[Sp82]

Planning on a trip to Greece in March..and was also looking at ordering a 4 series soon...thought just came across my mind this morning. I could wait to order this in Feb or so, and maybe do a quick stop in Munich for a Euro delivery before continuing on my vacation, IF it makes sense on the $$ savings I'd have on a Euro delivery...I'm assuming this would help overall on payments etc?


can anyone provide any insight on if this would be a good idea or not?

thanks

[Explorer3253]

Originally Posted by vikz

Planning on a trip to Greece in March..and was also looking at ordering a 4 series soon...thought just came across my mind this morning. I could wait to order this in Feb or so, and maybe do a quick stop in Munich for a Euro delivery before continuing on my vacation, IF it makes sense on the $$ savings I'd have on a Euro delivery...I'm assuming this would help overall on payments etc?


can anyone provide any insight on if this would be a good idea or not?

thanks

You could save quite a bit and if you're already heading out there, why not. Talk to David of Steve Thomas BMW...it will probably work out to your adv

[Sp82]

on it now. thanks for the info.

[bavarianboar]

Originally Posted by Explorer3253

You could save quite a bit and if you're already heading out there, why not. Talk to David of Steve Thomas BMW...it will probably work out to your adv

+1 for David. Let us know what you order OP.

Also a couple of things to keep in mind, what i recently heard, the ED invoice is lower but the MF is higher, so I really don't know much the lease will work out differently, I have not done the math. Perhaps you can explore both options!

[E92Carrera]

Originally Posted by bavarianboar

+1 for David. Let us know what you order OP.

Also a couple of things to keep in mind, what i recently heard, the ED invoice is lower but the MF is higher, so I really don't know much the lease will work out differently, I have not done the math. Perhaps you can explore both options!

The MF adder is used to cover the 2nd payment while the car is in transport. So money wise the diff should be about 1 payment worth.

[Deleted853]

Originally Posted by vikz

Planning on a trip to Greece in March..and was also looking at ordering a 4 series soon...thought just came across my mind this morning. I could wait to order this in Feb or so, and maybe do a quick stop in Munich for a Euro delivery before continuing on my vacation, IF it makes sense on the $$ savings I'd have on a Euro delivery...I'm assuming this would help overall on payments etc?


can anyone provide any insight on if this would be a good idea or not?

thanks

That's what I did with my trip to Rome and Paris, just added an ED on at the end. Saved me money, and gets me to Oktoberfest.

[///jbeck]

Originally Posted by E92Carrera

The MF adder is used to cover the 2nd payment while the car is in transport. So money wise the diff should be about 1 payment worth.

Correct, you basically get all the benifit on a lease that you would in a purchase.

[mntbiker]

Originally Posted by ///jbeck

Correct, you basically get all the benifit on a lease that you would in a purchase.

EDIT: The example below is wrong! Read the next few posts to see why....

Well, the savings aren't as beneficial for the lease due to the residual, right? For example, if ED saves you 7% on the cost of the car (we'll say, $4000).. you don't actually save $4k. You only save the residualized version of that.

Assuming 62% RV:

$4000 savings on MSRP
(1-.62)*$4000 = $1520 (Actual savings)

So, I think in most cases it's harder to justify ED purely as a money saving adventure when leasing because you aren't actually paying for 100% of the car. It would be pretty hard to go to Europe for less than $1520. However, it's still a partially subsidized trip to Europe.

[Deleted853]

Originally Posted by mntbiker

Well, the savings aren't as beneficial for the lease due to the residual, right? For example, if ED saves you 7% on the cost of the car (we'll say, $4000).. you don't actually save $4k. You only save the residualized version of that.

Assuming 62% RV:

$4000 savings on MSRP
(1-.62)*$4000 = $1520 (Actual savings)

So, I think in most cases it's harder to justify ED purely as a money saving adventure when leasing because you aren't actually paying for 100% of the car. It would be pretty hard to go to Europe for less than $1520. However, it's still a partially subsidized trip to Europe.

in a lease for ED, they do an RV based on the US MSRP, then, they work your purchase price from the ED Price.

So, for example...

A base 435i

MSRP 46,000
ED price 42,830

RV = (62%) 28,520
MF= (with 7 MSDS) .00106
Deposit = 5250

Monthly = $514

if you just did the MSRP was the price of the car, then your monthly payment would be (if everything else stayed the same) $ 614.

So, the ED savings are there... Also, most people are doing an ED at European Invoice plus $750. So, if you're saving nearly 13% of the car, and the MSRP is what they use to figure residual, then, your savings are real and palpable. Hell, if someone told me I could save $100 a month all because I took a European Vacation that i already wanted to, well, I would do that alone...

