[Ghunger]

Sorry if this is posted somewhere else but I didn't exactlly know what to search for.

I'm not sure if you'd call it a kickback or a bonus but what I'm wondering is if the dealer gets any kind of extra money as profit beyond the invoice price of the car, esp. for ED? So lets say they sell a car right at invoice. Do they really make no money on the sale itself?

I'm pretty new to the whole car buying experience and am trying to get a complete picture of all the money involved so I can be more prepared when I start talking money with the dealers.

[sarafil]

Originally Posted by Ghunger

Sorry if this is posted somewhere else but I didn't exactlly know what to search for.

I'm not sure if you'd call it a kickback or a bonus but what I'm wondering is if the dealer gets any kind of extra money as profit beyond the invoice price of the car, esp. for ED? So lets say they sell a car right at invoice. Do they really make no money on the sale itself?

I'm pretty new to the whole car buying experience and am trying to get a complete picture of all the money involved so I can be more prepared when I start talking money with the dealers.

They get something on a normal sale, but they get absolutely nothing on an ED sale (that is why the price is discounted below the normal price).

[smellygas]

I remember reading that BMW dealers get ~2% back on each car as long as they sell enough volume and have high enough customer satisfaction, through the Customer Satisfaction Index. Does anyone know more about this? I've been told that there are factory-to-dealer incentives or holdbacks for BMW's.

SmellyGas

[marketman]

There is some money they get back based on a minimum CSI score in the 92% range. It is probably equivilent to 1.5% per car.

The CSI is based on the survey you get after the sale as well as the Service dept CSI score. All 5's for all questions will be a 100% survey.

I know of NO DEALERSHIPS that include this money in their negotiation plan.

[Romulus]

I read on either edmunds or kbb that BMW does not have a holdback, as with most european companies. us and asian cars do have a 2-3% holdback.

[smellygas]

Originally Posted by Romulus

I read on either edmunds or kbb that BMW does not have a holdback, as with most european companies. us and asian cars do have a 2-3% holdback.

CSI differs from holdback, in that dealers get a "kickback" AFTER they sell a certain number of cars per period (I think) and have high enough marks on their customer surveys. BMW vehicles do NOT have "holdback," in which the manufacturer charges extra for each car right off the bat, but refunds the charge once the car is sold.

SmellyGas