# Announcement: ED Program Enhancements!



## adrian's bmw (Feb 14, 2003)

I know you guys will be excited about this. :thumbup:

BMW has just announced Lease and Retail enhancements effective *December 1, 2004.* :

- The length of time for contract signing before delivery has been reduced from thirty (30)days to fourteen (14) days.

- Customers can stay abroad for *up to 90 days.* During that time, insurance is required, listing BMW FS as loss payee. Easy Pay will be required for customers who extend their stay.

- Customers will *no longer be required to make two (2) payments at contract signing.*

- *BMW FS will pay the second payment for the customer (on lease only). This payment will appear on the customer's first invoice as a credit. If the customer opts for a Pre-Pay Lease, the total amount due should be reduced by one monthly payment.*

- A lease rate adder of .0003 will be added to the published applicable rate for all ED leases.

- Retail contracts will continue to have *60 days until first payment.*

I hope this helps for you guys!


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## LDV330i (May 24, 2003)

adrian's bmw said:


> I know you guys will be excited about this. :thumbup:
> 
> BMW has just announced Lease and Retail enhancements effective *December 1, 2004.* :
> 
> ...


When this BMWFS start this? BMWFS had me make my first payment while I was doing ED.


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## adrian's bmw (Feb 14, 2003)

LDV330i said:


> When this BMWFS start this? BMWFS had me make my first payment while I was doing ED.


Just came out today. Sorry.


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## bmwblue (Nov 3, 2004)

rumratt said:


> Thanks Adrian's BMW!
> 
> What's a retail contract?
> 
> So if you're paying cash, when do you need to give them the money? 14 days prior to pickup?


hey Adrian! Can you give me some lease factors please? I'm looking for the lease factors for a 325i 2005 , 36mo/15k. I know you're not allowed to post them here, but can you please PM me?

Thank you so much!


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## LDV330i (May 24, 2003)

adrian's bmw said:


> Just came out today. Sorry.


 Your posting says:


adrian's bmw said:


> - Retail contracts will continue to have *60 days until first payment.*


 That implies that not having to make a first payment for 60 days is a standing benefit of financing through BMWFS and is being extended. Thus my question, when did BMWFS start offering that delayed first payment benefit.


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## BillKach (Sep 22, 2003)

LDV330i said:


> when did BMWFS start offering that delayed first payment benefit?


Hiya LDV - I don't know when it started but it was in effect when I did my first ED year ago.

Oh and thanks for the great news Adrian! :thumbup: I guess I'll be able to take advantage of the 14 day payment rule.


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## cwsqbm (Aug 4, 2004)

LDV330i said:


> Your posting says:
> That implies that not having to make a first payment for 60 days is a standing benefit of financing through BMWFS and is being extended. Thus my question, when did BMWFS start offering that delayed first payment benefit.


When I did my ED pickup end of August, I was told told by the SA that I wouldn't have to make my first payment until 60 days after signing the agreement (?will check tomorrow) but it would have to be a double payment. Well, when I got back from Europe, I checked with BMWFS's website and it said I only owed one payment, so that's all I paid.


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## adrian's bmw (Feb 14, 2003)

rumratt said:


> Thanks Adrian's BMW!
> 
> What's a retail contract?
> 
> So if you're paying cash, when do you need to give them the money? 14 days prior to pickup?


A retail contract is simply another term for car loan or finance contract. If you're paying cash, one can assume the same guidelines, but each dealer is different.


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## adrian's bmw (Feb 14, 2003)

LDV330i said:


> Your posting says:
> That implies that not having to make a first payment for 60 days is a standing benefit of financing through BMWFS and is being extended. Thus my question, when did BMWFS start offering that delayed first payment benefit.


 :dunno: I can't remember.


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## Galun (Aug 14, 2002)

"thumbup: :thumbup:

I just want to make sure I understand this correctly. If I want to lease, I now have 14 days till delivery to lock in the best rate, the money factor will increase by 0.0003 over BMWFS buy rate and whatever else the dealership decide to add on, I get one month of lease payment credit to sort of reimburse for the increase in the money factor, and there will be subsidized plane tickets over to Europe from Jan to March next year. Am I missing anything?

