Quote:
Originally Posted by frenzy757
My local dealer said that the ED would be marked up to "market prices" is that normal even for ED?
|
So for ED there are separate MSRP and invoice prices, but both are about 7%below the stateside equivalent values. If you just walked in a paid MSRP on an ED for any normal car, like a 3-series, you would get a good deal close to invoice. If there are a lot of allocations, and/or you are a good negotiator, you can get down to ED invoice price and save 13-14% off of US MSRP -- on a lease, coupled with US risidual values, you can actually save / make money over a US purchase.
On the other hand, there are some limited productions vehicles like the M's where dealers only get so many and are expected to make larger single sale profits off of them. In the past, some Ms were able to purchased on top of dealer allocation. However, this is no longer the case. For my M5 for instance, my dealer had to trade away an M3 and X5 allocation when both of those models were new to get an M5 allocation from another dealer. I ended up being well below ED MSRP, but about $2600 above ED invoice -- and a large chucnk of that went to the manager and the F&I guy, not my CA
With limited numbers to sell, dealers have a vested interest in the final deal price. I would expect that some dealers will continue to honor a price somehwere between ED invoice and ED MSRP. However, if there are limited numbers and high demand, some may charge a price for ED above ED MSRP but still below US sale MSRP -- Mr. market will decide whether people pay this price or not.
As a final example, there is a dealer in California that marks up every M car 15-20K over US MSRP, and people continue to buy cars from them. Meanwhile there are at least two board sponsors that will do the paperwork and sell you an M car via ED for 1-2K over ED invoice... it's all a matter of who you talk to and how much patience you have.