Need guidance negotiating 2 car lease & finance

[brocurls]

Leasing MY19 X4 M40i with MSRP 68320 (including D/H)
Financing MY20 M4 with MSRP 81545 (including D/H)

Of the 2, the lease is more priority since fiancee's Audi lease is up come the end of May. (obviously no rush with enough miles/days left on lease, but wanted to make sure this is known).

Any idea of what % discount off MSRP I should aim for before dealer incentive since I'd try to secure both cars from 1 dealer? (The M40i would be an on-the-lot car as there are plenty within a 100mi radius that has the options she wants)

We do not qualify for loyalty rebate, fleet discount, nor any discount come to think of it, unfortunately.

I tried to search the forum for past posts/threads but nothing showed up for me, didn't want to have to clog the board unnecessarily.

Any help much appreciated. Thanks!

[BMW Lunatic]

You will qualify for the rebates offered to the general public . Except Florida - you should shoot for $1000 under invoice before the rebates ( I believe invoice is 93% of the msrp u check tru car to get invoice price) since you are buying two cars I would even start at $2000 under invoice.

[Kief]

Originally Posted by BMW Lunatic

you should shoot for $1000 under invoice before the rebates

Curious what your reasoning is for $1k under invoice before rebates? Bc of the 5% msrp holdback? I remember the old days of $XXX over invoice being the rule of thumb.

[jmg]

You will qualify for loyalty once you sign the paperwork for either of those first. You can also look into the BMWCCA rebate. I'd start at 10% off for the M4 and see how low multiple dealers will go to earn your business.

[brocurls]

Found a dealer that has a 69xxx M40i going for 62005 right now. Waiting to see where else they padded to offset the loss, probably MF. I'll see if i can squeeze at least another 1k from them and get base MF.

Will aim for 12% off the bat for the M4 and negotiate up to 10% at minimum. Fingers crossed that any dealer will be willing to play ball with me.

Thanks for the nudge in right direction

[Ibiza]

Originally Posted by Kief

Curious what your reasoning is for $1k under invoice before rebates? Bc of the 5% msrp holdback? I remember the old days of $XXX over invoice being the rule of thumb.

BMW NA decreased the delta between MRSP and invoice around 2-3 yrs ago, thus $1,000 under invoice exclusive of incentives is the new norm.

[Kief]

Originally Posted by Ibiza

BMW NA decreased the delta between MRSP and invoice around 2-3 yrs ago, thus $1,000 under invoice exclusive of incentives is the new norm.

So if they decreased the delta, wouldn't that mean there is even less room to negotiate from MSRP?

I recall 2-3yrs ago on that other BMW forum site, the change in pricing was bc holdback was now 5% of the entire msrp of the car, not just of the invoice.

[Ibiza]

Originally Posted by Kief

So if they decreased the delta, wouldn't that mean there is even less room to negotiate from MSRP?

No, as the invoice price increased relative to MRSP, and with holdback calculation changing to MRSP, it's time to attack holdback, but only if your a frequent multi vehicle purchaser due to the economies of scale. I wouldn't recommend this to the one off customer.

[Kief]

Me, a frequent multiple vehicle purchaser, well yeah!! Lol
Thanks...I just needed that mindset change to focus now on the 5% holdback of msrp like you said.

[jmg]

Originally Posted by Ibiza

No, as the invoice price increased relative to MRSP, and with holdback calculation changing to MRSP, it's time to attack holdback, but only if your a frequent multi vehicle purchaser due to the economies of scale. I wouldn't recommend this to the one off customer.

Can you explain this like I'm 5? What's holdback?

[arciga18]

Originally Posted by jmg

Can you explain this like I'm 5? What's holdback?

.


