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

[HERR FSTIR]

BMW Blog - 1M Allocations

Initially we announced that 1M allocation for the US will run at about 60 units per month for all BMW dealerships. At the time, that was the message communicated to dealers through their monthly sales call. Shortly after, BMWNA reached out to us with further explanation around the allocation and how it will be distributed in the upcoming months. Every month, BMWNA will run a new allocation based on any production volume changes from the factory. As it is mentioned in the bulletin issued today, “this could potentially add, remove or change the production slot as to when a dealer may receive their allocation”.
We reached out yesterday to Matt Russell, BMW M brand manager for an official statement. “This spring, Leipzig will be building three very popular cars: X1, 1er Coupe/Convertible, and 1M. We will try to accommodate all of the requests we get for the 1M, but we aren’t set up to churn out hundreds per day. The dealer can explain in more detail how the production calendar works. Some people will have to wait a few months to get their 1M, but if they can wait, there should be enough”, said Mr. Russell in a statement for BMWBLOG.

This confirms the above reports of allocations becoming available this Wednesday. As we already know, production volumes for U.S. bound 1Ms will be about 60 per month with some degree of flexibility to increase production, although it sounds like a large increase is unlikely to happen.

Matt Russell indicates waiting times are to be expected. This is not surprising. If 60 units are produced for U.S. dealers per month, and there are 365 dealers, then assuming each dealer receives at least one allocation it will take 6 months to simply produce one vehicle for each dealer. Therefore, those who are #1 on their dealer's list may end up waiting until this fall to take delivery. This timeline will likely be skewed as I suspect higher volume dealers will receive priority and receive more than 1 unit during the first few months. Also, I have no idea whether they will "stockpile" cars produced in March and April for the U.S. market (which might put 150 or so vehicles into the supply channel for initial release on May 16th).

Given these numbers, it appears unlikely you will see these cars in your dealership anytime soon as BMW will have trouble simply supplying one or two units to each dealership nationwide (and those will likely already be spoken for). Furthermore, without a separate ED allocation, those hoping to take delivery of their new baby M in Munich may end up doing so fairly late in the year. I'm not terribly familiar with German weather, but doing ED in fall/winter might be much less appealing, especially if you are looking to enjoy driving through the Alps.

[Grey Dove]

Originally Posted by HERR FSTIR

BMW Blog - 1M Allocations



This confirms the above reports of allocations becoming available this Wednesday. As we already know, production volumes for U.S. bound 1Ms will be about 60 per month with some degree of flexibility to increase production, although it sounds like a large increase is unlikely to happen.

Matt Russell indicates waiting times are to be expected. This is not surprising. If 60 units are produced for U.S. dealers per month, and there are 365 dealers, then assuming each dealer receives at least one allocation it will take 6 months to simply produce one vehicle for each dealer. Therefore, those who are #1 on their dealer's list may end up waiting until this fall to take delivery. This timeline will likely be skewed as I suspect higher volume dealers will receive priority and receive more than 1 unit during the first few months. Also, I have no idea whether they will "stockpile" cars produced in March and April for the U.S. market (which might put 150 or so vehicles into the supply channel for initial release on May 16th).

Given these numbers, it appears unlikely you will see these cars in your dealership anytime soon as BMW will have trouble simply supplying one or two units to each dealership nationwide (and those will likely already be spoken for). Furthermore, without a separate ED allocation, those hoping to take delivery of their new baby M in Munich may end up doing so fairly late in the year. I'm not terribly familiar with German weather, but doing ED in fall/winter might be much less appealing, especially if you are looking to enjoy driving through the Alps.

+1 an if I may add: not every dealership will get one. US orders will be the
last to be put in the main ordering system in Munich and from then on we will
all be in the same big pool. It also happens that the most preferred dealerships (and that's the same for every nation) had the opportunity to order an allotment as they think they will sell. As for fall/winter ED and wheather conditions, well
if you get lucky, you'll see snow falling in the alps from early september (I know because I drove thru at Furka pass Zwitserseland 09/09)

[cpippolo]

My CA at Darien BMW indicated that their best estimate is that they will get an allocation every 6-8 weeks for a total of 6 cars. Not sure how their volumes compare to other BMW dealers, but presume they sell quite a few...they are in an affluent area. He also confirmed that their first allocation is this Wednesday for March production. I just sent him my configuration. Valencia orange with all options except satellite radio. Still wish I could lose the power seats, and could do without a few of the other package items, but I want most of the items in the convenience package, so stuck with both packages.

[02fireman]

FYI. ED price is set by BMW. My MSRP on my 335 showed my "tourist" price that BMW put on the car. If you find the ED link on BMWUSA it will show you all prices M or not that the dealer sells the car for "ED". But as far as a discount from there, coming out of allocations, I don't see it happening.

[pyrat]

this car is going to be impossible to get, everything I read insinuates it. Oh well, maybe the next 1M...

[merlinbk]

It sounds to me like the dealer is BS'n. Go to another dealer. M cars in the past have been priced at ED prices. 500-600 over ED price. My local dealers weren't willing to negotiate anything. Find someone that wants to make the sale and you'll get the right price.

