[hyperzulu]

Originally Posted by fuddman

An ED invoice sale is going to be the sale of a non allocated car.

No. I already told you, any car sold for European delivery is priced at European delivery prices. It doesn't matter whose allocation it is.

The ED pricing is a direct result of the dealership forfeiting their trunk money for scoring 10s on the customer survey. Since BMW doesn't have to pay the dealer this money, they discount the car. Notice how the word "allocation" is not in the red text anywhere. It's because it's that simple and allocations never come into play.

[fuddman]

Originally Posted by hyperzulu

.....trunk money .....

Whazat?

ED sales do not come out of the dealers allocation? I don't buy that. I just got off the phone with my CA and he said ED sales do come out of the dealers allocation.
So, you need to edit your red sentences to include the word allocation in there somewhere. Just kidding!!

[hyperzulu]

Originally Posted by fuddman

Whazat?

Trunk money is generally any money BMW gives to a dealer to help boost sales. Sometimes the term is used to discuss money the manufacturer gives to the dealership which they can use at their discretion when finalizing a deal for certain cars. Like if 5 series diesel sales are slow, the dealership can sell under invoice and recoup the loss via trunk money.

In the context of the customer satisfaction survey, it is money BMW awards the dealer for perfect scores on the survey. They can earn several thousand dollars on a sale if they receive perfect scores. This only happens for US deliveries.

In the context of this discussion, cars delivered in Munich would not give the sales person the opportunity to be awarded this extra money. BMW has decided to pass that money in the form of savings to the consumer for taking European delivery. This is why ED pricing is lower than US pricing - there is no chance BMW will have to pay the dealer an extra $5,000 for scoring all 10s on the survey.

[hyperzulu]

Originally Posted by fuddman

Whazat?

ED sales do not come out of the dealers allocation? I don't buy that. I just got off the phone with my CA and he said ED sales do come out of the dealers allocation.
So, you need to edit your red sentences to include the word allocation in there somewhere. Just kidding!!

I never said ED sales don't come out of dealer allocation. This whole time I've been saying that ALL of the M models come out of dealer allocation for ED. For non M cars it depends on supply and demand.

What I said specifically was that the PRICE of an ED car has nothing to do with allocation. The dealership always pays ED invoice for a car delivered in Munich. It doesn't matter if it's an M car coming out of his US bound allocation pool or a 328i coming from the ED special sales pool. Delivery determines dealer cost.

[bradleyland]

Originally Posted by fuddman

I don't mean to be confrontational and repetitive.
I know of no such thing as "normal dealer allocation." Allocations are, simply put, numbers assigned to the dealer by BMW in effect telling the dealer how many (and type of) cars are coming his way.
As I said before, the dealer has the option to sell his allocations in one of three ways. One of which is to sell it under ED rules. Dealer ED sales come directly out of his assigned allocations.
Now, there are circumstances when the dealer is given (by BMW AG) the option (key word: option) to sell cars which are over and above his allocation. Often times referred to as non-allocated cars. Under what circumstances does BMW AG allow the sale of non allocated cars? That's anybody's guess. To me, a strong possibility is the sales of the car are under performing - to the extent it becomes necessary to heavily discount the car to move out inventory, I believe, from the factory. At that point, ED invoice sales start. Again, provided the dealer goes along with it. An ED invoice sale is going to be the sale of a non allocated car.

I think we're using different language to describe the same thing. I know that a dealer can sell you an ED car out of their allocation. I also know that sometimes ED does not come out of their allocation (non-allocation). The word "normal" was my language; an attempt at differentiating between the two, but I think we're saying the same thing.

[fuddman]

Originally Posted by bradleyland

......but I think we're saying the same thing.

I agree.