BMW European Delivery – How it works

If you are in the market to buy a bimmer and are thinking about trying the European Delivery: Here is a write-up on the pro’s/con’s and how it works. I wrote this as an email to a friend so copying it here for others.

Let me start with my deal interms of US MSRP – which i attached (the final price was about 71K with a couple of added features – i don’t have the final build as pdf) and my take home for ED is around 62K which led to the dealer taking very little from me. Couple of things played into my favor with East Bay BMW – they had a M allocation that no one used up and the 2015 Model was ending in July and my delivery was May. I checked with 7 other dealers and no one even wanted to sell me a car – forget an M3 as all of them are spoken for at US MSRP(explanation below) when they bring it into the US.

Here is how BMW works from what I learned from:

1. BWM Germany allocates M cars to each dealer. They control that choke point and they release very few cars to maintain some sort of exclusivity(??).

2. If a car model comes out of a dealer allocation(M3, M5, 335i, 235M etc) then doing an ED(European Delivery) for the dealer is a loss proposition so they will most likely not do it if there is a demand.

3. If a car model does not come out of the dealer allocation(435i, 740/750, 650i etc) then the dealer does not care and will do it for as little as $250 over ED Invoice(there are 4 prices per car – lower to higher – ED Invoice < ED MSRP < US Invoice < US MSRP) if they are inclined to and not lazy. Weatherford offered to give me a fully loaded 435i for $250 over ED Invoice!! This is because all they do is few papers and clean the car when its back. Some dealerships will not do ED even for this as they may just don’t have anyone who knows ED. The most knowledgeable ED CA in the Bay is in Weatherford BMW at Berkeley.

4. If you time it right and go to a dealer with a lot of ED experience (Santa Barbara BMW) or with someone whose allocation is going to be gone, you can get a sweetheart deal.

No wonder no one in the bay wants to do a deal without a very high markup as we all love fancy cars and I guess a lot can afford to pay. So timing is king here but there are deals to be made.

ED Analysis:

Here is my take on ED. Firstly, it saves a ton of money IMHO. I did a lease as this is my first real car (i drove a used Honda Accord 2005 for 13k for 8yrs) and I don’t really know how an M works or if I will like it and if I can keep it after 39months. My final payment right now is $740 with a MF of 0.0013 (with $5k as a fixed deposit which is refundable). I know friends who pay more than this for a 5 series or an Audi A or even a Mustang/Camaro (all great cars but definitely cheaper than M).

Approx 10k savings means that the trip pays for itself and more interms of travelling to a few beautiful countries and be treated as a royalty in BMW Welt. But more than anything else, driving a brand new car – that too an M – on the autobahn or the back roads of Switzerland or through burgundy is a once-in-a-life-time (atleast for me). Its a unique experience which if you are a bimmer enthusiast should experience. For free you get a brand new rental with a 60day insurance and the car will be delivered back to you brand new. Plus you get an exclusive factory tour and a lot more.

Now, its economics. My math is that if I were to lease at US MSRP, I will pay at 71K. I paid 62K, used the 9-10k and went to Europe for 28days. So did I save money – maybe not as we spent it all there – but if you were to just pick it up and pay for extremely well timed/cheap/on points flight tickets – reach Munich in the morning, pick-up at Welt in the afternoon and return to US the same day – its about 7-9k savings (I would not recommend doing ED like this at all!!). Also, if you lease, the lease is calculated at US MSRP (loophole with lease calculation). This may feel expensive but due to the way the residual’s are calculated, the payment is cheaper.

Now about finding an ED car – just call all of the 7 dealers, tell them you want to know if they have an M allocation. If they say yes, then send them over a build and ask them if they want to do an ED. Patience pays off and maybe late during holidays you could pull off a close to ED Invoice costs.

Summary/Etcetra:

So coming down to it – if you really want an M3/M4; doing an ED will be a a money saver (especially with a lease) and also you get to drive around and see Europe in style. Even if you want to buy, I think it will be cheaper. Below is a link to the Bimmerfest European Delivery forum where you can find all the information (and better info) from the experts who have done multiple ED’s.

Links:

ED Forum: http://www.bimmerfest.com/forums/forumdisplay.php?f=25

ED Wiki: http://www.bimmerfest.com/wiki/index.php?title=BMW_European_Delivery

Send me a message if you have more questions and I will be happy to help!

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