[Thescout13]

Originally Posted by scottomfg

That 8% number is quite a bit off. As a rule of thumb BMW invoice price is about 7% off MSRP.* Of course, $1k being a solid number instead of a relative %, how much a percentage it is of the total MSRP will vary by car, but for a top end 2 series, $1k is about 2% so, a deal for $1k over invoice would be right around 5% off MSRP.

*For my car the MSRP is $51,825 and the invoice is $48,100, which equals 7.2%below MSRP. You can find invoice prices at Edmunds (http://www.edmunds.com/tmv.html" rel="" target="_blank">http://<a href="http://www.edmunds.c...m/tmv.html</a>" rel="" target="_blank">http://<a href="http://<a href="http...v.html</a></a>) but note that their invoice price does not include the MACO fee, which *is* part of invoice and varies by region (it's $245 for NW right now).

Another thing to note when negotiating sale price with dealer is that *all* incentives come from BMW corporate themselves and therefore should not be taken into consideration when negotiating price. Incentives should be subtracted after sale price is agreed upon. Dealers like to use the incentives in negotiating sales price because it make it look like they are coming down further than they actually are since that money doesn't come out of their pocket.

You are right they vary by car that's why I'm asking for it. But you are correct in pointing out the incentives however I always negotiate with them included because it gives them the illusion of control and I'm not out to screw the dealer.

Edmunds "invoice price" is not even close to the real invoice price. I've bought 2 BMWs in the past year for $1-2k below what edmunds so-called the invoice price. That is because there are other incentives or things happening behind the scenes that the dealer doesn't publish and I've learned this through representing them at a law firm.

HOWEVER, I will say that edmunds invoice price is a great starting point. But there are also 100 other factors like how long the car stays on the lot, the popularity, the turnover, etc....

I'm just here to arm some people with the best possible position to negotiate from. Give them the best deal possible and let them decide how much profit they want the dealer to make.

Thank you again for your input to the thread. It helps spread the knowledge about leasing and not getting shafted.

Best,

M