Vic55

Here is a general rule of thumb on how to find out invoice or get close:


Take msrp and subtract destination... then times that number by .93 (7% off msrp)- then add back the destination charge AND 700 dollars (dont ask but it works) and you will be within dollars of the invoice.

Then there is holdback but that lesson will be taught later LOLOLOLOLOLOL

6G Schnell

Thanks for sharing. Before I rush to dealer, follow up Qs (based on the car collection in your garage):Thanks in advance....

Vic55

My formula was for any Benz, BMW has a completely different margin.

7% is the front end of the invoice in the formula. Any more and one is into holdback (another formula depending on a few factors). If there is more in a car its via trunk money, factory to customer, factory to dealer money etc. My formula is purely for the piece of paper the dealer has showing msrp and invoice.

6G Schnell

Thanks, it makes sense now. On BMW I was able to get better than 8%....

Vic55

Yeah BMW has some solid programs and they even have a loyalty credit if you leased with FS. MBFS doesnt do squat for prev customers but they do pull thru at times.

Shellbmb

Do manufacturers bail out dealers on cars that won't sell? Or do the dealers just take the loss and move on?

For example all these 2013 E63's that are still out there listed at 100+. Even at 8% off, I don't think they will sell.

keyserS

Holdback and trunk money for unsold '12-'13's should make these things 12-14% back and still make them something, or at least push depending on floorplan. If they're too dumb to firesale it before '14s on ground, I'd fire sales manager.

Vic55

Keyword: it depends---- if the manufacturer makes too much and dumps the allocation on a dealer then they might incent via factory money to help the stores move the cars. This is usually called Trunk Money in layman terms.


Holdback is fixed depending on whether or not the MBZ store is updated with the new building specs. Trunk money depends (see above)... a store can do what they want. If they have paid the flooring they might just hold a car for the right buyer since its a sunken cost.

6G Schnell

Both BMW and MB are offering loyalty incentive through car club. I've used BMW loyalty quite a few times (bought 18 so far), and have MB certificate in my hands to apply to the next purchase.

The only difference is BMW is more generous (up to 2500)..... guess because of higher margins

Vic55

Sorry I wasnt clear, BMW offers loyalty thru the history of having an open lease or loan while MBFS does not.... Car club is something separate. MBFS (the bank) doesnt have a loyalty program for current lessees.

and there are even 3k kick backs on some BMW models right now...