Thanks!


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## adrian's bmw (Feb 14, 2003)

Galun said:


> "thumbup: :thumbup:
> 
> I just want to make sure I understand this correctly. If I want to lease, I now have 14 days till delivery to lock in the best rate, the money factor will increase by 0.0003 over BMWFS buy rate and whatever else the dealership decide to add on, I get one month of lease payment credit to sort of reimburse for the increase in the money factor, and there will be subsidized plane tickets over to Europe from Jan to March next year. Am I missing anything?
> 
> Thanks!


Nope, it's pretty clear.. you justed saved a bunch of money by switching to European Delivery!


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## sppuddsy (Oct 27, 2004)

Hope this sin't a dumb question, but when does the lease begin - when one takes delivery in Germany or when one picks the car up at the dealer?? Thanks


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## mrbelk (Dec 5, 2003)

sppuddsy said:


> Hope this sin't a dumb question, but when does the lease begin - when one takes delivery in Germany or when one picks the car up at the dealer?? Thanks


The lease actually begins when you sign it 30 days ahead of pickup. But from what Adrian is reporting, leases will actually begin 14 days ahead of pickup, since that's when you have to have all the financing arranged under the new plan.

I can't believe that BMWFS is now also subsidising the 2nd month's payment. ED just gets more and more attractive. Just in time for my ED#2 in the spring.

-MrB


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## SBIRS (Nov 4, 2004)

adrian's bmw said:


> ...If the customer opts for a Pre-Pay Lease, the total amount due should be reduced by one monthly payment.[/B]


Why would anyone "Pre-Pay" a Lease? Does it make qualifying the lease easier? Or does it lower the lease rate like MMD does. What's the point?? :dunno:


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## adrian's bmw (Feb 14, 2003)

SBIRS said:


> Why would anyone "Pre-Pay" a Lease? Does it make qualifying the lease easier? Or does it lower the lease rate like MMD does. What's the point?? :dunno:


BMW FS gives you a lower rate. It's great for cash customers, but MSD lease is better.


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## SBIRS (Nov 4, 2004)

Okay, so MSD is better. What's BMW FS's guideline for qualifying a customer for lease. My FICO is in low 700s. Am I $hit out of luck for MSD leasing? What's my next best choice? Pre-Pay leasing? Cash purchase only?
Appreciate your feedbacks.


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## adrian's bmw (Feb 14, 2003)

SBIRS said:


> Okay, so MSD is better. What's BMW FS's guideline for qualifying a customer for lease. My FICO is in low 700s. Am I $hit out of luck for MSD leasing? What's my next best choice? Pre-Pay leasing? Cash purchase only?
> Appreciate your feedbacks.


You'd definitely be eligible with low 7's and prior car credit on any of the programs. I'd go MSD simply because you get the money back and a lower rate. If you can afford to pay cash, great, but, I'd still go with MSD.


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## sppuddsy (Oct 27, 2004)

What's MSD?? Any advantage to prepaying a lease?? Thanks.


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## SARAFIL (Feb 19, 2003)

SBIRS said:


> Why would anyone "Pre-Pay" a Lease? Does it make qualifying the lease easier? Or does it lower the lease rate like MMD does. What's the point?? :dunno:


Believe it or not, alot of people just don't like writing a check every month, or paying the bill electronically. They'd rather just pay it all upfront.


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## jl5555 (Jan 28, 2003)

LDV330i said:


> Your posting says:
> That implies that not having to make a first payment for 60 days is a standing benefit of financing through BMWFS and is being extended. Thus my question, when did BMWFS start offering that delayed first payment benefit.


It has always been this way. I've done 3 european deliveries over the past 3 years, each time with 100% financing. Each time, the first payment wasn't due until 30 days after delivery date. So thus, before 60 days = 30 days sign finance papers + 30 days after delivery. I was always quick to drop off my cars, so basically by the time my car was delivered here in the states my first payment was due. Now, it's slightly better. I should have an extra 16 days to play with since signing finance papers isn't until 14 days prior to munich delivery. Woo hoo.


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## Presley348 (Oct 6, 2004)

adrian's bmw said:


> Nope, it's pretty clear.. you justed saved a bunch of money by switching to European Delivery!


