Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > European Delivery

European Delivery
The place to share your experiences and tips related to "ED"... View the ED Wiki -- View the Pick-Up Date Calendar -- Add Your Pick-Up Date to the Calendar

Reply
 
Thread Tools Display Modes
  #1  
Old 01-24-2002, 10:00 AM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
Thumbs up How to Save Money by Doing Euro Delivery

I'm going to make a web page on this topic and we can point to it. So if you disagree, want to clarify, add info, etc., let me know and I'll consider changing it.

HOW YOU SAVE MONEY ON EUROPEAN DELIVERY

There are two ways to save money by buying a BMW through the European Delivery program: 1) the price is lower, and 2) you have better leverage to negotiate the price.

1 THE PRICE IS LOWER

BMW has a lower invoice base price for European Delivery cars. You can usually find the invoice pricing on eurobuyers.com, among other places. The invoice price is the price a dealer claims is the base price of the car before they take a profit. With other manufacturers, you can compute a wholesale cost, which is invoice cost, minus holdbacks, dealer rebates, etc., but BMW doesn't do this. Usually you have to subscribe to a service, like Consumer Reports to discover the wholesale cost, but because of BMW's sales policy, the invoice cost is all you need.

Another price saver is that a Euro Delivery BMW does not incur the MACO advertising fee, or any other fee other than delivery, taxes and licenses.

At the time of this writing, the difference between invoice cost on a Euro Delivery and "regular" BMW 330i is $2325 on the base price. Some will look at this number, compute the cost of a trip to Europe and time off from work, and decide that a Euro Delivery BMW is not worth the money. However, we're just getting started. With a Euro Delivery BMW, you have more room to negotiate.

2. YOU HAVE BETTER LEVERAGE TO NEGOTIATE THE PRICE

Here's how BMW sales works. Each year, the dealer is given an allotment of cars. This means, a dealer may be able to order 500 cars from BMW. The dealer will order some of these cars for their lot and special order others. Some dealers claim that almost all their cars are special ordered from the customer. When the car is sitting on the lot, supply and demand is at work.

If BMW's are hot selling cars, which they always are, someone is likely to come in fairly soon and make an offer on that car. As it goes, there are not enough of these cars to go around, and with the allotment process, supply is limited. So salespeople don't negotiate on BMW's like you would, say a Ford. This is also true on special order BMW's, because although the car isn't sitting on the lot for someone to buy, that allotment space is sitting out there in virtual space with an expected level of profit.

So with the normal allotment process, if you won't buy the car at sticker, above sticker, or whatever the dealer can get for the car according to market conditions, in a reasonable amount of time, someone else soon will. This is also how dealers can get "regional markups" of tens of thousands of dollars on performance BMW's, like the M3, M5 and Z8. Supply and demand. Someone will pay the markup in a reasonable amount of time. European Delivery cars bypass this economic process.

European Delivery cars do not come out of the dealer allottment. Instead BMW ED cars come directly from the factory. The dealer has no expectation of profit from a European Delivery car, since they have no way of knowing how many they'll be getting over the year. Dealers can be peculiar because of this.

Some dealers aggressively try to sell ED cars because it's pure profit. It doesn't come out of their allotment, so it's icing on their cake. Other dealers don't understand the ED process or don't want to be bothered with their already lucrative profit from allotted cars, since they will likely make less money on a European Delivery car. A third group of dealers try to bypass the economic system described previously by simply not negotiating at all on European Delivery cars, possibly feeling that if enough people hear about this, they won't pay their inflated prices for standard allotment cars.

In any case, there are BIG savings beyond the invoice reduction on a European Delivery car when you find a dealer willing to negotiate. The savings are large enough that it wouldn't be unreasonable to purchase a ED BMW from another state, if necessary.

What kind of savings are we talking about? If you add up your costs for the car: base invoice cost, invoice cost of options, and delivery, you can often negotiate with the dealer for as little as $1000-1500 over invoice in profit. Let's look at a full fledged example to see the price savings.

EXAMPLE PRICING OF A EUROPEAN DELIVERY CAR vs. REGULAR CAR

Let's look at a regular BMW 330i with a sport and premium package. You're paying:

REGULAR ALLOTMENT BMW:
$38,735 ((including destination & Handling)
-------
BASE: $34,635
SP: $1200
PP: $2900

EUROPEAN DELIVERY BASE PRICE (not negotiating): ($2325 discount)
$36,410 (including destination & Handling)

EUROPEAN DELIVERY NEGOTIATED PRICE ($1500 over invoice)
(including destination & Handling)
$34,640 (savings of $1770 over ED base and $4095 off allotment car)
BASE: $29,410 (including destination & Handling)
SP: $1090
PP: $2640
Dealer Profit: $1500

So if you understand the allotment process and can negotiate on the already lowered European Delivery invoice costs, you can save over $4000 on your new car!

