[terry]

I can't figure it out. I'd like to know what exactly is MSRP and Invoice. Obviously invoice is not the value below which a dealer won't make any money (since they can make you an offer for a new car below invoice). So what is it?

Any ideas

[The X Men]

Invoice is dealer's cost plus 2% holdback, they also get bonus and incentives if they sell a certain amount of cars.

[terry]

thanks. So if I understand correctly:

Dealer cost + 2% = Invoice
Invoice + xx% = MSRP

Any idea what xx is for BMW? I heard around 4 to 5%.
If that's true then (approximately) Dealer cost + 6 to 7% = MSRP. Correct?

[kwcbimmer]

I was told XX% would be appox. 8%

[The X Men]

Originally Posted by terry

thanks. So if I understand correctly:

Dealer cost + 2% = Invoice
Invoice + xx% = MSRP

Any idea what xx is for BMW? I heard around 4 to 5%.
If that's true then (approximately) Dealer cost + 6 to 7% = MSRP. Correct?

Originally Posted by kwcbimmer

I was told XX% would be appox. 8%

Thats right, invoice = msrp X 0.92, which is 8% off msrp. In most regions, there are MACO and training fees that is around $500 to $600.

[GSAL55]

7% MSRP to invoice then holdback... but here's the thing, BMW doesn't have traditional 'holdback' like other manufacturers so it isn't the same percentage on every vehicle. IF dealerships hit an objective then they'll make X dollars but that changes quarterly and sometimes monthly and isn't tied to just one vehicle or series... also depends on the market and region.