What really is "invoice price" for an X5 ??

[Doc5513]

Good morning.

I really appreciate all the great feedback helping me get this X5 deal together.

Can I get some clarification of what is actually "invoice" on a 2016 BMW X5 xDrive35i? I read comments about getting a deal for "$1000 under invoice", but what exactly does that mean? Is it $1000 under what the dealer actually payed for the car....meaning they are losing money? I once read that BMW doesn't have a "holdback" to dealers, but surely there are other built in profits. I've attached the numbers column from a deal I'm considering. This came after submitting a USAA inquiry through their buying service. I spoke w USAA and apparently they have pre-negotiated pricing with participating dealers. There is a certain amount listed as "discount"(and I have no idea how that was derived), and then there is a rebate listed(which is $500 for lease and $1500 for purchase)

Here are my numbers:



The dealer told me that "we are barely making $500 on the price of your vehicle"...but I'm not sure what that really means.
Thanks for any help in understanding the smoke and mirrors of this buying process!!
P67

[puckybadger]

Here in Wisconsin rebates are subject to sales tax, and the processing fee is totally negotiable.

[Snow-Kidney]

Go to edmunds to get invoice. Yes, this is what the dealer pays however no one knows how much he is getting back from the manufacturer as bonus for selling that car. No one knows except the owner and possibly the GM.

In addition to making money selling cars the dealer makes money in selling high profit warranties, accessories, etc. Plus they have a service department. And a parts department. Then there's the used car lot and trade-ins. Don't forget financing.

A car dealership has several profit centers. This has all been discussed to death online. Do a search and learn more than you ever wanted. try carbuyingtips.com to start.

[Doc5513]

thanks!

[mad_max]

I've seen many posts on the forums that 'invoice' is close to 7% off MSRP.

[ibeararms45]

Really dude!? $71,000 for a 2016 BMW X5 xDrive35i, then how much is the 50i?

[Doc5513]

Originally Posted by ibeararms45

Really dude!? $71,000 for a 2016 BMW X5 xDrive35i, then how much is the 50i?

not understanding your comment? Yes, that was the MSRP.

[sandwi54]

Originally Posted by ibeararms45

Really dude!? $71,000 for a 2016 BMW X5 xDrive35i, then how much is the 50i?

$71,000 can only get a stripper 50i with no options at all, but can get a very nicely loaded 35i.

[P1]

A dealer can sell a vehicle at "cost" or "invoice" and still make plenty of money on the back-end. Think dealer incentives, bonuses at the end of the month for hitting their number, financing, extended warranties, etc.

[stewy604]

+1 ^^ this...

[ElectricChair]

I was offered MSRP - $4,500 discount at any 2015 in the lot or MSRP - $2,500 discount to order a 2016. I also got $1,000 "Drive for Team USA" discount.