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      08-16-2007, 01:46 PM   #1
larryn
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US ED Pricing discussion - not to beat a dead horse

Howdy,

Now that the MY 08 prices are out for the 3er, and they didn't go up, we have decent info on what we're up against.

The e92 335i base price via the European delivery program is $37945. The wholesale numbers for the same car via ED is $34910.

Seeing it's pretty easy to get $1500 over invoice, that makes the base 335i Coupe cost about $36410 via ED. Not too shabby, even with options (like $1100 sport package).

This is making me think that the 135i can be had for a pretty decent deal via ED.

Thoughts?
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      08-16-2007, 02:10 PM   #2
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Quote:
Originally Posted by larryn View Post
Howdy,

Now that the MY 08 prices are out for the 3er, and they didn't go up, we have decent info on what we're up against.

The e92 335i base price via the European delivery program is $37945. The wholesale numbers for the same car via ED is $34910.

Seeing it's pretty easy to get $1500 over invoice, that makes the base 335i Coupe cost about $36410 via ED. Not too shabby, even with options (like $1100 sport package).

This is making me think that the 135i can be had for a pretty decent deal via ED.

Thoughts?
Yeah, i hope so, im going to take a few days off work and do ED, its going to be a great expirence.

I work @ MB, and one of the salsman, told me about a guy getting a 5-series ED, and crashed it on one of those windy roads to the port. lol, ill try to be carfull:headbang::headbang:

Travis
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      08-16-2007, 09:20 PM   #3
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Yea...But maybe if you waited it out you could get a better deal, because US prices would b cheaper than Euro
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      08-16-2007, 10:27 PM   #4
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Quote:
Originally Posted by 128er View Post
Yea...But maybe if you waited it out you could get a better deal, because US prices would b cheaper than Euro
Waaaaa?
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      08-17-2007, 08:33 AM   #5
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Quote:
Originally Posted by mikeo View Post
Waaaaa?
+1

Getting your car via the European Delivery Program is the easiest way to get your new 1er for the cheapest possible amount. I get the feeling these things are going to be selling like hotcakes, and dealer's monthly allocation slots will all be taken. ED cars don't come out of the dealership's allocation, so they are cake to the CAs and the dealerships.
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      08-17-2007, 08:55 AM   #6
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Quote:
Originally Posted by larryn View Post
+1

Getting your car via the European Delivery Program is the easiest way to get your new 1er for the cheapest possible amount. I get the feeling these things are going to be selling like hotcakes, and dealer's monthly allocation slots will all be taken. ED cars don't come out of the dealership's allocation, so they are cake to the CAs and the dealerships.
Albiet a smaller piece of cake.
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      08-17-2007, 09:00 AM   #7
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im no expert on this so please correct me if i'm wrong.

seems to me ED comes out a wash because

1) you have to pay for your trip

and

2) you have to deal with the delay of having your car shipped back to the US ... which doesn't just happen over night obviously.

As i understand it, if you are looking for a nice vacation it is a great way to get one paid for through car savings but in the end it's very close to a wash.

:iono:
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      08-17-2007, 09:04 AM   #8
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Well, yes, of course you have to WANT to go to Europe for this to make sense. And from what I understand, the new BMW-Welt will be the delivery point for ED and they plan on making it a special experience for those taking delivery.
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      08-17-2007, 09:12 AM   #9
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Quote:
Originally Posted by joelk View Post
im no expert on this so please correct me if i'm wrong.

seems to me ED comes out a wash because

1) you have to pay for your trip

and

2) you have to deal with the delay of having your car shipped back to the US ... which doesn't just happen over night obviously.

As i understand it, if you are looking for a nice vacation it is a great way to get one paid for through car savings but in the end it's very close to a wash.

:iono:
1) you do pay your trip, but the savings you're getting on the car will pay for the trip itself, plus Lufthansa has the special 2 for 1 fare so that should help.

