Can Dealers Discount off ED Prices?

mister-e90 · 08-01-2005, 06:40 PM

Recently, my dealer (Herb Chambers BMW) informed me that they are not allowed to discount on top of European Delivery prices. Is this true?

mike-

stressdoc · 08-01-2005, 06:45 PM

If that is their policy I would sure as he%^ go to a different dealer. It is easier for them to discount on an ED, because the car does not come out of their allotment. Email around and get a decent deal.

I miss my 325xi · 08-01-2005, 06:53 PM

Herb Chambers has a history of not discounting when concerning European Delivery.

xspeedy · 08-01-2005, 08:24 PM

Search Bimmerfest. I believe there is a thread that lists ED friendly dealers. You should be able to find one reasonably close to you.

Find your salesman (or if he is dumb, the manager), and tell him firmly that ED cars can be sold below the retail price. If they are unwilling to negotiate, then tell them you'll take your business elsewhere. If they don't want to make four figures for filing some papers, then it is their loss.

dkulp · 08-01-2005, 08:28 PM

Umm, just too weeks ago, Herb Chambers offered me $2K over invoice for ED on a 330i. It's not stellar, but definitely better than MSRP. That said, Norwell offered a much better deal, and FM West, while not as good as Norwell, was also willing to deal. My 323i I bought in 1999 was bought from Herb as at the time, they were the only ones willing to deal on it (although not much).

Dan

mister-e90 · 08-01-2005, 08:59 PM

You mean they discounted the cars cost even after the ED discount?

marcus330i · 08-01-2005, 09:04 PM

Some dealers have a policy not to discount from MSRP. But that is their policy and not BMWNA's policy.

Shop around.....you should be able to get a great deal. I saved 12% off full sticker by negotiating with my dealer.

mapezzul · 08-01-2005, 10:24 PM

Quote:

Originally Posted by marcus330i

Some dealers have a policy not to discount from MSRP. But that is their policy and not BMWNA's policy.

Shop around.....you should be able to get a great deal. I saved 12% off full sticker by negotiating with my dealer.

I paid about 1000 over ED invoice for about 12% savings off of full retail as well.

bimmerfest has lots of info on ed and pricing/dealers willing to deal! Best of luck!

dkulp · 08-02-2005, 05:56 AM

Quote:

You mean they discounted the cars cost even after the ED discount?

Yes. They offered $2K above European Invoice. See my post in the thread at bimmerfest for details (9th post in thread) on how I got that offer.

http://www.bimmerfest.com/forums/sho...d.php?t=106168

Talk to Nick Lagas if possible. He is the one that wrote the fax fax back to me. If you want, I can fax you a copy of the fax to take in to "prove" they do deal, but that should be a last resort as dealers usually don't like it when you do things like that. What you most likely want to say is "a friend of mine 2 weeks ago got a quote for.... He talked to Nick. I can get a copy of the quote from him if needed." That said, they probably would just honor the quote and and not deal any more than the 2K over ED invoice. You can do better elsewhere, but it may not be worth the hassle.

Dan

mister-e90 · 08-02-2005, 06:10 PM

Thanks to all those who posted for helping me understand how to deal with the process of negotiating. I feel enlightened and truely appreciate your help.

mike-

mister-e90 · 08-02-2005, 06:11 PM

I know this is an E90 post, but does anyone know what kind of price over invoice (dealer profit) should be given on a car like the 6 series?

xspeedy · 08-02-2005, 06:20 PM

Quote:

Originally Posted by mister-e90

I know this is an E90 post, but does anyone know what kind of price over invoice (dealer profit) should be given on a car like the 6 series?

You would need to find out if an ED 6 comes out of the dealer's allocation. If it does not, then you shouldn't have to pay any more over invoice than you would for a 3.

mapezzul · 08-02-2005, 07:09 PM

The 6 series for ED does come out of the dealer allocation, but does receive an 8% discount for the ED. So you will probably pay full ED price since it does come out of allocation. Here is a post from Bimmerfest, the response is from a DEALER who knows the right answers to everything! Good luck

Quote:
Originally Posted by...
I thought ED cars normally don't come out of the dealers allocation. My dealer is telling me that if I wanted to do European Delivery on a 6, it would still have to come out of his allocation and there would be no ED cost savings for me. Is that true? He's also trying to tell me that in the case of european delivery, leasing isn't a good deal, that you pay more in the end. I'm starting to think that he doesn't want me to consider ED in the first place!

Answer:
ED 6's do come out of allocation, but your dealer is wrong about no ED savings. ED MSRP is about 8% lower and you can lease an ED 6 (we just did a 645Ci lease for next month delivery.) Actually, on the contrary leasing an ED 645Ci is the best deal- you base the residual on the US MSRP, but you base the payment on the ED price!!!

