Alternative Delivery Credit

[Onlooker]

Starting this month, May, there is a $2500.00 alternative delivery credit for cash purchases of 2009 1 Series models. If you are interested in the credits offered on the other models, call your dealership. They are not currently posted on the BMW Canada web site, but I am fairly sure that they apply nationally. If you are waiting on delivery of your cash purchased car, the delivery credit should apply.

Fence sitters, which side will you come down on now?

[Lucky1]

Originally Posted by Onlooker

Starting this month, May, there is a $2500.00 alternative delivery credit for cash purchases of 2009 1 Series models. If you are interested in the credits offered on the other models, call your dealership. They are not currently posted on the BMW Canada web site, but I am fairly sure that they apply nationally. If you are waiting on delivery of your cash purchased car, the delivery credit should apply.

Fence sitters, which side will you come down on now?

What exactly is an alternative delivery? That part I didn't follow.
Also, would you qualify if you borrowed the money from another lending institution, such as a bank? That would still be a cash purchase to BMW I'm thinking...

[Onlooker]

Originally Posted by Lucky1

What exactly is an alternative delivery? That part I didn't follow.
Also, would you qualify if you borrowed the money from another lending institution, such as a bank? That would still be a cash purchase to BMW I'm thinking...

I do not know how the term was derived, but I have seen it on BMW Offer to Purchase forms so it is legitimate. As it applies here, it is jargon for cash purchase credit. Pay cash, get $2500.00 credit from BMW (actually, it is a factory-to-dealer credit passed on to the buyer). In effect, the retail price of a new 2009 BMW 128i, for example, goes from $33,900 to $31,400. That is the price at which you start your negotiations with the dealer and you should still be able to get 4-6% off that, in Toronto at least. An alternative delivery credit was offered around the same time last year and it quietly went up to $4000 (for a 128i), probably after the end of the production year.

It does not matter from where you get your money for the car. As long as you pay for the car in full with cash, the credit applies.

[Garduna]

dear god u can't be serious!

[bdardashti]

But they also lowered the rate from 4.9 to 2.9... so that should equate to around $2,500 in savings. Either way, regardless of which route you choose, you're saving about $2,500 over the 4-years. Of course, if you have the cash and don't have anything else to do with it (i.e better than 2.9% yearly returns investment) the cash price is better.

Does anyone know when they will stop production of 2009 cars? I know the factory closes for a month in August, so I'm guessing they'll start with 2010 cars when they reopen in September? I wanted to ask my dealer, but he won't be in until Tuesday... I might want to get the car earlier than planned

[afuiw]

Thanks for the tip. Going to call the dealership tomorrow.

This "sales support" promotion that BMW Canada is providing makes sense since April volumes were down 16%.

http://www.newswire.ca/en/releases/a.../01/c7747.html

[ndlesswaltz]

When do you guys think $4k credit program will start?

[alanchan]

Originally Posted by ndlesswaltz

When do you guys think $4k credit program will start?

Great information, thank you Onlooker!!

wow, can't wait if they offer $4k credit this year but $2.5K is a good start.
too bad, we didn't know about the $4k credit last year
how come the local dealers don't tell us about it???
Viv and I were looking for a new 128i last year and we didn't know....

[ndlesswaltz]

Alan, of course they won't tell you these kind of things.
Why would they delay the sale by telling us the evil plan.

I think that is why we should stick together and fight them back~! ^0^

[alanchan]

Originally Posted by ndlesswaltz

I think that is why we should stick together and fight them back~! ^0^

good plan, thank you

Viv, you got to be really piss if you see this, $2.5K off now and it was $4k last year....

[Lucky1]

Originally Posted by alanchan

Great information, thank you Onlooker!!

wow, can't wait if they offer $4k credit this year but $2.5K is a good start.
too bad, we didn't know about the $4k credit last year
how come the local dealers don't tell us about it???
Viv and I were looking for a new 128i last year and we didn't know....

Wow, a $4k credit? Was this on both the 128i and the 135i? Now that'd be something worth waiting for...

[Onlooker]

Originally Posted by ndlesswaltz

When do you guys think $4k credit program will start?

If it is offered again, I suspect it will be after BMW has stopped taking orders for 2009 vehicles. That would mean you would only be able to get what is left on the lot.

Originally Posted by alanchan

Great information, thank you Onlooker!!

wow, can't wait if they offer $4k credit this year but $2.5K is a good start.
too bad, we didn't know about the $4k credit last year
how come the local dealers don't tell us about it???
Viv and I were looking for a new 128i last year and we didn't know....

Last year I think there was at least one credit offer for the 1 Series advertised on the BMW Canada web site during the 2008 production year. There may have been others during the year that were not advertised. I found out about the $4000 credit on the 2008 128i when I visited a dealer in January of this year. I suspect it went into effect after the production year. Most of the cars that I looked at then were so laden with packages and options that I couldn't afford them. It would have cost me less to order a 2009 model with the one package I wanted.

Originally Posted by ndlesswaltz

Alan, of course they won't tell you these kind of things.
Why would they delay the sale by telling us the evil plan.

