I am doing an ED with a nice dealer who agreed to do $XXX over invoice. What worries me is that he said that if the prices change before I take delivery, the amount I owe will change for that amount as well. Is this right or the price should be fixed once the order is placed?
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| Reply » Price of E90 volatile? |
Quote: | I am doing an ED with a nice dealer who agreed to do $XXX over invoice. What worries me is that he said that if the prices change before I take delivery, the amount I owe will change for that amount as well. Is this right or the price should be fixed once the order is placed? | The price will probably change in the fall of this year ,BUT....you have to pay for your ED car before you leave for Europe, so no worries, mate. 
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| Reply » Price of E90 volatile? |
Quote: | The price will probably change in the fall of this year ,BUT....you have to pay for your ED car before you leave for Europe, so no worries, mate. | If I may ask... Why do you expect the price to change in the fall? Would it be up or down?
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| Reply » Price of E90 volatile? |
Quote: | If I may ask... Why do you expect the price to change in the fall? Would it be up or down? | Greg, Dude...Pricing of ALL goods goes up, its called inflation. Furthermore, to complicate the matter, you must also factor-in the decline of dollar (vs. Euro). As all international corporations, BMW does have (to a certain extend) hedged currency future contracts to minimize their loss to currency fluctuation. However.... Do to the fact that BMW hasn't had a major price increase in the last 3 yrs, its a safe bet that they are going w/ a "steady increase" strategy. So in short, I am almost CERTAIN that the pricing of the car will go up in the fall.
So in short, when BMW proceed w/ the price hike this fall, your dealer's cost (aka COGS) goes up and thus your price will go up. Seems pretty fair to me as he agreed to sell the car to you at XXXX above his cost. His profit margin is fixed, he is only passing to you what his coast is, so why would you think it should be fixed??!! 
Hope this helps, 
beewang 
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| Reply » Price of E90 volatile? |
Thank you Beewang for your comment. I know that the dealership has an agreement for "New Vehicle Order" with itemized model, options and prices. But perhaps they don't use it in case of ED? It seems I have no document which states how much money I owe...
When should I receive the invoice? Is it possible to pay for the car earlier than one month before pick-up?
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| Reply » Price of E90 volatile? |
Quote: | .....Is it possible to pay for the car earlier than one month before pick-up?.... | You can always pay early (like right now!) if you'd like. But it does NOT lock the price-in on a XXX amount over invoice deal (which is what I think you are getting at). OTOH, if you negotiated a deal based on "... I'll pay you $40k for the car..." then the dealer will negotiate the deal accordingly and once agreed on the selling price, will take increase in price hike as a squeeze on their margin. Perhaps you perfer it this way?? 
cheers,
beewang
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Price of E90 volatile?