For me, I have owned many bmws in my lifetime, ranging from 3/5/7/M cars. I have never gotten a 10% dealer side discount at all (I know it will not happen). As typical, I am also getting around 6-7% dealer side discount on average. btw, Mercedes dealer margin is just slightly over 11%. Audi is also near 10%. Lexus is likely in the 12%. Porsche is around 15% (so my SA told me)
Those GM & Ford employee pricing, etc type of discount does not come out from the dealer margin at all. They may contribute to some degree to this kind of promotion as either $ or tiny % of their margin. As for BMW discount, I know dealer side discount will likely be restricted to a typical 6-7% off and that would be applicable for most part of the year. However, as I was saying, if the dealer has plenty of year end stocks in their inventories and the new model year cars are already in the showroom, the dealer is likely willing to let the car go with very minimal margin on them. Would they sell at a loss ? That would depends on how far into the next new model year the unsold cars are still sitting in the lot. For example, if bmw canada offers a $20,000 factory credit for a 6 or 7 series in August, the dealer is likely will register the car and pocket the $20,000 right now and with this kind of car typical selling for $150,000 range, the dealer side margin would certainly be in the $14,000 - $15,000 range, therefore, for this car, dealer has about $35,000 room to play with before selling it at a loss.
