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European Delivery Experiences, Advice and Info
CarMan@Edmunds
Member Posts: 38,514
In the past, I have seen several posts in the
Smart Shopper's Conference requesting information
on purchasing cars with European Delivery.
European Delivery is a neat way to purchase a car
if you have the time and are planning to visit
Europe. It will save you money on your purchase
and you will have a vehicle to drive around when
you are on vacation. Recently I came across an
interesting article in the New York Times that
details current Euro Delivery plans offered by
several manufacturers. Here are some of the offers
that are currently available:
Last year BMW sold 1,256 cars through Euro
Delivery. This is by far the most popular program
among the manufacturers that offer this option.
Customer savings on vehicles ranged from $2,160 on
a 318ti to $10,835 for a 720iL. The program
includes 30 days insurance and temporary
registration.
Last year Mercedes-Benz sold 906 cars through
European Delivery. To give you some idea of the
savings provided through this program, customers
saved $1,500 on a C230. As a perk, Mercedes throws
in 2 nights in a hotel, 2 weeks insurance and
registration, and a free factory tour.
Porsche does not offer any savings for purchasing
a vehicle through Euro Delivery. In fact, they
charge customers a $2,250 fee for the program.
Porsche throws in a factory tour, 2 weeks
insurance, and 30 day registration.
Last year Volvo sold 930 cars through Euro
Delivery. The savings varies widely in Volvo's
program, from $0 on a C70 Coupe to $4,000 for a V70
R 4WD. As an added bonus, Volvo throws in one
round-trip coach airline ticket, and one night in a
hotel.
Last year Saab sold 129 cars through European
Delivery. Savings ranges from $1,825 on a 9-3
three door to $2,625 on a 9-3 Convertible. Through
May 31st, Saab is offering two round-trip coach
airline tickets, airport pickup, one night in a
hotel, dinner, and shuttle to the vehicle delivery
center at no extra charge.
Last year Jaguar only sold 4 units through
European Delivery! Obviously this is not a very
popular program. Savings through this program
average 2.5% of the car's retail price. However,
these savings are offset by customer fees for
marine freight, insurance, and customs duties.
Jaguar offers a free factory tour to European
Delivery customers.
Smart Shopper's Conference requesting information
on purchasing cars with European Delivery.
European Delivery is a neat way to purchase a car
if you have the time and are planning to visit
Europe. It will save you money on your purchase
and you will have a vehicle to drive around when
you are on vacation. Recently I came across an
interesting article in the New York Times that
details current Euro Delivery plans offered by
several manufacturers. Here are some of the offers
that are currently available:
Last year BMW sold 1,256 cars through Euro
Delivery. This is by far the most popular program
among the manufacturers that offer this option.
Customer savings on vehicles ranged from $2,160 on
a 318ti to $10,835 for a 720iL. The program
includes 30 days insurance and temporary
registration.
Last year Mercedes-Benz sold 906 cars through
European Delivery. To give you some idea of the
savings provided through this program, customers
saved $1,500 on a C230. As a perk, Mercedes throws
in 2 nights in a hotel, 2 weeks insurance and
registration, and a free factory tour.
Porsche does not offer any savings for purchasing
a vehicle through Euro Delivery. In fact, they
charge customers a $2,250 fee for the program.
Porsche throws in a factory tour, 2 weeks
insurance, and 30 day registration.
Last year Volvo sold 930 cars through Euro
Delivery. The savings varies widely in Volvo's
program, from $0 on a C70 Coupe to $4,000 for a V70
R 4WD. As an added bonus, Volvo throws in one
round-trip coach airline ticket, and one night in a
hotel.
Last year Saab sold 129 cars through European
Delivery. Savings ranges from $1,825 on a 9-3
three door to $2,625 on a 9-3 Convertible. Through
May 31st, Saab is offering two round-trip coach
airline tickets, airport pickup, one night in a
hotel, dinner, and shuttle to the vehicle delivery
center at no extra charge.
Last year Jaguar only sold 4 units through
European Delivery! Obviously this is not a very
popular program. Savings through this program
average 2.5% of the car's retail price. However,
these savings are offset by customer fees for
marine freight, insurance, and customs duties.
