Quote:
Originally Posted by Netsurfr
Yeah that's my point/question. I hear about dealers selling cars at invoice or slightly above invoice so I wonder why they would do that or how they can stay in business if they're only making $2K per car.
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See my post #2. There is other money that flows to the dealer from BMW specific to a vehicle sale that isn't reflected on the vehicle invoice. Dealers can still make that profit without having to hand it back to negotiating customers who want to buy for x dollars over invoice.
An example would be a reward for selling a certain number of vehicles within a specific time period. Towards the end of that time period, the dealer can be very motivated to sell a vehicle, even at their apparent dealer cost, because of the additional compensation they receive for reporting the sale. This is based on other manufacturers than BMW, but I don't see why they would be different. The programs have different names and different terms, but they have in common the goal of reducing the effective invoice cost without having to show the reduction on the invoice.
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2007 X3 3.0si, 6 MT, Premium, White
Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue
Last edited by JCL; 04-29-2011 at 10:25 PM.
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