Quote:
Originally Posted by unotaz
Exactly. On a pure cash deal, the dealer doesn't make more money as they do on a typical lease/finance deals.
That's why you see 10% discount on the sale price because the dealer makes $$ on the back end through money factor and other hidden fees.
Quote:
Originally Posted by 745
Not sure what do you mean cash deal, like pay all the amount one time?We went with lease.
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My brother bought M5C at 13% discount with his credit union check (financed through his credit union) which is same as cash deal for the dealer.
I got 10% discount plus rebates and incentives at base MF and the residual value set by BMW. Dealers don't make money at base MF. However, the hold backs from manufacturers at this time of the year is where dealers make money. Volume dealers make money on numbers! Bigger numbers... sweeter the hold back is!
We all know, dealers are here to make money. How much? Depends on us! They do markup MF as you said if customers aren't aware of current lease rates base on model and year or if their credit history is less than excellent. I was quoted 0.00148 MF for a 2019 X7 50i compared to base MF of 0.00128 last week by one of the dealers. Difference in monthly payment was around $40 which for 3 yrs lease is close to $1500 profit for dealer.
Forums like these have made customers smarter and dealers won't BS around if they know we did our HW.
Bottom line.... Discounts are real at this time of the year whether it's a cash offer or finance or lease.