Jaguar offers a free factory tour to European
Delivery customers.
0
This discussion has been closed.
Comments
I was surprised about cheapskate Porsche, though. Money must still be tight with them.
jrthomas posted the following in Station Wagons and I knew there would be a more appropriate topic here in Smart Shopper for him!
KarenS/Station Wagons Host
#0 of 0: (jrthomas) Tue 09 Jun '98 (11:57 AM)
Does anyone have experience with overseas delivery of European automobiles ?
I'm interested in picking up a Volvo AWD in Europe. The Volvo brochure says that it must be arranged through a dealer, and gives the prices, which are actually lower than Dealer Invoice in the U.S.
My question is this: can one bargain with the dealer on the European Delivery price, or is that not negotiable ?
on BMW Euro deliveries; certain agressive
places advertise prices in a club magazine,
the Roundel.
I have a question about Euro deliveries; can
you arrange it with any dealer in the U.S.,
regardless of location? Does it matter if
you arrange the E.D. with a dealer across
the country from where you want the car
ultimately shipped?
And when the car *is* finally shipped to the
U.S., who does it go to? Local dealer?
(Always looking for a way to cut those Bay
Area BMW dealers out of my business...)
I'm curious about the break-in period on such a car. Does the factory do it for you? I can't imagine being able to resist temptation to go fast on the Autobahn (part of the appeal of the program, no?). I had a hard enough time restraining myself to under 65 while breaking in my car.
One doesn't much have to "break in" modern cars anymore, just exercise some common sense for a few hundred miles...I'd keep it out of the extreme RPM ranges (redline) and I'd vary speeds considerably. But if you're turning 4000 rpm and that translates into 100 mph, that's okay by me...I'd just vary the RPMs a lot for a few days, and give the engine different loads and heat ranges.
As for the European delivery questions, I'd ask the Roundel advertisers what they are up to--some of them may have special deals with the factory, I don't know, or come up with their own imaginative promotion deals. My impression has always been that the deals on European delivery were pretty tight...but maybe someone has a different read on that?
Mercedes-Benz of North America, Inc. announced a milestone in its new interactive retail initiative: European Delivery on the World Wide Web. Customers visiting MBNA's corporate Web site, www.MBUSA.com , can obtain information about the European Delivery Program (EDP) Online, configure a 1999 Mercedes-Benz model, explore and plan a trip abroad, and even place an order online.
"Our European Delivery Program is extremely popular. Since it started in 1964, more than 100,000 vehicles have been sold. We put European Delivery online to take it to the next step: virtual one-stop shopping for those who want to combine a European vacation with the purchase of a new Mercedes," said Joe Eberhardt, vice president of marketing for MBNA.
EDP Online allows customers and prospects to get information about the program, put together different color and option combinations on any Mercedes model using one of the most advanced vehicle configurators on the Web, place an order for pick-up at the Mercedes-Benz factory in Sindelfingen, Germany, and then retrieve the vehicle at their designated local U.S. Mercedes-Benz dealer in the United States.
When arranging to purchase a Mercedes-Benz through European Delivery Online, users can also plan for travel abroad. EDP includes taxi vouchers; two nights for two at a choice of selected first-class hotels; a tour and a meal at the factory; 15 days' of fall European car insurance coverage with no deductible; U.S. Customs duty and home shipment of the vehicle....
Your Co-Host
http://www3.vw.com/index7.htm
Has any one been through this?
Was it worth the time and effort?
Did you save any money or did you just get a paid vacation out of the deal?
I know Mercedes offers 2 nights hotel and a few other goodies but you still have to pay air fare and who wants to go all the way to Germany and only spend 2 nights. Seems like you need a week or 2.
I also noticed one of the posts mentioning that the buyer pays a "tariff". Does anyone know if this is true and how much it runs? The info on the BMW web site does not mention any additional costs.
Just curious....
I will update when I findout.
rp
Thanks
I'm going to transfer back to Italy in six months, and since VW and Audis are way cheaper here, I was thinking about buying one through Euro delivery and then keeping it there...
Does anybody has a clue about this option?
