Invoice Pricing ???

jackab · 08-12-2011, 02:14 PM

Basic question but how exactly do dealerships get paid / make their money? I hear all this talk about about so much over invoice etc and I do want my dealer to earn money but if say, they offer $1000 over invoice, does that stricly mean they're getting just the $1000? Sorry if this question seems basic but I'm trying to figure all this out, get a good deal but also not scalp the dealership - i.e. I just want a fair deal.... Help!

kmarei · 08-12-2011, 02:41 PM

Quote:

Originally Posted by jackab

Basic question but how exactly do dealerships get paid / make their money? I hear all this talk about about so much over invoice etc and I do want my dealer to earn money but if say, they offer $1000 over invoice, does that stricly mean they're getting just the $1000? Sorry if this question seems basic but I'm trying to figure all this out, get a good deal but also not scalp the dealership - i.e. I just want a fair deal.... Help!

not sure exactly how they make their money
but even at invoice, they are still making money
i just ordered a 2012 M3, at below invoice
and yes they are making money on it
i know my SA is making $200 on this sale
and i am sure the dealership is making much more
don't forget there is a $1000 of in loyalty cash if you own a bmw

lhsa · 08-12-2011, 03:17 PM

even with a straight invoice sale, there's holdback the dealer gets from BMW NA and sometimes volume and other incentive money if the dealer hits certain targets. so even at invoice, the dealer does make a substantial and fair profit.

when a dealer claims he gets nothing with an invoice deal, it's a lie, plain and simple.

jackab · 08-12-2011, 03:33 PM

Quote:

Originally Posted by kmarei

not sure exactly how they make their money
but even at invoice, they are still making money
i just ordered a 2012 M3, at below invoice
and yes they are making money on it
i know my SA is making $200 on this sale
and i am sure the dealership is making much more
don't forget there is a $1000 of in loyalty cash if you own a bmw

Grrrr! The dealer never mentioned anything about loyalty cash - and this is the same dealership I bought my $$$$$ M5 from LAST YEAR!!!

kmarei · 08-12-2011, 03:36 PM

Quote:

Originally Posted by jackab

Grrrr! The dealer never mentioned anything about loyalty cash - and this is the same dealership I bought my $$$$$ M5 from LAST YEAR!!!

http://www.edmunds.com/bmw/x3/2011/car-incentives.html

Nahoa · 08-12-2011, 09:50 PM

Loyalty cash has limitations. Was looking at a 2011 Sportwagon and it applied, it did not on the 2012. Not sure if it was just a model year issue or what.

mexxdude · 08-12-2011, 11:49 PM

I read it on the "other" forum that you need to be a prior/current BMW financial service customer in order to be eligible for the loyalty rebate. I thought I was eligible since I currently own a 2008 328i, but it turns out I am not since i paid cash. There are other restrictions but I can't recall the specifics. You might want to check the forum out (the "ask a dealer" forum) and verify with your dealer.

sard · 08-13-2011, 01:42 AM

My CA told me I had to be currently leasing/financing a car through BMW Financial to get the loyalty program..

kmarei · 08-13-2011, 08:03 AM

Quote:

Originally Posted by sard

My CA told me I had to be currently leasing/financing a car through BMW Financial to get the loyalty program..

Not true
Only requirement is owning a BMW in the last 12 months
My current m3 is financed from my credit union
And I got the 1000 off my next m3 which will also be financed by my credit union
And I got the same offer from another dealer I had spoken to

kmarei · 08-13-2011, 08:04 AM

Quote:

Originally Posted by mexxdude

I read it on the "other" forum that you need to be a prior/current BMW financial service customer in order to be eligible for the loyalty rebate. I thought I was eligible since I currently own a 2008 328i, but it turns out I am not since i paid cash. There are other restrictions but I can't recall the specifics. You might want to check the forum out (the "ask a dealer" forum) and verify with your dealer.

