INVOICE VS. WHOLESALE PRICING

[KYBRIGGS82]

I am looking to purchase either a 2008 X5 3.0/4.8 or order a 2009 X5. I have notice on this site a wholesale list price by Sticky and I have read comments of members stating they were buying these vehicles for under invoice. So my question is, is the wholesale pricing by Sticky the same as invoice pricing at the dealer. What kind of pricing should I expect on the 2008 X5 3.0/4.8 or ordering a 2009 X5. What is he difference between the two vehicles other than one is a year newer?

[Mk23]

I'd like to hear this as well, I am looking for some numbers on what people are getting for the 09s. Might be nice to have some ides on the 08s as well.

[dms]

There are lots of factors pushing the prices down on the 08s:
. end of the model year
. free premium package thrown in
. what looks to be a glut of inventory in the channel
. SUVs out of favor, being attacked by the anti-car crowd, esp the v8

I was able to negotiate a price of more than $1k under the 'invoice' price, but because of the premium package trunk money, the dealer walked away with some money in his pocket. At the same time, I believe BMW has a holdback scheme of approx 3% with minimum required sales volume, so the dealer is also incented to move product.

The x5 I ended up buying didn't cost the dealership anything: didn't come out of their allocation (they ended up pulling it from another dealer), it wasn't sitting on their lot costing interest, etc, so I was able to do a quick low overhead deal.

You completely lose this leverage with an 09 order. The unfilled order isn't costing them anything, and the dealer will think that someone will walk in and pay a much higher margin than the 08 close-out prices... Cars on the ground and in their books cost them money. Unfilled orders do not.

As far as I know, there are limited changes coming to the 3.0 and 4.8 models, and those are detailed in the sticky ordering guides. Some packages have gone up, plus they include other things now. Full leather dash is available. And there is a price increase. New iDrive coming mid-model year, and 2 new models coming mid-year too: diesel, and rumor is that a 4.4l v8tt will be introduced as the 'iS' version.

All that said, if you want one now, want a 3.0 or 4.8 with typical options, and you plan on keeping it for a few years so you don't car about the instant depreciation, I would go for the 08 and save significant $$$.

[BGM]

Originally Posted by dms

There are lots of factors pushing the prices down on the 08s:
. end of the model year
. free premium package thrown in
. what looks to be a glut of inventory in the channel
. SUVs out of favor, being attacked by the anti-car crowd, esp the v8

I was able to negotiate a price of more than $1k under the 'invoice' price, but because of the premium package trunk money, the dealer walked away with some money in his pocket. At the same time, I believe BMW has a holdback scheme of approx 3% with minimum required sales volume, so the dealer is also incented to move product.

The x5 I ended up buying didn't cost the dealership anything: didn't come out of their allocation (they ended up pulling it from another dealer), it wasn't sitting on their lot costing interest, etc, so I was able to do a quick low overhead deal.

You completely lose this leverage with an 09 order. The unfilled order isn't costing them anything, and the dealer will think that someone will walk in and pay a much higher margin than the 08 close-out prices... Cars on the ground and in their books cost them money. Unfilled orders do not.

As far as I know, there are limited changes coming to the 3.0 and 4.8 models, and those are detailed in the sticky ordering guides. Some packages have gone up, plus they include other things now. Full leather dash is available. And there is a price increase. New iDrive coming mid-model year, and 2 new models coming mid-year too: diesel, and rumor is that a 4.4l v8tt will be introduced as the 'iS' version.

All that said, if you want one now, want a 3.0 or 4.8 with typical options, and you plan on keeping it for a few years so you don't car about the instant depreciation, I would go for the 08 and save significant $$$.

+1. It all really depends on your scenario and the dealers scenario. If you want an '09 prices will go up a little + you lose out on the 1.9% financing right now + free premium package. If you can hold out until next Summer the same situation will occur most likely as BMW will offer a low APR (0.9%-2.9%) to get rid of the '09's. So, if you have to have a car now it's whether you care about getting the biggest discount and best financing or want an '09 and ordered exactly the way you want it, etc, and don't want to settle for what's on a dealer's lot (since it's too late to order now). People always make a big deal on de-valuation of getting an '08 now when the '09's are about to come out but to me that's a mute point as you will be spending more on interest on an '09 vs. the 1.9% being offered on an '08--so it's basically a wash (especially if you plan on keeping it).

[dms]

Well, it also depends on the number that BMW decides to build. I think that they were caught a little flatfooted and built way too many 08s, resulting in the oversupply and therefore soft prices. I'm pretty sure that production rate is set far in advance with supplier contracts, and and BMW didn't have the option to really slow down.

If I were the product planner at BMW, I would revise my 09 supplier contracts to make it less likely I'd build too many. Prices for 09s next summer might be less soft.

[bigx5er]

Originally Posted by dms

Well, it also depends on the number that BMW decides to build. I think that they were caught a little flatfooted and built way too many 08s, resulting in the oversupply and therefore soft prices. I'm pretty sure that production rate is set far in advance with supplier contracts, and and BMW didn't have the option to really slow down.

If I were the product planner at BMW, I would revise my 09 supplier contracts to make it less likely I'd build too many. Prices for 09s next summer might be less soft.

I agree with this. My dealer reminded me that BMW is not Chevrolet. They will not go on with the types of discounts they had this summer. Dealers will order less SUVs and stock fewer. I'd expect BMW to pull way back on production unless there is a dramatic decrease in fuel prices. BMW risks harming their brand if they end up with $5500 discounts and 0.9% financing as the norm.

[BGM]

Originally Posted by bigx5er

I agree with this. My dealer reminded me that BMW is not Chevrolet. They will not go on with the types of discounts they had this summer. Dealers will order less SUVs and stock fewer. I'd expect BMW to pull way back on production unless there is a dramatic decrease in fuel prices. BMW risks harming their brand if they end up with $5500 discounts and 0.9% financing as the norm.

They weren't offering .90% just on X5s it was on all their models (except for the M3, X6 I believe). I think it was more of the economy being a little slow on car buying in general. There is a good chance .90% financing with BMW will not come again anytime soon but they usually offer 2.9% at certain points in the year which is still a great rate.

[ajboston]

I was thinking of ordering an 09 but as it turns out I was able to find an 08 in dealer inventory that had pretty much all of the options I wanted in my first choice color (monaco blue). The only option missing is 20" wheels on the sport package but I may try and do a deal on these separately. I ended up at about $500 below "invoice" but with the prem package incentive , the dealer still made a little bit of money (which I'm OK with...the sales rep was super responsive, very knowledgeable, very transparent in the negotiation and in general made it clear he wanted my business). I got what I consider to be a good and fair deal and the sale guy worked hard to earn a commission. Nothing wrong with that in my book....

[KYBRIGGS82]

Ok. It seems an 08 X5 is a better deal than an 09 X5 since they are somewhat the same vehicle. What is then.. the difference between wholesale pricing and dealer invoice ?????
Thanks

[Mk23]

From what I know they are the same.