1M US Allocations will start on Feb 16th. No ED allocation.

[PyratOne]

Originally Posted by SamS

Nope, you're not getting out of the $875. And if you're pricing the M3 with ED discount, you have to price the 1M with ED base discount ($46,135 - 7%) of $3200. Add to that $10K from earlier, and yes it's absolutely in the $10k-15K range



Yes, M3 is probably better value, but by the time you add the difference (plus, I'd probably get M-DCT), I'd be looking at $15K on top of whatever the 1M is going to run me. That extra $15K is more than I'd prefer to spend.



Yes, we accounted for that a bit earlier.

1) this is my point. I dont think you CAN ED discount the 1M. Coming out of dealer allocations, I would be impressed if there are ED discounts out there. If there are, then go for it. Good for you (us). If no ED discount, this is where my argument for M3 being a better 'value' comes in.
2) You cant go throwing DCT into the argument on pricing value because the 1M doesnt offer it.

If I werent so lazy, i'd list out the two cars optioned similarly with and w/o ED discounts. Any takers?

I guess its a good problem we're debating - which M car to get!

[Red135]

Bimmerfile has also confirmed that ED allocations will come out of dealer allocations. They also confirmed that the 1M will not run beyond the 2011 MY.

[Augenbrauezug]

Originally Posted by HERR FSTIR

I guess its a good problem we're debating - which M car to get!

This is always a great problem to have!

I thought the ED discount was paid back to the dealer by AG? ED is supposed to build brand loyalty, not dealer loyalty, doesn't make sense why the dealer would pay out of pocket. Then again most cars for ED don't come out of dealer allocation

[jdbunda]

My understanding was that the ED discount was related to importing a used rather than new car, and reduced tariffs? Seems like that would be in effect regardless of dealer or ED allocations.

[HERR FSTIR]

BMW NA released a bulletin Friday stating what most of us already knew; the 1M will be very limited and somewhat hard to get. But perhaps more distressing for those trying to get their hands on the car is the fact that “allocation will be handled separate from the (typical) allocation system.” Finally we’ve also confirmed that allocations will be announced to dealers on February 16th.

BMWNA has announced that allocations will mostly be based on the number of M cars and 1 Series models sold at each dealership. Some quick math is all it takes to realize that some small dealers will be getting very few 1Ms at all. However it’s probably a little too early to jump to any conclusions until the 16th.

But perhaps most disappointing is that the European delivery of the 1M (which we had talked about in our interview with BMW NA M Boss Matt Russell) will not have its own allocation. That means any car delivered in Munich will have to come out of the already limited dealer allocations. Thus many dealers will simply not offer the option and will certainly not pass along the savings.

BMWNA had originally announced around 60 units a month for the US market but we’ve confirmed that that number is anything but concrete. They now expect to change allocations monthly as production volume changes from the factory. This would in turn add, remove or change the production slot as to when the dealer may receive their allocation.

BimmerFile - 1M Allocations

Pretty much the same info as reported on BMWblog.com and further indication that 1M deliveries will be drawn out of several months for early adopters. ED is probably going to be a tough deal since 1) dealers will not easily forego their own allocations & profit; 2) the month-to-month variation in production/allocations will make scheduling a trip to Europe a pain in the ass.

While I remain enthusiastic about the 1M, I must say that BMW has done a pretty lame job of bringing this car to market. The pre-unveiling hype and misleading leaks, the goofy options which force you to choose both premium & convenience packages, and the inconsistent claim of offering an M for the masses which in truth is a limited production hard to get vehicle. They are fortunate that the car is sufficiently compelling to overcome their numerous marketing blunders.

Last night I spent quite a bit of time on the porsche website building out various Cayman Rs and perusing the lists of used/CPO Caymans. They better hurry up get allocations and production dates assigned before the 2850 lb über Cayman becomes too seductive.

[Augenbrauezug]

Originally Posted by jbunda

My understanding was that the ED discount was related to importing a used rather than new car, and reduced tariffs? Seems like that would be in effect regardless of dealer or ED allocations.

Why is European Delivery Cheaper than US Delivery?

BMW created the European Delivery program to promote sales of its cars in the 1960s. Jonathan Spira wrote an excellent article about the European Delivery program and its history. Although all of BMW's reasons are proprietary corporate matters, one of the principal benefits it brings the company is customer loyalty. Many people who take delivery of a BMW in Europe won´t consider the purchase of a car in any other way.

Many people ask why cars have a lower price when purchased through ED. The reason is that BMW and BMWNA sell cars through ED outside of the usual dealer incentive programs offered by BMWNA to its dealers. US BMW dealers receive incentive payments from BMW NA based on customer satisfaction, or "CSI" scores. Those scores, in conjunction with the number of cars sold, result in incentive payments. BMWs sold through the ED program do not increase a dealer's unit sales and are not subject to the CSI program. Because BMW NA does not pay out this incentive money, they are able to pass along those savings to you in the form of a reduced price on an ED car. The amount of the discount is approximately equal to the potential CSI money a dealer would receive on the sale of the same car through US delivery.

The savings are not a result of different taxes or duties, as many people speculate. The duty on an imported car, whether new or used, is 2.5% of the declared value. In other words, duty makes up about $1000-$1500 of the price a 3-series BMW. Any reduction in value because it is used would not significantly change the amount of duty. Even a full exemption would not fully account for the price savings of ED.

