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      01-11-2013, 02:51 PM   #1
Frencholivier
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ED, resale value, and lease vs. buy

OK, thanks to this great community I have narrowed down the list of options/features that I want on my F30. My next question is purely financial. I just want to make the best financial decision possible. Here are my thoughts so far. Any comments welcome!

1. get European Delivery price. I have to go to Europe every summer anyway, so why not enjoy a 7% discount?

2. get a deal as close to invoice as possible. I gather from previous discussions that deals at invoice or invoice +$500 shouldn't be too hard to get (==>even with ED??? is a $5,000 total off MSRP a rare thing?)

3. Max incentives (I only know of seasonal deals and the $750 loyalty discount) ==> Any hidden fees that are negotiable?

4. What I don't know is whether or not I should lease or buy. I want to keep the car long term (i.e. 7 years) to make my investment profitable... Would you recommend me leasing or buying? I'm kind of afraid of the maintenance after the end of the warranty period...


If that matters at all I'm thinking 328i Sport w/ Driver assistance, DHP, lighting pkg, ACC, Sport Auto and BMW Assist (yes I want the tech package but I sacrifice that for ACC)... My only regret is that ACC is not compatible with M-Sport line... so no lovely steering wheel for me.
Anyways, that config works out to $48k MSRP... what do you think a reasonable price target should be?

Again, great forum and great community guys... it really helps make wiser decisions!

Last edited by Frencholivier; 01-11-2013 at 02:58 PM.
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      01-11-2013, 03:03 PM   #2
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3. Review the ordering forum for details on incentives, and specifics on all the fees. Some fees are negotiable, some are not. Some may also be inflated by your dealership, and others vary state to state.

4. If you want to keep the car for 7 years then there's no reason for you to lease. You can purchase an extended warranty and/or maintenance package to extend your coverage beyond 50k.

Configure your car on bmwconfig.com to get the ED MSRP and Invoice price, then work from there with your dealer.
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      01-11-2013, 04:07 PM   #3
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For what it's worth I'm in the same boat as you in more ways than one. Will be doing ED on a 335i and as far as I can tell we're fellow countrymen as well. I will be buying the car since I want to keep it long term. I'm shooting for ED invoice + $500. You can get ED invoice through bmwconfig.com as said previously.
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      01-11-2013, 04:40 PM   #4
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Not to derail, but I'm curious as to how ED works. You mentioned a 7% discount. Sounds great, but are you responsible for getting the car to the US? I'd imagine that would be fairly pricey. Also, what about duties and taxes; are they factored in on top? It just seems like it's a more fun but more expensive route to go. Not really something one does to save money. Feel free to set me straight as I dont know much about it.
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      01-11-2013, 04:45 PM   #5
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Quote:
Originally Posted by tdizzle View Post
Not to derail, but I'm curious as to how ED works. You mentioned a 7% discount. Sounds great, but are you responsible for getting the car to the US? I'd imagine that would be fairly pricey. Also, what about duties and taxes; are they factored in on top? It just seems like it's a more fun but more expensive route to go. Not really something one does to save money. Feel free to set me straight as I dont know much about it.
You pay for the car and all applicable taxes as if you were buying from your local dealer (you do the paperwork with the dealer as well). You save money on the car but you will need to spend money to go to Europe. Ideally, this works out if you were going to go to Europe for fun anyway. A good ED price is ED invoice + 500-1000 dollars. Some dealers will not know what they are talking about and refuse to budge off ED MSRP.

Some incentives do not apply to ED pricing, so YMMV may vary. the "other" BMW forum has a very comprehensive ED forum so I would suggest taking a look!

To the OP: I've heard that over 3-4 years, you should buy. No point in leasing to buy as that is the least cost effective method.
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      01-11-2013, 04:54 PM   #6
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Quote:
Originally Posted by zeezz View Post
You pay for the car and all applicable taxes as if you were buying from your local dealer (you do the paperwork with the dealer as well). You save money on the car but you will need to spend money to go to Europe. Ideally, this works out if you were going to go to Europe for fun anyway. A good ED price is ED invoice + 500-1000 dollars. Some dealers will not know what they are talking about and refuse to budge off ED MSRP.

Some incentives do not apply to ED pricing, so YMMV may vary. the "other" BMW forum has a very comprehensive ED forum so I would suggest taking a look!

To the OP: I've heard that over 3-4 years, you should buy. No point in leasing to buy as that is the least cost effective method.
Thanks.