The Intercontinental in Stuttgart is a great hotel. Stayed there before I picked up my MB C-230 K last Sept.. The second night stayed at Buhl, also a great hotel. The factory delivery program is flawless, I highly recommend it, and no I don't work for MB. Dranoel
Thanks for the input. We thought about picking up the car the same day and driving into the country, but Stuttgart is meant to be a nice city. Plus, the factory tours in the AM are more intimate, they're for customers only.
You'll get a laugh when the factory people tell you to keep your car under 160 KPH (100 MPH) for the first 1000 miles. Can you imagine a US manufacturer or dealer telling you that ? We were in Europe for 6 weeks and had the opportunity to put on over 3300 miles on the C-230 K, and yes, we did run it on the Autobahn at well over 100 MPH and it ran extremely well.. If you travel under 90 MPH, you better be in the extreme left lane or you will be blown away.
Dranoel
Oops ! On post 26 change extreme left lane to right lane on the 3rd line from the bottom--Sorry.
dranoel
I tried to find dealer cost last year when I took delivery of a MB 230 K at the factory.------no luck--prior to that I tried to get the BMW numbers--no luck either. I believe the dealers get small commision from the factory. I've never heard of anyone negotiating a lower price than the stated price for factory deliveries.
But it never hurts to try--good luck
Thanks for the information! As it turns out, my BMW salesman has offered a $1,000 discount on the European Delivery price. I don't think I can complain.
Congratulations ! I had to pay full list for my MB last summer.
You tried--and you won--maybe this is a coming trend--------dranoel
According to the San Jose Mercury News, I was wrong in post 23, VW/Audi does have a European delivery program (Jaguar, too). But I wouldn't call that a reliable source, check with a dealer.
dranoel.
Thanks for the advice on driving the Autobahn. I've driven it before and know that when some guy in an S500 comes roaring by you at 160 mph you feel like cowering under the dash board.
Dkatlanta,
Do you know if you are actually buying the car from BMW Germany or from your dealer. Just curious how your dealer can offer a discount. MB dealers can't discount because you are buying the car from MB in Germany and the dealer is getting a commission.
Oh, if this is confusing, I used to be Omar2 before I was killed off by the myterious Edumunds log in system.
I haven't seen much paperwork yet, so I'm not certain how the formal transaction differs from a typical sale. The salesman mentioned that the "certificate of origin" will be in my name when the vehicle enters the US. My guess is that I'm dealing directly with BMW, but that the dealership's commission is large enough to permit the "discount."
4 out of 5 said that for 99 there is NO import duty of 2.7% that has to be paid separately - it is included in the ED MSRP price on the BMW web site. They said that this price includes everything except state sales tax, license, and title fees. So it includes the car, ED insurance, shipping the car back, and duties. One dealer (who seemed the least competent on the phone) said they still charge the 2.7% at time of delivery back here in the states.
Two said they "can't discount from the ED MSRP." They said they are "just go-betweens between BMW corp and have no ability to change the price." Three others said they could negotiate a lower price, but all said that their margins between invoice and MSRP are much lower with ED - one mentioned that on a 740i which has a $7400 margin on their lot, they only have a $4500 margin with ED. So all three hinted that they would do maybe $500-$750 off ED MSRP, but a couple closed with the typical "we want to earn your business" line.
On trade-ins, they all were consistent in that they wanted any trade-in at the time that the deal "closed" which has to be at least 30-days before the delivery date in Munich. As to the ticklish problem of how to agree on a trade-in price now and then trade-in a month or two later, they all hedged. They all said they needed to have some flexibility to "revise their trade-in price" due to depreciation and "unanticipated market changes" but seemed to all say they wanted to avoid any reductions in trade-in value except for unusual circumstances. They all agreed that they would refund the deposit on an ordered car if we couldn't come to agreement on a revised trade-in value.
All agreed that the sales tax would be charged on the difference between the new car price and the trade-in value. This is a big deal in WA state as our sales tax is nearly 8.7%.
I'll hit three of the five dealers this next week and see what they'll do in person. If anybody has any tips or ideas, please drop me a line.
- Mark
Until recently, import duty wasn't included in BMW's ED prices, but it is now, hence the confusion at one of the dealerships.
