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European Delivery
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  #1  
Old 08-03-2015, 10:37 AM
BMWofMorristown BMWofMorristown is offline
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Effective January 2016 - European Delivery discount reduced to 5%

2016 European Delivery discount reduced to 5%

Starting with January 2016 production the ED discount will be reduced from 7% to 5%. This means the difference between Euro and US Delivery pricing will be 5%, whether looking at MSRP or invoice price. My suggestion to the community is get your delivery dates locked in so that your vehicle production starts before then!

Please note that the 5% discount is effective on all European Delivery vehicles with completed production dates after January 1st 2016 and beyond. BMW will not be offering price protection on order that are placed but start production after the 1st of January.

I still see a great value considering most people taking advantage of the program are already traveling to Europe. Plus the experience is ALWAYS enjoyable. I am certainly biased, but I think it is pretty amazing you save any amount of money by taking an ED. But again, more reason to act now!

--Mike
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Last edited by tim330i; 10-02-2015 at 11:51 AM. Reason: edited for clarity by Mike and additional details added by Tim330i for home page feature
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  #2  
Old 08-03-2015, 10:40 AM
opfreak opfreak is offline
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Quote:
Originally Posted by BMWofMorristown View Post
The ED discount will be at 5% starting with January 2016 production. My suggestion to the community is get your delivery dates locked in before then! --Mike
off of what price?
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  #3  
Old 08-03-2015, 11:02 AM
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Old 08-03-2015, 11:49 AM
aardvark aardvark is offline
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Oh, no, that's a shame... The ED MSRP has pretty much been 7% off forever, right?

That 2% difference will reduce the typical ED discount by ~$700-$2000. Bummer.
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  #5  
Old 08-03-2015, 05:29 PM
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ChicagoBigHouse ChicagoBigHouse is offline
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Oh no. That's huge. Damn shame. Such a great program.
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  #6  
Old 08-03-2015, 06:48 PM
Lionnutz Lionnutz is offline
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Can u clarify what if any effect this will have on the euro delivery INVOICE price?
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  #7  
Old 08-03-2015, 10:10 PM
Ninong Ninong is offline
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Originally Posted by BMWofMorristown View Post
The ED discount will be at 5% starting with January 2016 production.--Mike
In other words, just change the 7% discount off of US base MSRP to 5% to arrive at base ED MSRP and everything else stays the same, including the way you calculate dealer invoice pricing?
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Old 08-03-2015, 10:25 PM
Ninong Ninong is offline
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One other question I forgot to ask. Do you know of any pending enhancements to the European Delivery program that might be in the works effective with January 2016 production?

I'm just wondering if maybe they're planning on offering more bang for your buck so to speak. Obviously they have changed this program several times over the years so I was wondering if maybe they plan to throw in more freebies?

BMW's pricing is always country-specific and varies greatly from one market to another based on competition. Just look at what they did this week in Australia. They announced huge cuts in the MSRP that amount to A$12,000-A$14,000 a car. Obviously that will force them to increase the trunk money on current inventory by that much over and above whatever they already had in place over there.
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Old 08-04-2015, 06:26 AM
BMWofMorristown BMWofMorristown is offline
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Originally Posted by Ninong View Post
In other words, just change the 7% discount off of US base MSRP to 5% to arrive at base ED MSRP and everything else stays the same, including the way you calculate dealer invoice pricing?
The difference between Euro and US Delivery pricing will be 5%, whether looking at MSRP or invoice. This is as long as the new BMW completes its production in January of 2016 or later.

I still see a great value considering most people taking advantage of the program are already traveling to Europe. Plus the experience is ALWAYS enjoyable. I am certainly biased, but I think it is pretty amazing you save any amount of money by taking an ED. But again, more reason to act now! Octoberfest *coughcough* --Mike
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  #10  
Old 08-04-2015, 06:43 AM
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So a deal made now for June delivery gets 5%? That reads a bit differently than your first post - "get your delivery dates locked in before then".
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  #11  
Old 08-04-2015, 06:58 AM
BMWofMorristown BMWofMorristown is offline
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Originally Posted by Gary J View Post
So a deal made now for June delivery gets 5%? That reads a bit differently than your first post - "get your delivery dates locked in before then".
Excuse me if I was not clear, but the 5% discount is effective on all European Delivery vehicles with completed production dates as of January 2016 and beyond. Make sense? --Mike
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  #12  
Old 08-04-2015, 07:37 AM
aardvark aardvark is offline
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I still see a great value considering most people taking advantage of the program are already traveling to Europe. Plus the experience is ALWAYS enjoyable.
Without a doubt. Still a great value. Just not AS great of a value. Hard to spin what's effectively a price increase as a positive thing... for us anyway. Kind of sad that those of us who've done it (or will do it) pre-January 2016 will likely look back on this time as 'the golden age of ED.'

