Can someone school me a bit on allocations?

Swancoat · 06-03-2015, 07:55 AM

So I get the whole deal of dealers only get so many allocations, and that represents the orders they can put in... but I'm curious about some specifics:

1. Are allocations 'allocated' monthly? or is it an annual number? quarterly?
2. Assuming they are monthly, what does that represent precisely? Is that the amount of orders that the dealer can accept (to be filled... whenever) or does it represent X amount of build slots in that month?

Thanks!

Miamiboyca · 06-03-2015, 08:00 AM

An allocation is a guarantee from BMW that they will manufacture and provide to dealer X for them to sell. Basically its a "manufacturing" slot.

My understanding is they are provided or "made available" monthly but the dealership knows what it is getting for the year.

X represents the number of vehicles that dealer can actually sell in the month and guarantee production/delivery although the timeframe is up to BMW. For example a priority 3 car (dealer stock) will be pushed back for a Priority 1- customer sold or priority 0 - tourist (ED)

Confirmed - month to month
http://f80.bimmerpost.com/forums/sho...postcount=2136

TonySCV · 06-03-2015, 09:27 AM

Also, allocations can vary significantly from dealer to dealer. Larger volume dealers generally get more than smaller volume dealers. This is why some people struggle getting their orders delivered in a timely manner while others seemingly get their orders produced very quickly.

For example, if you are on a wait list for a 2016 M3 order, and your dealer only gets one allocation per month, you're going to be waiting 3 months before your order is even going to be accepted/built. Another dealer may receive 5 2016 M3 allocations in one month and then your car would get built much more quickly.

This is why it's important to confirm with any dealer you work with that they actually have an allocation available for you and if not, when they will, and this is often an educated guess. As noted above. They don't always know month to month how many they will receive. Keep in mind that dealers that don't have an allocation available for you right now, may not know how many (if any) allocations they will receive in the future in a given month. This is also why orders can drag out, particularly at smaller volume dealers.

If you're ordering, I would generally advise to negotiate with a dealer that has an available allocation slot they can guarantee to you. If none do, negotiate your best deal with the largest volume dealer you can, as odds are better that you'll get your car sooner that way.

06-03-2015, 07:55 AM	#1
Swancoat Lieutenant 136 Rep 504 Posts Drives: E92 M3 Join Date: May 2009 Location: Houston iTrader: (0)	Can someone school me a bit on allocations? So I get the whole deal of dealers only get so many allocations, and that represents the orders they can put in... but I'm curious about some specifics: 1. Are allocations 'allocated' monthly? or is it an annual number? quarterly? 2. Assuming they are monthly, what does that represent precisely? Is that the amount of orders that the dealer can accept (to be filled... whenever) or does it represent X amount of build slots in that month? Thanks!
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06-03-2015, 08:00 AM	#2
Miamiboyca Lieutenant Colonel 480 Rep 1,360 Posts Drives: 2015 MW - F80 Join Date: Oct 2012 Location: Dallas, TX iTrader: (0) Garage List 2015 BMW F80 M3 [10.00]	An allocation is a guarantee from BMW that they will manufacture and provide to dealer X for them to sell. Basically its a "manufacturing" slot. My understanding is they are provided or "made available" monthly but the dealership knows what it is getting for the year. X represents the number of vehicles that dealer can actually sell in the month and guarantee production/delivery although the timeframe is up to BMW. For example a priority 3 car (dealer stock) will be pushed back for a Priority 1- customer sold or priority 0 - tourist (ED) Confirmed - month to month http://f80.bimmerpost.com/forums/sho...postcount=2136 __________________ 2015 M3 - MW, Sonoma, Exec, LED, Adaptive, HK, 19" Light, 6M ED 7/7/2015 - Redelivery-8/18/15 2013 535i - SG, Sonoma, M-SPort, Prem, Tech, CW, Lux Seating, PDC, 6MT ED-10/11/2012/PCD -12/14/12 Last edited by Miamiboyca; 06-03-2015 at 08:11 AM..
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06-03-2015, 09:27 AM	#3
TonySCV Captain 510 Rep 709 Posts Drives: '18 M2; '21 X6 M50i Join Date: Feb 2013 Location: Las Vegas, NV iTrader: (0)	Also, allocations can vary significantly from dealer to dealer. Larger volume dealers generally get more than smaller volume dealers. This is why some people struggle getting their orders delivered in a timely manner while others seemingly get their orders produced very quickly. For example, if you are on a wait list for a 2016 M3 order, and your dealer only gets one allocation per month, you're going to be waiting 3 months before your order is even going to be accepted/built. Another dealer may receive 5 2016 M3 allocations in one month and then your car would get built much more quickly. This is why it's important to confirm with any dealer you work with that they actually have an allocation available for you and if not, when they will, and this is often an educated guess. As noted above. They don't always know month to month how many they will receive. Keep in mind that dealers that don't have an allocation available for you right now, may not know how many (if any) allocations they will receive in the future in a given month. This is also why orders can drag out, particularly at smaller volume dealers. If you're ordering, I would generally advise to negotiate with a dealer that has an available allocation slot they can guarantee to you. If none do, negotiate your best deal with the largest volume dealer you can, as odds are better that you'll get your car sooner that way.
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