=======================================================

Hi adrian's bmw:

Be sure to say hi to Don Green and Dale Danley for me, (I am looking forward purchasing and having my new BMW OEM 71's rims installed there at Nalley BMW just as soon as they come in from BMW North America! Your Service Consultant Mr. Allen Powlis is handling the arrangements for having them installed on my 04 530i when they arrive.

You know, I have purchased many new cars from various Atlanta auto dealers i.e. Corvettes, Jaguars, etc, in my life, but you guys at Nalley BMW have got your act together and know how to treat your customers right! If things continue to go well with my business, I am planning to purchase a six series from Don at Nalley in the near future.

My new e60 530i Bimmer is running great.

Sincerely,

R. Eddie Presley

=============================================
2004 530i
Titanium Silver
Premium Package
Premium Sound Package
Xenon's
Fidelity / BMW Extended Warranty 7 year / 100,000 miles
Purchased from Nalley BMW, Decatur, Georgia
=============================================


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## drcosborne (Mar 30, 2005)

I am with you. Pay cash. But does this mean I have to hand over $40,000+ weeks before I see my car in Germany and months berfore it is in the US? What will BMW do for us cash buyers? I know the dealers don't like us becuase they do not make anything on the financing. Although I have finaced a car and paid it off shortly afterwards to make the finance guy happy and they make you a better deal. But I do not know about this prepaid lease deal... What advantage is that? I always thought leases where to inable people to buy more car than they can afford. What I really want to know is how I make the best deal. Any ideas?


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## arnolds (Dec 21, 2001)

drcosborne said:


> I am with you. Pay cash. But does this mean I have to hand over $40,000+ weeks before I see my car in Germany and months berfore it is in the US? What will BMW do for us cash buyers? I know the dealers don't like us becuase they do not make anything on the financing. Although I have finaced a car and paid it off shortly afterwards to make the finance guy happy and they make you a better deal. But I do not know about this prepaid lease deal... What advantage is that? I always thought leases where to inable people to buy more car than they can afford. What I really want to know is how I make the best deal. Any ideas?


The MSD lease deal is you pay multiple security deposits (all refundable) to initiate the lease in return for a lower Money factor(interest rate) on your rent charge.

To make the best deal, Negotiate a fair price with your dealer, x amount over invoice, pay for it however you like, and then enjoy the car.


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## drcosborne (Mar 30, 2005)

Ok I was not clear- my question really is, If BMW is kicking back a loan or lease payment, what of us cash payers? Nothing for us? Would it be best just to get nothing or take out a loan with no prepayment penaly and get the payment made, or is it just one of those deals where you skip the first payment but the interest is added to the loan.


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## arnolds (Dec 21, 2001)

drcosborne said:


> Ok I was not clear- my question really is, If BMW is kicking back a loan or lease payment, what of us cash payers? Nothing for us? Would it be best just to get nothing or take out a loan with no prepayment penaly and get the payment made, or is it just one of those deals where you skip the first payment but the interest is added to the loan.


They are not kicking back a payment. ED leases have to pay a .003 surcharge on the MF of the lease.

As a cash buyer, why would you expect special treatment? It doesn't mean chit to BMW.


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## Wallenrod (Nov 25, 2003)

drcosborne said:


> Ok I was not clear- my question really is, If BMW is kicking back a loan or lease payment, what of us cash payers? Nothing for us? Would it be best just to get nothing or take out a loan with no prepayment penaly and get the payment made, or is it just one of those deals where you skip the first payment but the interest is added to the loan.


The skipped payment is on leases only. And only through BMWFS. There is no point taking out a loan if you plan on paying cash. Just negotiate the best price deal and pay for your car. Financing is a separate issue and keep it separate.
Why would BMW do anything special for you if you are paying cash? Just like a lending company has to fund the loan, you have to do it on the same terms. BMW wants the cash before you go to Munich no matter who it gets it from.


