[FWMile]

I have found a vehicle on the dealers lot that matches many of my requirements. How much negotiating room currently exists on a X5 sDrive40i sitting on the lot? Is 5% off unreasonable.

[TurtleBoy]

Welcome to the forum. It will depend on the location, demand and the dealer. We have been seeing more and more discounts in the 7% - 10% area for the 40i's although some are still sticking to MSRP. Given that it is a lot vehicle, an sDrive and close to the LCI I would offer an 8% discount and see what they counter with.

[Next Level Auto Brokers]

8% is the target for remaining 23 x5s (YMMV)

Please please please make sure to pair it with the buy rate for lease or finance.

I can't stress this enough

When negotiating, always ask for the discount along with the buy rate.

[FWMile]

When you say

Please please please make sure to pair it with the buy rate for lease or finance.

When negotiating, always ask for the discount along with the buy rate.

Do you mean ask for the price based on financing it thru BMW? I am not sure I understand your terminology and wish to clarify. I don’t plan on leasing and only plan to buy.

[arciga18]

Originally Posted by FWMile

When you say


Do you mean ask for the price based on financing it thru BMW? I am not sure I understand your terminology and wish to clarify. I don’t plan on leasing and only plan to buy.

You can offer to purchase/ sign if they give you 8% off and the buy rate. Use those words. The dealer may agree to the 8% discount off MSRP but then quote you 6.99 APR when the buy rate is really 4.99 APR. The difference in APR would be extra dealer profit.

Interest rates are "high" across the board. Do you have a credit union or own financing? This way you have a target APR.

Getting a customer to give you the buy rate information is a little harder if you do not have a relationship with them. Others may be willing / looking to sell and will share it up front. YMMV

[FWMile]

Got it. I didn’t understand that buy rate was the interest rate. I would be willing to finance for the discount but would intend to pay off the loan soon after the purchase.

[TXPearl]

If you're going to pay off the loan soon after purchasing, then getting the buy rate isn't as important a factor (you'll only have a few months of marginally higher interest charges). Focus on the largest % discount from MSRP. I'd ask for the buy rate, but if you have to concede something to get a deal, let them mark up the interest rate.

Also, FWIW, I'd be upfront about your intentions for an early loan payoff. If you keep the loan 3 months (I think that's the threshold), then the dealer won't get charged back for their financing kicker.

[Phasers]

Originally Posted by TXPearl

If you're going to pay off the loan soon after purchasing, then getting the buy rate isn't as important a factor (you'll only have a few months of marginally higher interest charges). Focus on the largest % discount from MSRP. I'd ask for the buy rate, but if you have to concede something to get a deal, let them mark up the interest rate.

Also, FWIW, I'd be upfront about your intentions for an early loan payoff. If you keep the loan 3 months (I think that's the threshold), then the dealer won't get charged back for their financing kicker.

I disagree. Don't tell them you're planning to pay off early. You may lose leverage that way.

Now the nice move would be to wait 3 billing cycles before paying off so the dealer does not get charged back.

[Henry2020]

I agree with TXPearl. I would focus on getting the highest possible discount because you can refinance your loan. If they want to mark up the rate just ask for extra discount. It depends on your location in TX but I think 8% should be doable. Couple weeks ago you could have probably got 10% but not sure if it is doable today. I have a good broker contact in TX if you can’t get 8% on your own.

[baltik]

I bit of a threadjack, but here goes. If I don't personally qualify for the tax credit, but my retired father does. Could I add him to the title? any creative ways to structure this to capture the tax credit?

[TurtleBoy]

Originally Posted by baltik

I bit of a threadjack, but here goes. If I don't personally qualify for the tax credit, but my retired father does. Could I add him to the title? any creative ways to structure this to capture the tax credit?

No, he would have to be the one that purchases it so be the one that signed all of the paperwork at delivery.

[apw2607]

Originally Posted by Phasers

I disagree. Don't tell them you're planning to pay off early. You may lose leverage that way.

Now the nice move would be to wait 3 billing cycles before paying off so the dealer does not get charged back.

Very, very good advice.