# Typical loaner discount ?



## cyberbrutus (Jan 9, 2013)

What is the typical discount offered on a loaner ?
Loaner in this situation is 2013 528xi. I know the discounts are deeper when the new model year cars are released. I would appreciate if I can get numbers during the months of Jan-March.


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## NoI4plz (May 2, 2012)

Disclaimer: Not a dealer, just an avid reader!

Loaners and demo vehicles are in my opinion used cars. Thus to find the right price, figure out the used car value through any reputable site (ie. Kbb or else) and thats the most you should pay for a loaner/demo. The least you should pay, is the wholesale price on these vehicles (i.e manheim auction prices). 

Don`t have numbers for ya!


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## cyberbrutus (Jan 9, 2013)

I think there are 3 types of demos. 
1. Current MY with low miles usually less than 2000
2. Current MY with high miles usually less than 6000
3. Previous MY with lots of miles but less than 10000

The dealers arnt budging on Type 1 prices. They want invoice price or couple of 100 less than invoice. 
Type 2 demos are being adjusted at .30 per mile over 500 miles from invoice price


Is there anybody out there who got a great deal on a Type 1 demo ? I want to be proven wrong about the prices !


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## [email protected] (Jun 28, 2012)

cyberbrutus said:


> What is the typical discount offered on a loaner ?
> Loaner in this situation is 2013 528xi. I know the discounts are deeper when the new model year cars are released. I would appreciate if I can get numbers during the months of Jan-March.


It's a simple question but the answer is not as simple as 1,2,3

yes, a loaner is a used car BUT not all used cars are treated the same .... it boils down to program support

A dealer/BMW "loaner" is still a car supported by BMW SSPs; meaning it qualifies for lease and finance support thru BMW FS

A used car ie someone buys a 2012/13 drives it a month then decides for whatever reasons they don't want it and turns it back to the dealer; this vehicle does not qualify for any BMW support. It simply is a used car...no SSP lease support nothing. The % of discount offered on these cars will be much greater than on a loaner.

To see if a loaner lease makes more sense than a comparable new car....you will just have to do the math. You have to decide if the savings over the term of the lease is at a margin that makes sense.


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## NoI4plz (May 2, 2012)

cyberbrutus said:


> I think there are 3 types of demos.
> 1. Current MY with low miles usually less than 2000
> 2. Current MY with high miles usually less than 6000
> 3. Previous MY with lots of miles but less than 10000
> ...


If your gettin only a hundred below invoice for a car with 2k miles or less for a couple hundred below invoice....bad deal. BMW tends to provide incentives that make that deal bad. However if you need to buy a vehicle now, considering there's no incentives available that price seems fair at this time.


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## tturedraider (Nov 11, 2005)

First thing to keep in mind, loaners and demos are not the same thing. Demos are not supposed to be used for more than three months/5,000 miles. They are basically considered new, they are never registered, and the warranty is extended by three months and 5,000 miles. They are normally used by dealership management. Loaners are purchased by the dealership. They are normally used for about twelve months/10k - 12k miles. Most dealerships CPO them after they are retired from loaner service and offered for sale.


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## schnell525 (Feb 6, 2007)

I haven't quite figured out why people will buy loaners. With the information at hand on pricing and negotiation, a loaner vehicle really raises a lot of questions. Given the data that's available a fair deal on a new car can be struck.

Many times the car is "punched" and put into the serivce. The dealer purchased at their number from BMW, and took the incentives that came along with it. They'll pass on the CPO cost to you, and sell you a multiple-driver used car.

One BMW salesman (several years back) tried to say a BMW that's been punched with 5k miles is not a used car. I laughed at the guy. It's been whored out--it isn't someone's baby.

For the limited savings you get on buying a demo or loaners, negotiating on a new car seems more fruitfull than to mess with a car that's had the cheapest gas run through it, beaten by the drivers, and god knows what else had been done in it. If you're a non-smoker, guess what people still smoke in these cars despite a sign or loaner agreement that says "do not smoke idiot" in the contract.

It has to be an uber deal with an uber extended warranty. You never know with a new car in terms of a lemon, but demos add a whole level of complexity.

Just some thoughts...good luck!


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## cyberbrutus (Jan 9, 2013)

I thought loaners were heavily discounted (80% of invoice) but that's not the case in current year models. I decided to go for a new car. If everything goes well, I will post all the details of my deal and some negotiation tactics on Monday.


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## NoI4plz (May 2, 2012)

^congrats. I hoped you would considering the usual offers tend to negate the savings from a loaner discount.


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## Cyb3r H3x (Oct 13, 2012)

The easiest way is to start with 25% of MSRP. This will land you around 10 to 13 grand below invoice. Which comes out to typical one year old low mileage BMW CPO pricing.


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## SARAFIL (Feb 19, 2003)

L0rd NIk0n said:


> The easiest way is to start with 25% of MSRP. This will land you around 10 to 13 grand below invoice. Which comes out to typical one year old low mileage BMW CPO pricing.


LOL

that's a great way to get laughed out of a dealership.


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## Cyb3r H3x (Oct 13, 2012)

SARAFIL said:


> LOL
> 
> that's a great way to get laughed out of a dealership.


Are you laughing from experience or a lack thereof? I see you are letting others spend your money. As I have used this method for all my vehicles and have successfully bought under invoice. As I said before check the math!


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## SARAFIL (Feb 19, 2003)

L0rd NIk0n said:


> Are you laughing from experience or a lack thereof? I see you are letting others spend your money. As I have used this method for all my vehicles and have successfully bought under invoice. As I said before check the math!


