[bob belle]

Here is my scenario

Initial deposit August 03 was told it was # 4 in line. Last year checked status and was informed it was an error that I ranked # 14.

Received an unexpected call last week that the dealers first allocation was for eight cars, first four accepted second four are being contacted. If all of the first eight are spoken for, worst case scnerio, I will be contacted by October 1st to place an order which will be delivered in six to eight weeks bringing me to early December.

My questions are:

1. This seems like a large allocation in the first month of production. Is it realistic? Should I receive a VIN #? Is there ever a case were a dealer would accept an order and delay delivery for several months?

2. Is BMW producing SO MANY cars that demand will drop off or suffer. With the E39 I remember waiting lists of eighteen months. Does anyone know how long a wait would be if leaving an initial deposit today?

Thanks in advance for your input.

 

[m5floyd]

4 for the first month is the biggest I have heard for the second largest dealer in the US located in Fl. Largest I think is in Jersey.


Floyd

 

[FaastM5]

I am getting the first car at a large SoCal BMW dealership. Their first allocation is for 4 cars. I can not imagine a dealership getting 14 M5s before the end of the year, as a friend of mine is #7 on the list at another SoCal dealership and is hoping to get his car by Christmas.

 

[Spiroman]

In Canada, the allocations I've seen diminish by the month from September to December. I don't know why, but they just do. It may be that they want to make a big "splash" in North America with large September and October deliveries and then let it tail off in the winter. I'm not sure what their strategy happens to be.

Best regards,

 

[Jim Dolan]

:1: :happybirt It is very unlikely that they got 4 in September allocated. My dealer, one of the largest only got 2. But in late July they got another 2 for a total of 4. This dealership has two locations and the other one got 2 and 2 as well for a grand total of 8 plus they got one additional car for July taken by the GM for a total of nine for July/August and September with week 43 (last full week in Oct.)being mine. :1:

 

[m5floyd]

You Cali guys will be getting your cars 1 week later due to....It takes 1 week for your car to be carriered "is that a word", ok..Trucked over to you all.


Floyd

 

[m_five]

You Cali guys will be getting your cars 1 week later due to....It takes 1 week for your car to be carriered "is that a word", ok..Trucked over to you all.


Floyd

Not so--west coast cars are delivered by boat to Oxnard, CA. Might take longer, perhaps the same, depending on if the boat stops on the east coast or just go straight though the Panama canal to CA.

 

[Douge]

I suspect that allocations are not given purely on total volume but probably tied to particular cars, M's or whatever else the manufacturer is pushing to sell.

 

[MJ]

I do know for a fact that some of the large Florida dealers already have 15 M5's for September and October production. Here is my post from Sept. 1, 2005 in a different thread:

*******************************
Re: production volume per day for e60 m5

In the USA E60 M5 allocations are through the roof at many dealers. I know some large dealers that already have 15 M5s allocated for September and October production. I know a medium dealer that already has 7 cars allocated. This is dramatically ahead of where the E39 M5 allocatiions were in the beginning. With 54 a day...looks like many are USA bound.
*******************************
The big question is whether BMW will continue these enormous early allocations or are they just making an initial big splash?

MJ
'03 black/black
'06 Silvergray/black week 37/150 status

 

[riaz]

I think its a marketing ploy to promote the car; almost half of bmws market is in the us and this seems to be a very cost effective way of advertising a flagship model

 

[bob belle]

After reading some of the posts it seems that there is a high initial production. Is it to early to tell if this will drop off? As I would assume it may hurt residual values if production stays fairly consistant with what is being produced now?

Also I would assume dealers will be discounting over the next year once initial deposits are filled.

4 for the first month is the biggest I have heard for the second largest dealer in the US located in Fl. Largest I think is in Jersey.


Floyd

 

[m_five]

I do know for a fact that some of the large Florida dealers already have 15 M5's for September and October production. Here is my post from Sept. 1, 2005 in a different thread:

*******************************
Re: production volume per day for e60 m5

In the USA E60 M5 allocations are through the roof at many dealers. I know some large dealers that already have 15 M5s allocated for September and October production. I know a medium dealer that already has 7 cars allocated. This is dramatically ahead of where the E39 M5 allocatiions were in the beginning. With 54 a day...looks like many are USA bound.
*******************************
The big question is whether BMW will continue these enormous early allocations or are they just making an initial big splash?

MJ
'03 black/black
'06 Silvergray/black week 37/150 status

Agreed--the initial US allocations (September & October) are much higher than one would expect based on US E39 M5 sales. So either they're priming the pump for the first few months of US deliveries (and correspondingly reducing ROW sales), or there will be a huge production increase vs. the E39 M5. Time will tell.

AMG basically doubled W211 E55 production vs. W210, so I think it's likely BMW will also decide to cash in. Let's not be naive enough to think they care about exclusivity or residuals...

 

[Jim Dolan]

Agreed--the initial US allocations (September & October) are much higher than one would expect based on US E39 M5 sales. So either they're priming the pump for the first few months of US deliveries (and correspondingly reducing ROW sales), or there will be a huge production increase vs. the E39 M5. Time will tell.

