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[edit] What is European Delivery (ED)?

European Delivery (ED) is a program offered by BMW that allows you to pick up your car in Munich, Germany and enjoy driving it throughout Europe while on vacation or a business trip (BMW European Delivery Website). One of the biggest advantages to doing European Delivery is that there is a significant cost savings to purchasing in the United States that allows you to pay for your trip and potentially save even more. In order to qualify for the European Delivery program, you must meet the following requirements:

• Be at least 18 years of age with a valid driver's license and passport.
• Place your order through an authorized BMW center. Note: Cars built in the U.S. (including Z4 and X5 models) are not eligible for the European Delivery Program, nor are Minis.
• You may keep your car in Europe up to 6 months after delivery (there is a 19% penalty tax if your car is not exported within the 6-month period). Cars financed or leased through BMW Financial Services must be exported within 90 days.
• Your new BMW is restricted to private use by tourists (including business travelers). Persons working in Europe on temporary or long-term assignments are not eligible for the special customs license plates issued under the European Delivery Program.
• ED can be combined with Performance Center Delivery (PCD) at the Spartanburg plant.

There is a limit to the number of EDs you may do at one time: Each household may do one ED every 6 months. Exceptions are case by case.

If you have any specific questions, take advantage of our European Delivery Discussion Forum!

[edit] Why is European Delivery Cheaper than US Delivery?

BMW created the European Delivery program to promote sales of its cars in the 1960s. Jonathan Spira wrote an excellent article in Roundel about the program's history. Although all of BMW's reasons are proprietary corporate matters, one of the principal benefits it brings the company is customer loyalty. Many people who take delivery of a BMW in Europe won´t consider the purchase of a car in any other way.

Many people ask why cars have a lower price when purchased through ED. The reason is that BMW and BMWNA sell cars through ED outside of the usual dealer incentive programs offered by BMWNA to its dealers. US BMW dealers receive incentive payments from BMW NA based on customer satisfaction, or "CSI" scores. Those scores, in conjunction with the number of cars sold, result in incentive payments. BMWs sold through the ED program do not increase a dealer's unit sales and are not subject to the CSI program. Because BMW NA does not pay out this incentive money, they are able to pass along those savings to you in the form of a reduced price on an ED car. The amount of the discount is approximately equal to the potential CSI money a dealer would receive on the sale of the same car through US delivery.

The savings are not a result of different taxes or duties, as many people speculate. The duty on an imported car, whether new or used, is 2.5% of the declared value. In other words, duty makes up about $1000-$1500 of the price a 3-series BMW. Any reduction in value because it is used would not significantly change the amount of duty. Even a full exemption would not fully account for the price savings of ED.

You also can save money through ED because the price is more negotiable with many dealers. Most BMWs sold through US delivery are sold at or around MSRP because demand is so high (this is not true of end-of-run cars and some models on which BMW offers incentives). Cars sold through European Delivery do not come out of the dealer's allocation (except for M cars, and sometimes newly introduced models where supply is limited, e.g. coupes and convertibles in 2007). As a result, the dealer is selling an extra car, rather than one of his allocated cars that he could sell to someone else at MSRP, as is the case with US delivery. Not all dealers realize that ED cars are basically bonus sales. They may refuse to negotiate off of the ED MSRP price, or explain that there are extra costs associated with ED for the dealer. Generally speaking, if your dealer says this, you should look for another dealer.

[edit] Detailed Explanation

For a detailed discussion of the US vs. Europe BMW pricing disparity, please see this thread: http://www.bimmerfest.com/forums/showthread.php?t=285378