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It basically means you pick up your M5 at the BMW M factory - then drive it around Europe for a few weeks and then drop it off at a harbour for shipping to the US. Typically the car is discounted by a few procent as well - making the trip to Europe essentially free.

Perform a search on the messageboard for European delivery...lots of information about it.
 

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Would highly recommend it. Get to drive a great car on great roads saving maybe 2% on price delivered. Hard part is waiting the 6 weeks to get it home. Hope to get mine in next 3 weeks.
 

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Also no discount on Euro Delivery of M5 or X5.
 

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If your schedule allows it, definitely take advantage of European delivery. It is a fantastic experience and one you will remember for many years. The car is completely US-spec. BMW takes care of the registration and insurance. After you drop it off at any one of about 18 locations in Europe, the car is shipped to your dealer. One word of caution -- at least in 1998 when I did this with an M3, the cars were put on trucks to the port from all drop-off locations except those in Italy. From the Italian drop-off locations, the cars were driven to the port. If this is still the case, I would opt not to have Fabrizio gunning my car for 1,000 miles across Europe.
 

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My dealer was willing to give 3500 off for ed, I didn't bite on it because of other travel plans. Would have been nice to take her onto the autoband though
 

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We didn't get a discount on our 06, but still was totally worth it! We drove 3100 miles on the autobahn, through the alps and along the Rhine river. Overall about 10mpg, @ ~$7.50/gal (US). Top speed was 160+ (after break-in).

Here's our writeup on another BMW board...
http://www.bimmerfest.com/forums/showthread.php?t=164973
 

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We didn't get a discount on our 06, but still was totally worth it! We drove 3100 miles on the autobahn, through the alps and along the Rhine river. Overall about 10mpg, @ ~$7.50/gal (US). Top speed was 160+ (after break-in).

Here's our writeup on another BMW board...
http://www.bimmerfest.com/forums/showthread.php?t=164973
Ouch! $2300 in gas! But as you said...totally worth it. I expect to buy my next BMW, whatever it is, through Euro delivery.
 
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