Is Wholesale really the bottom line?

kaykay · 05-19-2010, 02:23 AM

$500 over invoice this and $1000 over invoice that. There are *great* deals to be had on these cars, especially with these absurd MF's.

But a curious mind always lingers...

Are dealers really paying "confidential" BMW NA Wholesale prices for units or do you think dealers are paying LESS than wholesale if they're moving a lot of vehicles in addition to other various contributing factors.

The four basic pricing levels show how a base E92 can top at $58,400 while the "bottom line" appears to be $49,965 (for ED).

1) MSRP ($58,400)
2) Wholesale ($53,730)
3) European Delivery ($49,965)
4) Diplomatic Wholesale ($51,040)

Are some dealers perhaps paying $45 for base E92 - is BMW NA's "confidential" sheet that we all have really the bottom?

Curious to get some interesting conversation going in here

bmwboi · 05-19-2010, 06:58 AM

There's got to be something in it for the dealers besides a few hundred over invoice I would imagine. Maybe they get some sort of incentive from BMW at the end of the year due to the volume they sell or maybe there really is a dealer price below invoice.

When factory cash back is offered you can usually get a car well under invoice but I'm not sure if it happens otherwise. Maybe someone else can shed some light...

alpineweissM3 · 05-19-2010, 10:14 AM

I believe BMW has a "Dealer Holdback". Not sure how much, but typically dealer holdback is between 2 and 3% of the MSRP.

Wah · 05-19-2010, 01:03 PM

Since I'm getting a new 2011 at invoice, I'm sure they are making money on it somehow. They aren't in business just to do people favors.

1love · 05-19-2010, 05:09 PM

Quote:

Originally Posted by Wah

Since I'm getting a new 2011 at invoice, I'm sure they are making money on it somehow. They aren't in business just to do people favors.

By 'invoice' are you referring to ED wholesale?

AZ-BMW · 05-19-2010, 06:45 PM

Quote:

Originally Posted by alpineweissM3

I believe BMW has a "Dealer Holdback". Not sure how much, but typically dealer holdback is between 2 and 3% of the MSRP.

I don't think BMW has a literal "Dealer Holdback," but I'd guess they have a similar kind of incentive to get the dealers to turn units. I thought the dealer got a nice incentive based on the survey we complete after the sale

Wah · 05-20-2010, 11:28 AM

Quote:

Originally Posted by 1love

By 'invoice' are you referring to ED wholesale?

No, i'm picking it up here in the states (PCD hopefully), so regular wholesale.

Ali@BMWMt.laurel · 05-20-2010, 11:33 AM

Client Advisors have to make a living too. Dealers get the incentive after a while, but WHAT do the Client Advisors get?

Think about it.

Ali@BMWMt.laurel · 05-20-2010, 11:34 AM

Quote:

Originally Posted by Wah

Since I'm getting a new 2011 at invoice, I'm sure they are making money on it somehow. They aren't in business just to do people favors.

you'd be surprised.

2ndBimmer · 05-25-2010, 03:09 PM

Quote:

Originally Posted by trackfiend

Client Advisors have to make a living too. Dealers get the incentive after a while, but WHAT do the Client Advisors get?

Think about it.

I see you are a client advisor and I agree with you. People seem to complain a lot about a few hundred bucks on a $70k car and you get nothing almost. i feel bad for you.
My best friend sells BMW's and it seems customers assume you get paid like $5000 just for selling an M3 at invoice. Hardly the case, as you know... Then, they probably expect huge favors from you like you owe them something? correct me if im wrong here.
I feel everyone deserves a fair deal in anything, its the nature of any purchase.

M3Bliss · 05-25-2010, 08:50 PM

Quote:

Originally Posted by trackfiend

Client Advisors have to make a living too. Dealers get the incentive after a while, but WHAT do the Client Advisors get?
Think about it.

I too agree with this. Many years ago I owned my own business and I found that everybody wanted something for nothing. It is very hard to make a living in situations such as this. I want a fair deal and not feel as though I have been taken advantage of but also acknowledge that the dealer has bills to pay and so do the Advisors. I have had success in recent years in building a relationship with my Advisor and he has helped me in a number of situations especially when there is a questionable repair or warranty issue.

05-19-2010, 02:23 AM	#1
kaykay Lieutenant Colonel Drives: 2011 E92 M3 ZCP Join Date: Apr 2010 Location: SoCal Posts: 1,770 iTrader: (0) Garage List 2011 E93 328i Conve ... [4.75] 2011 E92 M3 ZCP [4.33] 2008 550i Sport [5.00]	Is Wholesale really the bottom line? $500 over invoice this and $1000 over invoice that. There are great deals to be had on these cars, especially with these absurd MF's. But a curious mind always lingers... Are dealers really paying "confidential" BMW NA Wholesale prices for units or do you think dealers are paying LESS than wholesale if they're moving a lot of vehicles in addition to other various contributing factors. The four basic pricing levels show how a base E92 can top at $58,400 while the "bottom line" appears to be $49,965 (for ED). 1) MSRP ($58,400) 2) Wholesale ($53,730) 3) European Delivery ($49,965) 4) Diplomatic Wholesale ($51,040) Are some dealers perhaps paying $45 for base E92 - is BMW NA's "confidential" sheet that we all have really the bottom? Curious to get some interesting conversation going in here __________________ '12 CLS550 Palladium Silver - loaded '11 E92 M3 ZCP - SG/B-EXT/CF, M-DCT, loaded '11 E93 328i, BSM over Saddle Brown, sport, loaded '08 550i M-Sport, Carbon Black (Gone but not forgotten), '06 W211 E55 AMG (Gone, miss this animal),'01 E39 540i Sport
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05-20-2010, 11:33 AM	#8
Ali@BMWMt.laurel BimmerPost Supporting Vendor Drives: 2013 Active 3 Join Date: Aug 2008 Location: PA Posts: 2,559 iTrader: (7) Garage List 2013 BMW Active Hyb ... [0.00]	Client Advisors have to make a living too. Dealers get the incentive after a while, but WHAT do the Client Advisors get? Think about it. __________________ BMW of Mount Laurel - Client Advisor www.BMWofMtLaurel.com Largest Inventory in the Delaware Valley We are an M-Certified Dealer and DINAN Certified goldRush Rally 4 Survivor - Team Exotics Rally

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05-19-2010, 06:58 AM	#2
bmwboi Private Drives: X5 Join Date: Apr 2008 Location: My Garage Posts: 76 iTrader: (0)	There's got to be something in it for the dealers besides a few hundred over invoice I would imagine. Maybe they get some sort of incentive from BMW at the end of the year due to the volume they sell or maybe there really is a dealer price below invoice. When factory cash back is offered you can usually get a car well under invoice but I'm not sure if it happens otherwise. Maybe someone else can shed some light...

05-19-2010, 10:14 AM	#3
alpineweissM3 I love my beautiful wife! Drives: e90 ///M Join Date: Oct 2007 Location: Pittsburgh Posts: 631 iTrader: (0)	I believe BMW has a "Dealer Holdback". Not sure how much, but typically dealer holdback is between 2 and 3% of the MSRP.

05-19-2010, 01:03 PM	#4
Wah Red Hot Riplet Drives: '11 E92 M3 ZCP/ '10 Xterra OR Join Date: Jul 2009 Location: NJ Posts: 373 iTrader: (1)	Since I'm getting a new 2011 at invoice, I'm sure they are making money on it somehow. They aren't in business just to do people favors.