[PyratOne]

you know, this brings up the old discussion "new 1M with no ED discount vs new m3 WITH ED discount". I know they are different cars, but price difference is not going to be much.

[Papethova]

Originally Posted by 02fireman

FYI. ED price is set by BMW. My MSRP on my 335 showed my "tourist" price that BMW put on the car. If you find the ED link on BMWUSA it will show you all prices M or not that the dealer sells the car for "ED". But as far as a discount from there, coming out of allocations, I don't see it happening.

Ive never seen ED pricing on the site.

I just checked again and in the ED section there is no pricing. Anyone have a link or know anything about this??

[SamS]

Originally Posted by PyratOne

you know, this brings up the old discussion "new 1M with no ED discount vs new m3 WITH ED discount". I know they are different cars, but price difference is not going to be much.

Using your scenario, there would still be a $10-15K difference. Too much, IMO.

Now, the 335iS, is actually quite comparable in price using your scenario.

[PyratOne]

Originally Posted by SamS

Using your scenario, there would still be a $10-15K difference. Too much, IMO.

Now, the 335iS, is actually quite comparable in price using your scenario.

I dunno if its that much of a difference.

Base M3 sedan invoice = $51,400. ED invoice = ~$48,000. $1,000-$1,500 over ED invoice is very fair. Making a M3 sedan ED at what? $49-50K? 1M US MSRP =$47,010.

Is my math wrong?

[sarafil]

Originally Posted by analogue

But not if their cost also goes down by 7%. I guess that is my real question. Shouldn't a dealer allocated ED car still get ED invoice pricing so the discount from MSRP makes a negligible effect on the overall profit margin for the dealer?

Instead of $47k MSRP with ~$43k invoice, they are working with ~$44k ED MSRP with ~$40k ED invoice. The dealer makes the same on either deal. I just get to go to Germany with 3-4k left in my pocket like any standard ED purchase.

Originally Posted by Redadair

Sorry it just doesn't work that way at all. BMW charges the dealer a LIST price for each car in the dealer's allocation, there are no other prices for the dealers cars other than List and MSRP, unless you can talk them down from MSRP.

There is no different ED List price that the dealer pays. The ED price is only for the customer and it is %7 off the BASE or MSRP price. Options aren't included in the discount either.

BMW still gives the dealer a similar margin between the invoice and MSRP whether the car is ED or US delivery. In that regard, the dealer still has approximately 8% margin in the car which gives them room to negotiate if they want to.

The difference is that dealers make additional income when they sell a car through US delivery which they do not get through ED sales. BMW pays dealers an "added value" payment which would be about $2,350 on a 1M if it is sold through US delivery, but they do not pay this payment on ED sales. This is essentially how they are able to offer lower pricing for ED.

The reason that the allocation system matters if that if the car does not come out of allocation, it is a "bonus" unit so the dealer doesn't really care that they are not getting the added value. But if they have to give up one of their allocations to fill your ED order, they will be giving up the added value payment that they would have otherwise gotten for that allocation so they will be less likely to offer you a discount since they are already forfeiting $2k+ to switch that allocation from US to ED.

[Papethova]

Originally Posted by Papethova

Ive never seen ED pricing on the site.

I just checked again and in the ED section there is no pricing. Anyone have a link or know anything about this??

Found it

http://www.bmwusa.com/Standard/Conte...erYourBMW.aspx

[sq86]

Originally Posted by Redadair

Sorry it just doesn't work that way at all. BMW charges the dealer a LIST price for each car in the dealer's allocation, there are no other prices for the dealers cars other than List and MSRP, unless you can talk them down from MSRP.

There is no different ED List price that the dealer pays. The ED price is only for the customer and it is %7 off the BASE or MSRP price. Options aren't included in the discount either.

If the dealer does not pay a different price for ED List as you say then why would they normally be willing to negotiate for a nonallocated car? They wouldn't. There they must pay a different price for ED cars which is reflected by an ED invoice and an ED MSRP. And yes I understand that these are considered "bonus" cars. This is just as sarafil said two post prior.

[SamS]

Originally Posted by PyratOne

I dunno if its that much of a difference.

Base M3 sedan invoice = $51,400. ED invoice = ~$48,000. $1,000-$1,500 over ED invoice is very fair. Making a M3 sedan ED at what? $49-50K? 1M US MSRP =$47,010.

Is my math wrong?

Your math is fine, but we should be comparing coupe-to-coupe, add Competition package to M3, add $875 destination (included in 1M MSRP of $47,010), add gas guzzler tax, etc.

[PyratOne]

Originally Posted by SamS

Your math is fine, but we should be comparing coupe-to-coupe, add Competition package to M3, add $875 destination (included in 1M MSRP of $47,010), add gas guzzler tax, etc.

OK.

US invoice coupe = $54,190. EDnvoice ~=$50,500. Comp package (no discount) + $2500. Profit over ED invoice= $1,000. I dont think there is a $875 destination charge on ED. Guzzer tax =? So, without guzzler tax Im at $54,000. Just shy of $7,000 more than 1M.

