Quote:
Originally Posted by trey100
This sounds like BMW has a program to push these out. Typical BMW invoice was 8.5% or so historically. Dealerships are not in business to take losses.
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You are forgetting that BMW also has 5% of MSRP in "holdback" on each of these cars. Invoice is 7% off base vehicle price and 8% off all options. That works to around a 7.5% difference between MSRP and "invoice" for the car. Take that "invoice" price and subtract 5% of the original MSRP and now you have much closer to the true amount of what the dealership actually paid for the car.
This still doesn't take into account any additional trunk money or special programs (like if the dealership hits specific sales number for the month etc) that give the dealership even more money back.
So effectively, real invoice on a BMW is somewhere around 12.5% off MSRP. Now you know how some of us manage to consistently get 10-13% off MSRP deals BEFORE incentives, OLP codes, etc. Dealerships are not losing money when selling you the car at 12% off MSRP before incentives.
Plus, at least in the NY/NJ/CT area, dealerships then tack ridiculous "doc" fees ($500+ really???? this is almost pure profit) and such onto the sales to start making that profit right back. Hence why you always look at the total picture before deciding if a deal is good or not.