Securing a new 2024 BMW 740i is an exciting prospect, placing you in the realm of luxury and performance. However, the sticker price is just the starting point. Savvy buyers know that the art of negotiation can lead to significant savings. Understanding the nuances of BMW dealership pricing and employing effective strategies can ensure you drive away with your dream 740i without overpaying. This guide provides expert insights into negotiating the best possible price on a 2024 BMW 740i.
Understanding BMW Dealer Pricing: MSRP, Invoice, and the Real Deal
When you step into a BMW dealership, you’ll encounter terms like MSRP (Manufacturer’s Suggested Retail Price) and invoice price. It’s crucial to understand what these mean and how they play into your negotiation strategy. While it’s tempting to focus on the invoice price – the amount the dealership purportedly pays BMW for the car – BMW sales culture often revolves around negotiating a percentage off the MSRP.
Dealers are unlikely to openly share the exact invoice price upfront. They operate on a profit margin, and while you want to ensure they make a fair profit, you also want the best deal. A practical approach is to think in terms of a percentage reduction from the MSRP. Aiming for a percentage off MSRP is a recognized negotiation tactic within the BMW context.
Consider this: a Vehicle Inquiry Report (VIR) from a 2024 BMW i7 eDrive50 reveals that the dealer’s invoice price was roughly 92.9% to 93.4% of the MSRP. This translates to a dealer cost of approximately 6.6% to 7.1% below MSRP. While this example is for an i7, it provides a valuable benchmark for understanding potential discounts on other BMW models, including the 740i.
Furthermore, dealerships often benefit from a “dealer holdback,” an amount (potentially $2,000 to $6,000) held back by BMW and later given to the dealer. This is an additional profit margin that isn’t immediately apparent. This holdback provides dealers with flexibility and explains why they can sometimes sell below the apparent “invoice” price. While not something to explicitly bring up with the dealer, understanding this behind-the-scenes incentive empowers you in your negotiation.
A reasonable starting point for your negotiation could be around 6% off MSRP. Personal experiences indicate that aiming for 7% off MSRP for models like the i7 can be achievable, and you can adapt this target for the 2024 740i based on market conditions and specific options.
Leverage Competition: Email Multiple Dealerships
In today’s digital age, you don’t need to physically visit multiple dealerships to gauge pricing. A highly effective strategy is to email multiple BMW dealerships – even those within a reasonable radius – to solicit quotes. Indicate you are a serious buyer for a 2024 740i and request their best price. Starting with an initial offer around 6% off MSRP is a reasonable starting point.
Dealership responses will vary. Some may readily agree to your initial offer, while others might be less flexible depending on factors like inventory levels, time of year, and current BMW incentives. However, this process quickly provides you with a “feel” for the market and which dealers are motivated to offer competitive pricing.
Once you receive initial quotes, use them to your advantage. Contact other dealerships and inform them of the offers you’ve received from competitors. For instance, you can state, “Dealership A offered me X price, but I’m hoping to find a better deal. Can you beat it?” This creates a competitive environment and encourages dealerships to offer their most attractive prices to secure your business. It’s a strategic, yet ethical approach to leverage dealership competition to your benefit.
Negotiation Tactics: Financing and Avoiding Price Add-ons
During the negotiation process, certain tactics can further enhance your position. One crucial tip is to delay disclosing your payment method. When asked “How will you be paying?” early in the conversation, avoid stating you are paying cash outright. Instead, indicate you are considering financing.
Why this strategy? Dealerships often make significant profits through financing arrangements. When they believe you will finance through them, they are typically more willing to offer a larger discount on the vehicle price itself, anticipating backend profits from interest and financing fees. You are not obligated to finance even if you initially indicate you might. Once you’ve negotiated your desired price, you can then reveal your intention to pay cash.
Be prepared for additional sales pitches after you’ve agreed on a price. Dealerships often attempt to increase their profit through add-ons such as extended warranties, rustproofing, and various protection packages. While some of these might be valuable, carefully evaluate their necessity and cost. Remember, your primary goal is to secure the best possible price for the 2024 BMW 740i itself.
Conclusion: Drive Away with Confidence
Negotiating the price of a luxury vehicle like the 2024 BMW 740i requires preparation and a strategic approach. By understanding BMW dealership pricing dynamics, leveraging competition through multiple quotes, and employing smart negotiation tactics, you can confidently navigate the buying process. Focus on negotiating a percentage off MSRP, email multiple dealerships, and delay revealing cash payment to maximize your savings. With these expert tips, you’ll be well-equipped to drive away in your new 2024 BMW 740i, knowing you secured the best possible deal.
