# Incentive increase between order date and ED date



## petesamprs (Nov 1, 2005)

I see there is now $2,500 build out cash on the 2014 535i I have on order (Euro delivery in 2 weeks). http://www.bmwusa.com/Standard/Content/Vehicles/2014/5/535iSedan/OfferDetail.aspx?regiontypeid=3

I ordered back in May, when there was a $1,500 option credit. Do you think I would be able to get the additional $1,000 incorporated into my price? I've signed the purchase order (a month before delivery), but haven't paid for my car yet (a week before delivery).

Will ask my dealer as well but want to know what the "right" answer is.

Thanks.


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## hyperzulu (Jul 12, 2011)

Build out cash is a treasure chest given to a dealership to use at their discretion. No dealer is going to use that to cut their margins thinner than what it already is on an ED deal. They will keep that money to apply to cars on the lot, not for a car basically sold. Short answer, no.


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## petesamprs (Nov 1, 2005)

Would the dealer even get that on my car if I ordered back in May? If so, I believe I should be entitled to the benefit of it (why else would they advertise it).


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## warpdrive (Nov 10, 2013)

I'm thinking the same Pete. A good CA would have their dealer commission fixed and offer the benefits of incentives to the customer. 


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## hyperzulu (Jul 12, 2011)

petesamprs said:


> Would the dealer even get that on my car if I ordered back in May? If so, I believe I should be entitled to the benefit of it (why else would they advertise it).


The difference between something like an option credit and build out cash is that the option credit is a manufacturer direct rebate. If you get it, it doesn't come out of the dealers pocket, so there is no problem, you are entitled to it. The build out cash is, as I said, a trunk of money. They have a FINITE amount to give away, in order to help them sell off their old, on the lot, inventory. Your car is probably not even out of their allocation. So if you are already making them a grand total of $500 on this deal, I don't believe they are going to reach into their piggy bank to help you clear another $1000 off the price of the car, when they can use that for someone that comes in looking to score a really good deal on leftover inventory. This is money for the hard sells. You're already sold. If you refused to take delivery of the car, it would not end up being the dealer's problem.


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## tturedraider (Nov 11, 2005)

petesamprs said:


> Would the dealer even get that on my car if I ordered back in May? If so, I believe I should be entitled to the benefit of it (why else would they advertise it).





warpdrive said:


> I'm thinking the same Pete. A good CA would have their dealer commission fixed and offer the benefits of incentives to the customer.
> 
> Sent from BimmerApp mobile app


Agreed. Once they advertise it it ceases to be trunk money. Trunk money is unadvertised manufacturer-to-dealer incentives.


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## hyperzulu (Jul 12, 2011)

Well I've seen advertised build out cash be given no problem and I've seen people being denied it from their dealer. On a euro delivery coming outside of allocation, I would find it unlikely, but good luck.


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## petesamprs (Nov 1, 2005)

Asked my CA and without any hesitation/haggling he said my price would decrease by $1,000 as a result. Pleasant surprise!

Another benefit of using a forum sponsor for your ED...no shady stuff.


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## warpdrive (Nov 10, 2013)

Sweet! Congrats now go add more options... 


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## petesamprs (Nov 1, 2005)

warpdrive said:


> Sweet! Congrats now go add more options...
> 
> Sent from BimmerApp mobile app


Or pay for tire/wheel insurance!


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## jjcruiser (Aug 18, 2008)

I think this depends how you negotiated and who your CA is. I had exactly this happen and got the lower rate/higher option credit immediately with the same dealer profit, which had been negotiated long ago. 


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## sbalea (Mar 12, 2014)

I was in the same situation and the CA applied the new incentive to the final deal (Mike Wendroff at BMW of Morristown).


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## [email protected] (Jul 30, 2012)

I always pass on the incentives after the initial agreement. I build a strong relationship with my customer and hopefully will earn
his repeat business. It just makes good business sense to pass it on.


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## bmcbiker (Jul 20, 2012)

Hi John,
Cant wait to get my order going. A few months away, but I am coming to see YOU!!!

Peter S


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## [email protected] (Jul 30, 2012)

I'll be here to assist you when you are ready!


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## pdxdr (Dec 29, 2015)

So are incentives based upon order date or delivery date? For example, I'd like to take delivery in June. If I order today, would I get incentives that are currently active but expire before June?


