Why is ED less money? [Archive] - bimmerfest

11-07-2002, 11:51 AM

It's two-fold-

1- BMW views it as smart to encourage people to bond with the marque by going to Germany and picking it up at the factory, giving you the opportunity to drive it on the autobahns, etc. Consider it money spent buildingbrand loyalty.

2- It is then imported into the U.S. as a USED CAR and pays a lower import duty. This is probably the MAJOR reason.

Jon S.

11-07-2002, 11:55 AM

Originally posted by TD
It's two-fold-

1- BMW views it as smart to encourage people to bond with the marque by going to Germany and picking it up at the factory, giving you the opportunity to drive it on the autobahns, etc. Consider it money spent buildingbrand loyalty.

2- It is then imported into the U.S. as a USED CAR and pays a lower import duty. This is probably the MAJOR reason.

They also don't have to pay their dealers the "back-end"$$
on EDs...

beewang

11-07-2002, 03:43 PM

Maybe its just me... but I'd never ask "why" I am being charged less then I have to pay;) Call me an a$$:p but I could give a %#@* ;) Same as when someone says "Free Food!!" I never hesitate and ask "WHY!!??"

Cheers,:bigpimp:

beewang

Plaz

11-07-2002, 05:55 PM

Originally posted by beewang
Maybe its just me... but I'd never ask "why" I am being charged less then I have to pay;) Call me an a$$:p but I could give a %#@* ;) Same as when someone says "Free Food!!" I never hesitate and ask "WHY!!??"

Cheers,:bigpimp:

beewang

I do... there's no such thing as a free lunch.

Then again, that free lunch may be made up of gift horse mouth meat. :D

Jason B

11-07-2002, 08:21 PM

riffic

11-08-2002, 12:04 AM

2- It is then imported into the U.S. as a USED CAR and pays a lower import duty. This is probably the MAJOR reason.

I bet this isn't enough to cause GM to start a Mexican Delivery Program:D

Nat Brown

11-08-2002, 07:17 AM

Originally posted by beewang
Maybe its just me... but I'd never ask "why" I am being charged less then I have to pay;) Call me an a$$:p but I could give a %#@* ;) Same as when someone says "Free Food!!" I never hesitate and ask "WHY!!??"

Cheers,:bigpimp:

beewang

Because if you know why, you can squeeze the system even more. You should like that. :D

See my article (http://www.bariaur.com/e39/EDsavings.html) on how to save money on Euro Delivery. Or just go with Jon Shafer if you're in California to make life easier.

--gary

berford

11-12-2002, 01:25 PM

Originally posted by Jon Shafer

They also don't have to pay their dealers the "back-end"$$
on EDs...

Strange, I thought it had more (or entirely) to do with the VAT (value added tax). That is, tourists don't have to pay it, locals do. In my recollection, 7% is exactly what you get back upon leaving the country on big ticket purchases--which is identical to the ED discount on the base price. Hence, I thought that was why you get the "discount" and why it's 7%. Not true?

bluer1

11-12-2002, 01:29 PM

Originally posted by riffic
2- It is then imported into the U.S. as a USED CAR and pays a lower import duty. This is probably the MAJOR reason.

I bet this isn't enough to cause GM to start a Mexican Delivery Program:D

:lmao: :lmao: :lmao:
Funniest thing I've heard today.

ZBB 325Ci

11-12-2002, 01:45 PM

Originally posted by berford

Strange, I thought it had more (or entirely) to do with the VAT (value added tax). That is, tourists don't have to pay it, locals do. In my recollection, 7% is exactly what you get back upon leaving the country on big ticket purchases--which is identical to the ED discount on the base price. Hence, I thought that was why you get the "discount" and why it's 7%. Not true?

No... has nothing to do with VAT... EU exports are VAT exempt, which is why the tourist programs exist in the first place. Also, VAT throughout most of Europe is in the 14-17% range (don't remember Germany's exactly...).

As for why ED is less expensive -- I thought BMW received a tax credit from Germany on ED sales, as part of a program to promote tourism. Since you have to physically be present in Germany to pick up the car, the idea is that you go to Germany and spend your tourist $ and help out the German economy.

I did ED last year and will definately try to plan another one when its time!

Nat Brown

11-12-2002, 01:56 PM

Originally posted by ZBB 325Ci
[B]

No... has nothing to do with VAT... EU exports are VAT exempt, which is why the tourist programs exist in the first place. Also, VAT throughout most of Europe is in the 14-17% range (don't remember Germany's exactly...). /B]

Plus tourists DO pay VAT tax, such as when you buy BMW parts at the German dealerships. It's still WAY cheaper than buying the same parts in the US (go figure).

--gary

ZBB 325Ci

11-12-2002, 02:25 PM

Originally posted by Nat Brown

Plus tourists DO pay VAT tax, such as when you buy BMW parts at the German dealerships. It's still WAY cheaper than buying the same parts in the US (go figure).

