01-11-2023, 11:43 AM | #1 |
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PSA: How allocations work
There's been a lot of confusion about allocations lately so let this be a primer to anyone who doesn't understand the process.
Dealers still get to decide what cars they want. For instance, if BMW allocates 4 M2s to a dealer this month the dealership may decide to only get 2 or 3 cars and use the remaining slot/s for M3/4s instead because they may make more on the sale of those cars, already have a long backlog of customers that have been waiting for them or any other number of reasons. Say you put a deposit down with a dealership, but it's not a high volume seller of M cars. You are number 3 on the list and you know the launch of the M2 is in April so you might think you're getting the car in April or May. The reality is your dealership may only get two cars at launch and just because the launch is in April doesn't mean the dealership will get them in April. Remember, BMW handles the allocation process and it's at their discretion how many each dealership gets each time allocations are given out and who gets the first deliveries. Your dealership may not get anything until May or June and being you're in the number 3 slot means even if they get 2 cars you still need to wait at least another month which now puts you around July/August timeframe. One other factor to mention is there can be juggling and side deals behind the scenes that you are not privy to. Someone may want an M2 badly and offer $5k, $10k or even $15k over MSRP. Just because you have a deposit down and a contract signed by the sales manager doesn't amount to anything more than a lose placeholder. It's not a binding contract, saved on BMWs systems or maintained by some ethical team of people. This is what also makes it easy to manipulate. It's not uncommon for a salesman to bump your allocation up and sell your allocation to someone else. When you ask what's taking so long, they'll say they don't know what's causing the delay or come up with some other excuse. A dealer may also see you ordered a relatively low optioned car while some others on the list want a fully optioned car with the CF package, etc. and they'll juggling allocations around to sell those first because they the make most profit on them. * As a sidenote there are honorable salesmen out there, but they may work with dishonorable people which in turn makes them look bad. In short, the entire system sucks and has only gotten worse. |
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01-11-2023, 12:24 PM | #2 |
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This might legit be the most useful post on the forum with regards to the buying process. I wish dealerships were more transparent when it comes to the buying process but in reality, they are a business and every penny counts. Kuddos on this thread.
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01-11-2023, 02:05 PM | #3 |
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Allocation = production number with a status 111 or greater.
I have never had an allocation/production number not turn into the specific car I specced. VIN not required (you don't receive this until your build hits status 150 - Production Started). If you have an allocation/production number and it's been configured to your spec, you have a car on the way. For good measure, ask to see the Vehicle Inquiry Report and make sure your spec is accurate and that your CA puts your name on it as the official "Customer" and changes the status to "Priority 1 - Customer Sold". Put the prod number in MyBMW and have fun watching your build progress. It is obviously not legally binding until you sign a sales contract, but the overwhelming majority of BMW stores will absolutely honor and guarantee the delivery of the car specifically attached to your allocation/production number. A deposit + written contract with clear deal terms + actual production number is a guaranteed thing; I have yet to hear of an actual BMW dealer breaking a deal when all three are in place. Where some dealers may play games is on the pricing; some may refuse to honor verbal pricing commitments if market conditions change. (Frankly, customers have played this game for years, too.) When you have an allocation/build number, there's no need to ask the dealer, "What's taking so long?" You can answer that yourself by checking out the status of your build on MyBMW or giving BMWNA a call. Until your build hits status 150, your car's production schedule is not set in stone. 112 is a reasonable indicator of the production week, but your status can easily revert back to 111 with the scheduled week rescinded. Once you're at 150, your car will be built within 2 weeks and you're typically 1-2 months from receiving the car (barring no parts shortages or port logistics issues). |
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01-11-2023, 02:12 PM | #4 | |
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01-11-2023, 02:20 PM | #5 | |
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Speaking as someone who purchased 4 new M cars and 2 M-Lite cars in the last 18 months and have engaged with over a dozen dealerships. |
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01-11-2023, 02:23 PM | #6 | |
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01-11-2023, 02:30 PM | #7 | |
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I have yet to have a dealer claim to have an allocation and not have a production number. This doesn't even factor in that most dealers immediately put in a placeholder build and immediately get the prod number, anyway. |
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01-11-2023, 02:37 PM | #8 | |
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If a store says they have an allocation for you, it means they have a slot for you and can provide you with a production number. |
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01-11-2023, 02:40 PM | #9 | |
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Dealer tells you they have an allocation for you. That means nothing because there's no way to validate it. They can give you an allocation they currently have or one they 'expect' to get at a later date. That still means nothing to you and isn't a guarantee of anything. As I stated in my 1st post they can give your 'allocation' to someone else at any time which again means nothing. The only time you are guaranteed a car is when you officially get a production number, and the build is underway. |
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01-11-2023, 02:42 PM | #10 |
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01-11-2023, 02:46 PM | #11 |
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I am intentionally going to be vague, but the above post are hit and miss in regards to allocations. While some information is correct, it is not 100% accurate.
