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European Delivery
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  #1  
Old 01-05-2014, 02:01 PM
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Yobyot Yobyot is offline
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How to negotiate the price of your ED BMW

How to negotiate the price of your ED BMW

About a year ago, I wrote an article for Boston Bimmer describing how to negotiate the price of an ED car.

The European Delivery experience is a life-altering event - one which I hope you are lucky enough to experience. When I was asked to write about my most recent BMW European Delivery experience for the Boston Chapter of the BMW Car Club of America I decided not to focus on how wonderful the program is.

Instead, I detailed the pricing and ordering process one must go through to order a BMW European Delivery car. I also pointed out some important differences between the normal car-buying process and how a BMW European Delivery transaction works. It's not hard to understand or manage - but it's not at all the way you normally buy a car.

Here's a link to the article: How to buy a BMW via the European Delivery program.

I hope you find it useful.
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Last edited by Yobyot; 09-30-2016 at 11:07 AM.
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  #2  
Old 01-05-2014, 05:20 PM
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Sticky'd. Great read!
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  #3  
Old 01-06-2014, 09:03 AM
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Thanks. Very helpful.
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Old 01-06-2014, 11:42 AM
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Nicely done
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  #5  
Old 01-06-2014, 12:23 PM
435Texan 435Texan is offline
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Great info. Thanks!
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  #6  
Old 01-06-2014, 06:52 PM
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Originally Posted by 435Texan View Post
Great info. Thanks!
Thank you for the kind feedback. I hope this info is useful for you.
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  #7  
Old 01-08-2014, 09:56 PM
hk401 hk401 is offline
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I'm very new to the sport car, I live in WY . I haven't even drive any of the BMW cars in my life. But I want to buy the M4 ED for my first BMW car. BTW we don't have any BMW dealer in WY. So my question is how much does it cost to pay for the dealer to do paper works? and Shipping cost from Europe to US? how long does it take to build? Can I actually negotiate over the M4 that haven't come out yet? what dealer do u recommend?
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  #8  
Old 01-09-2014, 06:19 AM
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Originally Posted by hk401 View Post
I'm very new to the sport car, I live in WY . I haven't even drive any of the BMW cars in my life. But I want to buy the M4 ED for my first BMW car. BTW we don't have any BMW dealer in WY. So my question is how much does it cost to pay for the dealer to do paper works? and Shipping cost from Europe to US? how long does it take to build? Can I actually negotiate over the M4 that haven't come out yet? what dealer do u recommend?
That's quite a car for a first BMW!

Many car dealers charge a "document processing" fee for "preparing paperwork." I hate this fee as it's like a restaurant adding an "electricity" fee to the check for a meal. Processing paperwork is a fundamental part of selling cars and so it shouldn't be separately charged.

Bottom line, these fees are just a way to extract more profit from the car buyer after that buyer thinks they have negotiated a price. The dealers use all kinds of tricks to make these fees look legitimate. For example, they preprint the amounts they want on the sales order form to make it look "official" and as if it can't be negotiated. Fortunately, some states regulate these fees. The bottom line on fees is negotiate, hard.

In the BMW ED program shipping to the US is included in the standard delivery fee. That's a good thing because you pay the same for an ED car -- which has significantly higher handling costs for BMW -- as someone ordering a car for US delivery or buying off the lot.

Your question about timing is a good one. I tell people who are thinking about an ED not to think about the duration in terms of build time but instead to think of the transaction as a long-duration event. That event starts with you working with a dealer. The middle portion is the ED pickup and return itself. The last portion is re-delivery. In my case, for my MY12 335i, I started shopping in October, 2011. I signed a sales order at the dealer on December 31, 2011 (a good day to get a good deal). BMW emailed me the purchase order I talk about in my article in January, 2012. ED pickup was in July, 2012 and re-delivery happened in September, 2012.

Two things to consider: that's a LONG time to wait for a car. And salespeople at dealers are, generally, NOT equipped to work with customers during such a long-duration transaction. They are "coin-slot" operated, for the most part, and are incented to move to the next sale as soon as the ink is dry on the sales order.

So, for your last question and since there are no BMW dealers in WY, my suggestion is you work with one of the dealers who sponsor this forum. Find one who won't make you go to their store to sign paperwork which is usually a ruse to get you on the selling floor for up-selling. Today you can buy just about anything online and, depending on the state in which the dealer is based, you can probably find a dealer who will allow you to sign and fax anything you need to buy a car for ED.

