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      02-16-2014, 06:07 PM   #14
mkoesel
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Drives: No BMW for now
Join Date: Jun 2006
Location: Canton, MI

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Quote:
Originally Posted by solstice View Post
I've done multiple euro deliveries and I've been under the impression that it's BMW that sponsors the 7% discount, not the dealer. I.e the dealer should make the same profit on a car sold at ED msrp as a car sold at US msrp.
Right. That is my understanding as well. Although technically I think the ED sale requires slightly more work for the sales associate, but that's about it.

Quote:
I'm looking for clarity in what ED cars coming from dealer allocation mean in terms of pricing. We should still get the 7% discount if cars are sold at msrp, right?
Yes, ED MSRP is ~7% below US delivery MSRP.

When a dealership is allowed by BMW to sell cars without counting them against their allocation, it means that their sales throughput is constrained by how many buyers they can find rather than by how many cars they are allotted. Assuming sufficient demand, total profit becomes a function of the number of sales rather than the amount per sale. As a result, they are able to sell at a lower price (less profit per unit).

FWIW, this situation could theoretically apply to ED and non-ED alike, but as far as I know BMW has never allowed dealerships to offer cars sold for US delivery without counting them against allocation.

Quote:
Originally Posted by Suave View Post
I have never heard of M cars or any BMW for that matter not ever getting an ED Discount. When was this the case with the E9X?
It was the case with all M cars since the inception of ED prior to early 2009 including the E9x M3 from its introduction in 2008 up until that point.

Since then, to the best of my knowledge, all M vehicles have been offered with discounted ED pricing (roughly 7%, it varies slightly for each model) including, as far as I know, all M vehicles sold today. So, yes, it would be truly surprising and somewhat devastating if BMW NA decided not to offer the M3 with a discounted ED price.

Quote:
Originally Posted by fuddman View Post
A dealer willing to sell the car at the ED discount is only doing so because that's where he thinks the market is at. When that's the case, you can get the 7% regardless of whether you take delivery at his showroom or in Munich.
I am curious where you heard this information because I believe it to be absolutely false. Instead, I understand that a dealership pays commensurately less for a car sold via ED than one that is sold for delivery in the US.
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