SO WHAT ABOUT GOING TO EUROPE?

You, personally, must show up to take delivery of the car in Munich with your passport. You can always show up, drive the car across town to the dropoff location and fly out the same day. You can even pay a small fee (about $50) and have them do this for you. A round trip ticket to Munich is currently about $550 and can go up depending on the season. Munich is a large town, so there's a range of accomodations from about $60-150.

A Euro Delivery car is probably best savored on the Autobahn during an amazing vacation, but hey, some people don't like to travel for whatever reason.

BUT I CAN'T NEGOTIATE! I DON'T KNOW HOW! IT SCARES ME!

Use the Rizzo Method. Create a fax with your invoice, pricing in a spreadsheet and offer for your ED car. Fax it around to dealers in your area, telling them to fax back their acceptance. If your local dealers won't negotiate, broaden your circle. With over $4000 on the line in the example above, and plans to fly to Europe, are you really THAT reluctant to travel a bit in your own country?

In November I got the car listed in the example above from a local dealer for $1000 over invoice. I would have been happy to fly several states over for such a deal, but I got lucky.


--gary ray
:thumb:
Reply With Quote
Advertisement
  #2  
Old 01-24-2002, 10:05 AM
bmw325 bmw325 is offline
Officially Welcomed to the 'Fest
Location: New York, NY
 
Join Date: Dec 2001
Posts: 8,326
Mein Auto: 528i
Thanks for writing this up...

this will be a good post to refer to when people ask questions about ED. Whenever I try to explain it to people, they keep looking for the "catch". Thanks.
__________________
Reply With Quote
  #3  
Old 01-24-2002, 10:18 AM
in_d_haus in_d_haus is offline
Registered User
Location: Elsewhere
 
Join Date: Jan 2002
Posts: 6,869
Mein Auto: car
Caveat...no discount for M car with Euro. or X and Z3's (they are made in Spartanburg USA)
Reply With Quote
  #4  
Old 01-24-2002, 10:28 AM
DaveN323i DaveN323i is offline
Ex-Neighbor to the American Taliban
Location: somewhere
 
Join Date: Jan 2002
Posts: 1,130
Mein Auto: nothing
Quote:
Originally posted by in_d_haus
Caveat...no discount for X and Z3's (they are made in Spartanburg USA)
Can someone from Europe get a discount for American delivery?
Reply With Quote
  #5  
Old 01-24-2002, 10:29 AM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
I'm going to narrow this article....

I'm going to keep the article entirely about the money. A FAQ would be another good idea. Maybe someone would like to compile it?

--gary
Reply With Quote
  #6  
Old 01-24-2002, 10:31 AM
uter's Avatar
uter uter is offline
Z4 M coupe, F07 550i GT
Location: Scottsdale, AZ
 
Join Date: Jan 2002
Posts: 1,055
Mein Auto: Z4MCoupe, 550 GT, 840Ci
Plus, the CCA Rebate !

Another plus is the the 2002 BMWCCA members' rebate applies to European Delivery for 3, 5 and 7 series! ($500-1500)

http://www.bmwcca.org/PDFs/Form-MembershipReward.pdf
Reply With Quote
  #7  
Old 01-24-2002, 10:36 AM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
Yep!

Check is in the mail for me....
Reply With Quote
  #8  
Old 01-24-2002, 03:05 PM
chalkem77 chalkem77 is offline
Officially Welcomed to the 'Fest
Location: Bay Area, CA
 
Join Date: Dec 2001
Posts: 141
Mein Auto: 2001 BMW 330ci
Nat, thanks for the writeup! I am going to do ED for my next BMW and this cleared up a few of the money questions I had. :thumb:

I'm in the Bay Area, which makes ED an especially appealing option for me because of the supply/demand issues here. It's hard to get anything close to the ED price here. I will probably go through Cutters, but just out of curiousity, has anyone here done ED with a Bay Area dealer? if so, which dealer, did you get a good price, and how was the overall experience? Thanks.

Last edited by chalkem77; 01-24-2002 at 03:10 PM.
Reply With Quote
  #9  
Old 01-24-2002, 03:21 PM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
You can get these prices in the Bay Area

I got my $1k over invoice from a SF Bay Area dealer. $1500 is no problem. Give it a shot.

--gary
Reply With Quote
  #10  
Old 01-24-2002, 03:50 PM
ayn's Avatar
ayn ayn is offline
Gone Motoring!
Location: San Francisco
 
Join Date: Dec 2001
Posts: 2,025
Send a message via Skype™ to ayn
Mein Auto: Smart Fortwo cab
Awesome writeup, I want to do ED some time, seems fun.

