Luxury automakers aren't likely to stop piling hidden discounts on new cars, BMW says.
While mainstream automakers are slowly weaning themselves away from offering factory incentives to lower list prices as a way of wooing buyers, BMW warned today that the luxury car market is just heating up.
"What we see with the beginning of the fourth quarter is that the pressure on the pricing front has increased. When it will end is, at the moment, not clear," BMW CFO Friedrich Eichiner told analysts during a webcast, according to Reuters.
Eichiner was referring to incentives, which manufacturers quietly tack onto new cars as a way of luring in buyers. Incentives can either come in the form of special financing or in manufacturer to dealer or manufacturer to customer discounts. Meanwhile, most manufacturers have increased their use of "loyalty" and "conquest" incentives aimed at convincing buyers to part with their current same-brand vehicles or to trade in competitive vehicles.
All three of Germany's luxury brands current offer incentives to help move their products, although Audi appears to be the most aggressive right now. The luxury brand is offering a $3,000 discount to buyers who trade a 2001 or newer Audi on an A8, but nearly all of its products qualify for at least one loyalty or conquest incentive.
10 notable luxury car rebates
1. Audi will give current owners a $3,000 loyalty incentive or it will extend a $2,500 discount to those who trade in another luxury car on a 2012 A8.
2. Finance or lease a 2012 Mercedes-Benz E-Class and the three-pointed star brand's finance division will tack on an extra $2,000 discount if you are already using them to pay for another Mercedes.
3. Take home a 2012 BMW M3 coupe or convertible and, if you've leased or financed it through BMW Financial Services, you qualify for a $1,000 rebate.
4. Interested in a leftover 2011 BMW 335i or 328i? Make sure your dealer passes on $2,500 in manufacturer-to-dealer incentives. They don't have to tell you about those.
5. Most Infinitis qualify for at least $500 in manufacturer-to-dealer incentives, although the big bruiser QX56 doesn't qualify.
6. Lexus isn't known for its rebates, but you'll net as much as $1,500 if you trade in a competitive luxury brand product, although you'll have to finance through Lexus Financial Services.
7. Find a leftover 2011 Range Rover and, if you're a current Jaguar or Land Rover owner, you could qualify for $5,500 in total rebates.
8. Cadillac will discount a leftover 2011 DTS by an astounding $7,000 if you take advantage of their manufacturer-to-dealer rebates.
9. But even a new 2012 CTS-V has $2,000 in manufacturer-to-dealer discounts on its hood.
10. Lincoln's refreshed 2013 MKS has just hit the road, but that's not stopping Ford's premium division from slapping a $1,500 rebate on them.