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## Ninong (May 20, 2014)

pdxdr said:


> If I order today, would I get incentives that are currently active but expire before June?


No.


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## [email protected] (Jul 30, 2012)

hyperzulu said:


> Build out cash is a treasure chest given to a dealership to use at their discretion. No dealer is going to use that to cut their margins thinner than what it already is on an ED deal. They will keep that money to apply to cars on the lot, not for a car basically sold. Short answer, no.


This is not necessarily true!


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## [email protected] (Jul 30, 2012)

IF incentives are able to be locked in, 60 days is the norm before the delivery date!


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## Ninong (May 20, 2014)

hyperzulu said:


> The build out cash is, as I said, a trunk of money. They have a FINITE amount to give away, in order to help them sell off their old, on the lot, inventory.


That's a new interpretation of build-out cash. My version of build-out cash is that it's a factory rebate on each individual car that is applied to that particular car to lower the dealer's cost on that particular car. It's always possible for a dealer to spread the wealth around, so to speak, by moving money from one car to another in inventory but I have never experienced that except in the case of cars on the used car lot, never new car inventory. If the dealer was dumb enough to keep a new car too long, he would end up taking a loss on that particular car. However, that's not something I personally ever experienced.



> Your car is probably not even out of their allocation. So if you are already making them a grand total of $500 on this deal, I don't believe they are going to reach into their piggy bank to help you clear another $1000 off the price of the car, when they can use that for someone that comes in looking to score a really good deal on leftover inventory.


Again, I don't understand why we are even having this discussion about build-out cash if we're talking about an ordered car of any kind, whether for inventory or for European Delivery, because there is no build-out cash for those cars. None. Period. Build-out cash is a factory-to-dealer incentive that is applicable to last year's models still in inventory once the new models start shipping. The factory determines when they will pay build-out cash and how much on each particular model. They never pay build-out cash on orders of any kind.



hyperzulu said:


> Well I've seen advertised build out cash be given no problem and I've seen people being denied it from their dealer. On a euro delivery coming outside of allocation, I would find it unlikely, but good luck.


The dealer sets the selling price on every car he sells. He can sell it above MSRP if he can get somebody to pay that. And that's even true of a car that has so-called build-out cash. Has that ever happened? I doubt it. The only incentive you, the customer, will surely get is the factory-to-customer incentive that is advertised. The dealer tells you the price of the car and then, if you agreed to pay that price, the factory-to-customer incentive gets deducted from that agreed upon price.

Always remember that in the US, it's the dealer who sets the selling price of any car he is offering for sale, not BMW. If you have any incentives that you are entitled to, they get deducted from that selling price. Whether the dealer is receiving any factory-to dealer incentives is nobody's business unless you see that advertised by BMW of North America or BMW Financial Services. If they simply tell you it's a good time to see your local dealer for special pricing, it's still up to the dealer to offer you his own special pricing. Then you get to deduct your incentives.



[email protected] said:


> This is not necessarily true!


It's certainly not true the way he thinks it's true. It just doesn't work that way and never has as far as I know.



[email protected] said:


> IF incentives are able to be locked in, 60 days is the norm before the delivery date!


According to BMWFS, lockable incentives (rates, residuals and any lockable incentives) are locked for 60 days from the approval but the dealers say that really means 60 days from the end of your approval month, unless your ordering dealer receives his cars through a West Coast port of entry, in which case it's 90 days. However, if we're talking about a European Delivery as opposed to simply a car ordered for regular dealer delivery, then it's the date you sign the lease agreement (or contract) that applies, not the date you pick up the car in Munich. If your locked-in rates expire at the end of March but you want to take delivery in Munich on April 12th, that's not a problem. Just sign your lease agreement on March 31st. You could place an order for a European Delivery right now, December 29th, through a West Coast dealer, and lock your rates until the end of March, sign the lease on March 31st and take delivery on April 12. Your December rates (and any lockable incentives) would still apply to your March 31st lease contract.

The only thing here that is different from my experience (which is really old by the way) is that it used to be from the approval date itself and not from the end of that month. But everyone says it's now from the end of the approval month, so that's better for you, the customer.

I'm just trying to reinforce what John is saying here and try to clear up what certainly appears to be a gross misunderstanding of build-out money. If it really is a pile of cash to be used at the dealer's discretion instead of applied to each individual car, then that's a radical change in policy that I'm sure someone will either confirm or deny. I'm just saying that that's definitely not how it used to work.


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