But kief you get like 35% off sticker all the time: don't worry about the 5 percent




... jk

Always willing to learn more strategies

[M3PGH]

Hold back is incentive money that is given to dealers behind the scene and depends on a whole bunch of factors
1. number of cars sold a month
for example selling 100 cars/month get you 500 a car
vs selling 50 cars/month get you 350 a car
this is why these big companies are expanding , like penske etc so if they have 6 BMW dealerships , then incentives will increase because of increased volumes
2. pushing a specific model can land you more incentive .. for example pushing I3 because the company wants to prove they are environment friendly
3. if dealer take returned lease cars, they get incentives
4. if they sell cpo cars they get incentives
5. customer ratings etc
plus other at least 10 plus variables

[Kief]

Originally Posted by M3PGH

Hold back is incentive money that is given to dealers behind the scene and depends on a whole bunch of factors
1. number of cars sold a month
for example selling 100 cars/month get you 500 a car
vs selling 50 cars/month get you 350 a car
this is why these big companies are expanding , like penske etc so if they have 6 BMW dealerships , then incentives will increase because of increased volumes
2. pushing a specific model can land you more incentive .. for example pushing I3 because the company wants to prove they are environment friendly
3. if dealer take returned lease cars, they get incentives
4. if they sell cpo cars they get incentives
5. customer ratings etc
plus other at least 10 plus variables

I think you are rolling in a bunch of different variables into the term holdback, which isn't accurate. For example, you are discussing step monies, csi monies, and flagship monies in many of your bulleted points.

[brocurls]

So after back and forth with many dealerships, looks like none give a shit if I'm trying to purchase two cars. Doesn't matter how long the car has been on their lot.

Hell one of the dealers when asking about their X4 M40i thats been on their lot for the last 70 days, "We are a big dealership with 2 other dealerships in our network, we purchase all our cars upfront so we are in no rush to move 'em just for numbers sake, we don't have to sell at any price we don't want to".

That shit pissed me off so much, and then they sent a price quote of $11xx/mo for a 36/12 on that X4 (of which they said was a fair/take-it-or-leave-it offer for someone that has no relationship with us nor previous ownership of a BMW). I just gave up and decided to go back to Audi for SUV lease.

/rant

On a positive note, thanks to JimmyB @ Steve Thomas BMW for hooking me up with a MY20 M4.

[paliknight]

Originally Posted by brocurls

So after back and forth with many dealerships, looks like none give a shit if I'm trying to purchase two cars. Doesn't matter how long the car has been on their lot.

Hell one of the dealers when asking about their X4 M40i thats been on their lot for the last 70 days, "We are a big dealership with 2 other dealerships in our network, we purchase all our cars upfront so we are in no rush to move 'em just for numbers sake, we don't have to sell at any price we don't want to".

That shit pissed me off so much, and then they sent a price quote of $11xx/mo for a 36/12 on that X4 (of which they said was a fair/take-it-or-leave-it offer for someone that has no relationship with us nor previous ownership of a BMW). I just gave up and decided to go back to Audi for SUV lease.

/rant

On a positive note, thanks to JimmyB @ Steve Thomas BMW for hooking me up with a MY20 M4.

Should have tried a different dealership for the X4. We have a bunch of forum sponsors that could have taken care of you with the X4.

[brocurls]

Originally Posted by paliknight

Should have tried a different dealership for the X4. We have a bunch of forum sponsors that could have taken care of you with the X4.

That was my 5th dealer I reached out to about the X4. I reached out to Jimmy B who offered the best deal at 1k under invoice but the monthly was still almost 1k. Other dealers with cars on the lot gave between 3-5% off. I hope the cars rot on the lot with the X4Ms out soon.

[paliknight]

Originally Posted by brocurls

That was my 5th dealer I reached out to about the X4. I reached out to Jimmy B who offered the best deal at 1k under invoice but the monthly was still almost 1k. Other dealers with cars on the lot gave between 3-5% off. I hope the cars rot on the lot with the X4Ms out soon.

Oh damn their residuals must be atrocious then. Sorry to hear about your experience. Maybe because it's a new generation.