--Andrew
Reply With Quote
  #11  
Old 01-24-2002, 11:03 PM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
Here's the web page....

http://www.bariaur.com/e39/EDsavings.html

:thumb:

--gary
Reply With Quote
  #12  
Old 01-25-2002, 06:39 AM
hts hts is offline
I'm a Mac
Location: Phoenix
 
Join Date: Dec 2001
Posts: 17,626
Mein Auto: 03 540iA sport
Nat, nice write-up,

but can you pls clarify the part about the 'small fee' ($50) to have them 'do this for you'? What are you referring to? I assume having BMW deliver the car from the pick-up center to the drop-off point (Munich EH Harms?), but one might infer that you're suggesting that for a small fee, you don't even have to pick up the car yourself, which might be a little misleading.

Thx,

hts
__________________
(sure hope i don't get banned for this benign post).

Current: 2003 540iA M-sport
Previous: 07 Porsche Boxster S, 01 BMW 330i SP, 97 Acura Integra GS-R, 89 Toy Supra, 73 Datsun 240Z
Reply With Quote
  #13  
Old 01-25-2002, 07:37 AM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
You have to go to Germany.

"You, personally, must show up to take delivery of the car in Munich with your passport -- no exceptions. You can always show up, drive the car across town to the drop-off location and fly out the same day. You can even pay a small fee (about $50) and have them do this for you. "
Reply With Quote
  #14  
Old 01-25-2002, 07:49 AM
hts hts is offline
I'm a Mac
Location: Phoenix
 
Join Date: Dec 2001
Posts: 17,626
Mein Auto: 03 540iA sport
oops.

guess that's what i get for skimming.

__________________
(sure hope i don't get banned for this benign post).

Current: 2003 540iA M-sport
Previous: 07 Porsche Boxster S, 01 BMW 330i SP, 97 Acura Integra GS-R, 89 Toy Supra, 73 Datsun 240Z
Reply With Quote
  #15  
Old 01-25-2002, 07:56 AM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
No problem

I revised it further to clarify -- most people skim....

"You, personally, must show up to take delivery of the car in Munich with your passport -- no exceptions. You can always show up, drive the car across town to the drop-off location and fly out the same day. You can even pay a small fee (about $50) and have them do this cross-town drop-off for you, but you absolutely MUST go to Munich to at least fill out the paperwork. "
Reply With Quote
  #16  
Old 01-25-2002, 09:05 AM
hts hts is offline
I'm a Mac
Location: Phoenix
 
Join Date: Dec 2001
Posts: 17,626
Mein Auto: 03 540iA sport
Looks great Nat, thanks!

Now it's crystal clear to even a dummy like me who skims...
__________________
(sure hope i don't get banned for this benign post).

Current: 2003 540iA M-sport
Previous: 07 Porsche Boxster S, 01 BMW 330i SP, 97 Acura Integra GS-R, 89 Toy Supra, 73 Datsun 240Z
Reply With Quote
  #17  
Old 01-30-2002, 03:07 PM
jtklein jtklein is offline
Officially Welcomed to the 'Fest
 
Join Date: Jan 2002
Posts: 7
Mein Auto:
Question

Has anyone been succesful negotiating ED prices in Houston recently? I have had two dealers tell me that they won't come down off of the ED list price for a 330i.

If you have been successful, which dealership?

Thanks.
Reply With Quote
  #18  
Old 01-30-2002, 04:21 PM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
I've heard this about Houston before

Sounds like you need to shop outside Houston. I suggest widening your search in concentric circles, sending out faxes "Rizzo" style.

--gary
Reply With Quote
  #19  
Old 04-12-2002, 12:17 PM
Phantom Phantom is offline
E Ticket
Location: Indiana
 
Join Date: Apr 2002
Posts: 2
Mein Auto: BMW 330ci
Porsche ED for 911

European Delivery for a 911 is totally different. Use to be $10,000 bond before leaving that would be returned to you. Better check.
Reply With Quote
  #20  
Old 04-12-2002, 02:08 PM
ZBB 325Ci ZBB 325Ci is offline
Ölmeßstabmeister
Location: Valley of the Sun
 
Join Date: Dec 2001
Posts: 762
Mein Auto: '03 530i
Re: Porsche ED for 911

Um... Porsche is a different company and probably has different ED Rules.

I did ED last year for my 325Ci and it worked just like mentioned above...

