Rebate and term changes

[NewQ]

I put in for a build slot for a highly customized i7.

The terms looked great on paper today, but my build will switch to a 2025 since it’s end of the 2024 model year; new terms will kick in and the terms could change even more once I’m ready to take delivery in 6 months.

Realistically, does anyone have any experience or knowledge of how much this might change? How much might manufacturer rebates shrink between now and mid year into the next model year? Or interest rate changes? And how soon would we know?

Dealer wanted $10K non-refundable down. I said no, so we decided on $5K refundable down now and the other $5K for the total nonrefundable once production starts.

[DroMike]

And away we go.....!

[NewQ]

Where are we going?

[skrontz]

Originally Posted by NewQ

Realistically, does anyone have any experience or knowledge of how much this might change? How much might manufacturer rebates shrink between now and mid year into the next model year? Or interest rate changes? And how soon would we know?

Realistically, none of our opinions are either relevant or practically helpful. No one can really predict the future interest rates or incentives. We won’t even know the pricing on MY2025 7-series until a month or so from now.

[Berliner]

In Europe all EVs are a bargain right now. Just an example, you can get an ID Buzz from Volkswagen for 250 EUR/month which was like 800/m 6 months ago.
The i7e50 starts from 799/month in Germany but it is a low spec and I doubt it will go down much further, as they can't afford to give away their flagship for free and will rather discount the i5 and i4.
But yes, fabricants have to fulfil regulations so they have to sell a TON of EVs in order to avoid SEVERE fines and penalties. And right now, there are no subsidies in Europe at all for the people, so they don't buy EVs, so manufacturers give extreme discounts.

Where this will lead to? For sure the ICE-prohibition in Europe for 2035 will be withdrawn, no doubt. Then people won't buy EVs all the more I guess, making them cheaper.

I'd lease the i7 and avoid every distributor asking for non-refundable crap. But you already bought, right? What was the question again? ;D Interest rates? Will go down

[todao]

I have a 2023 760 I.

In October 2022 I built off the website a high customized 760. I gave the build code to the dealer. I worked out the lease deal with the dealer and he ordered the car. I put down a REFUNDABLE $1800 deposit. The car was put into production and was expected to Arrive late December or January.

In early December, I happened to stop at another BMW dealership and they had a more customized 760. I decided to lease that car instead and worked out a deal with them and took the car home the next day.

The first dealer was REQUIRED by California law to return the $1800 deposit on the car I ordered. I’m sure they were able to sell or lease that car quickly.

If you are in the US and you haven’t handed over money to them, you should rework your deal that none of your deposit is nonrefundable. Or better yet, work with a dealer who is reasonable and does not demand a nonrefundable deposit.

[NewQ]

Has that happened to anyone where they agreed to a car on certain terms and then when it came time to take delivery, the terms had changed so much it was no longer viable?

[skrontz]

Originally Posted by NewQ

Has that happened to anyone where they agreed to a car on certain terms and then when it came time to take delivery, the terms had changed so much it was no longer viable?

Ordering a new car when neither the Order nor Pricing guides are available is always a gamble. You should basically be prepared to pay/transact on any future terms presented by the dealer or simply walk away.

Example: I currently have an X7 M60 on order. The options and pricing were clear from the available Order guide, so that is where we made a signed agreement with the dealer. Both financing and incentives for May delivery are not published at all, so I’m taking a total gamble on those. This means that I may have to take the cash deal, if the financing is not attractive.

[AlteBMW]

Financing terms at order are good for a period of time (not sure but I think 60 days). If interest rates go up you're protected and if they go down you can take those. Predicting interest rates 6 months from now is not possible.

[CaboM4]

Originally Posted by NewQ

I put in for a build slot for a highly customized i7.

The terms looked great on paper today, but my build will switch to a 2025 since it’s end of the 2024 model year; new terms will kick in and the terms could change even more once I’m ready to take delivery in 6 months.

Realistically, does anyone have any experience or knowledge of how much this might change? How much might manufacturer rebates shrink between now and mid year into the next model year? Or interest rate changes? And how soon would we know?

Dealer wanted $10K non-refundable down. I said no, so we decided on $5K refundable down now and the other $5K for the total nonrefundable once production starts.

Go find another dealer. I have never placed a very large deposit on any BMW I have ordered in the last 20 years and I don't think i've got a car from the same place 2x yet. There should be no reason you are waiting 6 months to take delivery of a 7 series in this market. What you have is a dealer without an allocation.

If you are purchasing v. leasing, you may care for it to be a MY25 vs MY24 for long-term value, however if its a lease ... get a dealer with an available G70 allocation for MY24 in 112 status, modify to your build specs and get rates/terms locked in (was 60 day lock but BMWFS has been routinely extending to 90 days with supply chain/shipping delays). As others said above, you will lock in todays terms and can take those at delivery or the then-current terms if more advantageous. If you get one with an available build allocation, it will get produced in the next couple of weeks and arrive hopefulyl to the dealership within 6-8 weeks from production.

[NewQ]

I’m getting the two tone though, which takes longer. I’m not opposed to the length of time in principle, I just don’t remember going through this with my last car, and I don’t remember locking in anything with that one either.

[Berliner]

Originally Posted by NewQ

I’m getting the two tone though, which takes longer. I’m not opposed to the length of time in principle, I just don’t remember going through this with my last car, and I don’t remember locking in anything with that one either.

Which color combo if I may ask?

[CaboM4]

Originally Posted by NewQ

I’m getting the two tone though, which takes longer. I’m not opposed to the length of time in principle, I just don’t remember going through this with my last car, and I don’t remember locking in anything with that one either.

Well then that’s reasonable as it does add a lot of lead time for that specific option.

[NewQ]

Light grey over black.