Originally Posted by MegaMatt3
But a question (if I have that all right): If BMW is allowing a dealer to sell outside of allocations, doesn't the dealer stand to profit just as much by selling outside of allocations? Why are they more likely to mark it down then?
Not every dealer is willing to bargain like that. It depends on the individual salesman and dealer. Some like to go for volume and the word will get out quick and they will sell more of those or they can mark it up the same way and sell much fewer units. It just depends on what strategy the dealer likes.
Very few dealers will personally offer you something like that off the bat. Usually you have to initiate such a move and make an offer and if the dealer sees that you aren't going to buy unless they work with you on that level, in addition to knowing that they can order as many of them as they want (if it's not coming out of their allocation) then some profit is better than no profit.
I'll take 500 bucks any day of the week over 0 if I know this person will walk out and I stand nothing to lose by doing so. Now, if it was coming out of my limited supply, then I would say no and wait for the right customer who will pay what I want.
As an example, 4 series are not currently coming out of dealer allocations (true story). Therefore, you could easily order one of them from some dealers and get an awesome deal. It does not have to be a Euro Delivery. It can be just a normal special order.