Hell, from my example alone, over 3 years you've saved 3600 in lease payments. Maybe you should take a second look at the program and talk to people who do Invoice+(no haggle) pricing on the program. They do this because for the most part, ED vehicles don't come out of their dealer allocation. Therefore, they are just making a quick easy simple flat fee for doing paperwork for you. Lots of people are savings lots of money doing ED.

[mntbiker]

Originally Posted by Mwm1166

in a lease for ED, they do an RV based on the US MSRP, then, they work your purchase price from the ED Price.

Ohh, I didn't know this. So basically your ~7% savings (or $4000 in my example) is the ACTUAL amount of money you save on the sale price of the car. I'd be like getting a $4k incentive from BMW. That's quite significant, then.

Thank you for clarifying.

[E92Carrera]

Originally Posted by mntbiker

Ohh, I didn't know this. So basically your ~7% savings (or $4000 in my example) is the ACTUAL amount of money you save on the sale price of the car. I'd be like getting a $4k incentive from BMW. That's quite significant, then.

Thank you for clarifying.

I would say that if people are researching ED just for the pure savings aspect, don't even go any further. I've seen some people mention going to europe to do ED and then right away drop the car off and fly back home. It's about the experience.

[bavarianboar]

Originally Posted by Mwm1166

in a lease for ED, they do an RV based on the US MSRP, then, they work your purchase price from the ED Price.

So, for example...

A base 435i

MSRP 46,000
ED price 42,830

RV = (62%) 28,520
MF= (with 7 MSDS) .00106
Deposit = 5250

Monthly = $514

if you just did the MSRP was the price of the car, then your monthly payment would be (if everything else stayed the same) $ 614.

So, the ED savings are there... Also, most people are doing an ED at European Invoice plus $750. So, if you're saving nearly 13% of the car, and the MSRP is what they use to figure residual, then, your savings are real and palpable. Hell, if someone told me I could save $100 a month all because I took a European Vacation that i already wanted to, well, I would do that alone...

Hell, from my example alone, over 3 years you've saved 3600 in lease payments. Maybe you should take a second look at the program and talk to people who do Invoice+(no haggle) pricing on the program. They do this because for the most part, ED vehicles don't come out of their dealer allocation. Therefore, they are just making a quick easy simple flat fee for doing paperwork for you. Lots of people are savings lots of money doing ED.

Example FAIL.

Are you aware of US Invoice pricing? ~7% below MSRP, that is where the selling price for a US delivery will nearly settle.

Who buys at MSRP?

You are basically saying, do ED or you pay roughly $100 a month more, makes no sense. Sorry! I am leasing in the US, no ED, MSRP is ~$53K, no MSDs and my payments are just over $600 with taxes, 60% RV.

Also remember, some savings like Ultimate Drive Credit 'cannot' be used with ED. So please go figure what your specific case is instead of giving mis-leasing examples.

In all good spirits, please clarify your posting if you may feel like there is something else missed out totally by me.

All said and done ED is for a great experience and offers some savings (based on how much you spend), and can be considered as an icing on the cake. Some people do it just to drive in their new car in Europe and on the Autobahn, good deal IMHO.

[mntbiker]

Originally Posted by bavarianboar

Example FAIL.

Are you aware of US Invoice pricing? ~7% below MSRP, that is where the selling price for a US delivery will nearly settle.

Who buys at MSRP?

You are basically saying, do ED or you pay roughly $100 a month more, makes no sense. Sorry! I am leasing in the US, no ED, MSRP is ~$53K, no MSDs and my payments are just over $600 with taxes, 60% RV.

Also remember, some savings like Ultimate Drive Credit 'cannot' be used with ED. So please go figure what your specific case is instead of giving mis-leasing examples.

In all good spirits, please clarify your posting if you may feel like there is something else missed out totally by me.

All said and done ED is for a great experience and offers some savings (based on how much you spend), and can be considered as an icing on the cake. Some people do it just to drive in their new car in Europe and on the Autobahn, good deal IMHO.

US invoice is roughly 7% less than US MSRP and ED Invoice is ~ 7% discount off of US Invoice. So ED Invoice is roughly 14% less than US MSRP. (I verified this w/ a 2013 F30 on BMWConfig.com)

I think the key point he was trying to make is valid. Regardless of whether or not you are going to do ED, the residual is based off of the US MSRP. So, if you choose to do ED, you save an additional 7% off the sale price of the car. This reduces the amount you will pay & finance over 3 years by 7% of the MSRP. For a $50k car, this is $3500 + interest which is roughly $100/mo on a 36 month lease.

