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      07-30-2008, 12:26 PM   #1
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BMW and Iraq Purchase

I am in the midst of a deeply-unpleasant purchasing experience with BMW HQ, in Munich. BMW and me would appear to be at an impasse. Hence, any and all advice from readers of this post on how to proceed would be gratefully received. In the meantime, I must apologize in advance for this rant.

In a nutshell, the situation is this:

I bought a modest BMW in 2003 (318i) that I enjoyed very much. In 2005, I decided to do my 'bit' in Iraq; I signed on to go over as a civilian, and, as it was all a bit short notice, I ended up unloading the 318i for a song. As things turned out, I ended up spending the next 2.5 years 'in-country', where I served at the US Embassy in Baghdad as a legal advisor on a US Dept of Justice contract. I cannot say whether we accomplished anything over there - the conditions were generally rather difficult - but goodness knows we tried.

When it became clear that I was drawing near to the end of my time in Iraq (and my patience), I responded to an advert in Stars and Stripes, placed there by the BMW dealership in Bahrain, which oversees (if I understand correctly) the Middle East regional Military Sales Program (MSP). I got to thinking that it would be nice to replace the car that I had sold before heading to Iraq - and I figured that I might reward myself with something that fit my tastes and relatively modest budget.

When I got in touch with the dealership (Superior Motors) that had placed the advert in Stars and Stripes, I was told by the sales agent that I could make a purchase through the MSP on the strength of my presence in Iraq using my US Embassy - Iraq identification as proof of qualification for the Program. In due course, I did just that. In particular, I ordered a 2009 model year 328i Cabriolet, with a few extras, for pick-up in Munich. I signed the requisite paperwork committing to the purchase, made the necessary down-payment, and committed to paying the balance to the dealership prior to delivery, that is, at about the point that the car went into production. The total cost of the vehicle was to be $42,325. It will be appreciated that no taxes were payable to BMW on this price. Any taxes that I might have had to pay to see the vehicle registered here in Europe (where I currently live) were my concern.

Superior Motors submitted the order electronically to BMW HQ on 15 July 2008; receipt of the order was confirmed by a Bettina Konitz at the factory, who informed Superior Motors that the delivery date would be 27 September 2008. The assigned order number was 8579887.

It was on 23 July that the wheels started to fall off. In particular, Ms Konitz informed Superior Motors on that day that BMW had determined that I was not eligible for the MSP and would have to re-direct the existing order through Diplomatic Sales. As I was subsequently informed by Superior Motors, BMW HQ had unilaterally taken my custom away from the dealership. At no time did BMW HQ consult me on my preference with respect to with whom I might like to deal.

I was first consulted about this change in representation by BMW on Friday, 25 July. A certain Bernadett Major-Siegl, who identified herself as a "Sales Specialist" with the "International Diplomatic and VIP Sales" wrote to inform me that her section would henceforth be handling the matter. Ms Major-Siegl also sent me a pair of forms which were, in essence, blank order forms. In response, I reminded the said Sales Specialist that I had an existing order, for which I had already made a down payment. I indicated that it was my expectation that BMW would fulfil the existing order at the agreed-upon date and at the agreed-upon price.

My sense (now) is that BMW would appear to consider its customers to be more of a nuisance than an essential element of the firm's business model. I state as much because on Monday, 28 July, I received a second email from BMW headquarters. In this instance, my correspondent was one Dirk Schneider (dirk.schneider@bmw.com), who identified himself as the Manager of Internal Operations, International Direct Sales.

For those who have hung on to this point, I shall cut to the chase: I was informed by Mr Schneider that the car that my order would be changed from US to Canadian specs, that the agreed-upon delivery date would be met (via a new order number: 8579992) and that the new price would be $64,314. (A figure at which I arrived by converting the invoice that Mr Schneider sent me which requested payment in Canadian dollars.) Aside from the taxes that BMW was now demanding that I pay directly to BMW, the price included a charge of $385 for "Sea Transport Insurance" - despite the fact that Mr Schneider would appear to have grasped that I would take delivery of the car in Europe.

