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European car delivery program details below were updated June 11th 2019 to reflect the latest European Delivery programs and 2019 models.
Is a European Delivery Program a Good Deal?
I’ve always been intrigued by European Car Delivery Programs. It’s a compelling offer: sign up for a vacation to Europe, get treated like a VIP, and come home with a discount on a very big souvenir, your new luxury car. Experts like Jon Spira tell captivating stories where you can pick up your brand new BMW in Germany and race it on the Autobahn for less than you would’ve paid picking it up at your local dealership.
But are these programs worth it? Over the past few years, manufacturers have tightened their belts and removed many of the extra perks that used to be included. So I decided to see how European Delivery Program’s stack up against a car price you could negotiate for pick-up in the U.S.
Let’s take a look at how each manufacturers’ European deals compare to local prices. But first…
How does a European Car Delivery Program Work?
The idea is you buy a luxury car from BMW, Mercedes, Porsche, or Volvo (Audi and Saab both retired their programs) and pick it up at the factory in Europe. You’ll typically get a discount on the price of the car plus a travel deal. After you visit the factory, you can cruise around Europe for a couple weeks and drop off your car at a pre-approved location (these vary by manufacturer, but most have about 12 drop-off locations in different cities).
All programs include a factory tour and meal, international car insurance and registration for 2 weeks (about a $200 value). When you’re done they’ll ship the car back to the U.S. for you free of charge, but keep in mind this is not the same as the destination fee (typically $895). Mercedes is the only one to waive the destination fee as well.
Here’s how the process works:
- You order a European luxury car from a U.S. dealer
- Once the pick-up date is confirmed, you book your travel
- Pick-up your car a few weeks later at the factory in Europe
- Spend a night near the manufacturer in Germany (or Sweden for Volvo) and get a factory tour plus a meal or two
- Travel the country-side in your new wheels for as long as you want (insurance lasts 2 weeks, but can be extended)
- Drop off your car at an approved European drop-off location
- Accept delivery in the U.S. within 6-8 weeks (if you live on the East coast) or 8-10 weeks (if you live on the West Coast)
BMW also includes a nice perk where you can pick up your car in the U.S. at the BMW Performance Driving school in South Carolina and learn how to race on their track like a pro.
Does Audi offer European Delivery?
The Audi European car delivery program was discontinued at the end of 2018.
Program Details by Manufacturer
|Manufacturer Website||My Reviews||Price Discount||Pick-up Location||Airfare||Hotel|
|BMW||BMW European Delivery Analysis||5% off MSRP||Munich, Germany||Not included||Not included|
|Mercedes||Mercedes European Delivery Analysis||7% off MSRP & destination fee waived ($925)||Sindelfingen (near Stuttgart), Germany||Delta voucher of $200||One night|
|Porsche||Porsche European Delivery Analysis||No discount||Stuttgart or Leipzig, Germany||Not included||One night|
|Volvo||Volvo European Delivery Analysis||2-10% off MSRP||Free @ Gothenburg, Sweden, 9 other pick-up locations (transfer charge, $392-$1447)||Round trip tickets for two included||One night|
Manufacturer Program Comparison
So how do the European deals compare to pricing in the States? In the table below I started out by selecting 5 models around the $50,000 range. I figured that if you’re buying a $500,000 Maybach, you probably don’t care too much about cost, but if you’re looking at cars with one less zero, you might still want to do a little comparison shopping.
After I selected a few models, I went to Edmunds to find out what they suggest is a good target price in the States if you were to haggle with local dealers without picking up overseas. Then I compared that to the European Delivery deals with and without travel perks. Savings are calculated based on estimates of $700/roundtrip flight and $150/night at a hotel. Perks like meals, factory tours, are international insurance are not included in these numbers.
|Model||MSRP||Edmunds True Market Value||Destination Fee||Total Expected U.S. Price||European Delivery % Savings||European Delivery Price||European Travel Savings||European Delivery Price + Travel Savings|
|2019 BMW 530i Sedan||$53,400||$50,678||$995||$51,673||5.00%||$50,730||$ -||$50,730|
|2019 Mercedes GLC Coupe||$47,300||$44,573||$995||$45,568||7.09%||$43,945||$350||$43,595|
|2019 Porsche Macan SUV||$49,900||$47,936||$1,250||$49,186||0.00%||$49,900||$150||$49,750|
|2020 Volvo XC90 SUV||$48,350||$47,625||$995||$48,620||9.00%||$43,999||$1,550||$42,449|
- All manufacturer programs except for Porsche are a better deal to pick-up overseas.
- Most travel perks have been scaled back and those perks’ dollar value is nominal with the exception of Volvo’s travel package. Although it should be noted that the value of the travel experience is exceptional for all programs.
- The winner for best bargain is Volvo. They are the only European manufacturer to still offer a full travel package. Most programs used to offer two round trip tickets and hotel accommodations, but now only Volvo offers both.
