I read this and wonder if you truly understand the situation.
A dealership gets allocated only a certain number of cars of any specific model. But sometimes, BMW NA allows a dealership to sell ED cars without counting against this allocation. At this point a dealership may be more inclined to negotiate prices below MSRP (ED MSRP in that case) for those cars.
Let's talk practicalities. If you walk into any BMW dealership today and try to negotiate an invoice-plus deal on a car for which allocations are taken up already by buyers who are paying near MSRP you are going to get nowhere. Now, if you try the same for a car where there are unclaimed allocations you have a shot at getting your desired price. So, for ED, when BMW NA takes allocations out of the picture, you are in a situation much like the latter.
Theoretically, I can get a Ferrari at invoice price. It is not impossible. But nobody talks about it because it's a unicorn. No point in discussing things that don't happen in the real world.
Quote:
Originally Posted by fuddman
I did read the thread and enjoyed it, especially at the point where someone referred to ED as erectile dysfunction. 
To me, when you're negotiating (if you're so inclined) a deal for a new car, precision is important.
Creating a relationship between allocations and ED pricing is not only, I think, inaccurate, but adds an unnecessary level of complexity to the discussion between dealer and customer. This type of obfuscation, I think, favors the dealer and so, it's not all that surprising they use term in this forum. More accurate and more profitable for the consumer to draw a straight line between ownership, supply and demand.
Please don't misinterpret my regard for dealers. I have great respect for them and their employees. It's just that when it's time to buy a car, things change a bit. |