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BMW Euro Delivery and Leasing Fraud Warning
A common dealer scam, that BMW is aware of and does nothing to stop, is this. Dealers routinely calculate the residual value based of European Delivery MSRP. This is wrong, wrong, wrong. The car is resold in the US. Euro Delivery cars are not worth less than US Delivery cars. The only correct way to calculate the residual value is to use US MSRP. I have complained repeatedly to BMW North America, and BMW Finacial Services about this fraud by the dealers. They admit that it is wrong, but they do nothing to stop this fraud. BMW makes great cars, but they are ignoring fraud on this one. I am not talking chump change in terms of the dollar difference. The issue here is thousands of dollars on one lease.
| | Reply » BMW Euro Delivery and Leasing Fraud Warning |
Quote: | A common dealer scam, that BMW is aware of and does nothing to stop, is this. Dealers routinely calculate the residual value based of European Delivery MSRP. This is wrong, wrong, wrong. The car is resold in the US. Euro Delivery cars are not worth less than US Delivery cars. The only correct way to calculate the residual value is to use US MSRP. I have complained repeatedly to BMW North America, and BMW Finacial Services about this fraud by the dealers. They admit that it is wrong, but they do nothing to stop this fraud. BMW makes great cars, but they are ignoring fraud on this one. I am not talking chump change in terms of the dollar difference. The issue here is thousands of dollars on one lease. | Another reason to go with a ED experienced dealer. 
| | Reply » BMW Euro Delivery and Leasing Fraud Warning |
Quote: | A common dealer scam, that BMW is aware of and does nothing to stop, is this. Dealers routinely calculate the residual value based of European Delivery MSRP. This is wrong, wrong, wrong. The car is resold in the US. Euro Delivery cars are not worth less than US Delivery cars. The only correct way to calculate the residual value is to use US MSRP. I have complained repeatedly to BMW North America, and BMW Finacial Services about this fraud by the dealers. They admit that it is wrong, but they do nothing to stop this fraud. BMW makes great cars, but they are ignoring fraud on this one. I am not talking chump change in terms of the dollar difference. The issue here is thousands of dollars on one lease. | Sounds more like an inexperienced dealer than fraud to me. 
For someone that had no clue how the process works, I could see how they would think that they were doing it correctly. After all, the only MSRP that shows up for that car is the ED MSRP, not the US MSRP.
Why won't BMWFS do anything about it? Well, the dealer isn't actually doing anything wrong. They can set the residual value at whatever amount they want to, so long as it isn't above the published residual value percentage of MSRP that BMWFS puts out every month. They can go as low as they want to go.
| | Reply » BMW Euro Delivery and Leasing Fraud Warning |
In the Chicago area all BMW dealers, including those with extensive ED experience, do this.
| | Reply » BMW Euro Delivery and Leasing Fraud Warning |
Quote: | In the Chicago area all BMW dealers, including those with extensive ED experience, do this. | Then make sure to take your business elsewhere. There's lots of dealers in the country who will do it right.
That's just a ripoff to pay 3-8K of additional residuals when you don't have to. 
| | Reply » BMW Euro Delivery and Leasing Fraud Warning |
and Like Sarafil said, they aren't doing anything wrong. They are essentially NOT discounting the car, that is not fraud or illegal.
Its a competitive market, (maybe not in Chicago, Boston, Houston, Los Angeles, SF, and Seattle) so you need to do your own cost/benefit analysis and see how much hassle you are willing to deal w/ by saving a few bucks.
Thanks for sharing and a lesson learned.
beewang
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BMW Euro Delivery and Leasing Fraud Warning