But, please, for your own sake -- make sure you know what you want, make sure it's ordered the way you want it and accept ONLY a printout of the BMW Vehicle Inquiry Report (as I detail in the article) as proof the dealer has ordered what you want. Lots of other things can go wrong -- and since you want to do this remotely, many things might happen.

But most of those are fixable issues. The one thing you must be vigilant about is the ordered car's configuration. You do NOT want to show up in Munich to pick up a freakin' hot M4 only to discover the dealer ordering person left out PDC or something like that because they didn't know it could be separately ordered. (This is just an example. I have no idea how an M4 is configured.) And, yes, as soon as someone posts the M4 ordering guide to the forums you will be able to order the car. This document should become your ordering Bible. When the dealer says no to a particular configuration, you have proof it can be done your way.

Use the forums here to your advantage. It's easy to tell who knows what they are talking about and who doesn't. Contact forum members you think you might want to trust by PM and ask them questions.

Good luck!
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Redelivered: 2012-09-12
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  #9  
Old 01-09-2014, 09:18 AM
hk401 hk401 is offline
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Thank you for the info. It does take a long time to build .......i'll probably buy off the dealer than ED.
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  #10  
Old 01-10-2014, 09:09 AM
435Texan 435Texan is offline
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I'm rapidly finding out that MSRP is the going rate for an ED on the F33. Some dealers I've spoken to act offended by the suggestion that they should come off ED MSRP. I'm patient and may just wait it out until the F33 stops coming from dealer allocation for EDs.
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  #11  
Old 01-11-2014, 11:18 AM
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Any idea on when we might see the 4 series convertibles at the dealership to do a test drive

Also, when can we expect to get one for invoice minus incentives applicable
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  #12  
Old 01-12-2014, 06:09 PM
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Quote:
Originally Posted by 435Texan View Post
I'm rapidly finding out that MSRP is the going rate for an ED on the F33. Some dealers I've spoken to act offended by the suggestion that they should come off ED MSRP. I'm patient and may just wait it out until the F33 stops coming from dealer allocation for EDs.
Yep, I've seen the "offended" bull, too. I use that as a marker for a business where I wouldn't spend a nickel. They're offended, probably, because their normal way of doing business is ripping people off and you've called their bluff.

A dealer who insists on ED MSRP is greedy. Just move on.
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  #13  
Old 01-14-2014, 08:58 AM
BayAreaBMWFan BayAreaBMWFan is offline
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When will the new 4 series convertible available for ED delivery? And when will they come off the dealer allocation?
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  #14  
Old 01-21-2014, 02:06 PM
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Nice write up........

Unfortunately more and more dealers are becoming against Euro Delivery with an excuse that it ends up costing them more to do ED vs regular delivery.

ED is the best part of buying a BMW IMO.
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  #15  
Old 01-21-2014, 02:45 PM
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Quote:
Originally Posted by TTG View Post
Nice write up........

Unfortunately more and more dealers are becoming against Euro Delivery with an excuse that it ends up costing them more to do ED vs regular delivery.
I think the corollary is "dealers often make more money on a domestic delivery than ED" is true.
If you don't like what one dealer tells you, fine, move along and try another.

dk 16 ED's
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  #16  
Old 01-21-2014, 03:53 PM
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Originally Posted by dkreidel View Post
I think the corollary is "dealers often make more money on a domestic delivery than ED" is true.
If you don't like what one dealer tells you, fine, move along and try another.

dk 16 ED's
Agreed, I have been doing EDs for a long time and know the ins and outs of it.

My point is many dealers who were willing to do EDs in the past are becoming not interested going fw. You can move to a different dealer depending on how many you have in your area.

Many people do not have the option of having several dealers like you have in CA.

Yes, you can go out of state etc etc which ends up causing further headaches with taxes transportation and ext.

What I would like to know is what BMW has changed recently for ED friendly dealers to back away from it.
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  #17  
Old 01-23-2014, 12:22 AM
Boraxo Boraxo is offline
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Interesting read but really only one paragraph is devoted to negotiating price, the remainder is how to avoid mistakes in the ED process. Yes, ED is negotiable, but how to get the lowest price is an art and there are more than one method for doing it. Some people do fax, some hammer the sales manager in person, and now some get internet and email quotes (lest we forget the phone call?) But to say that everyone can get $500-750 above ED invoice fails to consider many factors such as how much competition there is in your geographic area, what model you are ordering (dealers tend to hold out for higher margin as the price rises, even though ED cost is the same to them), whether you are financing (dealers may get a cut of that too), etc. So while $500 over invoice is the bulls eye, it may not be achievable in every case. And for some people the cost of time and gas may eat up any savings achieved by purchasing from a more remote dealer.