[bavarianboar]

Originally Posted by mntbiker

Well, the savings aren't as beneficial for the lease due to the residual, right? For example, if ED saves you 7% on the cost of the car (we'll say, $4000).. you don't actually save $4k. You only save the residualized version of that.

Assuming 62% RV:

$4000 savings on MSRP
(1-.62)*$4000 = $1520 (Actual savings)

So, I think in most cases it's harder to justify ED purely as a money saving adventure when leasing because you aren't actually paying for 100% of the car. It would be pretty hard to go to Europe for less than $1520. However, it's still a partially subsidized trip to Europe.

Originally Posted by mntbiker

US invoice is roughly 7% less than US MSRP and ED Invoice is ~ 7% discount off of US Invoice. So ED Invoice is roughly 14% less than US MSRP. (I verified this w/ a 2013 F30 on BMWConfig.com)

I think the key point he was trying to make is valid. Regardless of whether or not you are going to do ED, the residual is based off of the US MSRP. So, if you choose to do ED, you save an additional 7% off the sale price of the car. This reduces the amount you will pay & finance over 3 years by 7% of the MSRP. For a $50k car, this is $3500 + interest which is roughly $100/mo on a 36 month lease.

Gotcha!

I am just totally lost now with your previous assessment and the new one. I guess the second one makes more sense in the new light of numbers and ED info.

It looks like these posts have been quite educational for us, including me!

Sorry for being annoying to you: Mwm1166

[ghostchili]

I am thinking about ED as I will be in Germany for a month coming up. I've negotiated $500 over invoice for the build 2014 335 I want. Another dealer is looking into the ED for me. How do you negotiate the best price when your doing ED?

[lax555]

Originally Posted by ghostchili

I am thinking about ED as I will be in Germany for a month coming up. I've negotiated $500 over invoice for the build 2014 335 I want. Another dealer is looking into the ED for me. How do you negotiate the best price when your doing ED?

You won't do much better than $500 over ED invoice. Just make sure you are getting base money factor + the european delivery adder. Make multiple security deposits and go for it!

[Explorer3253]

When negotiating for an ED, are you guys finding that dealerships are marking up the acquisition fee from 725 to 925?

[Deleted853]

Exactly!

[Deleted853]

Originally Posted by Explorer3253

When negotiating for an ED, are you guys finding that dealerships are marking up the acquisition fee from 725 to 925?

There should be no acquisition fee on an ED. Most people are doing there ED deals as flat invoice+500/1000 + taxes, title, state fees, and BMWFS fees....

I'm still not sure if Im leasing mine or paying cash. However, if I pay cash, for example, I would expect to have only paid Invoice+ and taxes, DMV fees. The dealer doesn't acquire dink in an ED transaction. They are merely middle men. So don't let them take u for a ride. An ED costs them nothing but time to do paperwork. Don't let these people run over you. If you need a dealer who does straight invoice + 750 on 3 series BMW deals and can have the car delivered to your local dealer or PCD after its shipped, PM me and Ill give you a name.

[Explorer3253]

Originally Posted by Mwm1166

There should be no acquisition fee on an ED. Most people are doing there ED deals as flat invoice+500/1000 + taxes, title, state fees, and BMWFS fees....

I'm still not sure if Im leasing mine or paying cash. However, if I pay cash, for example, I would expect to have only paid Invoice+ and taxes, DMV fees. The dealer doesn't acquire dink in an ED transaction. They are merely middle men. So don't let them take u for a ride. An ED costs them nothing but time to do paperwork. Don't let these people run over you. If you need a dealer who does straight invoice + 750 on 3 series BMW deals and can have the car delivered to your local dealer or PCD after its shipped, PM me and Ill give you a name.

Thanks for your help! Just to be clear, I believe acquisition fees are also referred to as bank fees. I think they add them to anything BMW fs touches.

[Sp82]

tried emailing Daivd at Steve Thomas--3 days ago, havent heard back yet--anyone else you guys know of thats good to deal with on these boards?.. I've tried my local dealers as well and waiting on response.

[Deleted853]

Originally Posted by bavarianboar

Gotcha!

I am just totally lost now with your previous assessment and the new one. I guess the second one makes more sense in the new light of numbers and ED info.

It looks like these posts have been quite educational for us, including me!

Sorry for being annoying to you: Mwm1166

No harm no foul. I was typing fast and didn't give the clearest example ever, and this is all very confusing unless you're a numbers fiend. Anyway, glad you see the price advantage. However, like everyone said, the real advantage is getting a vacation and a car and the chance to stretch her legs on the autobahn!