[TheColonel]

The short Version:

I need a BMW 328i (need, not want). I'd like to do so as cheaply as possible, while still getting the features I want. Has anyone here done European Delivery and can it be used as a cost saving measure? Is there a catch?

The Long Version:

So Mazda USA has played games with me for the last time and after a ride in a new 328i Sedan, I'm smitten. I'm young, finishing my degree, and have begun a career in banking, but with tuition and student loans still around, I have to do this cheaply. I plan on the following:

328i Sedan 6spd
Monaco Blue (A little disappointed to find out that the silver window trim they display online is the Euro model. Not cricket in my book)
Navigation
BMW Assist & Bluetooth (mostly for the Bluetooth, I admit)
iPod Integration

All in all, the MSRP comes to 36,900, with an invoice of 33,900. Idealy, if I got them down to nothing I'd be saving about 3000.

I've heard all this great talk about "European Delivery" and how you can save a bundle. It almost sounds too good to be true, since I hear claims that people saved 4k,5k, even 6k off a new 3 series. At that kind of discount, it's worth the plane ticket to Germany for a day. I went on BMWUSA.com and the savings they post seem more modest, $2,270.00 on a new 08 328i Sedan.

So what's the deal? Anyone do this as a cost saving measure?(And do so successfully?) Is this thing some kind of ploy and I have to ship it to the US or pay for it? Or is this purely BMW allowing you to cut out the dealer if you fly to Germany and take a little time off?

Any help you can give would be much appreciated. I am looking to finance a good deal of the car, if that makes a difference. I also welcome any other advice on pricing you can give.

Thanks in advance and I look forward to joining the ranks.

-The Colonel

[Lassaxi]

Some basic searches on European Delivery will answer most of your questions.

In short, the savings listed on BMW's website account only for the 7% discount that comes with ED. ED and US delivery base model invoice prices are different. If you negotiate from ED invoice price up, you can actually save more than 7% over what you would actually pay in the U.S., because 3-series ED cars generally do not come out of the dealer's allocation. Thus, many dealers will let ED cars go for less profit than US delivery cars, because there is no opportunity cost to selling an ED car at relatively low profit.

With U.S. delivery cars, in contrast, every car comes from the delarer's allocation, so the dealer has to consider how much someone else would pay for the same car. With ED cars, the profit is basically free money, because the dealer isn't going to get to sell that car at all unless you buy it.

[TYW]

Not sure where in N.J. you are, but Ryan at Flemington BMW is great to work with and has helped others here on the forum with ED. They also have an excellent Service department.

You can PM him - ALPINE6SPD

[chaz58]

Its not a great way to save money - it is mostly for the experience.

You are right, on your car you may save ~$2,000 or less. How much you save is based on your dealer (My local dealers want to stick to MSRP for ED), so locally I could get a car off the lot for a price similar to ED (especially in winter).

Not much savings at my local dealers - maybe $1000 for ED?

Really, on a car like yours you are going to save a max of 7% (or less from my dealers), have to order the car way ahead of time, and wait 6-8 weeks after you come back before your car is in your hands.

Its not a great way to save $$$. Round trip to Germany in the summer is quite expensive ($1400 or so), and less than half of that, so if your only in it for the $$$, pick up in winter (or maybe spring).

However, it is a good experience, and that is what you should do it for - if the experience interests you.

There have been people who had an expensive or hard to find car (the convert when they were new) that found they could save big $$$ and get the car they wanted because it didn't come out of dealer allocation. On the other hand, the new models for 09 (1 series, 335d) don't have ED discounts, and won't for a while...

I'm doing it for the experience, and for a discount on a trip to Europe. I'm buying from Irv (Chicago) as he knows his stuff and has a fair price too.

[TheColonel]

Thanks for the response everyone. If I can save enough on this deal to basically pay for a few days in Europe, or come out spending a couple hundred extra, I'll definately do it. If you take into account the buy one get one free Lufthansa ticket, it gets even better.

So I took the ED invoice, added on my options and destination charge (which I assume still applies since they send it to the US) and I came up with $31,885 for a 328i Sedan with Metalic Paint, Navi, ipod USB and BMW Assist. The US MSRP would be 36,900.00 and the invoice 33,975.00. Now, as I'm understanding, I can use the $31,885 as my starting b/c anything over that for the dealer is gravy and BMW is happy b/c they sell an extra car and get priceless advertising out of my mouth. So if I offered $32,300, the dealer gets $415 plus thier cut of the financing which will probably be around $25,000 for five years. Sound like a deal that will fly?

[TheColonel]

Anyone? Yes? No?

[chaz58]

In theory the ED would be cheaper than a local delivery because it doesn't come out of the dealer inventory.

However, my local dealers did not want to negotiate on ED, and I didn't feel like doing the negotiating game with them (I did plenty of that in Thailand :-) so I went out of town to purchase (at invoce +).

FYI - if you want to do ED, and pick up the performace center in SC, you can buy from any dealer in the country. My best guess is that most people are paying $1500 over invoice (ED). People in California tend to get around $500 over invoice if they work at it although I think that is NON-ED (I guess BMW is like a honda out there - go figure).

You should be able to buy your car for $33,500. Anything more, and you are getting screwed. Anything less? You may be able to save a few hundred - depends on how much your time is worth to you I guess.

I reserved some Lufthansa tickets - $1700 in June (high season) + $300 in tax for the second ticket. Total=$2000.

I am sure I could get tickets for now (Feb/March) for under $500 a piece in the open market. IMHO, 2-4-1 is only useful at high season as the Q fare is about $300-$400 over low fares.

You are going to have to pay insurance if you spend more than two weeks in Europe. Yes, the destination charge is the same, ED or off the lot.

[IrvRobinson]

You will save more doing ED than buying off of any lot.What you spend in Europe depends on you ! I've had many customers do one day turnarounds,mainly for the savings and many more that went and had the "trip of a lifetime ".The dealer ( me ) needs to make a profit over the invoice,it's not "gravy " but part of the overhead.

[The Other Tom]

Originally Posted by IrvRobinson

You will save more doing ED than buying off of any lot.What you spend in Europe depends on you ! I've had many customers do one day turnarounds,mainly for the savings and many more that went and had the "trip of a lifetime ".The dealer ( me ) needs to make a profit over the invoice,it's not "gravy " but part of the overhead.

What Irv said. If I remember correctly, Irv was the #1 ED client advisor in the US for all of last year. That means he sold more ED cars than anyone else. That means he's da man. Call Irv. You won't be disappointed.
As a side note, personally I wouldn't get the NAV. A lot of people say the BMW NAV isn't up to par. Get a Garnim Nuvi instead and save big $$. Of course, it's your car and your decision, but I recommend you research the BMW NAV thing before you buy.

[TheColonel]

I thought about getting a separate nav. I admit in my RX-8 the Nav System started showing it's age rather quickly when my friends had ones that were voice activated and such not even two years after I got my car.

As a side note, I understand that the 3's do not come out of dealer allocation for ED. I'm having trouble finding the same out for the new 1's. If they don't, and I can use that to negotiate price on an ED 135i, I might jump on it.

[sal501]

IMO ED is not worth it. It is better to get a used car if you want to save some money. The reason being not only do you have to wait for the car to get shipped back to US, but you also have to deal with crapshoot at customs and BS. I won't do it for money alone. Learned my lesson the hard way!

[TheColonel]

I thought BMW takes care of customs for you.

I'm also no buying used. After the expieriences I've had, I'm buying new, having the dealership do all the maintenence and handing them back the keys when something goes wrong.