That was the way it used to be
Only for BMWFS customers
Not this one though, because I got it and I don't use BMWFS

mexxdude · 08-14-2011, 09:54 AM

Quote:

Originally Posted by kmarei

That was the way it used to be
Only for BMWFS customers
Not this one though, because I got it and I don't use BMWFS

Interesting. I should talk to my SA and see if I can knock off another $1000 of the price. My order should arrive late next week. Hope it's not too late.

jackab · 08-14-2011, 10:57 AM

Thanks for all the good info. Call into my CA on Friday, no response yet..... hmmm

mexxdude · 08-14-2011, 12:35 PM

Quote:

Originally Posted by jackab

Thanks for all the good info. Call into my CA on Friday, no response yet..... hmmm

I just sent an email to my CA and will report back once I hear back from him. Can you please report back once you hear from your CA? Thanks

greg2step · 08-14-2011, 12:58 PM

that $1000 loyalty rebate is nice, i found out about that early in my search - they told me i had to own a current BMW 2005 or newer or something like that and i can def use it towards the X3 i just ordered

mexxdude · 08-15-2011, 03:08 PM

Just heard back from my CA. He confirmed that I am eligible for the $1000 Customer Royalty rebate. So now my purchase price is $1500 under invoice!! YEAH!!

jackab · 08-15-2011, 06:40 PM

Quote:

Originally Posted by mexxdude

Just heard back from my CA. He confirmed that I am eligible for the $1000 Customer Royalty rebate. So now my purchase price is $1500 under invoice!! YEAH!!

Congrats on that saving! $1500 under invoice - Nice deal! Can I ask how you pulled that off?

mexxdude · 08-15-2011, 08:45 PM

Quote:

Originally Posted by jackab

Congrats on that saving! $1500 under invoice - Nice deal! Can I ask how you pulled that off?

Negotiated purchase price was $500 over invoice. Then applying the $1000 coupon from the Team USA event. Now adding another $1000 customer loyalty rebate. All thanks to the awesome people from this forum!!!

kmarei · 08-15-2011, 09:26 PM

And here I was happy with my $3500 off MSRP when I got my wifes X3 in Jan

mexxdude · 08-15-2011, 09:46 PM

Quote:

Originally Posted by kmarei

And here I was happy with my $3500 off MSRP when I got my wifes X3 in Jan

Well, your wife got to enjoy the X3 seven more months.... that's not a bad trade off.

Congrats on your M3. When are you taking delivery?

kmarei · 08-15-2011, 09:51 PM

Quote:

Originally Posted by mexxdude

Well, your wife got to enjoy the X3 seven more months.... that's not a bad trade off.

Congrats on your M3. When are you taking delivery?

Production in September 5-11
Should be here late October

I've driven the X3 a lot
Fantastic car
Only issues I have is the steering
Ours changes ratio in mid corner if I'm going fast, very unsettling
And the way the alternator connects when you start braking hard
Because its very hard to brake gradually
You think it's gradual, then the alternator kicks in and all of a sudden you are braking too hard

God damn efficient dynamics

jackab · 08-15-2011, 10:03 PM

Makes ya wonder if they would have given you the $1000 loyalty cash if you hadn't of asked....

Mine should run around $1500 less than invoice too... if ONLY I could decide on colours!!!! lol Narrowed down to AW, SP and DSB - AW and SP tying for first choice but need spouse to be on same page as me lol...

mexxdude · 08-15-2011, 10:11 PM

Quote:

Originally Posted by jackab

Makes ya wonder if they would have given you the $1000 loyalty cash if you hadn't of asked....

Mine should run around $1500 less than invoice too... if ONLY I could decide on colours!!!! lol Narrowed down to AW, SP and DSB - AW and SP tying for first choice but need spouse to be on same page as me lol...

i got AW so you know my recommendation...lol

Of course the CA won't mention it. He didn't mention about the Team USA promotion either. I was the one who brought it up toward the end of the negotiation. Well I haven't taken delivery yet so we'll wait and see if I end up getting the loyalty rebate.

So your CA hasn't gotten back to you yet?