I think that is why we should stick together and fight them back~! ^0^

I am not sure what the reason is for keeping it quiet. It is a BMW Canada decision to do so, otherwise it would be posted on its web site. Transparent dealers will tell you immediately about the credit, but some may say nothing and use it as a negotiation tactic, offering you what seems to be an unbelievable discount of, say, 9% off the retail price, when really it is only around a 2% discount when factoring in the credit they get from the factory.

Originally Posted by alanchan

good plan, thank you

Viv, you got to be really piss if you see this, $2.5K off now and it was $4k last year....

Again, the $4000 may have been after the 2008 production year.

Originally Posted by Lucky1

Wow, a $4k credit? Was this on both the 128i and the 135i? Now that'd be something worth waiting for...

No, it was on the 128i only. On the 135i it was $5000. The risk in waiting is that you wait for nothing or something you can't afford even with the credit. The $2500 credit currently offered plus the discount you can negotiate on the retail price should equal a 12-15% savings.

[ndlesswaltz]

Hi Onlooker,
Thanks for your clarifications,

I think I am on the fence between selling my car and paying in cash or financing.

Wonder if you have any information on the financing option?
Historically or in plan, will the rate go down lower than 2.9%?

If anyone knows please comment.

[alanchan]

Originally Posted by ndlesswaltz

Historically or in plan, will the rate go down lower than 2.9%?

If anyone knows please comment.

Its hard to say, 2.9% is very low, they just drop it from 4.9%
I honestly don't know it will drop again or not.
if it drops, maybe 1% or so, what are other European competitor's rates this month? anyone knows?
Sound like the longer I wait, the better it is .....

[bdardashti]

There is the chance that the rate will drop another percent, but I don't think there is any chance it will drop below 1.9%. Aside from the current offer on the 2009 5er (which already finished production and is pretty much the last year of production), I've never seen rates from BMW below 1.9 in the past couple of years.

[alanchan]

guys, can someone work out the difference in saving if the rate drops from 2.9% to 1.9% ?

[bdardashti]

Originally Posted by alanchan

guys, can someone work out the difference in saving if the rate drops from 2.9% to 1.9% ?

For a base 128i with absolutely nothing else, plus freight and PDI, $399 admin fees, and $175 in gas and air tax, plus GST & PST (13% Ontario) = $41,210

If you were to do $0 down and finance the whole thing, with 2.9%, your payments would be $739 per month (for 60 mos) with a total interest of $3110 over the 5 years.

The same situation will get you payments of $721, and a total of $2021 over five years. So basically a savings of $1000.

If you want me to give you an exact figure, build you car, add all the freight/pdi and other fees, add GST and applicable PST, and post the total as well as how how many months, and what down payment you want to do. I'll tell you the difference between 2.9 and 1.9.

Also, since you already have a Bimmer, you get a further 0.5% reduction (as long as you leased or financed it through BMW Financial Services).

[afuiw]

Originally Posted by Onlooker

No, it was on the 128i only. On the 135i it was $5000. The risk in waiting is that you wait for nothing or something you can't afford even with the credit. The $2500 credit currently offered plus the discount you can negotiate on the retail price should equal a 12-15% savings.

Including the $2500 credit, I think 12% off the list price would be a decent deal. You might get free floor mats or an umbrella on top of that, but at 15%, wouldn't a dealer be selling for less than invoice?

[Onlooker]

Originally Posted by afuiw

Including the $2500 credit, I think 12% off the list price would be a decent deal. You might get free floor mats or an umbrella on top of that, but at 15%, wouldn't a dealer be selling for less than invoice?

I don't know if it would be less than invoice, but it would certainly be close to it. Maybe 15% is a bit optimistic, 14% might be a more realistic maximum. In Toronto at the moment, 6% off the list price of a 1 Series is almost a given and 6.5% to nearly 7% seems possible. A 128i without additions retails for $33,900. A 6.8% discount and $2500 credit on that is a 14.2% savings.

[alanchan]

thanks Onlooker,

check this out guys:
http://brianjessel.bmw.ca/en/pub/home/home.aspx

BJ's web site is offering $1,000 Cash incentive on 1 series, what a joke, we all know its $2.5k off if you pay cash....

[Onlooker]

Originally Posted by alanchan

thanks Onlooker,

check this out guys:
http://brianjessel.bmw.ca/en/pub/home/home.aspx

BJ's web site is offering $1,000 Cash incentive on 1 series, what a joke, we all know its $2.5k off if you pay cash....

Perhaps the offers are regional? The dealer here in Toronto said the $2500 credit on the 1 Series is available throughout Canada. Could you call Brian Jessel and find out if it is actually $2500 there too? It would be helpful to have the facts verified and posted on the forum.

[afuiw]

Originally Posted by Onlooker

Perhaps the offers are regional? The dealer here in Toronto said the $2500 credit on the 1 Series is available throughout Canada. Could you call Brian Jessel and find out if it is actually $2500 there too? It would be helpful to have the facts verified and posted on the forum.

The $2500 offer is available from The BMW Store and thus presumably any BMW dealership in BC.