Negotiating an X5M. Need Tips!

[Netsurfr]

Ok so been toying w/ the idea of an X5M and after some feedback/chat with a couple members on this forum I'm going forward. I had talked myself out of it due to price & was looking at the X5 5 & even the diesel as a compromise but in the end I kept thinking I would regret not getting the X5M and saying the heck w/ the extra $$!

So here's the deal... I'm going to be leasing it for 3 years. Originally when I went to the local BMW dealer the sales guy told me there was VERY LITTLE room to come down from MSRP on the X5 or X5M he said like $2K max. After doing a ton of reading on this forum I found the invoice & learned about Multiple Security Deposits vs. Cap Cost reductions and I called the guy back today & told him I want an X5M & know what Inovoice is and looking to be as close to that because there are other dealers in surrounding states with them on their lots & that I want to do MSD vs. Cap Cost Reductions. He said he'd call me back & when he did immediately started w/ well we want your business and am I willing to split the difference between MSRP & Invoice 50/50 (so 4K over invoice). I said that's just not aggressive enough so he goes on to say well I'm sure we can do better but that it be best to do it directly w/ the busines mgr. since it sounds like I'll be very specific about the deal (price, money factor, residual, deal on winter tire/wheels & 3M treatment, etc...) so I'm hoping this means I'll be able to get a good deal we'll see!

So bottom line I need some recent info from X5M owners so I can walk in w/ some solid ammo. I'd be curious if anyone knows the current best money factor BMW is offering and what the residual on a 3yr 12K lease plus how much over invoice you all were able to get. Bear in mind this dealer has 0 X5M in the lot. They just don't stock them because they don't sell in this local market so it would be ordered for me so not sure if that means I can't get as aggressive of a deal??

Finally a curiosity question... if invoice is what a dealer pays for the car why on earth would they be willing to sell one for invoice if it's a custom order and not on their lot? I mean is not like they are loosing money on it right?

Thanks for the tip/help!

[JCL]

Originally Posted by Netsurfr

Finally a curiosity question... if invoice is what a dealer pays for the car why on earth would they be willing to sell one for invoice if it's a custom order and not on their lot? I mean is not like they are losing money on it right?

Should be no difference to your ability to deal if it is a factory order or not.

Dealer pays invoice, but that isn't the end of it. There are multiple factory programs to support dealers that are not reflected on the invoice. These include volume rebate programs, interest (carrying charge) programs, end of year rebates, etc. I am speaking from local knowledge here, but can't see why it would be different where you are.

Why would they perhaps not be willing to sell at invoice, since as you say they are not losing money? Because they are not an NPO, they have to make a profit to keep the lights on.

[LeMansX5]

I will not pay more than $2000 over invoice on 2012. Have you tried dealers in Chicago suburbs? AndersonBMW had offered me $1000 over invoice last year. Knuaz BMW and Motorwerks BMW start with 3.5% discount when you call them.

I have contacts at above dealers if you need.

Check invoice here-> Car Buying | New and Used Car Landing

[motordavid]

Jeeeshh H Muprhy...
I like the M alot, but if I couldn't write it off via a lease, I can think of one or two other cars, and a new m'cycle, that I could buy for ~$90 Gs.

Breath taking pricing...and, 12 mpg on a good day.
GL, mD

[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. I mean I can understand why they would sell something they have in their lot for invoice because they have carrying cost & want to make room for new inventory but when they have to order the car I wondered why they are still willing to sell at so close to invoice like I've read.

Originally Posted by JCL

Should be no difference to your ability to deal if it is a factory order or not.


Why would they perhaps not be willing to sell at invoice, since as you say they are not losing money? Because they are not an NPO, they have to make a profit to keep the lights on.

[Netsurfr]

No I haven't tried any of the Chicago dealers although I will if the local dealer doesn't come within $2K of invoice. I would prefer to get it here to avoid the drive & hassle of going to Chicago and would rather buy it where I'll have it serviced but not willing to pay a lot more for that so I guess I'll have to wait and see what deal we can put together. If not I may take you up on those contacts!

So if my info is right the MSRP on an X5M w/ the options I want is just north of $98K and invoice is about $90K. Does that sound about right?

Also anyone know what current Money Factors by BMWFS are?

Originally Posted by LeMansX5

I will not pay more than $2000 over invoice on 2012. Have you tried dealers in Chicago suburbs? AndersonBMW had offered me $1000 over invoice last year. Knuaz BMW and Motorwerks BMW start with 3.5% discount when you call them.

I have contacts at above dealers if you need.

Check invoice here-> Car Buying | New and Used Car Landing

[JCL]

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.

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.

[GTRnX5M]

I paid 1000 over invoice on a 2012 that I ordered in March. Most dealers were not willing to do such a markdown but i'm sure you can find one that is.

Keep in mind the dealership makes more money on a car with a lot of options, the only options omitted from my car were rear seat entertainment, 6 DVD changer and BMW apps.

[Bobby G]

Dealers are getting incentives monthly and quarterly sales, so getting another unit off the floor helps them out.
Of course the dealer is going to make a profit from the sale. People have to eat. Where the dealer makes the most money is in service, followed by used cars sales. Last figures I saw were 80% of dealers profits is from service and parts. We all know how any service can put a drain on the wallet. OEM parts are outrageous. I had to get some ATF and called around to price it. VW/Audi fluid 21.50 per liter, BMW 43.56 per liter. Exact same fluid, twice the price

[Netsurfr]

Ok if dealers have all these other forms of compensation then I can see how they would be able to sell at invoice or slightly above & still make sense for them to do so. Thanks!

Now I have to see what sort of deal I can make w/ them next week. I've found a couple X5M in dealer lots in Chicago & I know that market sells a lot more high end cars than here (Milwaukee) so if the local guys are way off & may have to go there. Now the hard part begins... Deciding on color & options!

So far I really like the Monte Carlo but have not seen it in real life other than pictures on the forums & web so if those are true to live I like that color. Just different from all the other X5's you see everyday. Now for interiors... I like the silverstone (again from pictures) but afraid of having such a light colored interior and it getting dirty/stained. I also like the Cinnamon Merino. I hear a lot of people saying they love their comfort seats but not sure if I really want/need those. I certainly don't need ventilated/active seats for where I live & as little I drive but only way to get comfort is w/ that package & that limits my color options to black, silverstone, & beige so torn here. Which I could see some of these colors in real life or at least leather samples to compare. Any thoughts?