Not to detract from your fine article, but a more reasonable range for pricing ED would be $500-1500 over invoice, with the expectation that you can negotiate a lower price in areas that have more dealers and for 1/2/3/4/5 series as opposed to 6/7/8/M
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Old 01-23-2014, 10:50 AM
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Nice write-up but I wanted to correct one statement that you made in your article regarding what BMW will repair. You said "(If you do have an accident other than wheel road rash, BMW covers it completely...)".

I curbed the right front wheel of our 2011 335is Coupe in Salzburg on what could only have been a diamond-encrusted granite curb, resulting in pretty nasty road rash. The wheel and tire were both replaced at the VDC in Oxnard, CA, but they had to order the ferric-gray Style 313 wheel, unique to the 335is at the time, because they didn't have it in stock. This delayed our redelivery by a few days, but it was great to have a brand new wheel and tire!
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Old 01-23-2014, 04:30 PM
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Quote:
Originally Posted by TTG View Post
Agreed, I...

What I would like to know is what BMW has changed recently for ED friendly dealers to back away from it.
This is a very interesting topic! I have a little inside information; most of which I won't share to protect my source.

First, BMW is carefully tracking the trend of people using ED more of a discount tool and less as the tourist delivery as it was originally envisioned. This board is now full of people who schedule an ED for $500 over invoice, take delivery at the Welt and then either drive or have their new car transported directly to Log-InOut. Here's an example http://www.bimmerfest.com/forums/sho...d.php?t=748887

Second, many of the Mom and Pop BMW dealers are being swallowed up by the large players, i.e., Penske and AutoNation. A good example is Crevier, which was owned by the Crevier family in Santa Ana CA for more than 30 years, but was sold in 2011 or 12 to Penske Automotive Group. Crevier had been very ED friendly, but not now with The Captain calling the shots. Further, Penske owns something like 80+ BMW dealerships and has A LOT of juice with BMW NA on how they run their programs.

So, connect the dots and see where this is all headed

Dick
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'11 Z4 - mojave over beige • 6 speed manual • Münich delivery

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Last edited by dkreidel; 01-25-2014 at 05:58 AM.
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  #20  
Old 02-07-2014, 08:25 PM
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Yobyot, nice write up. I also live in NE (MA) and did ED back in 2005. I might do another ED sometime this year. Just wondering, which dealer/ca is willing to offer great ED pricing?
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  #21  
Old 02-08-2014, 05:44 AM
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Yobyot Yobyot is offline
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Originally Posted by ska View Post
Yobyot, nice write up. I also live in NE (MA) and did ED back in 2005. I might do another ED sometime this year. Just wondering, which dealer/ca is willing to offer great ED pricing?
It depends. I usually start watching the monthly sales numbers for the car makers (check the Wall Street Journal) about 10 months before I want to order the car. When I see a monthly dip, the next month is when I start calling dealers. For my MY12 F30, I placed the order on December 31. That's always a good day to get some flexibility in pricing.

Another good time to order is when Mercedes Benz is outselling BMW on a monthly basis.

In short, you want order when market conditions are applying economic force that favors you.
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  #22  
Old 02-08-2014, 07:55 AM
Red Lined Red Lined is offline
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Quote:
Originally Posted by dkreidel View Post
This is a very interesting topic! I have a little inside information; most of which I won't share to protect my source.

First, BMW is carefully tracking the trend of people using ED more of a discount tool and less as the tourist delivery as it was originally envisioned.

Dick
How would BMW know if you are just doing a quick turnaround. What if you want to drop your car off and use trains to get around?? I know it defeats the purpose, but just a though...
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Old 02-08-2014, 08:25 AM
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Originally Posted by SD Z4MR View Post
Nice write-up but I wanted to correct one statement that you made in your article regarding what BMW will repair. You said "(If you do have an accident other than wheel road rash, BMW covers it completely...)".

