Perhaps you can share details of the transaction so that others here can benefit too. Is it safe to assume this was a for a purchase (not lease), with no trade-in, no previous owner, warranty not punched in yet, no excessive/uncommon options, near-zero mileage, and no part substitutions/repairs? Was the dealer willing to provide 17% off MSRP off any car on the lot, or just this one? Why do you suppose this salesperson was willing to sell this car to "your buddy" at a loss of ~$5-6k to the dealership?

 

The car had an MSRP of almost 113k and he bought it for 93.8k. Not a lease, no trade-in, brand new with 58 miles. Not a a current P-car owner but previously owned many. Paid cash (cashier's check). Not sure about warranty punched, but will ask him and let you know. We did not check for part substitution/repairs as we were told the car was new. i will ask how long the car was on the lot.

Why would the salesperson sell for $5-6k loss? You are assuming he actually sold it for a loss. I can't imagine he did. That is why i would speculate that there might be hidden rebates that are being kept hushed. Just like there currently are huge hidden rebates on M3s and 750Li's that are not being advertised. Manufacturers and dealers have gotten much stricter about sharing hidden rebate info than the past. The only time you hear rebates advertised is when sharing them with a customer is almost automatic. It would appear that hidden rebates go into effect a lot earlier than them eventually being openly advertised. Maybe someone with greater inside knowledge could share. I remember in the early part of the previous decade, there was a hidden subvented lease money factor that leaked out, at which the head of PCNA threatened to fire the head of the financial services (or someone like that). The excuse was that we produce premium automobiles and he should not have "cheapened" the brand by offering a subvented lease (I can't imagine the finance guy was solely responsible for the subvented lease, but the boss was upset that it leaked out).

 

I was shopping for a 2011 C2S cab and was offered a $9200 discount on a $116K car by a dealer here in CT a few weeks ago. I wound up with a $120K sticker demo car from a dealer in NJ for $106K.