The only way to get the best possible discount is to force the dealerships to price compete. That means telling each dealership about the best deal you've been offered from any other dealership and giving each a chance to do better. It will take several rounds of doing this until you know for sure everyone's lowest price. If you're willing to take the time to create this kind of competition, you should end up learning the lowest price that each is willing to sell the car at; in order words the price at which each says, "If I accept any less profit on this transaction, it's not worth going through with the transaction at all."
This being said, dealership "experience" is an important factor in any car purchase, particularly in a European Delivery transaction (which is drawn out over time) and you might decide it's worth paying a bit more in order to work with a sales rep who has been extra generous with his or her time, particularly honest with you, or just especially nice. If you find a sales rep like this, find out the best price among all the local dealerships and then give him or her a chance to match it.
Trading in your car is nothing more than selling it to the dealership for its wholesale price. You shouldn't expect anyone to commit in advance to buying a used car at a fixed price. Sounds like they're just trying to find polite ways to say this to you. Remember, something like 2 months may pass between the time you have to pay for your 323 and the time it arrives in the US; you may need you existing car until then. Perhaps you would want to keep your existing car until the new one arrives, and then sell it yourself. If you can sell it for more than 8.7% above wholesale (which is the most you can expect from a dealership), you'll be ahead of the game.
Thanks for your comments.
In looking at the numbers further, I agree with you about not trading in and selling my car privately. If I trade, I am pinned down to local dealers (none of which have been particularly helpful or sound interested in my car), have the problem of re-appraisal problem from the time I order until the deal closes, and I'm out of a car for at least 30-days before I pick it up the new car in Europe and six-or-so weeks when I get back. With just a cash deal, I keep it the new car deal dead simple and can work with any dealer within a day's driving distance. I also can sell my old car whenever I want.
I wonder if the squeeze on new car margins has made trade-ins the primary profit center for dealers, thus the need for very high margins in this area of their business.
- Mark
if anyone has any experience with this and is familiar with the ins and outs, pls post a message.
thanks,
jag98
Your Host
Thanks for the input. It sounds like more of a headache than its worth. The next best alternative sounds like the Eurpean delivery. I'll look into that. Thanks again.
I am doing the Volvo Overseas Delivery program on a '99 V70AWD in August. The order has gone in; full payment due 30 days before pickup in Gothenburg. Now that I'm committed, my view of the pros and cons:
PROS:
You can get exactly the car you want built just for you -- no compromises.
Fair non-negotiable price, below US dealer invoice, posted on the Web. (At least I believe it to be non-negotiable. None of the three Puget Sound area dealers I contacted would budge.)
Many factory options (wood steering wheel, roof rails, etc.) cost 50% or less of dealer list.
One free air ticket to Europe plus one nights' hotel. Ticket can be open-jaw, e.g. fly into Gothenburg, home from someplace else. You cannot name your own airline or routing though.
Volvo ships the car home free. It goes right to your dealer.
You don't have to pay state tax and license until you claim the car back in the States.
CONS
Long lead time between order and pickup, 12 weeks at least. Anticipation killing me.
If you pick up or drop off the car anyplace but Gothenburg, the associated fees can start to wipe out your cost savings. (Drop fees alone range from $200 to almost $1000. London is $285.)
Full payment is gone from your wallet and into Volvo's 30 days before you see your car. I don't know what your fallback is if something turns out to be not right. They hold onto your marbles.
After you come home, at least six weeks' wait before your car catches up with you. If you traded your old car, what'll you drive in the meantime? If you don't trade, you face a wee cash flow challenge.
European insurance is extra, minimum $465 for 30 days.
You have to apply for your own Swedish export license. Volvo sends you the forms, but you have to initiate this.
Not all Volvo dealers have a clue about this program, understand the details, or are that enthusiastic about supporting it.
BOTTOM LINE:
We're getting a pretty loaded V70AWD equipped as we want it for $35,800. Well below invoice, but we're probably barely $1,000 ahead of a hard-driven dealer bargain for the same car. The free Europe air ticket makes it $2,000. Figure the cost of European insurance roughly equals what we'd spend on a Hertz car over there for two weeks, so that's a wash.
