Bringing your own financing limits how much of a discount you can get. Prevents the dealer from making any money on the back end. If you have your own financing (or are paying cash), it's usually worth purchasing with their financing and then buying it out.
There are Palisades out there that can be done in that price range, but you are going to go through a lot more than 7 out of 10 dealers telling you no to get there. It can be done, but it's not an insignificant undertaking to get there.
Keep in mind that BMW dealer payment structures are different than Hyundais. A BMW dealer at 12% is like a Hyundai dealer at 8%. And both are VERY different than a used BMW.
1) Bringing your own financing is leverage. Proves you are a real buyer and if they want the kickback from the bank, they need to beat your rate and sweeten the deal. I know I just bought a BMW X7 using this trick.
2) Hyundai vs BMW is not what’s at work here. Look for a dealer that has units in the teens. That’s cash flow and you can lever a better deal versus a small dealer sitting on 4 or 5. Ultimately my new X7 deal was 18% OFF MSRP, which I stepped over to get to the 24% OFF CPO, which I really wanted. So I agree, a 8% Hyundai is no where near as good as a 24% OFF BMW. In fact I think it was pretty well executed.
3) Significant undertakings to save yourself $1,000’s of your hard earned dollars is time well spent. Total investment from me was 2 hours over 7 days to save $20,000. I’m sure someone is willing to pay $83,000 for their X7, but I’m not.
4) This can be overwhelming to some, but let me help.
Steps:
1) Pick states within reasonable driving distance to your location.
2) Google search dealers in large cities and open multiple browsers to start searching their inventory. After 3 or 4 dealers you’ll soon find the majority are using similar build so navigation will speed up.
3) Immediately close any browser where the dealer has less than 13 vehicles (lucky number)
4) Leave browser open with dealers showing over 13 and keep going until you hit 10 dealers.
5) Open a word file and type a letter stating.....serious buyer.....own financing.....buying in 7 days.....must have a minimum of 10% OFF MSRP to match the deal you already have locally (even though you don’t YET). Copy and paste the note 10 times.
Everything above just took 45mins to 1 hour. Now you wait. Most will respond the next day, assuming you do all this after 6pm. No the fun will begin. You only need 2 or 3 to make this work so don’t get discouraged. Remember when you save $4,000 you just got paid $2,000/hr.
6) Now you have at least 3 dealers biting on the deal. Get their offers in writing and look them over carefully.
7) Push to close, ask for $500 to seal the deal. I asked for $1K on the X7 but the MSRP is $83K so apples/oranges.
8) You’ll shake at least 1 out, possibly 2, but should keep 1 in the game.
9) Finally, ask for the deal in writing because you need your bank to see the deal. Also ensure the
VIN is included. Now you either go buy that vehicle in the surrounding state OR you take that written deal and ask every dealer in your state to beat it.
I went with option 2 and got the deal I wanted. Other thing to know is the end of the month quota is real. Dealers are paid bonuses on total numbers of sales as well as individual sales. Sometimes the stars align and you find a deal like we did on my son’s Tucson. Negotiated the whole deal just as I stated above with 3 local dealers and ended up OTD for $21K and the dealer admitted to losing money on the deal to make their quota.
