BMW pricing?

Question

When I ask for quotes from BMW dealers they will take no more than 5% off MSRP. But when I get quotes for Lexus they can discount more than 10% from MSRP. Does BMW MSRP has lower profit margin than Lexus, or are the dealers more greedy?

Answer 1

GREED.......Both of them......... Profit margin is a better term.

OK, simple but true Every Car dealer want to make as much profit on Every Singal car they have...Thats Why they call it The Deal... Even Saturn Doesn't give you the lowest Price they will take for a car on their lot...

There is a machine out now that can change the Cars Dealer invoice to show you what they have in the car compared to the Window Sticker, MSRP THAT can NOT be changed other than to add ADD ON's to like radio I pod hookups Rims etc... So unless you work for that dealer you don't know the exact cost of that car and if they received a Discount for ordering 5 or 10 extra units more than normal... This comes back to floor plan, Bank note THEY OWE... Different Models bring in different profits.

Now keep this in mind Every BMW cost per model is 1800 to 8300 per model UNDER sticker to what is on their Floor plan at the bank...

Lexus is the Mother ship of Toyota... They mark there cars up in over all cost so they can give bigger discounts and Rebates. Just like Acura.... Honda's equal... And Profit is Less than BMW's at 1850 to 8400 Salesman only gets a % of the sale or flat fee.

Simple rule of thumb when going in Ask them to appraise your Trade in 1st so you know what you have to work with. This is were they ask you on which car are you looking at? Helps them not you. Then ask about 2 different models and what discounts or rebates they have going on those 2 model's. See their Price on each EVEN if one is USED... Now Make your counter offer,
but be ready to be turned down and walk out if they spout out NO.

This is a list I use when making the deal. Import or Domistic
under 10000 - off 800 to 900 when you make your counter offer
10000 to 16000 - off 1100 to 1350...... C offer
17000 to 21000 - off 1400 to 1800...... C offer
Skip to 25K to 30K - off 2000 to 3000 .C offer
35K to 40K ... - off 3100 to 3700
45K to 50K ... - off 4000 to 4500
Each should come back from the Salesmanager with more from your trade in and at least 800 to 2500 more off the deal... Never jump at the 1st Deal sheet... Unless its Cut and dry to good to be true. (Example 47137 F350 SuperCrew Loaded for 32888 I didn't have to ask for anything but Neff bars and got them)

If you go for the Lexus : LS LS460L LWB shoot for 8000.00 OFF
Or the BMW M5 M6 or any above 75000 They most likely won't budge of their deal... But they might call you 3 to 5 days later and ask you if your still in the market!! For that new car.

I know this was Long but if your going to spend that Much money Be ready to cover all your bases. They are only your friend til they have your money in their bank...

Thanks for the Negitive marks.... And Ask ASK Questions before you shop proves the customer is learning not to be takin to the cleaners every time...

Answer 2

5% off sticker of a bmw is a great deal, and that must be a car that is not very high in demand. 5% would never happen on the new 3 coupe or upcoming convertible, m's, 6's or the like. It all depends on the car, the availability, and the salesperson desire to take a short deal. Many BMW's sell at full MSRP, and are worth every penny. There is no certain dollar amount or percentage you can expect to pay off msrp, too many intangibles.

Answer 3

It's all a matter of supply and demand. Both Lexus and BMW charge as much as they can get. Both also have very high profit margins, but a Lexus sales person will probably sell more cars per month than a BMW sales person.

If you wait until the end of the month and are willing to buy something off the lot, you'll be able to get a much better price.

Answer 4

BMW's are nice. Don't get a neon. It's cheap, unreliable, and looks like a piece of s*$t. Any BMW can handle better than a neon even if its a SRT model. Just because Dodge is under Daimler Chrysler, it doesn't make a neon a mercedes. BMW's are expensive but there is a european delivery program that might be worth it. When you choose to buy certain models, you can choose to pick it up in Europe for a few thousand dollars off and get it delivered here after a vacation in your BMW in Europe. Read about it at bmwusa.com

Answer 5

The dealers are way more greedy, BMW's are way overpriced, and the service is terrible. Get a Lexus. They last longer, service is excellent, and you get more for your money. Also- the value stays with Lexus longer than BMW. My '02 BMW 530i is almost worth the same as my '02 Camry, when I paid almost $25k more for the BMW.

Answer 6

Go to Auto Club (aaa.com) or CostCo. They both have new car purchase programs. You will pay whatever price that the manufacturer and the auto program have pre-agreed upon. Usually $500 or $750 over invoice. Depends on the car though.

Also, check out Edmunds.com for invoice pricing and MSRP pricing.

Answer 7

BMW has a lower profit margin, they don't depreciate annually much and most new Lexus vehicles are over priced

Answer 8

in the adventure that your going to purchase a BMW, you ought to to purchase 2 of them.My sister has the Z-3 and a Z-4 and that they stay interior the keep each and all the time..One is in there now..ONE TO stress collectively as the different is interior the keep

Answer 9

Before you buy, make a friend in the dealership industry... They should give you a deal!!! mine was $500 over factory invoice. 2007 760il

Answer 10

They are being greedy, now is a good time to buy a new 2006 model and you will get much more bargining power.