OK, the dealer made about $2000 above invoice on my order. For this I get all of teh service and they come and get my car 30 miles away when it needs to be services. I asked the dealer how many cars they sell and he said 270 BMW's last year. How can they maintain such a beautiful dealership with so many employees on such little money? Id there something I am missing? It was worth it just to get the car pick up. My wife bought a Ford SUV for more than the cost of my BMW at a dealership 4 miles from my house and they will not even give a laoner until they are sure the car has to stay overnight for service.

 

My tying skills are weak at 5:45a.m. after no sleep.

 

...well, when you bring your car in for service, do you really think its free??? its no charge to you, but the dealer gets paid by BMW NA...

 

If car dealerships generated profit only on car sales, all dealerships I know of would go under. The real driver in net profits at any dealership is the service dept. I do not know the specifics of BMW, but in my experience consulting auto dealerships, I've seen anywhere between 60-85% of net profits generated come from the service dept. It's a nice point to keep in mind especially when negotiating a new car - more so a used car that has been sold back to the dealership (where they try to make a net profit twice - once when they originally sold the car, second when they try to sell it to you).

 

Yea i think thats quite true because if the dealership only generate revenue from new car sales,they would go under considering all the wages,and rent..

 

On a new car sale, in addition to the profit over factory invoice, BMW dealers have around 5% in holdback (half of which is dependent on CSI scores), plus profit on leasing where applicable. But as other have said, dealers make more profit from service than sales.