build out cash on 2013 order

[crvz]

Hey folks. I've got a 135i on order, and the dealer has agreed to sell it to me at his invoice price. This was agreed to in July, before any offers of build out cash. Now that I see $1500 in build out cash, is it reasonable for me to get this ON TOP of the already agreed to deal? Meaning, is this just another term for a rebate that the manufacturer is offering and that the dealer should (or at least, could) pass on to me as the consumer?

I've done this with american manufacturers on other cars... I've paid invoice price and then gotten the rebates on top of that. Should I be working the same angle with the BMW?

[IEDEI]

Originally Posted by crvz

Hey folks. I've got a 135i on order, and the dealer has agreed to sell it to me at his invoice price. This was agreed to in July, before any offers of build out cash. Now that I see $1500 in build out cash, is it reasonable for me to get this ON TOP of the already agreed to deal? Meaning, is this just another term for a rebate that the manufacturer is offering and that the dealer should (or at least, could) pass on to me as the consumer?

I've done this with american manufacturers on other cars... I've paid invoice price and then gotten the rebates on top of that. Should I be working the same angle with the BMW?

pardon my ignorance...but what is "build out cash"?

[Xaoc]

A rebate for dealerships that entices new orders instead of dealer stock purchases. The rebate can be passed on to the customer, but can also be held (if the customer is not aware) by the dealership to make profit,pay for promos, etc..

[IEDEI]

Originally Posted by Xaoc

A rebate for dealerships that entices new orders instead of dealer stock purchases. The rebate can be passed on to the customer, but can also be held (if the customer is not aware) by the dealership to make profit,pay for promos, etc..

interesting thanks for the info! i ordered my car july 23rd.....so perhaps i should ask for this as well? is this valid for leases or only purchases? I don't see any harm in trying!

[crvz]

Originally Posted by IEDEI

interesting thanks for the info! i ordered my car july 23rd.....so perhaps i should ask for this as well? is this valid for leases or only purchases? I don't see any harm in trying!

looks likes it's good for leases as well. We'll see if this link works.

http://www.bmwusa.com/standard/conte...regiontypeid=4

[Bama335]

You can ask for it in addition to your original deal, but I'd think you would only want to if you are buying - Not sure if you negotiated a lease deal prior to the 8/1 numbers, but to lease using the August numbers and get the build-out credit, you also need to live with the August 53% residual, which is a long ways from the 63% it was before 7/31.

When they announced this incentive, I was locked in for a lease based on the June numbers, but the extra $$$ pushed me over to buying instead of leasing

[crvz]

yes, I am buying. And I spoke to the dealer yesterday, they are going to pass the build out credit to me, so my deal was reduced by $1500.

[IEDEI]

i was originally going to lease my car....but after learning about this build-out credit, AND considering some of the tax benefits i may receive from my trade in if BUY rather than LEASE (in which i don't get a tax credit from NYS)----i'm actually thinking of seeing what i can negotiate in a buy now. HMM.

[Worra]

I also was planning on leasing, then probably buying out the lease later. Maybe I should rethink it. The dealer didn't give me a great trade in offer on my E90, (offered me $17k! Pft.) so I'd rather sell it unless theres some other incentive not to.

[IEDEI]

Originally Posted by Worra

I also was planning on leasing, then probably buying out the lease later. Maybe I should rethink it. The dealer didn't give me a great trade in offer on my E90, (offered me $17k! Pft.) so I'd rather sell it unless theres some other incentive not to.

worra, the only thing i hate is the idea of after 3 years trying to sell/trade-in my car and then facing really crap 2nd hand values.....i put A LOT of miles on my cars---which kills resale value pretty badly. By the time we go to sell/trade our E82s in....it will be an 'old' bodystyle and i'm sure the 2nd hand values will have hit the ground by then......

not sure though! will have to think about it! we're in the same boat it seems!