As for the Canadian specs? BMW seems to have somehow determined that I have Canadian citizenship, although I last lived in that country nearly ten years ago. The address that I provided for the initial order (aside from my US Embassy address) was in Washington, DC. And since leaving Iraq in April, I have moved to Brussels. Mr Schneider indicated that the change was necessary so that I would not experience difficulties having my car serviced in Canada. It does not appear to have occurred to Mr Schneider that I might want a vehicle with US specs on the grounds that I envisioned returning with it at some future juncture to Washington.

To return to the chronology: On the same day that Mr Schneider wrote to me (28 July), I declined his offer (with a copy to the generic BMW Customer Service email address that I had managed to find). In this correspondence, I reiterated what I had told Ms Major-Siegl. In particular, I insisted that BMW produce the car that I had actually ordered. I further expressed my view that the order ought to be fulfilled at the price stipulated in the contract into which I had already entered with BMW through Superior Motors. Finally, I asked Mr Schneider to get back to me by the close of business today (i.e., 30 July).

Neither Mr Schneider nor BMW responded to my last letter. Yesterday, I spoke to a German lawyer who has agreed to review the facts of the case with an eye to whether (1) the documents that I signed, along with the down payment, constitute a legally binding contract, and (2) whether BMW is in breach of this contract. We shall see whether the lawyer is of the view that I have a case.

In the meantime, if anybody else has had a similar experience with BMW HQ, I should very much like to hear about it, in particular if I am likely to be wasting my time and am better served by abandoning my downpayment - and, of course, any thought of ever spending another cent on BMW products.

At the risk of stating the obvious, I would recommend at the same time that anyone considering the purchase of a BMW vehicle through the MSP or BMW Diplomatic Sales proceed with extreme caution in order to avoid disappointment. Whereas I would not hesitate to recommend Superior Motors to prospective buyers (the assistance that I received was first rate), there would appear to be not much that Superior Motors can do when the ostensibly brighter lights at HQ take an interest in a particular order. Speaking only for myself, I regard the behaviour that I have witnessed from BMW HQ to be wholly unacceptable. What I have not yet determined is whether this behaviour is informed by incompetence, arrogance, or a combination of the two.
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      07-30-2008, 02:57 PM   #2
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Jspira might help you with this..... He really knows tons about this kinda stuff.
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      07-31-2008, 10:44 PM   #3
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Military/Diplomatic

I understand why you wouldn't come under the military sales if you are not military or a DOD contractor. It seems you would qualify for diplomatic. If you have a U.S. issued passport I believe diplomatic passports start with the number 8 (I could be wrong). However if you have a Canadian passport it seems you would come under the Canadian exchange program who actually processes the paperwork for both U.S. and Canadian. Does that help?
I deal with Pentagon car sales in Germany and they have been very good. I think you can buy a U.S. spec car from them. Their discount is about 9% off MSRP for the base car and MSRP for options. I saw some very nice M3s and 335s as well as a 128 convertible in their showroom a few months ago.
Good luck. I'm inerested to find out what happens.
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      07-31-2008, 11:56 PM   #4
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Passport

Just checked my official military passport. It starts with an 8. When they delivered my car to the U.S. Customs needed a copy of my passport.

Anyone know what color and numbering goes with diplomatic?
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      08-02-2008, 11:33 AM   #5
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      08-02-2008, 12:07 PM   #6
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Thanks to you both for your kind advice; there is not too much by way of an update at this point. BMW was in touch on Friday to reiterate its view that I did not qualify in the first instance for the Military Sales Program - something which I now take to be self-evident. BMW would not appear to have grasped my point that I was told by BMW's agent that I did qualify - and I subsequently entered into a contract with BMW and/or its agent on the basis of the information that I was given AFTER the dealership had received the documents that it requested from me. And of course, I provided copies of my ID, travel orders and this sort of thing. After that, the vehicle order was submitted to, and confirmed by, the factory.

My view, then, is that whereas an error was made, it was not my error. Rather, it was BMW's (or, if you will, the dealership's); and for this reason, it is my view that BMW should meet the terms of the contract between BMW and myself. As I did not misrepresent myself in any way - I have saved all of my correspondence with the dealership - I really do not see on what grounds the contract can be abrogated by BMW.