You also can save money through European Delivery because the price is more negotiable with many dealers. Cars sold through ED generally do not come out of the dealer's allocation--in the past M cars and newly introduced models where supply is limited (e.g. coupes and convertibles in 2007) have reduced a dealer's allocation. As a result, the dealer is selling an extra car, rather than one of his allocated cars that he could sell to someone else at MSRP, as is the case with US delivery. Not all dealers realize that ED cars are basically bonus sales. They may refuse to negotiate off of the ED MSRP price, or try to explain that there are extra costs associated with ED for the dealer (where there are none). Generally speaking, if your dealer says this, you should look for another dealer. It is routine to pay $500 to $1000 above Euro Delivery Wholesale Pricing, including various dealer fees. (Note that the "Training Service Fee" is not to be charged for ED.) In sum, this will save the purchaser approximately 10 percent off of US MSRP. Also, with ED cars that will be leased it is important to check the numbers and make sure that the residual value is based upon US MSRP not the Euro Delivery MSRP.

I think I've posted this 3-4 times in the past 2 days.

http://www.bimmerfest.com/wiki/index...opean_Delivery

[cracka]

I have my deposit in and still hope to do ED in early 2012. I'm standing pat for now, but this news makes me all kinds of nervous.

It's ironic that the 1M, ostensibly created to build new ///M fans, and ED, established to build brand loyalty, could combine to put a sour taste in our mouths if it ends up too hard to get and too hard to coordinate.

[SamS]

My CA told me today that I would pay ED MSRP for the base price of the car. Of course, we are assuming ED MSRP = US MSRP less 7 %. No way to confirm at this point, although I bet we will know on Feb 16th.

[dmanges]

Originally Posted by HERR FSTIR

Last night I spent quite a bit of time on the porsche website building out various Cayman Rs and perusing the lists of used/CPO Caymans. They better hurry up get allocations and production dates assigned before the 2850 lb über Cayman becomes too seductive.

I'm having a hard time understanding this statement. If you have the means, and want a Cayman, go get one.

[HERR FSTIR]

Originally Posted by dmanges

I'm having a hard time understanding this statement. If you have the means, and want a Cayman, go get one.

I have the means but am a very practical minded person. I would have a difficult time rationalizing to myself spending $70K on a car which would sit in the garage most of the time (we have long winters). Furthermore, owning a P-car would be a bit ostentatious, particularly in the small town I live in, and bring unwelcome attention.

Given my concerns, I would feel better about purchasing a CPO unit, but that would have to be a Cayman S and not an R (for the time being until pre-owned units become available).

[Vintage]

Originally Posted by analogue

Here's what I don't understand:

How many people would still do ED if they get no incentive to offset the cost of the trip?

we would not have done it, but I am sure glad we did - it was truly the trip of a lifetime; my wife and I still talk about it fondly

[dmanges]

Originally Posted by cracka

I have my deposit in and still hope to do ED in early 2012. I'm standing pat for now, but this news makes me all kinds of nervous.

It's ironic that the 1M, ostensibly created to build new ///M fans, and ED, established to build brand loyalty, could combine to put a sour taste in our mouths if it ends up too hard to get and too hard to coordinate.

Building fans doesn't necessarily mean they get a car. If they look at the car, want the car, can't get the car, then keep finding more information on BMW's and M cars, they may get info on the new M3 and go there. Honestly, the first M car that really shook me is one I never got to own. I wanted the clown shoe so bad, but I couldn't swing it. I never left. I got an E46 M3, now an E92 M3, soon it will be a 1M.

[T1T2GRE]

Originally Posted by dmanges

I'm having a hard time understanding this statement. If you have the means, and want a Cayman, go get one.

+1.

Porsche = 5,000,000 variations on a theme. Great cars, but they could stand to have a little breath of fresh air in the body department.

[cracka]

Originally Posted by dmanges

Building fans doesn't necessarily mean they get a car. If they look at the car, want the car, can't get the car, then keep finding more information on BMW's and M cars, they may get info on the new M3 and go there. Honestly, the first M car that really shook me is one I never got to own. I wanted the clown shoe so bad, but I couldn't swing it. I never left. I got an E46 M3, now an E92 M3, soon it will be a 1M.

I have no doubt that you're correct, but you also have to wonder what the net effect will be if you piss off a fair number of your current enthusiasts, especially those who've already invested in your product. Those are birds in the hand, as it were.

[T1T2GRE]

I don't need ED, so I guess I'm just happy if I get my 1SMC here at the dealer. Driving an hour is exotic enough for me. I have enough fam in the homeland to get some quality time driving over there (not to take away from the experience).

ED would be a nice way to get the car, but right now I'd be ecstatic if I can just get the car PERIOD.

[T1T2GRE]

So uhhhh, it's 10:00 Eastern time. Anyone get news about allocations yet?

[Ayrton91]

Originally Posted by T1T2GRE

So uhhhh, it's 10:00 Eastern time. Anyone get news about allocations yet?

I guess we are all glued to the screen right now hitting refresh every 10 seconds....

[T1T2GRE]

Well, just got off the phone w/my dealer. They didn't get an allocation for the March production. 14 total allocations for the "2011" in the US thus far.

14...

[B1MR]

My dealer said they were allocated one car, for October 2011 production.

[Red135]

Originally Posted by bruzasd

My dealer said they were allocated one car, for October 2011 production.

ouch.

[SamS]

Originally Posted by T1T2GRE

Well, just got off the phone w/my dealer. They didn't get an allocation for the March production. 14 total allocations for the "2011" in the US thus far.

14...

Wow. I take it BMW will release more allocations once a month. Maybe they'll catch up to 50+/month in the next few months...

I don't mind waiting, but I may have to end up considering the 335is if allocations are really this tight.

[Grey Dove]

Originally Posted by T1T2GRE

Well, just got off the phone w/my dealer. They didn't get an allocation for the March production. 14 total allocations for the "2011" in the US thus far.

14...

???? 14 is that the total for the US in March! TELL MY I'VE GOT IT WRONG