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11-24-2009, 10:04 PM | #1 |
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How does bmw make money selling an M at 100 over invoice..
Hello folks someone fill me in...
How does bmw make money or afford to stay open selling an m3 at invoice? or 100-500 over invoice. Thanks! |
11-24-2009, 10:05 PM | #2 |
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That's the dealer that's theoretically only making $100 on the car (but dealers have about 5% holdback in addition to invoice that they receive from BMW so they are really making a few thousand).
BMW's cost of making the car is not "invoice." |
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11-24-2009, 10:09 PM | #4 |
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im sorry let me rephrase that, how does the dealer make money...
So the dealer gets a couple thousand eventhough they sell at invoice?.. I wonder how much it actually costs bmw to make an m |
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11-24-2009, 10:13 PM | #5 | |
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I don't know how much an M3 costs to make. I'm guessing actual production costs including labor and materials (but excluding R&D) are probably somewhere between 40-50%. This is a totally uneducated guess. |
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11-24-2009, 10:17 PM | #6 |
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11-24-2009, 10:21 PM | #8 |
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If they sell it at MSRP, that's a good ballpark figure. However, I imagine that many are getting deals near invoice or even under invoice in this market. I bought mine for $1,000's back of invoice.
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11-24-2009, 10:23 PM | #9 |
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Thats weird... offtopic but can you believe down here Chevrolet dealers are still trying to get $1000's over sticker on Camaro
Besides the dealers trying to make extra money...does anyone know the reason behind? Thanks |
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11-24-2009, 10:28 PM | #10 |
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Things are worth what people will pay for them. If the market will bear over MSRP, then the market will bear over MSRP... just look at the Shelby Mustang GT500, GT-R, GT3 RS, and R8.
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11-24-2009, 10:43 PM | #11 |
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BMW isn't suffering much, that's for sure. They might not have posted profits as they had expected but this economy makes it really tough to sell luxury cars.
As for the dealers, like others said they do get a kick back of around 3-5% for every car they sell and even more if they are able to sell more than a certain of cars per month. Besides, not everybody pays around the invoice price as some buyers don't do much research since they just go into the dealership, pick a car, test drive it and buy it on the spot with maybe a few hundred bucks off MSRP. |
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11-24-2009, 11:18 PM | #13 | |
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In Germany for example, the car costs about 30% more in US dollars. Therefore comparatively to most other markets we're buying new BMWs for a fraction of the cost in those other markets. And yet we still complain???
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11-25-2009, 04:53 PM | #15 | |
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2009 AW M3 E93 - Black Novillo|DCT|ZTP|ZPP|752 Enh Audio|4UT|Heated Seats|6FL|6NF| For jpg's: http://www.m3post.com/forums/showthr...=186382&page=4 Traded: 2007 335i E93 |
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11-25-2009, 06:30 PM | #16 |
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Let me get this straight... You are swapping out parts designed by some of the top engineers in the world because some guys sponsored by a company told you it's "better??" But when you ask the same guy about tracking, "oh no, I have a kid now" or "I just detailed my car." or "i just got new tires."
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11-25-2009, 08:11 PM | #17 |
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11-27-2009, 09:36 PM | #18 | |
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11-28-2009, 05:02 PM | #19 |
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See David at https://www.bmwsonline.com/ for an ED deal that is only few hundred over ED Invoice
After your mini vacation in Europe, take re-delivery at PCD in Spartanburg, SC, then either drive it home or pay to ship it to your doorstep
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2009 AW M3 E93 - Black Novillo|DCT|ZTP|ZPP|752 Enh Audio|4UT|Heated Seats|6FL|6NF| For jpg's: http://www.m3post.com/forums/showthr...=186382&page=4 Traded: 2007 335i E93 |
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12-01-2009, 11:25 AM | #20 |
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BMW has never offered holdbacks for their dealers, but they do offer other incentives.
And like everyone else says, the dealer makes money off repairs and service too. |
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