AMG basically doubled W211 E55 production vs. W210, so I think it's likely BMW will also decide to cash in. Let's not be naive enough to think they care about exclusivity or residuals...

Out the door this car costs a hundred grand. That's twenty grand more than the E39. They built a little over 10,000 E39s over four model years for the USA. Gas prices are about double, at the moment from 2000. I don't know the lease cost but the E39 in 2000 was about $1,200 on the east coast. I estimate this car at over $1500 but I don't know. Now given these circumstances manufacturers may want to meet their production goals earlier rather than later in case the market shifts over the next four years to more fuel efficient vehicles. When you couple a twenty grand premium with double the annual operating cost some are going to be turned off.

I don't think they will build as many E60s as they did the E39, the party may be over, sadly.

Also, new CAFE standards that manufacturers will have to meet in five years may influence there decision models.

Just my .20 cents. :sad3:

 

[Jim Dolan]

One additional comment. BMW's M5 is not their big money maker at all. That keeps shifting; 5 series, X5 (500,000 so far), X3 etc. They have a lot of irons in a lot of fires.

They do this (M5) because they love the technology and the challenge to build the perfect car for enthusiasts like us and to bring the race track to the street. It's a matter of pride more than money. The exchange rate may have hurt the price as well. In any case I'm glad they do this. Mercedes on the other hand may do it to amortize the aquisition cost of AMG

I love BMW...... :wroom: :M5launch:

 

[Rezf]

I believe it is true: BMW has pumped out production on the E60 M5 to an unprecedented level. Cannot compare to the E39 M5. Here is a copy of my posting from another thread:

That is precisely my concern. Spoke to a friend of mine today, who is GM of a midsize dealership and he told me BMW is not holding back at all on allocations. He already has 4 cars allocated, while he said with the E39 M5 he never had more than one car a month. The dilution of the M3 occurred from the E36 to the E46, and I believe the same dilution has happened from E39-->E60. Remains to be seen how they will deal with the M6

 

[m_five]

They do this (M5) because they love the technology and the challenge to build the perfect car for enthusiasts like us and to bring the race track to the street. It's a matter of pride more than money. The exchange rate may have hurt the price as well. In any case I'm glad they do this. Mercedes on the other hand may do it to amortize the aquisition cost of AMG

I love BMW...... :wroom: :M5launch:

The romantic in me would like to agree...but BMW is in business to make money...not increase their pride!!!

 

[TOPSUPRA]

Im number #3 on a list at a small dealership, and from what Im seeing on this board and hearing from others many dealerships have already recieved allocations while some dealers have said there getting as many as #6-#10 before the end of the year.

It appears many of the small dealerships have not even recieved #1 allocation as of yet....I was told by the dealer Im dealing with they have not recieved any allocations as of yet..I have called a few other dealers and they told me they did a check in there date base for the South east region and that many of the small dealers have not recieved any allocations....Ive called BMWNA and as usual they have NO IDEA....Dose anyone have any feedback to how these allocations work ? Also since I have a deposit with a samll dealer when I should expect to recieve my car...Thanks...Jay.S

 

[Jim Dolan]

Im number #3 on a list at a small dealership, and from what Im seeing on this board and hearing from others many dealerships have already recieved allocations while some dealers have said there getting as many as #6-#10 before the end of the year.

It appears many of the small dealerships have not even recieved #1 allocation as of yet....I was told by the dealer Im dealing with they have not recieved any allocations as of yet..I have called a few other dealers and they told me they did a check in there date base for the South east region and that many of the small dealers have not recieved any allocations....Ive called BMWNA and as usual they have NO IDEA....Dose anyone have any feedback to how these allocations work ? Also since I have a deposit with a samll dealer when I should expect to recieve my car...Thanks...Jay.S

How these allocations work?: It would be easier to get the formula for nuclear fission. Sales advisiors are the last to ask, I had more information than they did thanks to this board, such as the internal sales brochure. There obviously is much confusion as to how this works.

 

[m5floyd]

simple formula:

1 You order a car.
2 You get and allocation number when BMW Germany is going to que your car for manufacturing.
3 When you get your number, you will soon be on the ***. Line and they will make your car, from the day you get you number, count 5-6 weeks and you should be driving your car.
4 Until you get an allocation number, your car is just in the dealers computer to be ordered and BMW Germany has not recorded it as an order yet.

Hint..if your in a long line at your local dealer...call around to other dealers in the US.

Floyd.

 

[TOPSUPRA]

That's what's very frustrating Im providing more info then the people Im buying the product from.....

Ive heard a few versions on how the allocations work, one example is for every Large Dealer that gets 3-4 cars a Medium dealer will get 2-3 and Small dealer will get 1-2 per allocation....Then today I heard that the dealers with the larger number of reservations will get a better allocation then the one with a smaller reservation lists......

I was told a few weeks ago all dealers would be getting some idea of there allocations for the balance of the year...Since Im #3 at a small dealer Im wondering if I would be better off being #6 or #7 at a Medium or #10 or #12 at a larger dealer.....If anyone has better info please advise me....Thanks...Jay.S