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Why is ED delivery so much less expensive?
Why does it make business sense for BMW to offer ED delivery for thousands of dollars less than US delivery?
From my newbie outsider perspective, it looks like BMW's costs aren't much different - the car must still be shipped to the US, trucked to a local dealer, etc. And BMW incurs some increased costs, such as insurance while the customer drives the car in Europe. So what's in it for BMW?
For the buyer, are there any downsides other than need to travel to Munich, and longer lead time than for US delivery?
Also, for 530xiT sport wagon, does an ED order consume a US dealer's production slot? Or is it pure incremental business for the US dealer?
| | Reply » Why is ED delivery so much less expensive? |
Quote: Why does it make business sense for BMW to offer ED delivery for thousands of dollars less than US delivery?
From my newbie outsider perspective, it looks like BMW's costs aren't much different - the car must still be shipped to the US, trucked to a local dealer, etc. And BMW incurs some increased costs, such as insurance while the customer drives the car in Europe. So what's in it for BMW?
For the buyer, are there any downsides other than need to travel to Munich, and longer lead time than for US delivery?
Also, for 530xiT sport wagon, does an ED order consume a US dealer's production slot? Or is it pure incremental business for the US dealer? | 1) small price to pay to build brand loyalty.. they have no dealership to pay for.. factory direct 
2) traveling to Munich is not a downside but an UPSIDE.. its amajor part of the overall experience.. what better way to experience your new bmw than on the roads of europe for a week or two.. if there is a downside its waiting 3 months to pick it up and 4-6 weeks after to get it...
3)ED is outside of dealer allocation.. no usual fluff costs are added except for the 695 delivery cost... and maybe a paperwork fee or something
add an average savings of 5k+ and its an incredible deal... I was very skeptical at first till bimmerfest.com answered all questions and long story short.. i am leaving tomorrow to pick up my new 330xi and 2 weeks in europe.... 
| | Reply » Why is ED delivery so much less expensive? |
I guess, BMW knows it is more expensive than their competitors and lot of young people really want it. So they give them some way to get BMW for lower price, while charging more other folks, who can pay.. That is why entry level bimmer (while pretty well loaded) is low price, but if you add options (since one can pay for extras) they charge a lot..
For someone who just like to drive BMW for its performance, I would say 36600 is well priced. I am sure such follks don't give a damn about comfort access, and leather etc. I am still to figure out difference between leathrette and leather, just by look or feel. (chose premium package just for lumbar support)..
just my opinion..
| | Reply » Why is ED delivery so much less expensive? |
Quote: Typo??
| | Reply » Why is ED delivery so much less expensive? |
No CSI money for the dealer on ED cars since these are outside the main allocation.
Couple that with the fact that BMWNA has your cash about 10 weeks earlier than the regular car and that the dealer has no interest to pay for the cars on the lot, BMW (dealer/corporate) may actually be coming ahead compared to a car they have to sell on the lot. Of course the dealer will make much less overall versus a car on from his allocation but he was not going to get to sell this car anyway; the car is a bonus sale from him and might just help him in his future allocations 
Of course brand loyalty goes up significantly.
All in all, for folks willing to fly to Munich, the ED is a great deal for almost everyone involved.
The dealers might get antsy if they are unable to sell their on the lot allocations but for most dealers doing ED that is not an issue.
| | Reply » Why is ED delivery so much less expensive? |
Quote: Why does it make business sense for BMW to offer ED delivery for thousands of dollars less than US delivery?
From my newbie outsider perspective, it looks like BMW's costs aren't much different - the car must still be shipped to the US, trucked to a local dealer, etc. And BMW incurs some increased costs, such as insurance while the customer drives the car in Europe. So what's in it for BMW?
For the buyer, are there any downsides other than need to travel to Munich, and longer lead time than for US delivery?
Also, for 530xiT sport wagon, does an ED order consume a US dealer's production slot? Or is it pure incremental business for the US dealer? | It's purely a marketing decision. European Delivery was created in the 1960s to build brand awareness. It coincided with the advent of the Jet Age (jet off to Europe and drive around with your new BMW, and then have it shipped home... save on rental fees...)
The numbers compared to overall sales are fairly low, but it's a very visible goodwill ambassador for the car companies.
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Why is ED delivery so much less expensive?