F10 M5 LCI - good timing

[Dinh]

Hi All,

This is my first post on PH. I've been lurking in the background for a while, during which time I've gained invaluable information from you all, which has really helped me in making the decision to buy an M5; thank you to one and all for that!

The PCP deal was too sweet an offer for me to resist, so I pulled the trigger a few weeks back. For anyone that's in the market to buy imminently, my experience was as follows and might be worth the read:

I managed to negotiate 13% off the overall price (including dealer contribution), with the dealer also throwing in the service package and paint protection on top - I have about £9K of extras, including the B&O stereo. As a rule, I generally find dealers more accommodating by playing them off against other car manufacturers, rather than each other, so the imaginary - and cheaper - C63 that was "tempting me", helped keep the dealer focussed on giving me the price I was looking for. But that's just personal preference and I'm sure dealers are equally as unhappy to lose business to other dealers, as they are to other manufacturers.

Where I've had an absolute result though, and hence if anyone is seriously considering buying at the moment, is that my dealer came back to me and said that they are no longer going to produce the current M5 and they're gearing up for the facelift, so I get the brand new model and they'll honour the agreed price. Given that the PCP deal runs until the end of June, but the facelift M5 doesn't actually go on sale until July, if you order now, you'll likely get the facelift model too, on the PCP deal, and at current prices - but obviously if the dealer knows you're looking for the new model, you're unlikely to get a result. Looking at the BMW website, despite the configurator showing the facelift exterior, it doesn't show the interior, nor the new options. I've been sent the new options and told I can add them to my current configuration if I choose. So all in all, a great result.

To be honest, I actually prefer the look of the current model and did originally purchase on this basis, but the facelift does have some nice features and some current optional extras are becoming standard, so I'm very happy with the outcome.

I hope this is of help to someone and I think that if you're looking to buy now and are prepared to accept the current model, you could well end up more than you've bargained for - literally!

I'll obviously post pics when the time comes!

Cheers

[turboman786]

Could you give some figures to illustrate the deal you got?

Thanks

[Dinh]

turboman786 said:

Could you give some figures to illustrate the deal you got?

Thanks

Sure. So the car, fully spec'd came to approx £81,500. After the 13% discount that left £70,900.

For the PCP, I took a 4 year deal, putting down a £22,000 deposit, which leaves 47 monthly repayments of around £500 per month. I won't be making the balloon payment at the end of the term, unless it's worth doing so - BMW say they try and leave you with 15% equity in the car at the end of its term. However, this is largely guesswork and depends on the market at the time.

Hope that helps.

[Urban Sports]

I thought they were discounted on the pre vat price?

[Dinh]

Urban Sports said:

I thought they were discounted on the pre vat price?

The discount itself is VAT inclusive; the dealers baseline £7K "deposit" includes VAT. So the discount if off the OTR price.

[Jazzer]

The order doesn't matter chaps....

Decreasing the list price by 13% and then adding VAT generates the same outcome as adding VAT to the list price, then discounting by 13%!!

[AndrewO]

13% of gross is more than 13% of net

[Jazzer]

That's correct, but what is your point?

Mine is that the order of the percentage changes is irrelevant.

Try some figures for yourself to see what I mean.

I know of a car dealer who cons punters into believing they're doing better if he discounts the gross price when in fact, whichever way he shakes it, they're getting the same deal.

[quavey]

So with a 22k deposit and 47x £500 payments that comes to £45,500, having not really looked into this sort of thing I take it at the end of the 4 years you give the car back £45k+ lighter?

[Dinh]

quavey said:

So with a 22k deposit and 47x £500 payments that comes to £45,500, having not really looked into this sort of thing I take it at the end of the 4 years you give the car back £45k+ lighter?

There's a £24,500 balloon payment at the end of the term, unless you choose to hand the car back.

[Fezzaman]

Jazzer said:

That's correct, but what is your point?

Mine is that the order of the percentage changes is irrelevant.

Try some figures for yourself to see what I mean.

I know of a car dealer who cons punters into believing they're doing better if he discounts the gross price when in fact, whichever way he shakes it, they're getting the same deal.

Not gonna lie, on first glance I thought the same as AndrewO, but mathematicaly Jazzer is correct.

Jazzer said discounting the list price by 13% and then adding VAT generates the same outcome as adding VAT to the list price, then discounting by 13%. Assume x = list price excluding VAT.

0.87x + 0.2(0.87x) = 13% discounted on list price exc VAT + 20% VAT on the discounted list price
1.2x - 0.13(1.2x) = List price including 20% VAT - 13% discount on VAT inc. list price

Expand both sides out and you get 1.044x on both sides

[AndrewO]

I see what your getting at. The confusing thing is you wouldn't expect someone to put vat on to your discount.

£100 x 20% = £120, 13% discount is £15.60
£100 x 13% = £13 discount

[Jazzer]

Adding VAT is achieved by multiplying by 1.2, while decreasing by 13% is achieved by multiplying by 0.87.

Observe that, since multiplication is commutative (axb=bxa)......

List price x 1.2 x 0.87 = List price x 0.87 x 1.2

This means that the order of the percentage changes has no bearing on the outcome.

Here endeth the lesson!!

[AndrewO]

Thanks for the lesson but you've missed my point

It is misleading for a business to discount the way that has been described. If I was given a discount level net or gross I would calculate it as earlier. Vat is a sales tax and I would expect the vat element to go on the item not necessarily on a discount level. Two view points I think..

[Jazzer]

I've not missed the point of anything, I merely pointed out the mathematical equivalence of the two scenarios outlined earlier.

Six and half a dozen, no more, no less!

[DT398]

I was going to make Jazzers point earlier when this thread started. I'm glad I didn't bother now!

[Urban Sports]

Jazzer said:

The order doesn't matter chaps....

Decreasing the list price by 13% and then adding VAT generates the same outcome as adding VAT to the list price, then discounting by 13%!!

My question was not really about whether or not they were the same it was just out of curiosity, I only ever broke a quote down when I was in the trade to the pre VAT figure, then again I only sold fleet.

I was curious, as often (VW) we would only discount the car and not some of the options.

[Jazzer]

Glad it's all sorted now, things were getting heated!

I'm loving my F10, but I don't half miss the V10 in my E60, especially the throttle response and top-end noise.

I wonder how I'd feel if I drove one again ( parted with mine in March)?

[Greg Black]

I think you would think.....wow my F10 is great!!!

[JMRS4]

Hi Guys just Ordered my September delivery LCI M5, got £12700.00 off listed price (£80600:00) Paid £68860:00
So very happy, good RV on my F31 330D M Sport in EBII.

Monte Carlo Blue /Silverstone extended Leather.20" wheels
M seats 20 way adjust with heat
HK Sound system
Heated front and rear seats
Speed lim display
Surround View
Reverse Cam
Power Boot
Comfort Access
Service Pack 5 years
Sun-Pro Glass
Internet
Steering wheel heating

Can't wait.

Edited by JMRS4 on Thursday 13th June 09:42