--gary

There are VAT rebates available, but you must make the purchase through a store that participates, and those stores usually cater to tourists (but many large department stores also participate). Unfortunately, BMW dealerships in Germany don't really cater their parts sales to tourists :bigpimp:

I've spent nearly 2 years in Europe on various trips and only once bothered to get the VAT rebate on one purchase... The process is a nightmare -- there are fees involved (usually 10% of the rebate up to a certain point) and you have to your receipt stamped both by the store where you bought the item and by customs when you leave the country (on a flight out of the EU).

berford

11-13-2002, 07:47 AM

Originally posted by ZBB 325Ci

There are VAT rebates available, but you must make the purchase through a store that participates, and those stores usually cater to tourists (but many large department stores also participate). Unfortunately, BMW dealerships in Germany don't really cater their parts sales to tourists :bigpimp:

I've spent nearly 2 years in Europe on various trips and only once bothered to get the VAT rebate on one purchase... The process is a nightmare -- there are fees involved (usually 10% of the rebate up to a certain point) and you have to your receipt stamped both by the store where you bought the item and by customs when you leave the country (on a flight out of the EU).

The process has been simplified recently. They now have a verification checkpoint (where you show an official the items eligible for VAT refund and the appropriate receipts, and get the refund form stampted) and a refund kiosk (where another official gives you an immediate cash refund--in your currency of choice.) It's important, though, that you keep the goods with you so you can show them to the first official--otherwise they won't process the paper. I made the mistake last time of packing some stuff in my luggage and checking it for the flight before going to the refund area. I only had about 75% of the eligible value in my carry-on luggage.

fastcat

11-13-2002, 08:34 AM

Originally posted by Plaz

I do... there's no such thing as a free lunch.

Then again, that free lunch may be made up of gift horse mouth meat. :D

:lmao: :lmao: In Germany, a lot of the meats and sausages you buy is horse meat. :p

seivwrig

11-20-2002, 05:32 PM

Originally posted by berford

Strange, I thought it had more (or entirely) to do with the VAT (value added tax). That is, tourists don't have to pay it, locals do. In my recollection, 7% is exactly what you get back upon leaving the country on big ticket purchases--which is identical to the ED discount on the base price. Hence, I thought that was why you get the "discount" and why it's 7%. Not true?

The VAT is a whopping 16%. The only way to beat this is if you have any relatives in the military in Germany with the VAT forms. I did this. Also, when buying accessories and parts, buy from Niederlassung Munchen. They are cheap than the ED center. The ED center is cool, but save your money. The BMW center is pretty close.

berford

11-21-2002, 06:56 AM

Originally posted by seivwrig

The VAT is a whopping 16%. The only way to beat this is if you have any relatives in the military in Germany with the VAT forms. I did this. Also, when buying accessories and parts, buy from Niederlassung Munchen. They are cheap than the ED center. The ED center is cool, but save your money. The BMW center is pretty close.

Thanks, but I've already been corrected on that point. When I wrote the earlier post, I was looking at an original of a "Global Refund Cheque" issued to me (that I wasn't able to obtain the refund for, since I didn't have the items with me when I went through the airport). The quoted refund amount is 5 Euros on a purchase of 74.5 Euros--that's 6.7%, which I rounded to 7% in my post. Go figure.:dunno:

Tanning machine

12-19-2002, 07:57 AM

They also don't have to pay their dealers the "back-end"$$

This is the key, not the duty. :thumbup: Dealers get paid after the sale by BMW NA based on the customer satisfaction rating. With ED, BMW NA is cut out of the picture, so the dealer doesn't get that incentive money and BMW AG doesn't have to add that into the price. (This also means some dealers may be less interested in doing ED because they don't get the bonus, even though the car doesn't come out of their allocation).

Duty is not the explanation. .:thumbdwn: Duty on cars is something like 2.5%. The rate is the same regardless of whether the car is new or used. All that matters is the value. Sure, a used car is less valuable, but not enough less valuable to matter. Think about it, if duty is 2.5%, then the value of the car would have to decline $3000/.025, or $120k to explain the full difference. Even if duty were 10%, the decline would have to be $30k to change the price as much as the difference in price.

I don't know about German tourist incentives, :dunno: but I do know it's not the duty.

Skybum

12-19-2002, 08:29 AM

I dont think BMW NA is cut out of the deal.

schley

07-26-2005, 09:02 PM

adrian's bmw

07-27-2005, 08:53 AM

damills

07-27-2005, 02:37 PM

:bustingup I'm with you, brother. And free food is my favorite food.
Whats an example of how much you would save on a maxed out M3 Coupe, say its $62k car doing ed not counting flying and other money spent on the trip?

beewang

07-27-2005, 02:52 PM

Whats an example of how much you would save on a maxed out M3 Coupe, say its $62k car doing ed not counting flying and other money spent on the trip?

