Thursday, January 20, 2011

How to Compute the European Delivery Pricing (Maybe)

So I have seen several posts online about how to compute the European Delivery pricing. I have been searching for hours until my eyes feel like they are going to pop out of my head but the most common equation I have come across is as follows:

If I understand this correctly does the information below look correct using the equation of:
MSRP Base Car Sticker X .93 = Invoice (ED MSRP) (7% off of US MSRP)

Invoice (ED MSRP) X .92 = ED Invoice (another 8% off for total car discount of 15%. That seems a bit HIGH to me for some reason. Serious discount if it holds true.)

Options MSRP * .91 = Invoice/ED (9% off of MSRP) 

I'll follow up to this post in Mid-September and see if the pricing hold true with my experience. The only thing that would change this is the 2012 lines start being built in August so my car will be a 2012 model. I would expect the options to change some and base price to go up 1% or 2%. We'll see.

Things to remember if purchasing a BMW via ED:
1. Tags/Title costs extra.
2. Do not pay MACO (Advertising fee) or Training (you don't need no stinking training). Update: 1/22/2011 - The CA said they had to charge it. I told him there are other dealers that will sell me this car for ED and will NOT charge me for it and that I had no problems flying out of state to take redelivery of my car if it's going to save me erogenous MACO and Training fees on my contract.
3. Delivery fee is flat $875 and covers shipping your car back to the US after your ED.
4. Virginia does not require a processing fee for paperwork. That's where the dealer cost comes in to play. MD does have a flat fee for processing of $99. Update: 1/22/2011. I found out that the dealer I am working with has a $399 processing feel. I told the CA that is going to come out of the $1,500 dealer fee I was allowing for in my budget. So that said they are down to $1,101 as dealer KEEP at this point. :)
5. Going dealer keep is between $500-$1,500 as of the time of this posting.
6. Be sure you work with a dealer/Client Agent (CA) who is experienced with ED or who is a board member (??). Update 1/22/2011: I asked my CA and he has dome some ED deliveries in his 5 years with the dealer so though he has limited experience I'll press forward with him until things stray from the path. I set CRYSTAL CLEAR expectations with him in that when I go to financing no hidden fees will be added outside of what we discussed today or I would take my business elsewhere. He agreed.
7. Taxes should only be assessed on the base car and options you purchase. (Many thanks to a friend of mine who used to be a car salesman who told me to watch out for this shady practice.) Do not allow the dealer to try to make more money by taxing delivery fee/their keep etc (total cost OTD). That's just WRONG and they will get a middle finger with me walking out the door if they try and play those reindeer games.
8. If the dealer tries to add additional fees tell them sure, it's just going to come out of the dealer's keep ($500-$1,500) :)
9.  I'm not sure if the following items are TAXED if you purchase them with the vehicle - tire and rim protection/paint and carpet protection packages/extended warranty/extended maintenance program. I have to do some more research here.  Update 1/22/2011: I found out these items are taxed though not at the 3% VA tax rate. They are taxed at 2.5%.

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