2) the shipping takes between 4-6 weeks for east coast, and about 5-7 weeks for the west coast. BMWFS pays for the first month lease, but it's true that they add .003 to your Money Factor

in the end, especially if you lease the car, you will be still saving more money than regular purchase, since the lease is based on the US MSRP and not the ED MSRP

here is an article I wrote a while ago

http://edbmw.com/blog/2006/10/17/how...-your-new-bmw/

and this written by someone else

http://edbmw.com/blog/2007/04/11/how...for-a-new-bmw/

http://www.edbmw.com/main/eded.html

scan through this articles and you will understand the advantages and disadvantages

P.S Remember, ED is not for everyone, it depends
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      08-17-2007, 09:21 AM   #10
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/\ Irv, I was looking at your site just last night. Another member was kind enough to provide me with a link.

I don't really understand this comment:

Quote:
especially if you lease the car, you will be still saving more money than regular purchase, since the lease is based on the US MSRP and not the ED MSRP
I read it on your site as well. Can you (or anybody else) elaborate a little?
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      08-17-2007, 09:54 AM   #11
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Quote:
Originally Posted by vinazzurro View Post
/\ Irv, I was looking at your site just last night. Another member was kind enough to provide me with a link.

I don't really understand this comment:



I read it on your site as well. Can you (or anybody else) elaborate a little?
sure, let's assume some numbers here:

for example, if you purchase your car from the dealer's lot, regular purchase, the invoice price could be, let's say, $38k, then the US MSRP will be around $42k. Now, for an ED car, the invoice will be 36k, or a little less, depending on the car, and the US MSRP will stay the same $42k, so basically the leasing for an ED car is based on the US MSRP and not the ED MSRP, which in this case would have been probably $40k. So,here is why the lease will be cheaper.

Does it make sense? If not, then I'm going to use an example with real numbers because I know it can be confusing.
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      08-17-2007, 10:03 AM   #12
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Quote:
Originally Posted by IrvRobinson View Post
sure, let's assume some numbers here:

for example, if you purchase your car from the dealer's lot, regular purchase, the invoice price could be, let's say, $38k, then the US MSRP will be around $42k. Now, for an ED car, the invoice will be 36k, or a little less, depending on the car, and the US MSRP will stay the same $42k, so basically the leasing for an ED car is based on the US MSRP and not the ED MSRP, which in this case would have been probably $40k. So,here is why the lease will be cheaper.

Does it make sense? If not, then I'm going to use an example with real numbers because I know it can be confusing.

Hmmm... I just don't get how leasing based on the US MSRP is cheaper if the ED MSRP is actually lower. I would think that leasing based on the lower MSRP would yield the lower payment.

I must be missing some obvious factor.
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      08-17-2007, 10:25 AM   #13
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The residual will be closer to what you negotiated the car to be (negotiations will be based off of ED Pricing), than if you bought it based off of the US MSRP. So, the lease payments will be cheaper.

Also, if you lease an ED car, BMW USA pays a car payment for you, to offset the time it's being shipped from Europe to the US.

One more thing to think of... If you've been a BMW CCA member for more than a year at the time of signing for the car, you're eligible for a $500 "membership reward" that the national chapter pays you for buying a new Bimmer. This applies to both leased and purchased cars.
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      08-17-2007, 11:20 AM   #14
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Quote:
Originally Posted by larryn View Post
One more thing to think of... If you've been a BMW CCA member for more than a year at the time of signing for the car, you're eligible for a $500 "membership reward" that the national chapter pays you for buying a new Bimmer. This applies to both leased and purchased cars.
Really... That's interesting. I'll have to check into that. What are the yearly dues?
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      08-17-2007, 11:25 AM   #15
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Holy hell. I must be dense or something, because I just don't get it.

Sorry. :frown:

It's OK though. Thanks for trying to explain it!
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      08-17-2007, 11:36 AM   #16
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Quote:
Originally Posted by vinazzurro View Post
Holy hell. I must be dense or something, because I just don't get it.

Sorry. :frown:

It's OK though. Thanks for trying to explain it!
I think the point is that the car's residual (it's value at the end of the lease) will be based on a percentage of the US MSRP and will therefore be higher than if it was based upon the EU MSRP. Lease payments are based on the depreciation cost during the term of the lease, plus interest. So if the residual value is closer to the initial price of the car then your lease payment will be lower. The initial price will be negotiated from the EU price and therefore the delta between initial price and residual is less, thus resulting in a lower lease payment.
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      08-17-2007, 12:33 PM   #17
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Quote:
Originally Posted by ibeam81 View Post
Really... That's interesting. I'll have to check into that. What are the yearly dues?
It costs $40 to join, and you get a great magazine (Roundel) for that, plus access to lots and lots of events.

Info on the member rewards program can be found here.

I've gotten $1500 from three cars so far. The good thing is that the dealership knows nothing of this, and you get this money totally separate from them.

If you do join, use me as a reference, please. My member number is 281334. :biggrin:
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      08-17-2007, 12:34 PM   #18
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Quote:
Originally Posted by ibeam81 View Post
I think the point is that the car's residual (it's value at the end of the lease) will be based on a percentage of the US MSRP and will therefore be higher than if it was based upon the EU MSRP. Lease payments are based on the depreciation cost during the term of the lease, plus interest. So if the residual value is closer to the initial price of the car then your lease payment will be lower. The initial price will be negotiated from the EU price and therefore the delta between initial price and residual is less, thus resulting in a lower lease payment.
OK. I think I get it now.

I wonder what kind of difference in payment we'd be talking about.
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      08-17-2007, 12:47 PM   #19
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Quote:
Originally Posted by ibeam81 View Post
I think the point is that the car's residual (it's value at the end of the lease) will be based on a percentage of the US MSRP and will therefore be higher than if it was based upon the EU MSRP. Lease payments are based on the depreciation cost during the term of the lease, plus interest. So if the residual value is closer to the initial price of the car then your lease payment will be lower. The initial price will be negotiated from the EU price and therefore the delta between initial price and residual is less, thus resulting in a lower lease payment.
well said
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      08-17-2007, 12:48 PM   #20
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Quote:
Originally Posted by larryn View Post
It costs $40 to join, and you get a great magazine (Roundel) for that, plus access to lots and lots of events.

Info on the member rewards program can be found here.

I've gotten $1500 from three cars so far. The good thing is that the dealership knows nothing of this, and you get this money totally separate from them.

If you do join, use me as a reference, please. My member number is 281334. :biggrin:
of course the dealers know :biggrin:

they just have nothing to do with it, I always tell my customers about the rebate and I even point them to my website where I have all the info on it. If they could get the discount, why not show them where to get it?
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      08-17-2007, 12:51 PM   #21
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Quote:
Originally Posted by vinazzurro View Post
OK. I think I get it now.

I wonder what kind of difference in payment we'd be talking about.
here is what you can do, look at the 2007 pricing sheet, let's say for the 3-series. Configure a car and use the pricing for ED. Then price the same car but based on the US MSRP. Then go here and calculate the lease.

http://www.autoleaseadvisers.com/calc/calc.php

Use this lease numbers for example, for August 2007

335i sedan

24mo MF .0175 Residual 71%
36mo MF .0175 Residual 61%

I would do it myself but i'm a little busy
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      08-17-2007, 01:06 PM   #22
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Quote:
Originally Posted by IrvRobinson View Post
of course the dealers know :biggrin:

they just have nothing to do with it, I always tell my customers about the rebate and I even point them to my website where I have all the info on it. If they could get the discount, why not show them where to get it?
Cool! I know the last CA I used would try to weasel more money out of me, if they knew I was getting $500 for buying a car from him.
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