Advanced list of BMW factory status codes and their meanings: https://www.bmwofminnetonka.com/bmw-...-status-codes/ |
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01-11-2023, 02:50 PM | #13 | |
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01-11-2023, 02:51 PM | #14 |
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Yes, that's what I've been trying to explain. What I meant was the dealer was saying they have an allocation to give me. As I've said several times this means nothing to the customer. The only time you are guaranteed a car is when you get a production number, and it then goes through all the status codes as posted above.
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01-11-2023, 03:00 PM | #15 | |
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01-11-2023, 03:03 PM | #16 | |
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Seems like we're talking past each other from different perspectives. |
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01-11-2023, 03:20 PM | #17 |
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BMWBLOG - How to Track my BMW Order (2022)
Congratulations, you have placed an order internally designated as “047-status”. This means your order has been submitted to BMW, but the dealer has not yet received an allocation to fulfill it. This simply broadcasts to BMW Headquarters that the dealer has an order that needs to be fulfilled. You can’t track 047-status cars, and the dealership doesn’t have a definitive way of knowing the timeline, but they can make very educated guesses. What is BMW’s Allocation Process? The current allocation process is a bit complicated, but here’s a quick summary. Essentially, dealers are awarded based on how quickly they sell the vehicles on their lot. The best performing stores receive the largest percentage of total scheduled production. It’s important to remember that for high-demand cars, like the M3 or M5, total production is still low compared to normal levels. So, even high-volume dealers may still only get two or three allocations per month – or less. How Long Do I Have to Modify My Ordered BMW? An 047-status car can be modified indefinitely. Upon receiving a production number, there is a limited amount of time to modify the order. After the car enters production and receives a VIN number, it cannot be modified by anyone. The full article can be found here: https://www.bmwblog.com/2022/07/31/h...be%20fulfilled. |
01-11-2023, 03:27 PM | #18 | |
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This why it's important to get all of this info correct. No one wants to be told how to do their job by someone who actually doesn't know what he's talking about. Walking into a dealership both distrustful AND misinformed is a quick way to have your dealer choose to not do business with you and instead service a more compliant customer (who may actually be willing to pay more). That's a story I've seen on these forums many times. |
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01-11-2023, 03:52 PM | #19 | |
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01-11-2023, 03:56 PM | #20 |
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Thank you everyone for your insights. I think as a consumer what I am recognizing as a takeaway is that there are a lot behind the scenes. Some favorable, some not; but at the end of the day the only thing you can control is putting in your order. The rest, you have no control over so no need to worry about it. Let the dealership take care of it.
I would also like to emphasize that this should be an enjoyable process. Just put the order in, hope for the best, if it doesn’t work out then lesson learned and move on. My paradigm is that, the dealership wants to sell a car and you want to buy one, so odds are you’ll end up with a car regardless of how complex this process is. |
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01-11-2023, 04:04 PM | #21 | |
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01-11-2023, 04:36 PM | #22 |
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Eh, I ordered one and gave them them my spec. Order in the bank. Waiting for Allocation.
I see car = Me sign paper = Car is mine |
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