- Be sure to make sure the total price of the car (with discount + vacation) is less than what you can negotiate for each separately. If it’s cheaper to buy the car locally and rent a nice car overseas, save yourself the extra paperwork.
- Most programs cover European fees and freight, but check for an extra charge for delivery from the U.S. drop-off to your home city
- Most programs cover international vehicle insurance and registration for 15 days (about a $200 value). If you plan on staying longer coordinate extra insurance with your local dealer before you go. U.S. and Canadian insurance coverage is not valid in Europe. If you don’t have insurance during your trip, your car could be confiscated when you cross an international border.
- Most programs have 10-20 international drop-off locations, but coordinate in advance where you will be leaving your car when your vacation is over.
- Do not plan to leave any personal belongings in your car as they might not make it back to the States and are not insured (even though the car is).
- Ensure vehicle is cleaned before handing over for transport. If the car is dirty, the shipping company may refuse to load the vehicle or the EPA will steam clean the car at your expense.
- Some programs offer the ability to buy a non-U.S. specification vehicle. That means you may be able customize your car with some options that are only available in Europe.
Would you consider flying to Europe to pick up your next car?
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So you’ve learned how to negotiate a new car and think that guarantees you a good deal. Well think again! Did you know a majority of a car dealer’s profit comes from add-ons in the Finance Office?
Dealerships want you to think the hard part is over and that it’s time to let your guard down. But as you’re getting ready to sign for your new car, the Finance Manager will smoothly convince you that you need expensive add-ons and accessories.
What are Dealer Added Options?
A dealer added option is any accessory that a car dealer installs on a vehicle after they receive it from the manufacturer. Examples include items such as floor mats, cargo covers, roof racks, VIN etching, and pin striping. The prices of these items are not listed on the car’s MSRP sticker, but instead a dealer will typically add a second “addendum” window sticker.
Dealers add these items because they have high profit margins and most people don’t try to negotiate them!
Average Car Dealer Profit for Add-on’s (Infographic)
The image below shows how much the Finance Department really makes off everything they sell you. Note: these high numbers aren’t even the total price you pay, they only represent dealer profit!
But not to worry, you don’t really need most of these items. Here’s a breakdown of what these items really cost the dealer and what you can do to save yourself money. When in doubt, google a specific option and see if it’s recommended or available outside the dealership at a lower price.
Common Dealer Add-ons & Accessories
Item Cost to Dealer Retail Price Dealer Profit Suggested Action
Fabric protection (scotch guarding) $5 $300 $295 Not necessary. If you want it, buy Scotch Gard for 9 bucks and apply yourself.
Paint protection $10 $325 $315 Not necessary. If you want it, buy sealant or wax for 15 bucks and apply it yourself.
Undercoating $200 $700 $500 Don't get it, most new cars come with warranties against rust and corrosion.
Rustproofing $50 $800 $750 Don't get it, most new cars come with warranties against rust and corrosion.
Pin striping $30 $300 $270 Not necessary. If you want it, look for an independent shop to do it after you buy.
Car alarm $300 $800 $500 Consider this, but it will be marked up significantly at the dealership. Go to an independent dealer and save money.
VIN etching $75 $200 $125 Not necessary. If you want it, buy a window etching kit and do it yourself for 20 bucks.
Lojack $325 $800 $475 Consider this, but get prices from an independent installer first.
Extended warranty $800 $1,800 $1,000 Not necessary, but can come in handy. Don't buy at the dealership without shopping around first. Read how to evaluate an extended warranty.
Gap insurance $200 $500 $300 Not necessary, but get competitive quotes outside the dealership if you are going to buy it. Read more about gap insurance.
Financing $0 n/a a lot! Dealers typically add 2-2.5% in APR to loans they provide. Find your own financing before heading to dealer. Ask if they can beat it.
Negotiating Dealer Add-Ons
Many of the add-ons you will be offered are unnecessary or can be purchased outside the dealership at a significantly lower price. There are two main tips for negotiating add-ons:
- You probably don’t need it, so don’t buy it.
If an item is not factory installed as part of an options package the dealer may be able to remove it from the deal. Consider whether you really need it, or if can you buy it elsewhere. In the majority of cases, if the item is optional then say NO.
- Negotiate the whole car deal, not individual items
Follow the advice on my website and get car prices from several dealers. Make sure each dealer gives you a total price that includes all options and add-ons. You should be able to find similarly equipped vehicles and then you can ask dealers to give you their best overall price (including add-ons) to win your business.
If you are a single mother, you have a lot to balance: your work schedule, your children’s school and extracurriculars, and putting food on the table each night to name a few. You can’t afford to waste time or money aimlessly searching for a car. With these car buying tips for single mothers, you can search confidently to get the best deal for you.
Should you buy during a specific month, day, or even time of day? There are a couple key considerations to consider when determining when to buy your car. Look at the infographic below to see how timing can affect car prices. And if you really want to know how and when you can get the best deal, read my Ultimate New Car Buying Guide.
Click the infographic below to enlarge.