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## RichReg (May 7, 2003)

Wallenrod said:


> The skipped payment is on leases only. And only through BMWFS. There is no point taking out a loan if you plan on paying cash. Just negotiate the best price deal and pay for your car. Financing is a separate issue and keep it separate.
> Why would BMW do anything special for you if you are paying cash? Just like a lending company has to fund the loan, you have to do it on the same terms. BMW wants the cash before you go to Munich no matter who it gets it from.


DAMN! I was hoping this thread would end up with some way to negotiate a better deal when paying cash, in light if these new E.D. enhancements.

Oh, well. I guess its like the old expression: "Don't look a gift horse in the mouth"


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## Ågent99 (Jan 7, 2002)

arnolds said:


> They are not kicking back a payment. ED leases have to pay a .003 surcharge on the MF of the lease.
> 
> As a cash buyer, why would you expect special treatment? It doesn't mean chit to BMW.


you need another zero in there: 0.0003 surcharge....  Stupid MF...just use the real interest rate....


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## Marco (Mar 7, 2003)

adrian's bmw said:


> ..... If you're paying cash, one can assume the same guidelines, but each dealer is different.


I know I am asking what you have just stated  but I want to be absolutely sure: does this mean that each dealer can decide when to get the full/ final payment for ED? One dealer can ask for the payment 2 weeks in advance of delivery and another 2 months?
Thanks


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## pac (Jul 30, 2003)

Is this thread only addressing leasing programs? If so, can originator please change the heading?


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## arnolds (Dec 21, 2001)

pac said:


> Is this thread only addressing leasing programs? If so, can originator please change the heading?


There are also retail enhancements to the ED program as posted by the originator.


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## Marco (Mar 7, 2003)

Marco said:


> I know I am asking what you have just stated  but I want to be absolutely sure: does this mean that each dealer can decide when to get the full/ final payment for ED? One dealer can ask for the payment 2 weeks in advance of delivery and another 2 months?
> Thanks


I keep hoping to get an answer before my dealer tries to trick me: for cash buyers when is the deadline for the final payment? is it determined once and for all by BMWNA? or is left to the dealers?
It used to be that it was universally set at one month before delvery. Has it changed?
M.


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## dfrith (Dec 24, 2004)

Marco said:


> I keep hoping to get an answer before my dealer tries to trick me: for cash buyers when is the deadline for the final payment? is it determined once and for all by BMWNA? or is left to the dealers?
> It used to be that it was universally set at one month before delvery. Has it changed?
> M.


It has changed to 14 days.


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## PittBMW (Dec 20, 2004)

dfrith said:


> It has changed to 14 days.


I beg to differ..

For non leasing deals, BMWNA debits the dealer's account 30 days before pickup date.

If the dealer makes a good commission, he could relax the payment date to you a bit.


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## Galun (Aug 14, 2002)

I see this thread as a sticky, so I am wondering if the ED enhancements are still in effect now.

I am specifically interested in BMWFS picking up one month of lease payment - is this still going on, and is this true for 24 month and 36 month lease?

Thanks.


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## arnolds (Dec 21, 2001)

Galun said:


> I see this thread as a sticky, so I am wondering if the ED enhancements are still in effect now.
> 
> I am specifically interested in BMWFS picking up one month of lease payment - is this still going on, and is this true for 24 month and 36 month lease?
> 
> Thanks.


AFAIK, they are still on. In exchange for the one month payment, you do pay a surcharge on the money factor.


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## adrian's bmw (Feb 14, 2003)

Galun, 

That is an affirmative. :thumbup:


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## Ågent99 (Jan 7, 2002)

I think the _free_ month of lease payment will probably always be in effect because they do more or less get it back with the surcharge on the MF (0.0003). It is more or less a wash at the end so it really isn't _free_ at all. _Free_ is a word used a lot by the marketing department but the finance department makes sure it really isn't so....


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## daoushy (Jul 31, 2005)

EDIT: Moved a comment about hte Taxes to the correct thread


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## chrischeung (Sep 1, 2002)

*Why do they make the additional payment*

Does anyone know the reason why they have the increased money factor and make the additional payment? Consensus is that it is a financial wash.

There must be some reason why BMW FS does this - it just seems more simple to keep the same MF and have the same number of payments.

Any why do they make the second payment - and not the first? Or last for that matter?


