Overhaulin'

How much discount should I expect to get on a brand-new 2007 car?

A local dealer has an unsold 2007 model. How much less should I expect to pay versus a 2008? The car is a BMW 3-series.

Public Comments

1. What ever you can get....A BMW 3-series...is a status auto...you want it you pay for it.
2. As far as BMW goes, they are a lot less flexible with their prices. But I know at some Ford dealerships they are taking up to 5 thousand off for 2007..just to get them off the lot. Unfortunatley BMW is very proud of their name and very rarely have good discounts.
3. I would expect at least 25% off of list price. Look at a one year old used one with very low miles and see what that's worth. That should give you an idea of what the one you are looking at is worth, because as soon as you title it in your name, that's the number. Cheers
4. It depends on the model and features
5. Depends on the dealer, and how much his sales manager wants to move the car you're looking at. While the Manufacturer's Suggested Retail Price (MSRP) is posted on the sticker on the window of the car, each dealer is free to set their own price for the car, and to negotiate that sale price to get the best deal they can make. There is no set price reduction or discount for a left-over model from last year. It's still a brand-new car, so you can't figure value based on what used cars are going for.
6. Don't count down from sticker price. Count up from invoice, and then factor in the factory rebates. I think you can find out what they are on the web easily enough.
7. Don't expect a dealer to give away his 2007 cars just because it's last year's model. He still has money tied up in the car, he is still paying interest on the loan he used to buy the car from the manufacturer, and he still pays inventory tax at the beginning of the year. The normal sticker-price profit margin on a BMW 3-series car is only 7.8%. Unless the dealer is getting some factory-to-dealer rebates (very rare for BMW), he can't sell the car for less than about 8% discount. According to Edmunds, you can get about 1.8% discount on the 2008 model.