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With specific regard to car sales . . . everything from production to sales have all but come to a stop . . . both demand and supply are at a static nadir. Not sure how it can get any worse for dealerships from a sales perspective?
I am confident dealerships are willing make some great deals right NOW, but there is no benefit or impetus for them to sell cars at a loss – that does not help their cause. In other words, I am of the perspective that the best deals are available right NOW, and the deals are not going to get any better with regard to negotiating down from MRSP.
What will likely happen is that, once things are on the upswing, BMW will likely offer stimulus to purchase/lease via financing options. . . but I do not believe dealerships will be any more willing to ‘deal’ than they are right NOW.
At the end of the day, they can only offer so much off MRSP before losing money on the sale. What is the break-even point for a M2C? I SUSPECT somewhere around 10-12% off MRSP, and that is not going to change moving forward.
///AVM
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