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## lawguy (Mar 28, 2006)

LDV330i said:


> It is illegal to enforce MSRP or Suggested Retail prices. Some manufacturers have found ways around that. Mostly not allowing vendors/retailers to show any other price than MSRP/SRP, though the product can be sold for any price.


I haven't heard of this before. Do you know why it is illegal? I can't see the harm in it.


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## LDV330i (May 24, 2003)

lawguy said:


> I haven't heard of this before. Do you know why it is illegal? I can't see the harm in it.


It can be considered "price fixing" and/or there could be antitrust issues. Check this article out.


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## iversonm (Nov 15, 2004)

Galun said:


> The first is due at signing of paper work. You gotta pay something to walk away with the car


Walk away?
It's a rather unusual experience buying a car that's 6000 miles away.

I did ask the guy preparing the paperwork if he personally verified that that there were 5 miles on the car, as stated on the odometer disclosure form.


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## Bob Clevenger (Dec 17, 2004)

BayAreaBMWFan said:


> I hope they do not reduce the number of drop-off points or start charging for non Munich drop offs. That will severly diminish the value of the free rental.


I thought there is a charge for non-Munich drop-offs. Am I in error?


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## JSpira (Oct 21, 2002)

BayAreaBMWFan said:


> I hope they do not reduce the number of drop-off points or start charging for non Munich drop offs. That will severly diminish the value of the free rental.


Not sure what "free rental" you are referring to but I could see charging for Italy in particular.


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## JSpira (Oct 21, 2002)

Bob Clevenger said:


> I thought there is a charge for non-Munich drop-offs. Am I in error?


As of today, yes you are.


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## e36M3r (Oct 19, 2004)

adrian's bmw said:


> Thankfully, they're now offering classes in our training network to encourage knowledge and benefits of the ED program.


Glad they have it in use! :thumbup:

I took part in it, they used several of my and my wife's pictures (including a funny one of me an my ship!) and I did a recording session for them, (cross country interview at a nearby recording studio) and they used a short audio clip of it. Looks real nice they let me have a look around also!


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## MarcusSDCA (Jan 14, 2004)

Bob Clevenger said:


> I thought there is a charge for non-Munich drop-offs. Am I in error?


There is a charge for Italian Drop-offs. It's not a cash charge but they drive your car back to Munich and put XXX miles on your car.....which basically depreciates your car. So it "costs" you.


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## lawguy (Mar 28, 2006)

LDV330i said:


> It can be considered "price fixing" and/or there could be antitrust issues. Check this article out.


That's very interesting. I'm not entirely convinced that it would apply to car sales, but I do see the argument. Thanks for the link!


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## BayAreaBMWFan (Aug 8, 2004)

Jspira said:


> Not sure what "free rental" you are referring to but I could see charging for Italy in particular.


I meant that ED obviates the need to rent a car in Europe. However, if non-German drop-off points require an extra charge, the attraction of the ED purely from not needing a rental is diminished. Many folks start their vacation in Germany even though their primary destination is somewhere else. If the charge for the non-Munich drop off is substantial, then the attraction of starting the vacation in Germany is limited.

In any case, I hope they keep the current pricing structure and also do not offer free tickets/hotels kind of thing instead of the discounts. I would rather chose the airlines and the hotels I stay in based on my own particular situation. The LH 2-1 is good enough as are the special rates in Hotels.


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## JSpira (Oct 21, 2002)

BayAreaBMWFan said:


> I meant that ED obviates the need to rent a car in Europe. However, if non-German drop-off points require an extra charge, the attraction of the ED purely from not needing a rental is diminished. Many folks start their vacation in Germany even though their primary destination is somewhere else. If the charge for the non-Munich drop off is substantial, then the attraction of starting the vacation in Germany is limited.


I suspect Italy will see a fee first because the drop-off there is more complex. I don't think they will start to charge a fee for all non-German drop-offs although I think the overwhelming majority of drop-offs are in Germany.


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## Bob Clevenger (Dec 17, 2004)

I'm looking to drop-off in London, so I will find out "soon."


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## lilskel (Jun 10, 2005)

I"m hoping for tickets like Volvo gives because I haven't bought mine yet!