On topic: Good rule of thumb is buy if you want to keep it at least 4 years (ideally 5 or more). Less than that, you're probably better off leasing.

Off topic: What about the cost of delivery to the states? Who covers that or is included in the ED? If it is covered and you give that large of a discount, it seems like a no brainer, just too good to be true.
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      01-11-2013, 04:59 PM   #7
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All of the ED details can be found on BMW's website.

BMW transports the car just as they would if it was new. You just drop it off with the boat when you're done.

The difference is, you start paying for the car when you pick it up. BMW will cover the payment while it's in transit (at least on a lease, not on a purchase I don't believe) but that means you'll pick the car up, drive it around Europe, then have to wait while it is being shipped.

The downside of course is that you'll drive the car, be completely in love, and then have to live without it for a week.

Also the other obvious point is while you'll save some money over the standard MSRP (It's not 7% across the board, visit BMW.com or bmwconfig to see the ED difference for each model). You'll spend most of that money or more on the airfare, lodging and travel expenses for you (and possibly a friend or significant other). But it's a once in a lifetime gig so it's definitely worth it if you can swing it.

Also don't forget that most of Europe can have nasty winters, so it only really makes sense to do it when the weather is still nice. No one wants to get their new car only to be stuck in a German blizzard.
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      01-11-2013, 06:15 PM   #8
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Quote:
Originally Posted by Frencholivier View Post
OK, thanks to this great community I have narrowed down the list of options/features that I want on my F30. My next question is purely financial. I just want to make the best financial decision possible. Here are my thoughts so far. Any comments welcome!

1. get European Delivery price. I have to go to Europe every summer anyway, so why not enjoy a 7% discount?

2. get a deal as close to invoice as possible. I gather from previous discussions that deals at invoice or invoice +$500 shouldn't be too hard to get (==>even with ED??? is a $5,000 total off MSRP a rare thing?)

3. Max incentives (I only know of seasonal deals and the $750 loyalty discount) ==> Any hidden fees that are negotiable?

4. What I don't know is whether or not I should lease or buy. I want to keep the car long term (i.e. 7 years) to make my investment profitable... Would you recommend me leasing or buying? I'm kind of afraid of the maintenance after the end of the warranty period...


If that matters at all I'm thinking 328i Sport w/ Driver assistance, DHP, lighting pkg, ACC, Sport Auto and BMW Assist (yes I want the tech package but I sacrifice that for ACC)... My only regret is that ACC is not compatible with M-Sport line... so no lovely steering wheel for me.
Anyways, that config works out to $48k MSRP... what do you think a reasonable price target should be?

Again, great forum and great community guys... it really helps make wiser decisions!
ED is fantastic, just beyond words. There are two problems, one financial and the other emotional.

The financial issue is that the BMW has TWO price lists for cars. US delivery and ED delivery. That means MSRPs and invoice prices differ. Most dealers want to sell at ED MSRP because you "already got the discount."

This is bull. Negotiate up from ED invoice just as you would for a US delivery.

The emotional issue is the waiting. Waiting for the car to be built is hard. But nothing is harder than waiting for the car to be re-delivered. It truly blows.
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      01-11-2013, 07:18 PM   #9
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As has been mentioned, if you're really going in for 7 years then leasing will be throwing money away. Even if you lease with the intention of buying it out you'll dump a couple thousand more into it than if you had bought it initially. This is especially true in states that levy a tax premium on leases (like PA) which bumps from the normal 6% sales tax to 9%. If you're the type that is horribly fearful of post-warranty repairs, then you should either purchase a dealer sponsored extended warranty or just stick to leasing.

Regarding ED, I just did this on the 335i that I'm leasing. The upside is that you have a nice low cap cost which has a positive effect on your monthly. The downside is that there's a 3 point adder on the money factor which can bring it back up a tad. BUT, that adder technically is to offset the fact that BMW picks up your second payment since your car will likely still be in transit.

You negotiate your ED deal just as you would a local purchase. One item of note, the ED invoice only applies to the BASE model price. The options are not discounted.

If you're already traveling to Europe, then there's a far greater benefit to be had than for individuals that are going specifically to get the car. In my most recent case, the savings essentially covered airfare for the family. I reasoned that it was worth it to get a nice vacation in Europe for just the cost of lodging and meals. Plus it's an absolutely awesome experience as Yobyot indicated. The waiting does suck, but it just extends the Joy.
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