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Best Time of Year to Buy a Car
You can find the best prices on seasonal vehicles off-season. Convertibles and sports cars can be cheaper in the fall and early winter because of less demand. The weather also plays an impact. SUV’s might be discounted in the summer when gas prices are up and people aren’t as concerned about finding four wheel drive cars to navigate wintery roads.
If you’re looking for a home on the road, the best time to buy an RV in colder climates is when the snowbirds have headed south for the Winter. Demand drops off and sellers know they are going to have to go through the hassle of winterizing and storing the RV for the off season. Conversely, in parts of the South, the best time to buy an RV is in late Spring after buyers migrate back north and there is less local demand.
The fall months are also good for sales at the end of a model year. Different manufacturers end model years at different times, but many change years in September or October. Dealers want to get rid of old models to make room for new ones. And you can get especially good deals if the body style is changing. Just be careful to weigh the discount on an end of model-year car. As soon as you enter a new year, that car’s resale value will take a hit because it’s labeled as a whole year older.
Best Month to Buy a Car
December is a great month to buy a car because dealerships are desperate to lure shoppers on the lot while most people are preparing for the holidays and spending all their extra cash on gifts. It’s also the best time of year to buy a car because dealerships are trying to hit their annual sales quotas and related bonuses. Dealerships have both month-end and year-end targets, so December means big discounts. And if you don’t want to stay home on the holidays, Christmas Eve and New Year’s Eve are typically two of the best days of the year to find deals.
Best Day to Buy a Car
Even if you forget everything else, remember this statement: The best time to buy a car is the last couple days of the month. Manufacturers set monthly targets for car dealerships. If car salesmen and dealerships meet their monthly sales goals they can earn bonuses. So if you time your car purchase towards the end of the month you could end up buying from a car salesman who is close to hitting his quota and earning a bonus payment. This bonus may be much bigger than the loss he takes on a single sale and as a result he may be willing to provide a bigger discount to you in order to earn that bonus.
And interestingly enough, the second best time to buy a car is the first couple days of the month. Because the end of the month trick is widely known, salesmen are usually pretty busy with buyers that have waited. As a result, the first couple days of the month mean fewer buyers and idle salesmen may be willing to deal. Salesmen may also want to get a jump on their monthly sales quotas so they’re not under as much pressure at the end of the month.
Best Time to Buy a Car
Don’t go out of your way for this one, but some dealerships offer salesmen a small bonus ($100 or so) for selling the first car of the day on a Saturday or holiday to encourage sales. So if you are one of the first buyers of the day you may notice a small benefit.
What’s the Best Way to Buy a Car?
That’s easy, don’t go to the dealership at all! Get car prices from multiple local dealers and ask them to compete with each other over email. I explain how in my Ultimate New Car Buying Guide.
What if You Need a Car Now?
As much as you might like to time your car purchase to get the best deal, it’s not always possible. Sometimes an accident or unexpected repair may make waiting difficult. In these cases, you can still get car prices online and make car dealers compete. And check out Edmunds car incentives and rebates to see which manufacturers are currently running promotions.
European Delivery Programs
Here’s a final added tidbit. If you are considering buying a high-end luxury car, why not take a trip to Europe? While timing a luxury car purchase may not net you savings on the car itself, you can save on your vacation spending. Manufacturers like Audi, BMW, Mercedes, Porsche, and Volvo all offer vacation packages that allow you to pick up your car in Europe and tour the country side. As for the best time of year, Spring is a great time to visit Europe while the weather is comfortable but the high-priced summer tourist season as not begun yet.
What are you going to do with that old car when you buy a new one?
There are more options and considerations than you might think. You’ll probably get the most money if you can sell it to a private party, but a trade-in could actually net you more because of the tax implications. Donating to charity might give you a warm fuzzy, but you might just need someone to haul it off your front lawn so you can see your neighbor’s trailer again.
Below is a flow-chart to help you figure out how to get rid of your old car. Before you get started, go to Edmunds and find out both the trade-in value and the private party sale value. You may also want to get an online appraisal from a used car dealer or Autotrader.com. The online appraisal number will likely be lower than the Edmunds trade-in number, but it will give you an idea of exactly how much you would get if you had to sell today. Participating car dealers are required to honor Autotrader online appraisals provided you are factual about the condition of your car.
A Flowchart to Determine How to Get Rid of Your Old Car
get the most amount of money for your trade-in.
Here are a few more resources to help:
If you’re in the market for a new car and want to get the best possible deal, you should make car dealers compete with each other. Today I’m going to lay out the steps to do that visually. For more details on these steps click Start Here above and read how to Start a Bidding War.
In the example below, you’ll get prices on a new car from 4 car dealers. You’ll then email each car dealer to make them compete against each other to systematically reduce your price.
Flowchart – How to systematically negotiate a low car price
email samples that I’ve put together that tell you exactly what to say to car dealers.
The great thing about this negotiation strategy is that it’s not a secret! Even when you make car dealers aware that you are getting competitive bids, they will still work with you because they want to sell cars.