It'd be kind of interesting to know what motivated the decision to cut the discount... and whence the decision came (BMW AG? BMWNA?).
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  #13  
Old 08-04-2015, 07:44 AM
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BMW announced an expected shortfall today because of slowing sales in China. This will not help either.
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  #14  
Old 08-04-2015, 07:46 AM
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  #15  
Old 08-04-2015, 08:00 AM
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That stinks. But good for my wife because we are in the process of building one for a November 2015 deliver in Munich. So we should still get the 7% discount plus whatever else I can get them down to. My ED in April this year I got about 13% off US MSRP.
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  #16  
Old 08-04-2015, 08:40 AM
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ChicagoBigHouse ChicagoBigHouse is offline
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I think the issue is that those 2% points are big because most people aren't paying msrp for non M cars, and therefore the difference between 5 and 7% may be the difference between the local dealers discount and European delivery. Not to mention lower MF, no lost month with lease payments, waiting for your car to come over, etc.

I loved my ED as much as anyone but I also noted I can rent a car in Europe for 2 weeks and do a similar trip for not too much $$$. But then no Welt experience...
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  #17  
Old 08-04-2015, 09:08 AM
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Originally Posted by aardvark View Post
Without a doubt. Still a great value. Just not AS great of a value. Hard to spin what's effectively a price increase as a positive thing... for us anyway. Kind of sad that those of us who've done it (or will do it) pre-January 2016 will likely look back on this time as 'the golden age of ED.'

It'd be kind of interesting to know what motivated the decision to cut the discount... and whence the decision came (BMW AG? BMWNA?).
The US market has in effect seen a huge price increase this past year.

Last year the euro to dollar ratio was .72
This year the euro to dollar ratio is .91

on a $40,000 dollar purchase this year BMW is getting 7600 more Euros.
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  #18  
Old 08-04-2015, 10:03 AM
Steelers2103 Steelers2103 is offline
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I think your conversions are backwards. Using your numbers, BMW would be getting over $11K LESS this year, assuming that the $40K base price didn't change. Currently, 1 EU = 1.09 USD and last year it was 1.34 USD.

Last edited by Steelers2103; 08-04-2015 at 11:13 AM.
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  #19  
Old 08-04-2015, 10:28 AM
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Jon Shafer Jon Shafer is offline
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Thanks for posting this Mike, you saved me from being the bearer of bad news...

:-/
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  #20  
Old 08-04-2015, 10:29 AM
AlpsRider AlpsRider is offline
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Originally Posted by opfreak View Post
The US market has in effect seen a huge price increase this past year.

Last year the euro to dollar ratio was .72
This year the euro to dollar ratio is .91

on a $40,000 dollar purchase this year BMW is getting 7600 more Euros.
This is correct, our dollar buys more euros this year than it would have bought last year. Actually we have not had a price increase, rather they are getting windfall profit increase because of the exchange rate. I guess we could argue that they should pass the savings on to us, but it rarely happens like that...at least not in the short run. The positive side is that our prices here for new BMW's and many other cars are cheaper than most other countries in the world. My car build is $12,000. more expensive on the Swiss BMW configurator.
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  #21  
Old 08-04-2015, 10:51 AM
RKA RKA is offline
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Multi national companies often have hedging strategies in place to protect against currency fluctuations. That protects against losses but also limits profits when things go the other way. I doubt BMW has seen a windfall yet. I'm not an expert in these matters, so I'll stop there.