At any rate, I have handed the entire mess over to a lawyer and am awaiting his counsel. As I am still missing one document (the generic terms and conditions of the sale), I shall not have an opinion concerning my legal options for about a week. Suffice it to say that if I have a case, I shall pursue it. If BMW can provide me with a vehicle for ca. $45k through the MSP, it can provide me with the same car at the same price through the Dip Sales program. Why there needs to be a 50% markup in price is a mystery to me.
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      08-02-2008, 01:05 PM   #7
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Well if you work for the Embassy your car purchase is thru "DIPLOMATIC"sales..which is what I understand ..what I also understand is that the cars is based on your home country passport...Superior Motors should have known this..in fact I can say without a doubt they did..what happen was when your car order was seen by the oders department they saw your pass port was canadian...assuming your canadian....even if you live in the States...BMW AG assumed that eventually you would be going back to Canada evenutally...I'm not sticking up for AG..and yes Dirk Snider...he is a jerk but thats another story....but make it short SUPERIOR fucked up..and if your Canadian and work for the Embassy your have to buy Canadian..sucks I know..but the man is doing his job...AG didn't blow Superior and their greedy ass sales staff did...
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      08-03-2008, 04:16 AM   #8
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I think (Jedi) that you have hit the nail on the head, that is, the sales staff pushed the envelope where the military sales program was concerned. (I am still chuckling at your characterization of things in the final sentence of your post.)

What I tried to impress upon Mr Schneider, with no evident success, is that it was BMW sales staff that made the mistake - or at least licensed agents of BMW. For that reason, I want BMW to live up to the contract that I was offered by BMW (or its agents) and accepted by me. My view is that if this contract was offered in error, this is no concern of mine. As you can imagine, it does not much matter to me whether the MSP, Dip Sales or anyone else handles the transaction. It is simply a question of getting the car at the agreed-upon price.
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      08-03-2008, 09:24 AM   #9
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Quote:
Originally Posted by Amicus View Post
I think (Jedi) that you have hit the nail on the head, that is, the sales staff pushed the envelope where the military sales program was concerned. (I am still chuckling at your characterization of things in the final sentence of your post.)

What I tried to impress upon Mr Schneider, with no evident success, is that it was BMW sales staff that made the mistake - or at least licensed agents of BMW. For that reason, I want BMW to live up to the contract that I was offered by BMW (or its agents) and accepted by me. My view is that if this contract was offered in error, this is no concern of mine. As you can imagine, it does not much matter to me whether the MSP, Dip Sales or anyone else handles the transaction. It is simply a question of getting the car at the agreed-upon price.
I'm with you on that..AG should Make Superior eat the difference they knew you had to buy thru Diplomatic Sales they tried to be slick...and got caught..tell them sell you the car at the price or just get your money Back....sorry about the BLOW comment..ment to say Superior blew it....good luck man...."Dirk" needs to take care of his Military sales REPS out side of AG....but I hope all works out for ya.....
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      08-03-2008, 10:52 AM   #10
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Quote:
Originally Posted by THE JEDI View Post
I'm with you on that..AG should Make Superior eat the difference they knew you had to buy thru Diplomatic Sales they tried to be slick...and got caught..tell them sell you the car at the price or just get your money Back....sorry about the BLOW comment..ment to say Superior blew it....good luck man...."Dirk" needs to take care of his Military sales REPS out side of AG....but I hope all works out for ya.....
+1 agree. msp hasn't been in my favor since i came home from iraq. i ordered with them bak in feb and i didn't even start production of my vehicle til may the said, but then last sec they call me up and say that i wont hav a production slotted until sept. so i'm thinking "wtf, i was hopin to not hav my car maybe 1-2 months after i came home from iraq and now this?"

superior msp f'ed up and instead of goin home gettin my bmw -3750, i ended up gettin cali taxed up the ass at -2k at msrp. i sucked it up and took the hit on that, but i was not gonna wait 8 months for my car to be delivered, cuz by then, '09 models would hav been out wen i was slotted for an '08 production car
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      08-03-2008, 10:00 PM   #11
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Quote:
Originally Posted by ra2fanatic View Post
+1 agree. msp hasn't been in my favor since i came home from iraq. i ordered with them bak in feb and i didn't even start production of my vehicle til may the said, but then last sec they call me up and say that i wont hav a production slotted until sept. so i'm thinking "wtf, i was hopin to not hav my car maybe 1-2 months after i came home from iraq and now this?"

