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BMW 5-Series (G30) Forum G30 Pricing, Ordering, Tracking, European Delivery Do incentives cut into dealer income?

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      10-11-2018, 08:43 PM   #1
Mach550
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Do incentives cut into dealer income?

I'm working a deal and was wondering if any incentives pop up between now and delivery if I would be able to get an even better deal. Say I get a deal of $X,000 off the purchase price locked in on a build out sheet and then another $X,000 worth of incentives pop up before taking delivery, would these be able to be added for a better discount and not impact the salesmans income from the deal or are incentives taken out of BMW HQ funds?
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      10-11-2018, 09:15 PM   #2
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Interested in this as well. My dealer very clearly told me that they were "putting in" X off MSRP and the I would still be eligible for the best incentives at time of delivery.

Given that the incentives come from BMWNA (or whatever HQ for your region) and the dealers are obligated to use them, I would assume that BMWNA pays for part/all of them.
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      10-11-2018, 10:10 PM   #3
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It depends on the deal you made with the dealer but generally you can get whatever the best deal at the time. Generally BMW NA pays. CA gets their fee anyway.
Ny dealer gave me $10.5k off MSRP but said he was taken into account holiday deals he expected. So I agreed to lock in at current level. Most will not do this so bargain away.

There is a $1k rebate from BMW CCA you can take advantage of, just join for 3 years.
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      10-12-2018, 06:00 AM   #4
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Originally Posted by saporitj View Post
It depends on the deal you made with the dealer but generally you can get whatever the best deal at the time. Generally BMW NA pays. CA gets their fee anyway.
Ny dealer gave me $10.5k off MSRP but said he was taken into account holiday deals he expected. So I agreed to lock in at current level. Most will not do this so bargain away.

There is a $1k rebate from BMW CCA you can take advantage of, just join for 3 years.
I was going to ask about this too, the way it sounds on the website is that I need to sign up for CCA within 15 days of delivery or can I sign up now and be good when the time comes?
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      10-12-2018, 08:40 AM   #5
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Quote:
Originally Posted by Mach550 View Post
I was going to ask about this too, the way it sounds on the website is that I need to sign up for CCA within 15 days of delivery or can I sign up now and be good when the time comes?
I read it as you must have an active membership by at latest 15 days after delivery. So signing up before would be a good thing (I signed up last month and won't take delivery until late Nov at the earliest).

Wouldn't seem to make sense any other way because even longstanding BMWCCA members are eligible for the rebates.
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      10-12-2018, 01:41 PM   #6
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Incentives are from BMW NA (for the North American Continent) and are separate from the dealership.
For example the car I ordered, the dealer had enough holdback to give me my car for $2k under invoice and "possibly a little more" when I take delivery if he has step-up money at the end of the year (about when I take delivery). Not knowing what the "factory incentives" or if the money factor will increase enough to negate additional incentives that will be for Nov/Dec we locked in the the MF and incentive program at the end of Sept for 90 days. Now when, my car does come I will be able to either choose to keep the Sept MF and incentives or I can choose the Nov/Dec MF and incentives, whichever one will be more advantageous.
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      10-17-2018, 09:54 AM   #7
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Currently there is a $2K dealer allowance for 530e, does it usually apply to ED prices? Also, I contacted a dealership in TX and asked for further discount on top of the 5% and they turned me down. Is this common?
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      10-22-2018, 01:09 PM   #8
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One thing you guys need to make sure you are clear about, is it is the best PACKAGE of incentives, either when you locked, or when you take delivery.

You can not mix and match from your lock and what is there when you take delivery.

So (for example) if you have 2k incentives on your lock, with a money factor of .00166, but your car comes in during the holidays and incentives increase with a holiday bonus to 3.5k, but Money factor is base rate .00206, you will have to CHOOSE either what you locked, OR whats in play during the time you pick up.

In my example, you would have to take EITHER the 2k and .00166 OR the 3.5k with the .00206. You would NOT be able to take the 3.5k incentive with the money factor from your lock.

Incentives are a package, you cant mix and match months.

Not sure if that was spelled out by others in this thread but this is the way it works. You absolutely can take the better of either what you locked, or whats in play when you pick up (provided you actually put in a credit app and locked the current deals, AND provided that everything you had in play was actually lockable, because some incentives are not).
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      10-23-2018, 01:20 AM   #9
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Exactly, and good point.
We'll know here pretty quick whether to keep Pre-October locks or take holiday rates/incentives.
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