Discounts on ordering an new X5

[MJX5]

I should be going into a BMW dealership or 2 in the next couple weeks to order a new X5 xDrive 35i. My configuration will be around $70k msrp. What type of discount would be considered solid?

4%, 5%, 7%, 10%?

Also, I do not know anyone who is a BMW employee. I think there is a BMW friends and family plan? What % is that? Maybe I will try to dig deeper into my friends

What did you see when you ordered yours?

Thanks in advance!

[Kzang]

I got -$1,000 under invoice and picked up my X5 a week ago.
I would shoot for between 7% to 10% from MSRP. Good luck.

[Stunnaz]

I think people need to mention if they're leasing/buying with cash/financing, trade-ins when they describe discounts. Sometimes dealers will sell you a car for cheap but make it up in other areas.

[Broadsword]

Has anybody else use TrueCar for their discounts?

[Babs]

Originally Posted by Broadsword

Has anybody else use TrueCar for their discounts?

I have used Truecar to get an idea of potential discounts. I am not a big fan of invoice pricing though. As kzang indicated above, shoot for 7% to 10% off MSRP. Put your hard negotiation hat on and have fun with the experience.

Also, as stated by stunnaz above, your specific situation (leasing/buying with cash/financing) will impact on your final out the door (all-in) price.

[MJX5]

I am buying the car and have a trade in. KBB for a trade in value to the dealership has my 2007 Denali with 78000 miles at $21-24k (Good to Very Good). Mercedes dealer offered $19k. (I am considering the Mercedes ML400 as well). Would prefer the X5 though but price is a factor. Mercedes is offering 8% total off (this incudes a rebate of $1500) plus $19k for trade in. I went to a BMW dealer that offered $15,500 for trade and 5%. (not what I expected)

[Babs]

Originally Posted by MichaelJamesX5

I am buying the car and have a trade in. KBB for a trade in value to the dealership has my 2007 Denali with 78000 miles at $21-24k (Good to Very Good). Mercedes dealer offered $19k. (I am considering the Mercedes ML400 as well). Would prefer the X5 though but price is a factor. Mercedes is offering 8% total off (this incudes a rebate of $1500) plus $19k for trade in. I went to a BMW dealer that offered $15,500 for trade and 5%. (not what I expected)

Well, you should use this situation in your favour. BMW dealers need to know that they will lose your business if they don't give you a reasonable offer. My wife recently dumped Audi (Q5) for MB (ML350). The experience was awesome with the MB dealer and the sales guy was aware he was competing for our business with Audi. Yes, we had to haggle for a deal but we got an awesome discount (12% off MSRP) for a new 2015 ML 350 that was on the dealer lot.

Do some research, get quotes from multiple dealers and let all of them know you will walk away from a deal if it doesn't work for you. You have to be fair though, that is why I think 7% to 10% off MSRP is a good bench mark. For the trade in, I will advise you go to Car Max for an appraisal. That way you get to know if the offer from the dealer is reasonable (it would be less than car max but should not be too far off).

My 2 cents. All the best and let us know how you make out.

[patrikr]

An alternative to CarMax is Autonation Direct. Just sold my 2013 Ram 1500 to them as I needed to make room for the F15 I got yesterday. They'll send you a guaranteed quote and all you have to do is to fill out a form on their website and ideally upload pictures of the car. If nothing else you can use that to help get a better trade-in price.

[MJX5]

Does anyone know if BMW has an employee program? Is it a friends and family? How much is the discount?

Also, does anyone know what the average hold back is on the X5?
If the discount is 8% on a $70k vehicle, thats' a $5600 discount, for example. $64400 is the new price. So would the dealers cost around $60k?

If you are ordering a car, the dealership does not incur any overhead for having the car on their lot and not selling it or any expenses that they normally have for a car sitting on their lot.

Im trying to think of what a fair compromise would be. My wife thinks we should just wait for a screaming deal and if not, we can just wait on a new car and drive the one we have.

[POBA]

Originally Posted by MichaelJamesX5

Does anyone know if BMW has an employee program? Is it a friends and family? How much is the discount?

Also, does anyone know what the average hold back is on the X5?
If the discount is 8% on a $70k vehicle, thats' a $5600 discount, for example. $64400 is the new price. So would the dealers cost around $60k?

If you are ordering a car, the dealership does not incur any overhead for having the car on their lot and not selling it or any expenses that they normally have for a car sitting on their lot.

Im trying to think of what a fair compromise would be. My wife thinks we should just wait for a screaming deal and if not, we can just wait on a new car and drive the one we have.

What I heard before, the hold back is around 5% off the base car MSRP.

[MJX5]

Is there a BMW employee discount? Does it include friends and family and what is the actual discount?

[Kzang]

There is also the Ultimate Drive Event discount as well https://ude.bmwusa.com/ I am told $1,000.00 off

[Chem14]

I got 12% off. From what I have seen, it depends on where you live and how many dealers compete for your business.

[Stunnaz]

Originally Posted by Chem14

I got 12% off. From what I have seen, it depends on where you live and how many dealers compete for your business.

But did you get finance or do a trade-in? 12% would be unbelievably good for a cash sale.

[Roundown]

Originally Posted by MichaelJamesX5

I am buying the car and have a trade in. KBB for a trade in value to the dealership has my 2007 Denali with 78000 miles at $21-24k (Good to Very Good). Mercedes dealer offered $19k. (I am considering the Mercedes ML400 as well). Would prefer the X5 though but price is a factor. Mercedes is offering 8% total off (this incudes a rebate of $1500) plus $19k for trade in. I went to a BMW dealer that offered $15,500 for trade and 5%. (not what I expected)

Service included at MB?