[Worra]

Originally Posted by IEDEI

worra, the only thing i hate is the idea of after 3 years trying to sell/trade-in my car and then facing really crap 2nd hand values.....i put A LOT of miles on my cars---which kills resale value pretty badly. By the time we go to sell/trade our E82s in....it will be an 'old' bodystyle and i'm sure the 2nd hand values will have hit the ground by then......

not sure though! will have to think about it! we're in the same boat it seems!

True that. However, my 328i only has 37k miles on it, so I was really hoping for a better offer :/

[IEDEI]

Originally Posted by Worra

True that. However, my 328i only has 37k miles on it, so I was really hoping for a better offer :/

if it makes you feel any better...the MSRP on my 2012 A3 quattro was $39k. The car has 45k miles on it in 2 years......the trade-in prices i've been offered are between $19k and $24k. OUCH. haven't been able to sell it myself either.....the car still smells brand new....a great car...i just want a 1er more.

[Bama335]

Originally Posted by Worra

I also was planning on leasing, then probably buying out the lease later. Maybe I should rethink it. The dealer didn't give me a great trade in offer on my E90, (offered me $17k! Pft.) so I'd rather sell it unless theres some other incentive not to.

Actually, if you were planning to buy it after the lease, the lower residual actually saves you $$$ as they offer the $1500 build credit and the money factor went down to 0.00107 - you just end up paying more of your total spend during the 3 yr lease than you would have with the higher residual.

In my case, I had planned on a 3 yr lease then a 4 yr loan, but with the BMWFS 2.99% for 72 months, the payments got close enough to just buy it and then pay ahead.

I'd try to sell the E90 privately, even if it takes a couple extra months, you should still come out ahead.

[Worra]

Originally Posted by Bama335

Actually, if were planning to buy it after the lease, the lower residual actually saves you $$$ as they offer the $1500 build credit and the money factor went down to 0.00107 - you just end up paying more of your total spend in during the 3 yr lease than you would have with the higher residual.

In my case, I had planned on a 3 yr lease then a 4 yr loan, but with the BMWFS 2.99% for 72 months, the payments got close enough to just buy it and then pay ahead.

I'd try to sell the E90 privately, even if it takes a couple extra months, you should still come out ahead.

You're exactly right, and that's why I opted to lease. Lower payments, and saves me money overall. Was just hoping to sell the car first for a little extra cash in my pocket for the down payment!

[crvz]

I'm paying cash for the car, and I have a trade, so leasing just doesnt really make sense for me. Plus, I drive about 7-8k miles a year, so resale after 3-4 years hasnt killed me in the past (I'm even trading a 2011 tundra and getting 88% of what I paid for the truck once you consider the sales tax credits of trading in Texas).

[Bogiegolf]

This is a very useful thread -- I ordered a 135is last week and was told that the build out credit was only available if you took delivery of a car by September 3rd. Can anybody confirm that this is true?

[crvz]

Originally Posted by Bogiegolf

This is a very useful thread -- I ordered a 135is last week and was told that the build out credit was only available if you took delivery of a car by September 3rd. Can anybody confirm that this is true?

I have heard the same... but I was told it's credible that they continue the promotion in September.

[LuisBoston]

$1500 additional off sounds nice...too bad I already took euro delivery last month

[1addictuser]

how much residual is on the car after the end of the lease?

[Bama335]

Originally Posted by 1addictuser

how much residual is on the car after the end of the lease?

Depends on model and number of miles you choose, check out www.ridewithg.com for the latest rates.

53% is the current residual for the 135 coupe 36mo, 10K mi per year - it dropped from 63% in June and July.

No big deal if you planned to buy it after the lease, your higher lease payment results in a lower residual to finance after the lease ends - but it's alot more $$ for the lessee who plans on turning it in after 36 mo.

[Bogiegolf]

Originally Posted by crvz

I have heard the same... but I was told it's credible that they continue the promotion in September.

My salesperson believed the same -- that he thought the promotion would continue into September.

[Bogiegolf]

Build out credit is now through Sept. 30th.