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## djlfp (Dec 5, 2004)

*My guess*

Increased work for Rolf and a one night stay in a hotel - say the Marriott?


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## Tanning machine (Feb 21, 2002)

djlfp said:


> Increased work for Rolf and a one night stay in a hotel - say the Marriott?


Combined with a decrease in savings.

If we're guessing, mine:
--reduction in potential savings (possibly a set price--no negotiation)
--airfare included
--two-night hotel stay in Munich included
--drop-off fee in Italy and outlying locations (Madrid, Nice, Vienna, London).

But, I have no idea what BMW's business strategy is here. Do they want to increase profitability of ED? Do they want to make it more attractive to increase ED sales? Do they want to make it into more of a "program" than it already is?


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## djlfp (Dec 5, 2004)

*Business strategy*



Tanning machine said:


> But, I have no idea what BMW's business strategy is here. Do they want to increase profitability of ED? Do they want to make it more attractive to increase ED sales? Do they want to make it into more of a "program" than it already is?


This is what their strategy should be: 1. Increase long-term profitability for BMW by encouraging ED which leads to increased brand loyalty 2. Continue to provide greater value than Mercedes every step of the way 3. Make the ED program more attractive at minimal cost to BMW


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## Tanning machine (Feb 21, 2002)

djlfp said:


> This is what their strategy should be: 1. Increase long-term profitability for BMW by encouraging ED which leads to increased brand loyalty 2. Continue to provide greater value than Mercedes every step of the way 3. Make the ED program more attractive at minimal cost to BMW


I think 3. is going to be the challenge. To make it more attractive will incur some costs. Let's put aside the insurance and admin. costs for having an operation in Munich. Those are going to be there no matter what, if you have the program.

What they really need to do is throw the dealers a bone. Right now at least some dealers feel they have little or no incentive to tout ED. BMW could easily give them one. For example, instead of providing a 7% discount off of MSRP/invoice, make it 5%. Take the extra 2% and give it to the dealers like they do now with CSR money. Tell them to promote the offering. Maybe split the 2% in half, and use part of it to give airfare/hotel discounts, or something, and make it more of a package deal.

Honestly, the program from my perspective works great. But, it's not heavily promoted, and seems to be more for people "in the know". I would guess BMW wants to move towards a 'value added" approach. To do that I bet they lower the discount and turn it into more of a progam with both dealer buy-in and more in europe (hey, how about guaranteed access to teh english language tours?)


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## lawguy (Mar 28, 2006)

duplicate post


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## lawguy (Mar 28, 2006)

Tanning machine said:


> I think 3. is going to be the challenge. To make it more attractive will incur some costs. Let's put aside the insurance and admin. costs for having an operation in Munich. Those are going to be there no matter what, if you have the program.
> 
> What they really need to do is throw the dealers a bone. Right now at least some dealers feel they have little or no incentive to tout ED. BMW could easily give them one. For example, instead of providing a 7% discount off of MSRP/invoice, make it 5%. Take the extra 2% and give it to the dealers like they do now with CSR money. Tell them to promote the offering. Maybe split the 2% in half, and use part of it to give airfare/hotel discounts, or something, and make it more of a package deal.


Then they fall out of line with what Mercedes offers. MB offers a 7% discount in addition to lodging.

I seriously hope they don't change prices. I'm sooooo close to ordering. I just negotiated $500 over ED invoice and was so proud of myself.  If I end up losing that price because of the ED changes, I'm gonna kick myself.


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## BayAreaBMWFan (Aug 8, 2004)

lawguy said:


> Then they fall out of line with what Mercedes offers. MB offers a 7% discount in addition to lodging.
> 
> I seriously hope they don't change prices. I'm sooooo close to ordering. I just negotiated $500 over ED invoice and was so proud of myself.  If I end up losing that price because of the ED changes, I'm gonna kick myself.


I am sure that if you lock yourself in it will not be a problem. If there are any changes in the pricing structure (I am praying there are none), they are unlikely to apply for people who are planning to pick up before September or even later.

I think the opening of the BMW World (Spring 2007)  is one of the catalysts for the change. BMW would like the faithful to spend some time soaking in more BMW stuff while they are in Munich.


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