08-12-2011, 02:14 PM	#1
jackab Private 4 Rep 50 Posts Drives: 2009 Indi Red M5 Join Date: Jul 2011 Location: Ohio iTrader: (0)	Invoice Pricing ??? Basic question but how exactly do dealerships get paid / make their money? I hear all this talk about about so much over invoice etc and I do want my dealer to earn money but if say, they offer $1000 over invoice, does that stricly mean they're getting just the $1000? Sorry if this question seems basic but I'm trying to figure all this out, get a good deal but also not scalp the dealership - i.e. I just want a fair deal.... Help!
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08-12-2011, 03:17 PM	#3
lhsa Second Lieutenant 18 Rep 255 Posts Drives: kia Join Date: Apr 2011 Location: NW iTrader: (0)	even with a straight invoice sale, there's holdback the dealer gets from BMW NA and sometimes volume and other incentive money if the dealer hits certain targets. so even at invoice, the dealer does make a substantial and fair profit. when a dealer claims he gets nothing with an invoice deal, it's a lie, plain and simple.
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08-12-2011, 09:50 PM	#6
Nahoa Lieutenant Colonel 45 Rep 1,876 Posts Drives: F25 35i Mineral Silver/Black Join Date: May 2008 Location: Virginia iTrader: (0)	Loyalty cash has limitations. Was looking at a 2011 Sportwagon and it applied, it did not on the 2012. Not sure if it was just a model year issue or what. __________________
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08-12-2011, 11:49 PM	#7
mexxdude Private 7 Rep 58 Posts Drives: 2011 X3 35i Join Date: Jul 2011 Location: Fairfax VA iTrader: (0)	I read it on the "other" forum that you need to be a prior/current BMW financial service customer in order to be eligible for the loyalty rebate. I thought I was eligible since I currently own a 2008 328i, but it turns out I am not since i paid cash. There are other restrictions but I can't recall the specifics. You might want to check the forum out (the "ask a dealer" forum) and verify with your dealer.
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08-13-2011, 01:42 AM	#8
sard Major 235 Rep 1,334 Posts Drives: 2008 M3 Join Date: Oct 2008 Location: Southern California iTrader: (1)	My CA told me I had to be currently leasing/financing a car through BMW Financial to get the loyalty program.. __________________ E92 M3 - DCT - 20" BBS LM-R - KW Clubsport - Akrapovic Exhaust - Powerchip Tune - Arkym Aero Kit - HID Halo
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08-14-2011, 10:57 AM	#12
jackab Private 4 Rep 50 Posts Drives: 2009 Indi Red M5 Join Date: Jul 2011 Location: Ohio iTrader: (0)	Thanks for all the good info. Call into my CA on Friday, no response yet..... hmmm
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08-14-2011, 12:58 PM	#14
greg2step X3 Owner/Driver 212 Rep 785 Posts Drives: 2018 X3 M40i Join Date: Dec 2007 Location: Baltimore, Maryland, USA iTrader: (0) Garage List 2018 BMW X3 M40i (G01) [0.00]	that $1000 loyalty rebate is nice, i found out about that early in my search - they told me i had to own a current BMW 2005 or newer or something like that and i can def use it towards the X3 i just ordered __________________ 2018 X3 M40i G01 \| Phytonic Blue \| Mocha \| Premium+Exec \| Driver Assist \| Adaptive M Suspension 2011 X3 XDrive35i F25 l Deep Sea Blue l Mojave Leather l Sport, DHP, Premium, Nav/Technology, Cold Weather, Convenience [traded in] 2008 328XI E91 Sportwagon l Sparkling Graphite [traded in]
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08-15-2011, 03:08 PM	#15
mexxdude Private 7 Rep 58 Posts Drives: 2011 X3 35i Join Date: Jul 2011 Location: Fairfax VA iTrader: (0)	Just heard back from my CA. He confirmed that I am eligible for the $1000 Customer Royalty rebate. So now my purchase price is $1500 under invoice!! YEAH!!
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08-15-2011, 09:26 PM	#18
kmarei Major General 686 Rep 6,845 Posts Drives: 2018 Audi RS5 coupe Join Date: Jul 2008 Location: Reston, VA iTrader: (34) Garage List 2018 Audi RS5 [0.00]	And here I was happy with my $3500 off MSRP when I got my wifes X3 in Jan __________________
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08-15-2011, 10:03 PM	#21
jackab Private 4 Rep 50 Posts Drives: 2009 Indi Red M5 Join Date: Jul 2011 Location: Ohio iTrader: (0)	Makes ya wonder if they would have given you the $1000 loyalty cash if you hadn't of asked.... Mine should run around $1500 less than invoice too... if ONLY I could decide on colours!!!! lol Narrowed down to AW, SP and DSB - AW and SP tying for first choice but need spouse to be on same page as me lol...
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