Ebomb808

Certainly the BMW incentives apply. The tax credit is murkier, but if it has a license plate and has been driven for 2,500 miles, it suggests it has been registered. Talk to a tax accountant.

Perhaps some states are different but in the majority of them they are not registered and use a dealer plate. The OP should be the first owner of the vehicle in those instances and be eligible for the tax credit. As you said though, bets to check it out beforehand.

TurtleBoy · 05-07-2021, 06:49 PM

Quote:

Originally Posted by 90sgunner

Thanks for your input! Any particular reason why you would stay away from it? It looks like people are already getting 6-7% off their custom orders, and I thought cars on the lot generally get better deals. Supply is really that tight?

Whether a test drive or loaner vehicle it is likely it was driven hard. Not saying anything is wrong with it but I wouldn't be comfortable with it. Supply is tremendously tights some folks are struggling for 3% off and in some areas 45e's are being sold at MSRP.

As an aside, there is no general rule about discounts being higher on lot vehicles. There are many factors but in general discounts are the same. Some dealers offer higher discounts in custom orders and other on lot vehicles.

90sgunner · 05-07-2021, 06:59 PM

Quote:

Originally Posted by TurtleBoy

Whether a test drive or loaner vehicle it is likely it was driven hard. Not saying anything is wrong with it but I wouldn't be comfortable with it. Supply is tremendously tights some folks are struggling for 3% off and in some areas 45e's are being sold at MSRP.

As an aside, there is no general rule about discounts being higher on lot vehicles. There are many factors but in general discounts are the same. Some dealers offer higher discounts in custom orders and other on lot vehicles.

Well I guess it really depends on the price at the end of the day. Dealer quoted me 3% off and I rejected immediately, said I would be comfortable with at least 10%. If the price really isn't all that different from a new custom order I will be more than happy to wait and not worry about how it was driven before.

TurtleBoy · 05-07-2021, 07:02 PM

Quote:

Originally Posted by 90sgunner

I will be more than happy to wait and not worry about how it was driven before.

If you are not pressed to get a new one soon then waiting is what I recommend.

Jetrik · 05-08-2021, 08:51 AM

Quote:

Originally Posted by 90sgunner

Interested in a 45e. Located in IL and saw one on a dealer's website that I really liked. The dealer told me the car is "new" since it's never titled but it has 2,500 miles on it and it has an "owner". How exactly does this work? If I were to pull the trigger on this one, how much % off should I be aiming for? MSRP around 84k. Thanks!

I almost bought a "new" car that had 5,000 miles on it. While they discounted the price of the car, it wasn't enough for me to accept the fact that the owner's spouse was driving that thing for such a length of time. I'd stay away and try to get a real new one, unless the price meets your desire.

90sgunner · 05-08-2021, 12:41 PM

Quote:

Originally Posted by Jetrik

I almost bought a "new" car that had 5,000 miles on it. While they discounted the price of the car, it wasn't enough for me to accept the fact that the owner's spouse was driving that thing for such a length of time. I'd stay away and try to get a real new one, unless the price meets your desire.

I definitely feel you. They ended up offering me $3,500 off plus $1,000 loyalty, but they wouldn't offer me the $2,500 APR credit. No idea why. No way I'm buying a 2,500 mile vehicle with only 5% off after incentives.

iceRN09 · 05-11-2021, 12:28 PM

Quote:

Originally Posted by 90sgunner

I definitely feel you. They ended up offering me $3,500 off plus $1,000 loyalty, but they wouldn't offer me the $2,500 APR credit. No idea why. No way I'm buying a 2,500 mile vehicle with only 5% off after incentives.

You are right. Its a bad deal. I got mine around 13K off MSRP. Plus 20K trade in value on my 14 MDX with 67K miles. But if you have read my threads, I am "Returning" the car to the dealer when my M50i arrive this month or early June.

05-07-2021, 05:37 PM	#1
90sgunner New Member 5 Rep 17 Posts Drives: BMW X5 Join Date: May 2021 Location: Chicago, Illinois iTrader: (0)	2,500 miles but new 45e Interested in a 45e. Located in IL and saw one on a dealer's website that I really liked. The dealer told me the car is "new" since it's never titled but it has 2,500 miles on it and it has an "owner". How exactly does this work? If I were to pull the trigger on this one, how much % off should I be aiming for? MSRP around 84k. Thanks!
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05-07-2021, 06:09 PM	#2
TurtleBoy General 13184 Rep 19,668 Posts Drives: 2019 X5 40i,2021 M340i Join Date: Jan 2019 Location: Colorado iTrader: (0)	More than likely a loaner, test drive vehicle or manager's car. In normal times you would want to shoot for 15-20% off MSRP as well as get all the incentives. Unfortunately discounts are way down in general so you may end up in the 7-10% range. I personally would stay away from it but my brother bought one last year and they are very happy with it. __________________ 2021 BMW G20 M340i xDrive - Verde Ermes/Black - 03/2024.40 2019 BMW G05 X5 xDrive40i - Phytonic Blue/Cognac - 11/2023.50
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05-07-2021, 06:13 PM	#3
Ebomb808 Private 64 Rep 77 Posts Drives: Audi A4 Join Date: Jan 2021 Location: Washington iTrader: (0)	You'd be foregoing the $7,500 tax credit, so you'd need to factor that on top of the value of the vehicle if you are comparing to a new vehicle. Let's say you buy this vehicle brand new and get a conservative 5% off MSRP, you have a loyalty credit ($1K) and APR credit ($2.5K) and federal tax credit ($7.5k). Not factoring in taxes, you'd be at around $69K, if purchased new and financed. This vehicle coming with 2,500 miles means I would need a discount beyond that to stop me from buying new.
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