I miss my 325xi · 08-03-2005, 07:41 AM

I'm becoming confused. I know that a 7% is standard on ED prices as it says on bmwusa.com

What I want to know is, lets say I choose ED ( I get my 7%) and then let's say I want to push for a little more discount. Let's say 500$. Can they do that or no?

mapezzul · 08-03-2005, 07:54 AM

that is up to the dealer. Since it comes out of the allocation (6er) they will not have the ability to make any more profit from that allocation. The 3er does not come out of allocation so they are more willing to negotiate on it, it is essentially free profit for them since it does not affect the allocation numbers.
The 6er is going for retail in most areas so the easiest way to see if they will budge is do not mention ED and then see if they are willing to take off any money then see if they will do the same below MSRP offf the ED price. Hope that helps. The car has 8% profit still built into it if I remember correctly, there is lots of info on bimmerfest for this topic including confidential wholesale prices etc..... best of luck!

xspeedy · 08-03-2005, 08:49 AM

By allocation, the dealer only gets so many of that car a year. Let's say it is ten units. So if he sells it to you cheap, he misses the opportunity to sell it to someone else for more money. Therefore, he is going to sell that car at "market price". Market price for that type of car will be retail price.

For more common volume vehicles (3, 5...), the car doesn't come out of allocation when purchased via ED. Therefore, the dealer can sell as many as he wants (via ED). There is no opportunity cost per se, and therefore the dealer will be willing to discount more heavily.

ska///235i · 09-18-2005, 09:53 PM

When you guys say "$2000 over ED invoice....what price is that????

CALIF65GM · 09-19-2005, 01:02 AM

Quote:

Originally Posted by ska

When you guys say "$2000 over ED invoice....what price is that????

When we mention $xxxx above ED invoice, it's exactly what it means. Some dollar amouint + the ED invoice for the cost of the car +tax& lic though.

Whatever car you're interested in, get the ED invoice with all your spec'd options and add the dealer profit that you're willing to give the dealer.

This only works on 3 & 5-series though as they don't come out of dealer allocation.

