12-05-2013, 11:56 PM | #1 |
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Holiday Credit: Pretax Credit or Applied to Down Payment?
I negotiated invoice+ price with my dealer back in August for my Euro Delivery. I have always been under the impression that incentives like the Holiday Credit would be applied after sell price + taxes + fees and basically work towards my down payment. My car just went into production so I was discussing my loan terms with my FA and asked where the Holiday Credit was. He brought in the sales manager (the manager I originally negotiated the deal with no longer works there) who wrote up the final buyer's order, and he told me the Holiday Credit was already applied in the negotiated price--saying the credit gets pulled out of their profit.
I thought these credits came from BMW Corporate or Financial, not the dealer? Can someone please enlighten me on how the Holiday Credit works?
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12-06-2013, 09:12 AM | #2 |
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Did you ask him how it was in the price you negotiated in August when he had no idea what the credit would be?
Do you have it in writing that your deal would be x over invoice minus any incentives? My Ed deal was 500 over which no translates into 250 under with the Holiday credit.
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12-06-2013, 03:20 PM | #3 | |
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Are you saying you just completed Euro Delivery, and you actually got $500 over invoice AND they are applying the holiday credit for you?
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12-07-2013, 08:55 AM | #4 |
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My ED is in January, but yes the price is $250 under invoice with the holiday credit.
I waited until the incentives came out in November before i finalized the deal. The dealer started at $1000 over and went lower after i complained about the mark up on the acquisition fee of $150. I saw your thread on the other board, and it seems that the consensus is that you should be getting it but that its at the dealers discretion. This is my third ED and I keep getting wiser on the process. 2008 328 Wagon MSRP $42,500 12k/year $499/month 2009 128 Coupe MSRP $38,500 10k/year $425/month 2014 328 GT MSRP $53,500 15k/year $496/month
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12-07-2013, 09:12 AM | #5 |
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I don't know what incentives were in effect in August when you negotiated your deal, but when I bought my GT, we negotiated on invoice+, then deducted incentives afterwards, which resulted in a price below invoice. Incentives included the a $750 "First and Goal" credit, $1000 for going to an xDrive event, and $500 loyalty.
As far as I can understand, the incentives come out of BMW North America, not out of the local dealership, so the dealership doesn't get "punished" or have their profit margin wiped out when corporate puts out incentives. If your dealership is telling you that the incentives will cause them to lose money, it would be my impression that they are not being honest, and just trying to get more money out of you. |
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12-07-2013, 02:01 PM | #6 | |
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12-08-2013, 09:54 AM | #7 |
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I am not sure if ED should make a difference or not. Mine was for a local delivery as I didn't have the luxury of time to fly out for a mini vacation.
An incentive should be an incentive. Not a punishment. You should be able to get it. Sorry, but I wouldn't deal with any dealers that are willing to work with me openly and honestly. |
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