[Chem14]

Originally Posted by Stunnaz

But did you get finance or do a trade-in? 12% would be unbelievably good for a cash sale.

I leased. No trade in.

[MJX5]

Lets take an example on a BUY.... ordering it, not from current stock:

$71 msrp
10% off msrp= $64k.

I am being told that dealer invoice is $65,500
Hold back is 2.5% if the dealership hits all their targets and is only on the base invoice (not options).. and that its not guaranteed? (is it 2.5% or is it 5%?)

So how is a dealership selling a car for $1500 under invoice?

Also, Did any of you use the N63 discount? $1500 discount for buying the 1st generation turbo and using it as a trade in?

[Babs]

Originally Posted by MJX5

Lets take an example on a BUY.... ordering it, not from current stock:

$71 msrp
10% off msrp= $64k.

I am being told that dealer invoice is $65,500
Hold back is 2.5% if the dealership hits all their targets and is only on the base invoice (not options).. and that its not guaranteed? (is it 2.5% or is it 5%?)

So how is a dealership selling a car for $1500 under invoice?

Also, Did any of you use the N63 discount? $1500 discount for buying the 1st generation turbo and using it as a trade in?

You have made a valid point here. The whole invoice price thing is confusing and there is no need to use it in my opinion. The best thing is always to negotiate a good deal that works for you and is aggressive but reasonable (based on research and many other factors like how many dealers are vying for your business). Selling cars is similar to selling many other products (at a very broad level). There are many customers that will pay close to MSRP, while others will negotiate hard and get aggressive pricing. Also, there are rebates offered by the car manufacturers to dealers we will never know about. So, at the end of the day, it all levels out. In other industries, I have seen dealers take a loss on a few sales if it takes them in to their 'huge' incentive/performance based payments. It is possible that the car industry has similar practices.

One thing I know for sure is that almost all organizations (the exception being non-profit) are in business to make money and if a deal/sale does not work for them in the big picture, they won't do it. That's what the finance department and CFO are for. This is my personal opinion and I am sure some will agree while others will not.

[Kessler35is]

Originally Posted by MJX5

Lets take an example on a BUY.... ordering it, not from current stock:

$71 msrp
10% off msrp= $64k.

I am being told that dealer invoice is $65,500
Hold back is 2.5% if the dealership hits all their targets and is only on the base invoice (not options).. and that its not guaranteed? (is it 2.5% or is it 5%?)

So how is a dealership selling a car for $1500 under invoice?

Also, Did any of you use the N63 discount? $1500 discount for buying the 1st generation turbo and using it as a trade in?

Yes, I used the $1500 credit, it can be used on any vehicle and you do not have to trade the vehicle that has the N63 in it for the credit.

[Jenya B]

Originally Posted by MJX5

Lets take an example on a BUY.... ordering it, not from current stock:

$71 msrp
10% off msrp= $64k.

I am being told that dealer invoice is $65,500
Hold back is 2.5% if the dealership hits all their targets and is only on the base invoice (not options).. and that its not guaranteed? (is it 2.5% or is it 5%?)

So how is a dealership selling a car for $1500 under invoice?

Also, Did any of you use the N63 discount? $1500 discount for buying the 1st generation turbo and using it as a trade in?

Dealers NEVER has a LOSS , MSRP just recommended price , thats it .

Originally Posted by Babs

You have made a valid point here. The whole invoice price thing is confusing and there is no need to use it in my opinion. The best thing is always to negotiate a good deal that works for you and is aggressive but reasonable (based on research and many other factors like how many dealers are vying for your business). Selling cars is similar to selling many other products (at a very broad level). There are many customers that will pay close to MSRP, while others will negotiate hard and get aggressive pricing. Also, there are rebates offered by the car manufacturers to dealers we will never know about. So, at the end of the day, it all levels out. In other industries, I have seen dealers take a loss on a few sales if it takes them in to their 'huge' incentive/performance based payments. It is possible that the car industry has similar practices.

One thing I know for sure is that almost all organizations (the exception being non-profit) are in business to make money and if a deal/sale does not work for them in the big picture, they won't do it. That's what the finance department and CFO are for. This is my personal opinion and I am sure some will agree while others will not.

Every quarter , after dealers count sales volume , they getting discounts 10% , 15% or even 20 % from INVOICE prise , even if they sell 1500 $ under invoice , they gonna get 6500$ profit . Dont listen stories from "poor" salesmans and and others if there no profit , why run this kind of bizness .

[Snow-Kidney]

Originally Posted by MJX5

Lets take an example on a BUY.... ordering it, not from current stock:

$71 msrp
10% off msrp= $64k.

I am being told that dealer invoice is $65,500
Hold back is 2.5% if the dealership hits all their targets and is only on the base invoice (not options).. and that its not guaranteed? (is it 2.5% or is it 5%?)

So how is a dealership selling a car for $1500 under invoice?

Also, Did any of you use the N63 discount? $1500 discount for buying the 1st generation turbo and using it as a trade in?

Dealers get bonuses for selling cars. These are secret and no one knows that number. This number is different depending on dealer and volume.

I suggest to forget the friends and fam angle. Don't be 'that guy' and bother your buds for save a few pennies. In my experience, I have always negotiated a better deal than a friends and fam deal.

If you're lucky and persistent, you can get $1K under invoice plus an additional $1K off for UDE. Make sure you know/follow the UDE rules for ordering a car.

[POBA]

Originally Posted by Kessler35is

Yes, I used the $1500 credit, it can be used on any vehicle and you do not have to trade the vehicle that has the N63 in it for the credit.

Sorry for the silly question. Would you please elaborate more on this credit and what does it entail? Did not hear about it before. Thank you in advance for the clarification.