Z-E-R-O !!!

damills

07-27-2005, 03:09 PM

No difference in MSRP at all :confused: Why do some say it saves money, not counting the trip cost. Im talking about if you were wanting to take a vacation in Europe?

turpiwa

07-27-2005, 03:25 PM

M3's are not eligible for savings in the ED programme.

turpiwa

07-27-2005, 03:26 PM

Unless you can negotiate due to the car not affecting the allotment fo the dealership?

What do you think?

damills

07-27-2005, 03:34 PM

Unless you can negotiate due to the car not affecting the allotment fo the dealership?

What do you think?
:dunno: I remember a post couple of years back where a guy claimed it saved him enough to pay for the entire cost of the trip (eating, hotel, etc). I was just always curious, thought I would just ask.

beewang

07-27-2005, 03:57 PM

No difference in MSRP at all :confused: Why do some say it saves money, not counting the trip cost. Im talking about if you were wanting to take a vacation in Europe?

Last time M cars were on ED list was MY 2000 (E36 M3) some may argue that US model E36 M3 is really NOT an M car and thus it was available on the ED program... but in anyevent that was the last time an M car was on the ED list.

hope this helps,

beewang :)

damills

07-27-2005, 04:07 PM

Last time M cars were on ED list was MY 2000 (E36 M3) some may argue that US model E36 M3 is really NOT an M car and thus it was available on the ED program... but in anyevent that was the last time an M car was on the ED list.

hope this helps,

beewang :)
Ok, what about a maxed out 540? Im just curious if there is any cost savings not just the M, is here any model where you do save?

beewang

07-27-2005, 04:12 PM

Okay... not to point out the obvious :p ....

http://www.bmwusa.com/bmwexperience/europeandelivery/savings

Also, 540 hasn't been sold for the past 3 yrs (last MY was 2003) :eeps:

Sooooooooo.... you say you are from Tenneseee Aye!!?? ;)

JSpira

07-27-2005, 08:02 PM

See my article (http://www.bariaur.com/e39/EDsavings.html) on how to save money on Euro Delivery. Or just go with Jon Shafer if you're in California to make life easier.

--gary

Your article links to a netsol page
:confused:

JSpira

07-27-2005, 08:04 PM

Plus tourists DO pay VAT tax, such as when you buy BMW parts at the German dealerships. It's still WAY cheaper than buying the same parts in the US (go figure).

--gary

Well, not really. You pay VAT (or really Mehrwertsteuer in this case) and then you get the MWSt. back when you leave with the goods.

I've found that most parts are more expensive in the BRD than in the USA due to exchange rates, even with MWSt. refund.

JSpira

07-27-2005, 08:06 PM

Unfortunately, BMW dealerships in Germany don't really cater their parts sales to tourists :bigpimp:
Not necessarily 100% true - I've gotten MWSt. refunds from dealer purchases.

The process is a nightmare -- there are fees involved (usually 10% of the rebate up to a certain point) and you have to your receipt stamped both by the store where you bought the item and by customs when you leave the country (on a flight out of the EU).

You've got to be kidding. This is one of the easiest things to do and every time I leave the EU I get a few hundred EUR back. The entire process takes minutes.

JSpira

07-27-2005, 08:08 PM

It's important, though, that you keep the goods with you so you can show them to the first official--otherwise they won't process the paper.

I've had to show one item out of 10 trips in past 2 years. You just have to answer "ja" when asked if you have the Goods, and if you don't look like someone who would be profiled in security, they stamp your form so they can go back behind the partition and finish their Bier.

MarcusSDCA

07-27-2005, 10:18 PM

Do you get the VAT back on everything?? Even your Grey Poupon??

cwsqbm

07-28-2005, 05:29 AM

Last time M cars were on ED list was MY 2000 (E36 M3) ...

I read somewhere that the German government gave a tax incentive up to year 2000 to encourage ED. Afterwards, it comes from BMW's good graces (and probably advertising budget). That's why MB and Porsche don't give ED discounts anymore. They don't need any additional advertising to sell M models, so no discount.

berford

07-28-2005, 07:04 AM

I've had to show one item out of 10 trips in past 2 years. You just have to answer "ja" when asked if you have the Goods, and if you don't look like someone who would be profiled in security, they stamp your form so they can go back behind the partition and finish their Bier.
I assure you that was not true in my case. They insisted on seeing everything that I was claiming a VAT refund on and refused to consider the receipts for anything I couldn't produce. That was in Switzerland (Geneva)--perhaps it varies by point-of-departure.

JSpira

07-28-2005, 07:07 AM

I assure you that was not true in my case. They insisted on seeing everything that I was claiming a VAT refund on and refused to consider the receipts for anything I couldn't produce. That was in Switzerland (Geneva)--perhaps it varies by point-of-departure.
My comments were meant to be limited to the European Union.