Back to the original point, with 1 ED under my belt, I will say the ED discount was an enticement and the whole experience was a nice introduction to the brand after 15 years in Audi's. Would I do it again as a first timer if they shaved 2% off the discount? Probably not. But, having had the experience of driving my car through Bavaria and beyond, would I do it again? In a heartbeat! We loved Germany more than we imagined so BMW's program not only enticed us to purchase a car, it invited us to their doorstep, which probably wouldn't have happened otherwise.

That's just my perspective if they happen to be listening.
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  #22  
Old 08-04-2015, 11:21 AM
Dallas550 Dallas550 is offline
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So right now we are .93 and .92 to get euro invoice. Will the math just be .95 and .92? Still .91 for options?
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  #23  
Old 08-04-2015, 12:11 PM
Ninong Ninong is offline
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Originally Posted by RKA View Post
Multi national companies often have hedging strategies in place to protect against currency fluctuations. That protects against losses but also limits profits when things go the other way.
That's exactly correct. That's something they didn't do 30+ years ago when they were dealing with wild year-to-year fluctuations in the $-DM exchange rates.

In addition to hedging the currency markets, BMW, like virtually all international companies, sets the prices of their products based on market conditions. In other words, their prices are specific to the country. For example, just a couple of days ago BMW Australia announced that the 2016 M3, M4 coupe and M4 convertible would be priced A$16,400 lower than the 2015 prices. Plus they're including some options (e.g., LED headlights on the M3) as standard on the 2016.

Just imagine the trunk money the dealers are getting on their current inventory of 2015 models? A customer who held off waiting for a better deal at the end of the model run will get a much lower price than someone who bought a week ago.

Apparently BMW Australia wants to price those models significantly below the comparable Mercedes and Audi models. In fact, unless Mercedes and Audi respond with price cuts of their own, BMW's models with be A$15,000 less than the comparable Mercedes and A$8,000 less than the comparable Audi. Price war anyone?

Just remember that the individual divisions, such as BMW of North America, BMW Canada, BMW Australia, etc., are the country-specific importers for their respective markets and they set the prices and decide which BMW models to import for their market but everything they do has to be approved by BMW AG. Most of what they do in the way of pricing is the result of direct orders from headquarters.

BMW just announced their quarterly earnings and their profit margin came in at 8.4%, which was a little lower than expected. They blamed it on weakness in the Chinese market, which was the direct result of the stock market crash over there. Not a good sign for new 7-series sales in China. Luxury car buyers in China are just like luxury car buyers in other countries. They get spooked if their country's economy is not performing as well as expected.

As far as BMW's worldwide sales, this quarter is just a temporary lapse caused by model changeovers coming later this year and next. Even though China is slowing down, Europe is showing good signs of recovery.

Quote:
Originally Posted by Dallas550 View Post
So right now we are .93 and .92 to get euro invoice. Will the math just be .95 and .92? Still .91 for options?
Take the base US MSRP and multiply it by 95% to get the base ED MSRP. Multiply that ED MSRP by 92% to get base ED invoice. Add up the US MSRP of all of your options and multiply that by 91%. Add those two numbers together and add $995 for destination and handling. That's your ED invoice.

All they are changing -- according to Mike -- is the 7% ED discount. They're making that 5% effective with January 2016 production.

I guess we will just have to wait to see if they're going to sweeten the European Delivery package at the same time as the price change goes into effect or if this is simply just an adjustment in the pricing and nothing else.
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  #24  
Old 08-04-2015, 01:08 PM
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Originally Posted by Ninong View Post
All they are changing -- according to Mike -- is the 7% ED discount. They're making that 5% effective with January 2016 production.

I guess we will just have to wait to see if they're going to sweeten the European Delivery package at the same time as the price change goes into effect or if this is simply just an adjustment in the pricing and nothing else.
That does not mean that ED invoice discount percentage is not changed as well.

We need dealer clarification for ED invoice percentage.
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  #25  
Old 08-04-2015, 03:00 PM
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ChicagoBigHouse ChicagoBigHouse is offline
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Originally Posted by aardvark View Post
Oh, no, that's a shame... The ED MSRP has pretty much been 7% off forever, right?

That 2% difference will reduce the typical ED discount by ~$700-$2000. Bummer.

Man, you know how much Schweinshaxe and augustiner lager I could buy for $700-2000?!?
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