As we were planning a family trip to England anyway this summer, it's worth it. If we hadn't been, I'm not sure it would be.
I'll be sure to post an account of the delivery experience and relate any hassles or good things.
Tom
Thanks for sharing that story. I am about to do the SAME thing with a Mercedes. I am planning on buying a C230 Kompressor via the European
Delivery Program, picking the car up in October. If I were to buy a 1999 model for domestic delivery, the Invoice price is $27,140 and the MSRP is $31,200. The European Delivery price is being advertised at $29,650, which is just about 5% below the Domestic MSRP price. Mercedes doesn't include the flight cost like Volvo does. From my quick look at the Volvo European Delivery site, it looks like they're willing to offer steeper discounts than Mercedes.
I have gotten a little budge from this price ($500); however, what I would like to know, for a
bargaining tool, is what the dealer's cost of the European Delivery is.
It is my assumption that the dealer's cost is lower with the European Delivery. The dealer is possibly "shopping" the 5% reduction as a
benefit of purchasing in Europe, where in reality, they are simply paying less for the car, and realize that the buyer doesn't know their
true cost.
(For anyone) Any idea what the dealer cost is with the European Delivery program? Any idea how I might be able to find out? I think it could save me a few $$$ and give me a much better bargaining position.
Thank you,
Daniels856
Under the Volvo model there's no "dealer cost" for Euro delivery, because the dealer never buys the car from Volvo; you do. The dealer acts as your agent initially, submits the order and collects your check, but otherwise I've been dealing with a guy on an 800- line at Volvo US HQ in New Jersey. Volvo US, not my dealer, sent my confirmation invoice, arranged my air ticket, sent the Swedish customs packet, etc.
With Volvo the car never passes through a dealers' hands until you go there to get it back once it arrives in the States. (And that's a new innovation for Volvo. Before this year you apparently had to go to the POE and get the car out of bond yourself, never visiting the dealer at all, which for me would've meant an inconvenient trip to Tacoma, WA.)
What does the dealer get out of the deal then? I wondered as much myself, and consulted my next-door neighbor whose friend manages a Mercedes dealership. Answer from him: the dealer gets credit for the sale, which affects the size and mix of next month's allotment of cars (more M-class ones maybe)... and the individual salesperson you deal with gets the sale in his/her column, which puts 'em closer to bonuses. That's the main incentive. I think Volvo may kick in a little holdback money to cover the dealer's modest admin costs, but that's it. No wonder some Volvo dealers don't much care about the Overseas Delivery program.
Honestly, this is the kind of thing you could and should be able to do strictly over the Internet with Volvo or Mercedes directly: point, click, use Visa to put down your deposit, bang, buy your car. Except that it's taboo for now in the US car-sales culture to outflank the dealer network, much as Volvo or any other company might like to.
It sounds as if Mercedes is a bit more nervous of its US dealer body, because while Volvo's Overseas Delivery prices are pegged below US invoice in most cases (not the C70), Mercedes' are pegged about $1000 above. If you go through with your deal, be sure extras like drop-off fees don't wipe out your advantage. Let me know how it goes.
Tom
Thanks again for the feedback and info,
Dan
FWIW, renting a C230 in Europe must run over $100/day.
Tom, interesting trip, taking the car from Sweden to England. I lived in England for two years and the swtich to driving on the left wasn't so hard because you are still sitting toward the center of the road. But driving a left-hand drive car in England will be a challenge.
I'm planning to get the car in Gothenburg on the morning of Day 1 and get to Copenhagen that night; Day 2 is a hard day of driving across the north of Germany to Amsterdam; Day 3 gets us to Calais, under the Channel, and up to my uncle's place in Surrey. This better work, because my loving family arrives Heathrow the morning of Day 4, and expects to see a new car!
I'll report. Daniels856, good luck with your transaction -- it sounds like fun.
Tom
dranoel
I've been asking Mercedes (1-800-4mercedes)about the Year 2000 options, and they have told me that dealers in the US should now this week.
If anyone else has any stories on year 2000 options, please share! .
Dan
I'm sure that it's at least that much to rent. If for any reason I don't do the ED, which I doubt, I'd probably end up with a Eurail Pass
Dan