superior msp f'ed up and instead of goin home gettin my bmw -3750, i ended up gettin cali taxed up the ass at -2k at msrp. i sucked it up and took the hit on that, but i was not gonna wait 8 months for my car to be delivered, cuz by then, '09 models would hav been out wen i was slotted for an '08 production car
Wow......that sucks man...the MSP programs is great and it's awsome but once ya add the human factor things can go crazy...I will say sometimes us customer make it harder...lots of people I know want to put the down payments down when they want, and they have to understand these slots go fast even if ya show them in writing......but to come back and say hey 8 months naw that aint right.......I just wish I could get me a BMW delivered here in Japan at the Military price..a fracking 335 is like 65,000 here..aint no way I'm paying 65,000 for a damn 3 series that don't say M-3..by they way thats like 90,000 here........ gotta stay sane
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      08-04-2008, 01:16 AM   #12
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Quote:
Originally Posted by THE JEDI View Post
Wow......that sucks man...the MSP programs is great and it's awsome but once ya add the human factor things can go crazy...I will say sometimes us customer make it harder...lots of people I know want to put the down payments down when they want, and they have to understand these slots go fast even if ya show them in writing......but to come back and say hey 8 months naw that aint right.......I just wish I could get me a BMW delivered here in Japan at the Military price..a fracking 335 is like 65,000 here..aint no way I'm paying 65,000 for a damn 3 series that don't say M-3..by they way thats like 90,000 here........ gotta stay sane
lol. ouch man thats brutal pricing in japan. at least u got to be in japan, wouldnt mind being stationed out there than goin to iraq. at least my sqaud kept me sane u kno

i had to eat up that deposit from msp too. so that went down the drain, and then payin taxes here in cali ftl....
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      08-04-2008, 02:35 AM   #13
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[QUOTE=ra2fanatic;3101195]lol. ouch man thats brutal pricing in japan. at least u got to be in japan, wouldnt mind being stationed out there than goin to iraq. at least my sqaud kept me sane u kno

i had to eat up that deposit from msp too. so that went down the drain, and then payin taxes here in cali ftl....[/QUOTE

Come on ova man..Japan is nice....85 lbs never looked so damn good..diid the sand cookie thing in 1990..no thank ya shit itches
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      08-04-2008, 02:38 AM   #14
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LOL
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      11-09-2008, 02:50 PM   #15
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I have also ordered from the MSP through Bahrain and am a contractor here in Iraq, and have not ran into any of these issues.

After reading this has me a little worried ha-ha but if it is because of his passport then I can see where the issue came up, and I should be good
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      12-21-2008, 06:01 PM   #16
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Quote:
Originally Posted by guardodoc View Post
Just checked my official military passport. It starts with an 8. When they delivered my car to the U.S. Customs needed a copy of my passport.

Anyone know what color and numbering goes with diplomatic?

Black and starts with 9.
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      12-22-2008, 09:25 AM   #17
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I am sorry to hear your story Amicus.

My experience with the Military Sales Program was fantastic. Back in 2005 and while at Camp Victory, Baghdad, I ordered a 2006 330i with GPS, Sport Package, Premiun Package, I-Drive, Leather interiors, adaptive Xenon Lights, all included for the price of $41,500. To include delivery to US. I could not have gotten a better deal.

I did all the procedures just like you mentioned you did. Send them all required documentation, down Payment and everything. They asked me when I wanted my car to be delivered, and from there, everything was a walk in the park. When I arrived to the US from overseas, an hour later I was picking my 330i from my closest BMW dealership.


Once again, I am sorry you had such a bad experience, but hopefully, your lawyers will help you out on closing this case on your favor. Who knows, they might have to give you a bigger discount if close iin your favor.


Good Luck
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      12-22-2008, 10:21 AM   #18
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No problems with my msp I went through Pentagon Car Sales.
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      01-04-2009, 07:03 PM   #19
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Amicus

First thanks for your service. I am at the point in my career where I work with DA Civilians and Contractors and your service is greatly apprecated the military could not function without you.

I have been reading your post and watching PHI spank MIN so forgive me if I missed this. Why not just ask for your money back and purchase in Europe? You could try military sales again or renegotiate through the deplomatic program. Also if can't you buy factory direct in Germany which would be cheaper than the dealer anyway?
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      05-02-2009, 11:35 AM   #20
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Everything good so far with my MSP purchase with Superior Motors as well. Very much looking forward to picking up my 135i when I get home.
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