[drand]

Since there are a few threads on pricing and questions related to discounts on ED, I thought I would post the pricing I have on my M235i that I will be picking up on Sept 15.

For a little background, I put money down on a 135i in 2007 prior to pricing coming out literally within days of the announcement on the car coming out. I picked that car up in Munich in April 2008 (negotiated $1200 over ED invoice when I put the money down). This is the third car I will have gotten through this salesman (2011 X3 for the wife - $600 over US invoice).

M235i
Estoril Blue Metallic (B45)
Black, Dakota Leather Upholstery (LCSW)
Transmission: 8-Speed Sport Auto w/Shift Paddles (2TB)
Premium Package (ZPP)
Cold Weather Package (ZCW)
Harman/Kardon Surround Sound System (674)

I broke down and ordered the automatic, a first in about 15 years. I just couldn't pass on the increased performance.

ED Invoice $36,925 MSRP $43,100
Premium Package (ZPP) ED Invoice $1,955 MSRP $2,150
Cold Weather Package (ZCW) ED Invoice $635 MSRP $700
Estoril Blue Metallic (B45) ED Invoice $500 MSRP $550
Harman/Kardon Surround Sound System (674) ED Invoice $795 MSRP $875
Destination $950
Dealer Profit $1,000
Negotiated Total $42,760 MSRP $48,325

I probably could have negotiated down the dealer profit to $600 but it is worth the $400 to have a good salesmen who I can always depend on to drop in at anytime and test drive any car or not actually have to spend time negotiating. So I ended up at $5,565 under MSRP.

[BMW F22]

Um, IMO $1k over invoice for a 2015 is a very good deal. Take it.

[Jackie Chiles]

Very good info, thanks!

[hyperzulu]

Is this supposed to get featured on the front page of the forums?

[FoxCrane]

I have a question about ED pricing and dealer profit for the 228i... If a dealer agrees to do a sale at European Delivery invoice + $400 + $80 doc fee, does that mean the dealer is only making $480 in profit? That seems a bit low.

Anyone have any more insight?

[hyperzulu]

Originally Posted by FoxCrane

I have a question about ED pricing and dealer profit for the 228i... If a dealer agrees to do a sale at European Delivery invoice + $400 + $80 doc fee, does that mean the dealer is only making $480 in profit? That seems a bit low.

Anyone have any more insight?

The car does not come out of their monthly allocation of cars. Meaning, if you don't buy it, then the car does not get built or sold. Normal allotment means someone else will eventually buy that car. So $480 is pretty good for filing some paperwork and responding to a few e-mails.

[Fugly M3]

good info! thanks.

[RPM90]

Originally Posted by FoxCrane

I have a question about ED pricing and dealer profit for the 228i... If a dealer agrees to do a sale at European Delivery invoice + $400 + $80 doc fee, does that mean the dealer is only making $480 in profit? That seems a bit low.

Anyone have any more insight?

I know this is an old thread, but to answer your question, no, the dealer makes more than that in total profit.
Even though an ED doesn't cost their allotment, it's still counted in their total sales.
BMW dealers get a certain percentage on the sale of a car plus what they get above invoice.
How much is variable.

Depending on total monthly sales for all BMW cars sold that month BMW gives them a certain percentage. If they exceed a certain amount of cars sold per month, then they can get an even higher percentage on all cars sold that month.
There is also a yearly sales bonus where they can get even more if they exceed a certain number.

That is why it's an advantage to a dealer to not only meet monthly sale expectations but to exceed them.
Let's say they get 5% on total sales for the month if they meet a certain sales number. But, if they exceed that number by even 1, then they move up a percentage tier on ALL cars sold that month.

If a customer happens to be that 1 more that puts the dealer above a certain line, then that customer can get an exceptional deal as the dealership wants that extra sale to get that bonus.
This happens more so with lot cars as opposed to customer orders, as those are limited allotments.

Beyond that dealerships make a major chunk of their profit on service after the sale. Dealers are paid for the service work they do under warranty, which for BMW is a big deal because of the included maintenance.
To achieve best income and bonus from BMW the dealership has to meet really stringent standards. That's the survey we fill out after we have maintenance and warranty work done on our BMW's.
BMW wants perfect scores on that survey in order for the dealership to get the best income bonus. That's why BMW service always reminds and asks their customers to give them a perfect score, and if they can't to please speak with the service manager before filling out the survey.
BMW does this to encourage service departments to do things right the first time. By getting perfect scores the dealership gets a bonus/higher payment back to the dealership for the work done on BMW cars.

That's a long answer.
Short answer was, No, they make more than just the money above invoice.

[FoxCrane]

I appreciate the long (and short) answer; thank you!

[w3rkn]

Are you getting a LSD...? ..add another $3,300