Incentives

rikki21

Forgive me for being so ignorant, but I hope to be a first time new car (and BMW X3 35i) buyer. There is a $1,000 Option Allowance and $1,000 SAV Winter Adder until Feb 29 on the car I wanted. I am preapproved for a loan from USAA and they are offering a $1,000 incentive to be redeemed at the dealership that I purchase my car from. I talked to a salesman who insisted that all 3 are considered sales discounts, so he told me that the price of the car would be MSRP minus $3,000. He refused to do any further negotiating, stating that $3,000 under invoice was as good as it gets.

I am not going back to this dealership, but my question is: are these incentives considered sales discounts or do I apply them after agreeing on a purchase price?

Michaell

rikki21 said:

Forgive me for being so ignorant, but I hope to be a first time new car (and BMW X3 35i) buyer. There is a $1,000 Option Allowance and $1,000 SAV Winter Adder until Feb 29 on the car I wanted. I am preapproved for a loan from USAA and they are offering a $1,000 incentive to be redeemed at the dealership that I purchase my car from. I talked to a salesman who insisted that all 3 are considered sales discounts, so he told me that the price of the car would be MSRP minus $3,000. He refused to do any further negotiating, stating that $3,000 under invoice was as good as it gets.

I am not going back to this dealership, but my question is: are these incentives considered sales discounts or do I apply them after agreeing on a purchase price?

Negotiate your best price (5-7% discount from MSRP is appropriate for BMW), then apply the incentives.

Keep trying different dealers .. it only takes one to meet your numbers. As we are closing in on the end of the month, you are in a pretty strong negotiating position.

rikki21

Thank you for the advice!