Yes, I was a sales manager at a BMW dealer for a while. A offer of $10k below invoice on a current-model-year loaner would have resulted in me telling you to "have a nice day".... you're not even close.

Should you be able to get a loaner below invoice? Yes. $10k below on a current-model-year car? Not happening.


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## Cyb3r H3x (Oct 13, 2012)

SARAFIL said:


> Yes, I was a sales manager at a BMW dealer for a while. A offer of $10k below invoice on a current-model-year loaner would have resulted in me telling you to "have a nice day".... you're not even close.
> 
> Should you be able to get a loaner below invoice? Yes. $10k below on a current-model-year car? Not happening.


As I said check the math. The attached example is a 2013 335i Sedan BMWconfig.xls. MSRP is $50,970 and Invoice is $48,085. For a current model/not end of production multiply the MSRP by 10% which is ($5,097). For a starting negation of $45873. This number takes in account the various incentives ( USAA, Loyalty Cash, etc). So where is the flaw in this technique? Most people wouldn't start that low because of status quo, pride, embarrassment, etc.. Bottom line its my money and the dealers' product. And I will never let anyone dictate how I spend my money!


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## SARAFIL (Feb 19, 2003)

L0rd NIk0n said:


> As I said check the math. The attached example is a 2013 335i Sedan BMWconfig.xls. MSRP is $50,970 and Invoice is $48,085. For a current model/not end of production multiply the MSRP by 10% which is ($5,097). For a starting negation of $45873. This number takes in account the various incentives ( USAA, Loyalty Cash, etc). So where is the flaw in this technique? Most people wouldn't start that low because of status quo, pride, embarrassment, etc.. Bottom line its my money and the dealers' product. And I will never let anyone dictate how I spend my money!


What you just wrote here is not what you said earlier... earlier you said 25% off MSRP or $10k - $13k below invoice. That would be the equivalent of you making an offer on that car in the $35k - $38k range.


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## Cyb3r H3x (Oct 13, 2012)

SARAFIL said:


> What you just wrote here is not what you said earlier... earlier you said 25% off MSRP or $10k - $13k below invoice. That would be the equivalent of you making an offer on that car in the $35k - $38k range.


For clarity I would use 25% off MSRP for an out of production vehicle. And you still have not pointed out a flaw in using this technique for negotiating from MSRP. Which is the original intent of my response to the OP.


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## cyberbrutus (Jan 9, 2013)

Let me clarify this..
I contacted over 10 dealers looking for loaners. Some dealers refused to negotiate when I offered 46000 on car invoiced at 54000. Some gave a counter offer and it was not even close to where I wanted them to be. The best I got was 51400 on a car with 5k miles. Here is what I realized after a lot of research

1. Current MY with low miles usually less than 2000 - Dealer offered to sell for 200-400 below invoice
2. Current MY with high miles usually less than 6000 - Dealer offered 1000-1500 below invoice (I think mileage was adjusted at 30 cents per mile for the existing miles on car)
3. Previous MY with lots of miles but less than 10000 - Heavily discounted. Usually around 80% of the vehicles price (Never looked closely at one but this just an autotrader number)

There were a couple of Client Advisors who went to lengths of saying this is not the car for me. Here is a mail response I got when I offered 46k:
"
Different email address, my outlook locked up at the moment. Perhaps I could sell you the loaner for $54,000 plus tax, title, license, but it sounds like your looking for something very different.
********
Client Advisor
********@*****.com
"

I replied saying:
"The numbers I got from ****** are way off than what I am hearing from Mid West loaner market. I was recommended ***** by a fellow forum member on bimmerfest.com saying you have better prices in Wisconsin.

No offense but I had to throw a ridiculous number to get you down to realistic prices and then start negotiating on it.
A brand new car with the same exact features has an invoice price of $52670. Competitive dealers sell this car for invoice plus 300-700 profit. 
My local dealer quoted 51,700 on a loaner with 5K miles before negotiation. I could have gotten him down to 50 or less. 

54,000 on a loaner with 2kmiles will absolutely not work for me. Do you have a better offer ?"

I immediately got a call from this guy and he spoke in a very apologetic tone and gave me a better price.

No offense but some CAs think they own the world ! When you remind them that you are the one with cash, they seem to come down to earth. 
Anybody who is in the market to buy a car should be treated with respect. People who buy cars worth 50k+ deserve a little more respect. If the CAs cannot meet the customer expectations or if the customer is low balling, I expect them to politely refuse the offer instead of showing BMW attitude. 

I am glad to report that a good 80% of CAs were friendly and respectful. The others had to be taught a lesson. This is a great learning experience for me and I thank this site and other members for the knowledge.


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## FreqMan (Apr 20, 2012)

I purchased a 2012 528i Service loaner last July. I paid about $8000 below original MSRP.


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## NoI4plz (May 2, 2012)

cyberbrutus said:


> Let me clarify this..
> I contacted over 10 dealers looking for loaners. Some dealers refused to negotiate when I offered 46000 on car invoiced at 54000. Some gave a counter offer and it was not even close to where I wanted them to be. The best I got was 51400 on a car with 5k miles. Here is what I realized after a lot of research
> 
> 1. Current MY with low miles usually less than 2000 - Dealer offered to sell for 200-400 below invoice
> ...


Haha I love those 20% of dealers, they're actually helping me weed out the people who would waste my time lol.


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## NoI4plz (May 2, 2012)

FreqMan said:


> I purchased a 2012 528i Service loaner last July. I paid about $8000 below original MSRP.


So about 2k below invoice


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