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      12-09-2015, 11:22 AM   #1
cmenning
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Questions on an ED negotiation

First, I want to say how grateful I am for all of the advice and experience that is shared here and related forums. I’ve lurked for a long time, but I’m ready to move on a purchase now and your insights have been really valuable so far.

Here’s the scoop: I am working to negotiate ED for an M235i xdrive coupe in early March and am communicating with several dealers using the Rizzo Method. I’m offering $800 in dealer profit.

I’m optioning the car this way; the pricing I am using to calculate my offer is in the final column:

M235i xdrive coupe $40,335.00
Estoril Blue Metallic B45 $500.00
Fineline Stream Wood Trim 4LC $0.00
Sensatec Oyster/Black KCCX $0.00
Heated front seats 494 $455.00
Moonroof delete ZDM $0.00
18" double-spoke wheels with non-runflat mixed summer tires 2PG $0.00
Increased top speed limiter 840 $0.00
Driver Assistance package ZDA $865.00
Destination and handling $995.00
Dealer profit $800.00

Total cost (before Indiana TTL) $43,950.00

This seems to be an awkward point to do this, as nobody seems to have an official pricing sheet yet for cars produced after Jan 1st. Two of the dealers that I contacted yesterday have asked to start the process now based on agreement of the amount over invoice.

One dealer has suggested that my calculation of the base invoice price of the car is off. My calculation of the pricing is $46,150*.92 (to get to invoice from US MSRP) *.95 (to get to ED invoice). I think this calculation is consistent with the methodology used elsewhere on the forum, and yields $40,335. However, the dealer is suggesting that the 5% discount brings a total of $40,800.

So, here are my questions right now (and I may have more):

(1) Am I missing something in the calculation of ED invoice for the base automobile? Starting with the wrong numbers? Etc.?

(2) How (if at all) are orders being placed right now for ED when production dates are almost certainly after Jan. 1 and there is no official invoice pricing available?

(3) Do you consider doc fee as part of dealer profit, or something separate?

Any insights appreciated!
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      12-09-2015, 08:45 PM   #2
TBro2002
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Your calculation is the one I used for the base price of my 228i ED, and was pretty accurate. Are those invoice prices for the options?

A tip I got on my deal was not to offer a set amount for the dealer profit in communications with dealers. If you ask for quotes from several dealers you might find some that will go $500 or less on dealer profit. I did my deal for $500 dealer profit over ED invoice.
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      12-10-2015, 02:21 PM   #3
cmenning
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Quote:
Originally Posted by TBro2002 View Post
Your calculation is the one I used for the base price of my 228i ED, and was pretty accurate. Are those invoice prices for the options?

A tip I got on my deal was not to offer a set amount for the dealer profit in communications with dealers. If you ask for quotes from several dealers you might find some that will go $500 or less on dealer profit. I did my deal for $500 dealer profit over ED invoice.
OK, that is good to know; thanks for your reply. I think I will move on to another CA. And yes, those are invoice prices (list *.91) for the options. Also, thanks for the tip. It sounds like you got an excellent deal!
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