I curbed the right front wheel of our 2011 335is Coupe in Salzburg on what could only have been a diamond-encrusted granite curb, resulting in pretty nasty road rash. The wheel and tire were both replaced at the VDC in Oxnard, CA, but they had to order the ferric-gray Style 313 wheel, unique to the 335is at the time, because they didn't have it in stock. This delayed our redelivery by a few days, but it was great to have a brand new wheel and tire!
Well, that's a great story -- and another example of how ED is an exceptional program.

I hit a concrete barrier in Paris on day three of ownership. I was, to put it mildly, upset. But when the car arrived at the dealer it had been repaired to factory spec. And two years later, you can't see over-spray or any trace of repair.

I suspect that the VPCs are set up to repair shipping damage -- and therefore are the best BMW shop shops on the planet.

So, yet another reason to buy on ED: you pick up a new car and while you are learning the cars dimensions and extents, you scratch it. ED fixes it so you never knew it happened. When you get the car back in the US, where we have more space on urban highways, you are less likely to experience a fender bender.
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  #24  
Old 02-08-2014, 08:31 AM
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Yobyot Yobyot is offline
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Quote:
Originally Posted by dkreidel View Post
This is a very interesting topic! I have a little inside information; most of which I won't share to protect my source.

First, BMW is carefully tracking the trend of people using ED more of a discount tool and less as the tourist delivery as it was originally envisioned. This board is now full of people who schedule an ED for $500 over invoice, take delivery at the Welt and then either drive or have their new car transported directly to Log-InOut. Here's an example http://www.bimmerfest.com/forums/sho...d.php?t=748887

Second, many of the Mom and Pop BMW dealers are being swallowed up by the large players, i.e., Penske and AutoNation. A good example is Crevier, which was owned by the Crevier family in Santa Ana CA for more than 30 years, but was sold in 2011 or 12 to Penske Automotive Group. Crevier had been very ED friendly, but not now with The Captain calling the shots. Further, Penske owns something like 80+ BMW dealerships and has A LOT of juice with BMW NA on how they run their programs.

So, connect the dots and see where this is all headed

Dick
Whatever is happening, it's always been a puzzle as to why BMW (or Volvo, who also has a good program compared to MB, VW and Porsche who do not) do ED at all.

I've heard various explanations: tourism, brand-building and more. None of these, IMO, make economic sense.

What does make sense is that if profits are down, these programs will become less generous. Volvo, for example, now charges a surcharge for summer pick-up in Gothenburg.

Still, with a $200M plus building in Munich designed to do customer deliveries, I think BMW will continue to offer some form of ED. But what the terms are we can't know until they change.

For one, I hope they do continue to make an ED at least cost-neutral. Getting exactly the car I want, prepped as no dealer will ever prep it, delivered at BMW Welt, driven in Europe essentially care-free makes the car a souvenir unlike any other.

Every time I get in my F30 -- and I mean every time -- I remember the trip, the fun, the experience. It's almost priceless.
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  #25  
Old 02-08-2014, 08:40 AM
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Yobyot Yobyot is offline
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Originally Posted by Boraxo View Post
Interesting read but really only one paragraph is devoted to negotiating price, the remainder is how to avoid mistakes in the ED process. Yes, ED is negotiable, but how to get the lowest price is an art and there are more than one method for doing it. Some people do fax, some hammer the sales manager in person, and now some get internet and email quotes (lest we forget the phone call?) But to say that everyone can get $500-750 above ED invoice fails to consider many factors such as how much competition there is in your geographic area, what model you are ordering (dealers tend to hold out for higher margin as the price rises, even though ED cost is the same to them), whether you are financing (dealers may get a cut of that too), etc. So while $500 over invoice is the bulls eye, it may not be achievable in every case. And for some people the cost of time and gas may eat up any savings achieved by purchasing from a more remote dealer.

Not to detract from your fine article, but a more reasonable range for pricing ED would be $500-1500 over invoice, with the expectation that you can negotiate a lower price in areas that have more dealers and for 1/2/3/4/5 series as opposed to 6/7/8/M
All good points -- I agree with everything you say, Boraxo.

Why not simply say, as I think I did, that ED price is just as negotiable as any other?

Market conditions, the buyer's preferences and stomach for dealing with BMW dealers all affect the end price. YMMV.
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Produced: 2012-06-22
ED: 2012-07-19; Arrived in Jersey City: 2012-08-23
Redelivered: 2012-09-12
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