08-01-2005, 06:40 PM	#1
mister-e90 Enlisted Member 8 Rep 30 Posts Drives: 06 325i 06 650i conv. Join Date: Jul 2005 Location: Boston iTrader: (0)	Can Dealers Discount off ED Prices? Recently, my dealer (Herb Chambers BMW) informed me that they are not allowed to discount on top of European Delivery prices. Is this true? mike-
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08-01-2005, 06:45 PM	#2
stressdoc Moderator 656 Rep 10,863 Posts Drives: BMW i8; Toy 4runner TRD pro Join Date: Jun 2005 Location: Waco TX iTrader: (0)	If that is their policy I would sure as he%^ go to a different dealer. It is easier for them to discount on an ED, because the car does not come out of their allotment. Email around and get a decent deal.
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08-01-2005, 06:53 PM	#3
I miss my 325xi Private 29 Rep 76 Posts Drives: '02 325xi(retired) Join Date: Aug 2005 Location: Hong Kong iTrader: (0)	ED Discounts Herb Chambers has a history of not discounting when concerning European Delivery. __________________ 2002 325xi/Steel Blue/Steptronic/Myrtle Trim/Beige
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08-01-2005, 08:24 PM	#4
xspeedy Second Lieutenant 7 Rep 266 Posts Drives: Join Date: Mar 2005 iTrader: (0)	Search Bimmerfest. I believe there is a thread that lists ED friendly dealers. You should be able to find one reasonably close to you. Find your salesman (or if he is dumb, the manager), and tell him firmly that ED cars can be sold below the retail price. If they are unwilling to negotiate, then tell them you'll take your business elsewhere. If they don't want to make four figures for filing some papers, then it is their loss.
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08-01-2005, 08:28 PM	#5
dkulp Enlisted Member 20 Rep 31 Posts Drives: 2023 330e Join Date: Jul 2005 Location: Framingham, MA iTrader: (0) Garage List 2023 BMW 330e [0.00]	Umm, just too weeks ago, Herb Chambers offered me $2K over invoice for ED on a 330i. It's not stellar, but definitely better than MSRP. That said, Norwell offered a much better deal, and FM West, while not as good as Norwell, was also willing to deal. My 323i I bought in 1999 was bought from Herb as at the time, they were the only ones willing to deal on it (although not much). Dan
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08-01-2005, 08:59 PM	#6
mister-e90 Enlisted Member 8 Rep 30 Posts Drives: 06 325i 06 650i conv. Join Date: Jul 2005 Location: Boston iTrader: (0)	You mean they discounted the cars cost even after the ED discount? __________________ 2006 325i SG ED 8/7/2005
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08-01-2005, 09:04 PM	#7
marcus330i Lieutenant 43 Rep 524 Posts Drives: 2006 330i 6spd Join Date: May 2005 Location: Point Loma, California iTrader: (0)	Some dealers have a policy not to discount from MSRP. But that is their policy and not BMWNA's policy. Shop around.....you should be able to get a great deal. I saved 12% off full sticker by negotiating with my dealer. __________________ Realtor Mobile: 6spd / Sport / Prem / Navi / ED 3-30-06 73 3.0s/84 528e/90 525i/97 M3 4dr/99 M3 Conv/2001 330i/2004 545i ED/2006 330i ED June 05 You're in control...is there anywhere you want to go ? -------------------------
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08-02-2005, 06:10 PM	#10
mister-e90 Enlisted Member 8 Rep 30 Posts Drives: 06 325i 06 650i conv. Join Date: Jul 2005 Location: Boston iTrader: (0)	Thanks to all those who posted for helping me understand how to deal with the process of negotiating. I feel enlightened and truely appreciate your help. mike- __________________ 2006 325i SG ED 8/7/2005
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08-02-2005, 06:11 PM	#11
mister-e90 Enlisted Member 8 Rep 30 Posts Drives: 06 325i 06 650i conv. Join Date: Jul 2005 Location: Boston iTrader: (0)	I know this is an E90 post, but does anyone know what kind of price over invoice (dealer profit) should be given on a car like the 6 series? __________________ 2006 325i SG ED 8/7/2005
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08-02-2005, 07:09 PM	#13
mapezzul Special Agent 74 Rep 1,731 Posts Drives: Depends on the day! Join Date: Jul 2005 Location: Bavaria iTrader: (1)	The 6 series for ED does come out of the dealer allocation, but does receive an 8% discount for the ED. So you will probably pay full ED price since it does come out of allocation. Here is a post from Bimmerfest, the response is from a DEALER who knows the right answers to everything! Good luck Quote: Originally Posted by... I thought ED cars normally don't come out of the dealers allocation. My dealer is telling me that if I wanted to do European Delivery on a 6, it would still have to come out of his allocation and there would be no ED cost savings for me. Is that true? He's also trying to tell me that in the case of european delivery, leasing isn't a good deal, that you pay more in the end. I'm starting to think that he doesn't want me to consider ED in the first place! Answer: ED 6's do come out of allocation, but your dealer is wrong about no ED savings. ED MSRP is about 8% lower and you can lease an ED 6 (we just did a 645Ci lease for next month delivery.) Actually, on the contrary leasing an ED 645Ci is the best deal- you base the residual on the US MSRP, but you base the payment on the ED price!!!
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08-03-2005, 07:41 AM	#14
I miss my 325xi Private 29 Rep 76 Posts Drives: '02 325xi(retired) Join Date: Aug 2005 Location: Hong Kong iTrader: (0)	European Delivery Prices I'm becoming confused. I know that a 7% is standard on ED prices as it says on bmwusa.com What I want to know is, lets say I choose ED ( I get my 7%) and then let's say I want to push for a little more discount. Let's say 500$. Can they do that or no? __________________ 2002 325xi/Steel Blue/Steptronic/Myrtle Trim/Beige
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08-03-2005, 07:54 AM	#15
mapezzul Special Agent 74 Rep 1,731 Posts Drives: Depends on the day! Join Date: Jul 2005 Location: Bavaria iTrader: (1)	that is up to the dealer. Since it comes out of the allocation (6er) they will not have the ability to make any more profit from that allocation. The 3er does not come out of allocation so they are more willing to negotiate on it, it is essentially free profit for them since it does not affect the allocation numbers. The 6er is going for retail in most areas so the easiest way to see if they will budge is do not mention ED and then see if they are willing to take off any money then see if they will do the same below MSRP offf the ED price. Hope that helps. The car has 8% profit still built into it if I remember correctly, there is lots of info on bimmerfest for this topic including confidential wholesale prices etc..... best of luck!
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08-03-2005, 08:49 AM	#16
xspeedy Second Lieutenant 7 Rep 266 Posts Drives: Join Date: Mar 2005 iTrader: (0)	By allocation, the dealer only gets so many of that car a year. Let's say it is ten units. So if he sells it to you cheap, he misses the opportunity to sell it to someone else for more money. Therefore, he is going to sell that car at "market price". Market price for that type of car will be retail price. For more common volume vehicles (3, 5...), the car doesn't come out of allocation when purchased via ED. Therefore, the dealer can sell as many as he wants (via ED). There is no opportunity cost per se, and therefore the dealer will be willing to discount more heavily.
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09-18-2005, 09:53 PM	#17
ska///235i ***** noob 1412 Rep 10,477 Posts Drives: 325xi>M235i>428GCx Mspor Join Date: Sep 2005 Location: Boston iTrader: (34) Garage List 2006 325xi [0.00]	When you guys say "$2000 over ED invoice....what price is that????
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