European Delivery Part IV: Financing

This part of our BMW European delivery (US) series has been long over due but should add some valuable information to this popular feature. If you have not read through the previous installments you can begin your journey here.

In the past we had discussed things up until the actual closing of the deal. Whether it is a lease or finance this is where people can get hung up sometimes. Unlike a normal car purchase you must pay for the car at least one week in advance of your scheduled Munich pick up, so your financing must be secured in advance of that.

Since you will be picking the car up in Germany and having it shipped back to the US there is a large window of time that the car is not titled or registered in the US. This is where with a typical bank you may run into some issues since they require the title be turned over to them within 3 months from the date of the loan. If the title is not to them there may be some serious consequences depending on the bank. It is best to make certain that the bank completely understands the situation and that there is a chance of a delay in them receiving the title. If you stick with BMWFS you will not have any problems as they already know the conditions, and with the great (8/08) financing options they are offering it makes little sense to go elsewhere for the time being.

Leasing through BMWFS is another viable option, though not as advantageous as in years gone by due to the lower residual values on the cars. You still benefit from the variance in your Euro Delivery negotiated price in comparison to the residual being based on the full US MSRP of the vehicle, so it equates to a capitalized cost reduction. Up to a week out from taking delivery you must finalize your lease and sign the necessary paperwork; you pay the first monthly payment but not for the second since the car often will be in transit. When leasing the lease money factor will require a 0.0003 bump. This bump over the life of the lease essentially is where the “no payment” for the second month is paid for. Occasionally BMWFS will bill a customer the second payment instead of crediting it, a simple phone call will rectify the problem. BMWFS will sometimes offer owner loyalty programs, or “pull ahead” programs for lease customers and these do also apply to Euro Delivery.

In the past there was a lot of confusion as to whether BMWCCA membership rebates applied to cars in the Euro Delivery program (missed it on the last car). Essentially they apply but the caveat is that the day the car is picked up in Munich is the date of retail not the date it is re-delivered to the customer stateside. So the window of opportunity to fill the form out and get it in within the correct time frame starts to close from driving out of the Welt. The new form now indicates that the 60 days starts at redelivery in the US, which makes things a bit easier and extends the time frame a good deal. The rebate can be up to $1500 depending on the model. You must be a member in good standing for at least a year and fulfill the other requirement listed on their website to qualify (if you are not already a member you should join!)

We would love to hear any questions or comments you may have about Euro Delivery and if there is any further info we may be able to provide you with.

These images are from BMWAG and can be utilized as wallpaper!