INVOICE VS. WHOLESALE PRICING

[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).