[mobilegun]

I've never used BMW Financial, or general manufacturer offers, before and have a maybe dumb question: How do they work?

More specifically the Loyalty and CPO offer... They show as credits so it sounds like the MSRP is one price, the selling price is another. Do the offers apply to selling price or work as specified (credit, discount) to the appropriate value? e.g. credit goes to your payment side, selling price stays same, versus a discount which might apply to selling price?

hopefully that makes sense, and hoping someone can ELI5

[Joe-BMW33]

Loyalty credits only apply if you financed the previous BMW through BMW Financial and are financing the new one through them. If the dealer has their way, the credits appear after the agreed upon sale price. This way, the dealer and sales guys get "credit" for the high price and the BMW financial credits don't impact commission, volume sales bonuses, etc.

I've never really cared, it is all geography to me as long as the final out of pocket or financed amount is net of loyalty credits, incentives or discounts.

The last two BMW's I bought (M550 and X5), I financed through third party banks. I put a significant amount down, I have 800+ credit and BMW Financial wasn't in the ballpark. So no incentives for me, but I have saved more than those in interest.

I am a longtime member of BMWCCA, and I do take advantage of the loyalty cash rebates post sale.

[Mosaud1998]

When I bought the 540 (brought it CPO) I think 2 years ago now, I got $2.5k off ($1,000 rebate on 5 series at the time, $1,000 loyalty rebate, and $500 I negotiated off selling price). I also got 0.9% for 36 months through BMW Financial.

The old BMW, I sold it before I bought the 540. But, I didn't finance it (brought it cash from the first owner)—all the sales rep asked for was the old VIN, and I got the $1,000 loyalty rebate.

I could've gotten another $1,000 rebate (recent college graduate), but I didn't have my diploma to prove to BMW that I recently graduated college.

[BMW012]

Im pretty sure loyalty credit counts even if the previous BMW wasn't financed through BMW. It's as long you have one in the household, can't recall if the model year matters.
Additionally, even if you don't have the BMW anymore, but if you owned/leased it during the past 12 months you can still receive the credit.

The credit is like actual dollars, in terms of an lease, if the credit is $1000, you'll pay a $1,000 less for the total of your payments.

[Joe-BMW33]

Originally Posted by BMW012

Im pretty sure loyalty credit counts even if the previous BMW wasn't financed through BMW. It's as long you have one in the household, can't recall if the model year matters.
Additionally, even if you don't have the BMW anymore, but if you owned/leased it during the past 12 months you can still receive the credit.

The credit is like actual dollars, in terms of an lease, if the credit is $1000, you'll pay a $1,000 less for the total of your payments.

I thought this was the way it used to be, but the last few cars I bought they told me the same thing about financing though BMW credit or not. Maybe there are more than one type of credits.

[mobilegun]

Yea, upon looking further, the current offer is ownership of ANY bmw in the last 5 years (regardless of how it was financed). So it reads to me that you could have owned something for 1 month in 2021 and be eligible. Current offer also only applies to 19-22 CPO cars and using BMWFS. Granted, that's not how they were trying to play it but eventually understood it as I did.

At any rate, the offer credit is what I imagined, and as Joe said, comes off agreed purchase price, not a discount to it, so it really only impacts maybe sales tax or what not.

[Joe-BMW33]

Originally Posted by mobilegun

Yea, upon looking further, the current offer is ownership of ANY bmw in the last 5 years (regardless of how it was financed). So it reads to me that you could have owned something for 1 month in 2021 and be eligible. Current offer also only applies to 19-22 CPO cars and using BMWFS. Granted, that's not how they were trying to play it but eventually understood it as I did.

At any rate, the offer credit is what I imagined, and as Joe said, comes off agreed purchase price, not a discount to it, so it really only impacts maybe sales tax or what not.

Thanks. I am definitely going to have to press them a little harder next time. I am a pretty loyal BMW owner given the trail I have had and currently have. Should in theory be worth something.

[BMW012]

Originally Posted by mobilegun

Yea, upon looking further, the current offer is ownership of ANY bmw in the last 5 years (regardless of how it was financed). So it reads to me that you could have owned something for 1 month in 2021 and be eligible. Current offer also only applies to 19-22 CPO cars and using BMWFS. Granted, that's not how they were trying to play it but eventually understood it as I did.

At any rate, the offer credit is what I imagined, and as Joe said, comes off agreed purchase price, not a discount to it, so it really only impacts maybe sales tax or what not.

what is agreed vs discount in your example?

[mobilegun]

Originally Posted by BMW012

what is agreed vs discount in your example?

Initially there was some claim that the car needed to be a newer model year (within the last 5 years), and not ownership of any MY in the past 5 years.

The difference as of now is just the loyalty offer amount (500).

Soon to be joining the seemingly popular e39-540+m550 gang