Not trying to argue or be a dick. Just saying that I dont think its $10-$15K. Look more like $7-8K. Picking up in Germany (I know there is cost associated with travel).

I want 1M as much as the next guy, just trying to be the best consumer I can =get most for the $$.

[Papethova]

Originally Posted by PyratOne

OK.

US invoice coupe = $54,190. EDnvoice ~=$50,500. Comp package (no discount) + $2500. Profit over ED invoice= $1,000. I dont think there is a $875 destination charge on ED. Guzzer tax =? So, without guzzler tax Im at $54,000. Just shy of $7,000 more than 1M.

Not trying to argue or be a dick. Just saying that I dont think its $10-$15K. Look more like $7-8K. Picking up in Germany (I know there is cost associated with travel).

I want 1M as much as the next guy, just trying to be the best consumer I can =get most for the $$.

You can discount options down to the US invoice price before adding the 1k, you can even find a deal at 500 over invoice saving another 500 there too.

[SamS]

Originally Posted by PyratOne

OK.

US invoice coupe = $54,190. EDnvoice ~=$50,500. Comp package (no discount) + $2500. Profit over ED invoice= $1,000. I dont think there is a $875 destination charge on ED. Guzzer tax =? So, without guzzler tax Im at $54,000. Just shy of $7,000 more than 1M.

Not trying to argue or be a dick. Just saying that I dont think its $10-$15K. Look more like $7-8K. Picking up in Germany (I know there is cost associated with travel).

I want 1M as much as the next guy, just trying to be the best consumer I can =get most for the $$.

• Yes, there is the $875 Delivery when you do ED. It has to get brought to a dealer in the US, and that charge covers it. No one has gotten out of it.
• Gas guzzler tax - $1300
• Add leather (standard on 1M) $ 950

So now you're at $10K more. As I said before, the 335is is more comparable in price (with discounts) to the 1M. That $10K step up to an M3 is not insignificant money, to me.

[Papethova]

Originally Posted by SamS

• Yes, there is the $875 Delivery when you do ED. It has to get brought to a dealer in the US, and that charge covers it. No one has gotten out of it.
• Gas guzzler tax - $1300
• Add leather (standard on 1M) $ 950

So now you're at $10K more. As I said before, the 335is is more comparable in price (with discounts) to the 1M. That $10K step up to an M3 is not insignificant money, to me.

I also thought I read somewhere ED is exempt form the $875

[GeniuneSorny]

M3 is too big to be a coupe. IF I were considering switching over from a 1M, it would be to an M3 sedan, and those numbers do make that sound like a pretty good deal...

Still, I think the 1M is the only bimmer for me...

I worked out a deal for $1k over ED invoice (in writing and signed by the GM) before putting down my deposit, knowing that a deal that good may mean I don't get the car if supply is tight. But that was my mindset going in... If I can get a great deal and fulfill my long-time ED dream, then great... If I don't end up getting one, then I keep my ~$50k.

I'm sure (like most of us are) this is going to be a great car, but unless you really don't care about the price, I'd say be patient. No use getting worked up about it when there's nothing you can do...

[PyratOne]

Originally Posted by SamS

• Yes, there is the $875 Delivery when you do ED. It has to get brought to a dealer in the US, and that charge covers it. No one has gotten out of it.
• Gas guzzler tax - $1300
• Add leather (standard on 1M) $ 950

So now you're at $10K more. As I said before, the 335is is more comparable in price (with discounts) to the 1M. That $10K step up to an M3 is not insignificant money, to me.

I agree $10K is a lot of $. But I'll still hold to being able to get an M3 $8K (discounted ED) over 1M. For one, I prefer sedan on the M3. Also, I do think there is wiggle room on ED profit over invoice (many folks are getting $500 over). And I think if someone were to sharpen a pencil, list out all options for both cars, and tally ... I hold my opinion that you get more car for the extra money with M3 - a better value right now.

[Red135]

Originally Posted by SamS

• Yes, there is the $875 Delivery when you do ED. It has to get brought to a dealer in the US, and that charge covers it. No one has gotten out of it.
• Gas guzzler tax - $1300
• Add leather (standard on 1M) $ 950

Don't forget $1500 for the Competition Pkg (2500 - 1,000 for the Dynamic Damper Control).

[SamS]

Originally Posted by Papethova

I also thought I read somewhere ED is exempt form the $875

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

Originally Posted by PyratOne

I agree $10K is a lot of $. But I'll still hold to being able to get an M3 $8K (discounted ED) over 1M. For one, I prefer sedan on the M3. Also, I do think there is wiggle room on ED profit over invoice (many folks are getting $500 over). And I think if someone were to sharpen a pencil, list out all options for both cars, and tally ... I hold my opinion that you get more car for the extra money with M3 - a better value right now.

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.

Originally Posted by Red135

Don't forget $1500 for the Competition Pkg (2500 - 1,000 for the Dynamic Damper Control).

Yes, we accounted for that a bit earlier.