Quote:
Originally posted by Phantom
European Delivery for a 911 is totally different. Use to be $10,000 bond before leaving that would be returned to you. Better check.
__________________
ZBB
(Formerly Zuruck Bleiben Bitte)
Reply With Quote
  #21  
Old 04-14-2002, 07:48 AM
Cruzer's Avatar
Cruzer Cruzer is offline
aka Chi-chi
Location: Seattle
 
Join Date: Apr 2002
Posts: 199
Mein Auto: 1992 325iC Calypso Red
ED in Houston

Quote:
Originally posted by jtklein
Has anyone been succesful negotiating ED prices in Houston recently? I have had two dealers tell me that they won't come down off of the ED list price for a 330i.

If you have been successful, which dealership?

Thanks.

Don't bother trying Momentum or Advantage, they suck bigtime. I recommend Garlyn Shelton in Temple. They will be very competitive with the other ED prices you have seen on this board. I faxed my offer, and they accepted it off the top (no sense trying to draw blood when they are nice and reasonable). I am very happy with their service to date. When the day comes, I am scheduling a business trip to Austin and will have a co-worker drive me up to Temple. The drive back will be very fun, as I will take the long way back and take all my favorite hilly/curvy cutbacks. Good luck.

BTW, is it me, or are there a ton of very stupid buyers in Houston. I'm all for paying a "fair" price, but I've had many friends tell me that they just paid 500 under MSRP because that's all they could get. Screw it. I walked. Loaner car? They can kiss my ass. The extra $1500-2000 of savings would pay for 2-3 months of rental cars. Plus, I can just catch a shuttle to work instead of taking a loaner. These guys are more stupid than we are. Don't buy from them.

Last edited by Cruzer; 04-14-2002 at 08:20 AM.
Reply With Quote
  #22  
Old 04-14-2002, 09:19 PM
myqhenry myqhenry is offline
Officially Welcomed to the 'Fest
Location: nyc
 
Join Date: Apr 2002
Posts: 32
Mein Auto: 02' 330ci
couple of things,

i tried negotiating a bit, didnt git to far...im paying $34,960 for a ED 330ci manual with Metalic paint, SP, Xenons and destination. Is this a decent price? With alarm, lojack and tints it came to $35,065.

and has anyone's dealer supplied them with a loaner after they got back to the states til' the time the car was in their hands?
__________________
"Kama de asobu na."
- 00' Kawasaki Ultra 150
- 02' 330ci, Silver / Black, SP, Xenons, ED
Reply With Quote
  #23  
Old 04-14-2002, 09:22 PM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
Quote:
Originally posted by myqhenry
couple of things,

i tried negotiating a bit, didnt git to far...im paying $34,960 for a ED 330ci manual with Metalic paint, SP, Xenons and destination. Is this a decent price? With alarm, lojack and tints it came to $35,065.

and has anyone's dealer supplied them with a loaner after they got back to the states til' the time the car was in their hands?
It's all about how much you paid over invoice, rather than how much you got off from the sticker. As for loaners for ED, that doesn't happen.

--gary
Reply With Quote
  #24  
Old 04-14-2002, 09:30 PM
Cruzer's Avatar
Cruzer Cruzer is offline
aka Chi-chi
Location: Seattle
 
Join Date: Apr 2002
Posts: 199
Mein Auto: 1992 325iC Calypso Red
Nat, great work. Thank you very much.

Do you have any info on ordering non-standard colors or upholstery materials. I have ordered a 530i, and was going to try to push for Imola Red (non-standard) and Anthracite/Leather combo seats (non-standard). Both of these are available in Germany. Any ideas?
Reply With Quote
  #25  
Old 04-14-2002, 09:37 PM
Nat Brown Nat Brown is offline
OCD Certified
Location: SF Bay Area
 
Join Date: Dec 2001
Posts: 590
Mein Auto: 05 Dodge Magnum RT
Quote:
Originally posted by Cruzer
Nat, great work. Thank you very much.
I think the advice that Robert A gave you on the bimmer.org board is right on. No custom options, but possibly some non-standard combinations if it doesn't change the price.

I was also denied a custom item (a rear sunshade), but I could have gotten it via a normal purchase.

Robert's Response

Good luck!

--gary
Reply With Quote
Reply

Bookmarks


Forum Navigation
Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > European Delivery
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
How to Save Money Doing Euro Delivery Nat Brown Ask-A-Dealer 138 02-19-2014 01:38 PM
ED - fly in fly out save money!!!! jimmyz European Delivery 4 11-30-2002 04:05 AM
Jon Shafer: leasing a Euro Delivery car skd 3 Series / 4 Series 4 09-11-2002 06:06 PM
Shopping for Euro Delivery in Dallas Area rwnilsen3 Ask-A-Dealer 12 08-30-2002 04:59 PM


All times are GMT -7. The time now is 04:08 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
© 2001-2011 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms