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BMW M2 Forum > Pricing / Ordering / European Delivery / PCD > ED 5% off instead of 7% off base US MSRP starting 1/16

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      08-06-2015, 01:12 PM   #1
fuddman
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ED 5% off instead of 7% off base US MSRP starting 1/16

Supposedly confirmed by dealers. http://f80.bimmerpost.com/forums/sho....php?t=1158154.
For cars delivered after 1/16
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      08-06-2015, 04:05 PM   #2
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While not ideal, it is not a dealbreaker. Just have to adjust what I consider a "good deal".
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      08-06-2015, 04:51 PM   #3
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Wow bummer, Considering that the 7% was down a few years ago from 8% and 2 free plane tickets (if my memory recalls)

Still better then porshe and audi that offer 0 off and charges you for the experience. Glad I did my ED now, even though in the grand scheme of things 2% isnt THAT much.

When I did my ED last month I talked to two people in the lounge that were both literally taking delivery and dumping their car off at the Munich drop off immediately after and flying home...Which is such a shame because I now have memories of a lifetime and a car with an epic journey behind her.

I guess its what happens when an amazing program becomes to popular and taken advantage of

It wont deter me from doing it in the future though
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      08-06-2015, 05:30 PM   #4
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That's $1000 on a $50000 car. Would have paid for some nice hotel nights and meals while there.
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      08-06-2015, 06:47 PM   #5
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I think this is mostly a result of the popularity of the program. You can see all over this forum the number of people who took advantage of Euro delivery, something that was still pretty novel for BMW fans a few years ago.
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      08-06-2015, 06:58 PM   #6
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Quote:
Originally Posted by Spook410 View Post
That's $1000 on a $50000 car. Would have paid for some nice hotel nights and meals while there.
+1
Seriously
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      08-06-2015, 07:09 PM   #7
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+1
Seriously
+1 That sucks
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      08-06-2015, 09:50 PM   #8
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I have the official paper work that BMW Canada hands their dealers regarding ED. It clearly states that ED price is MSRP. I thought I read when I bought my X1 that it was 7% here in Canada as well.
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      08-06-2015, 11:00 PM   #9
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I think the entire M2 program exists solely to boost M3/M4 sales. Rumors about low production numbers, possible delays, now 5% off for ED, next week the rumor about the base price being $62K (that would cause some strokes around here ha ha). I bet the M2 doesn't even really exist at all. Well, I'm off to order my M3 now.

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      08-06-2015, 11:17 PM   #10
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Originally Posted by KevinM View Post
I think the entire M2 program exists solely to boost M3/M4 sales. Rumors about low production numbers, possible delays, now 5% off for ED, next week the rumor about the base price being $62K (that would cause some strokes around here ha ha). I bet the M2 doesn't even really exist at all. Well, I'm off to order my M3 now.

The 5% off ED doesn't only affect the M2
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      08-06-2015, 11:19 PM   #11
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Originally Posted by bobloblaw View Post
The 5% off ED doesn't only affect the M2
Now look what you've done - you've ruined my joke.
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      08-06-2015, 11:27 PM   #12
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Now look what you've done - you've ruined my joke.
I don't think anyone thought it only applied to the M2 lol. Still sucks though. ~$1k doesn't sound like much in the grand scheme of things, but that's a good amount of fun money for a trip.
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      08-07-2015, 02:23 AM   #13
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Quote:
Originally Posted by 3PedalMINI View Post
Still better then porshe and audi that offer 0 off and charges you for the experience. Glad I did my ED now, even though in the grand scheme of things 2% isnt THAT much.
Audi Euro discount is 5%.
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      08-07-2015, 09:17 AM   #14
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Why is it cheaper for you to do this? Something with taxes or how come they offer discounts?

If I want a factory delivery I have to pay $2k extra.
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      08-07-2015, 10:00 AM   #15
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Why is it cheaper for you to do this? Something with taxes or how come they offer discounts?

If I want a factory delivery I have to pay $2k extra.
I read somewhere a long time ago that BMW is subsidized from the German tourist board for bringing visitors to the country. Something may have changed and that is why we are seeing a 5% discount. The customers picking up and dropping off the same day also may have hurt the ED process.
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      08-07-2015, 10:16 AM   #16
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Quote:
Originally Posted by ScottGregory View Post
I read somewhere a long time ago that BMW is subsidized from the German tourist board for bringing visitors to the country. Something may have changed and that is why we are seeing a 5% discount. The customers picking up and dropping off the same day also may have hurt the ED process.
It has more to do with the was cars must be sold through a dealer network here in the US. Basically the dealer gives up their opportunity for "trunk money" to have a car that is already sold when it his our shores. There are some very good discussions about it on Bimmerfest and elsewhere on the web.
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      08-07-2015, 11:04 AM   #17
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Quote:
Originally Posted by ScottGregory View Post
I read somewhere a long time ago that BMW is subsidized from the German tourist board for bringing visitors to the country. Something may have changed and that is why we are seeing a 5% discount. The customers picking up and dropping off the same day also may have hurt the ED process.
This seems like a very plausible explanation. It certainly explains the economic mystery of why BMW pays you thousands of dollars to pick up the car in Munich. Someone just pays them back.
This business of "customer relations" as the reason, well, I could buy into if they were giving you, like a pen or a towel with an M logo or something. But not that much money.
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      08-07-2015, 11:57 AM   #18
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Quote:
Originally Posted by fuddman View Post
This seems like a very plausible explanation. It certainly explains the economic mystery of why BMW pays you thousands of dollars to pick up the car in Munich. Someone just pays them back.
This business of "customer relations" as the reason, well, I could buy into if they were giving you, like a pen or a towel with an M logo or something. But not that much money.
BMW doesn't pay you any money. BMW AG has a true cost to produce a car. BMW NA then "buys" production allocations from BMW AG and distributes those car allocations among the dealerships. BMW NA then charges the dealers a price for those cars, which the dealer then assumes the risk of selling to a customer. My understanding is the first three weeks of that time BMW NA often gives the dealer a grace period where they are not charged interest.

With ED all of that nonsense (i.e. extra cost) is avoided and the customer already owns the car when BMW NA charges the dealer. This saves BMW NA thousands of dollars by not loaning money out for free to the dealerships, and saves the dealerships money by not risking a car sitting on the lot for more than 3 weeks.
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      08-07-2015, 12:20 PM   #19
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If you all think this is upsetting just wait until you hear what BMW plans to do with the pre-paid maintenance on new cars...
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      08-07-2015, 12:25 PM   #20
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If you all think this is upsetting just wait until you hear what BMW plans to do with the pre-paid maintenance on new cars...
Are they going the Porsche route?
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      08-07-2015, 12:33 PM   #21
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Are they going the Porsche route?
Nothing official yet but Ludwig has it squarely in his sights. Let's just say that he feels "passionately" against it. Dealers naturally disagree.
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      08-07-2015, 01:07 PM   #22
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Nothing official yet but Ludwig has it squarely in his sights. Let's just say that he feels "passionately" against it. Dealers naturally disagree.
It's an interesting discussion - one has to think that the price of each BMW has the pre-paid maintenance already factored in - it makes me wonder if "dropping" this benefit will have any cumulative impact on prices.
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