Can you afford both a new car and a trip to Europe in the same year? A friend of mine found out one purchase makes the other possible.
Several years ago, he bought a Mercedes-Benz directly from the factory and saved about $5000 USD combined for his purchase and the trip.
This is possible for one reason: He took delivery of his new car at the factory near Stuttgart.
Mercedes put him up for several nights in Europe, gave him a tour of their factory and let him drive his new car around the continent for three weeks before shipping it home. They even provided 15 days of zero-deductible comprehensive insurance!
By taking delivery in Europe, he probably saved several thousand dollars over the manufacturer's suggested retail price (MSRP) at a domestic dealership.
My friend used frequent flier miles to get there and back, so all he had to pay for were additional nights, meals, and gasoline.
Sound like a good deal? Truth is, you might be able to do even better!
In addition to Mercedes Benz, Audi, BMW, Porsche, Saab and Volvo also are known for their European Delivery programs.
How It Works
Each automaker has its own procedure for taking factory deliveries in Europe, but here's a general synopsis:
1. You arrange to purchase an eligible model at your home dealership.
2. Purchase and travel arrangements are completed.
3. You travel to the factory with the necessary documents, take delivery and travel the highways of Europe.
4. Your trip ends either back at the factory or some other drop-off point in Europe.
5. The car is shipped to your home dealership and arrives a number of weeks later, where you take final delivery.
Potential Drawbacks and the Fine Print
If you want to start driving your new BMW stateside within a few weeks of purchase, European Delivery is not an option for you. As we've noted, the whole process can take months.
There are other considerations, too.
You must read the dreaded fine print we speak of so often at About Budget Travel.
In that fine print you will read, among other things, that your state's sales taxes are payable upon delivery. Speaking of taxes, Mercedes buyers are warned that a hefty German government tax begins at the three-month mark, and you'll also pay a renewal fee to the Swedish government if you keep your new Volvo in Europe longer than six months. At one year, you'll pay Value Added Taxes that are more than a third of the car's value. We're recommending European Delivery only for short stays.
Remember too that some automakers will charge you for the privilege of dropping off the car somewhere other than the factory. This brings us to a rule-of-thumb: If you don't plan a trip that begins and ends in northern Europe, costs will increase to the point that your savings might become insignificant.
Check the insurance coverages carefully. The Volvo deal, for example, does not include coverage in Europe past 15 days, and does not permit travel into the former Soviet Union, so plan your itinerary accordingly.
No one is picking on Volvo here. Each manufacturer has fine print. Read it before you fall too deeply in love with this idea.
Perhaps the loudest caveat should be sounded about the car purchase itself. If you're not likely to be happy with the model, joyous memories of your European adventure will fade with each frustrating day. Be certain the model ordered is something you would buy if the trip was not in the planning mix.
One final warning: be familiar with which lines are eligible. You also would not want to order a model that is frequently discounted at home. Start with the list of eligible cars and then compare their U.S. and European delivery costs.
Why Do They Do it?
Let's first answer the question by assuming "they" are the car buyers.
My friend wanted to tour Europe without the costs of car rental. Many will argue rail tours are cheaper. But drivers stumble across budget travel discoveries far from the rail hubs. That perfect picnic spot is much harder to find from the window of an Inter City Train than from the windshield of your own car.
Remember that gas in Europe is at least triple the costs in most U.S. locations, and that unleaded blends are sometimes harder to find. You can offset that cost by staying in smaller towns and enjoying the cheaper hotel rates they often afford.
Now let's assume "they" are the car manufacturers.
Many of these programs started when European cars were still gaining acceptance in U.S. markets. These delivery options were viewed as a way to "sweeten the deal."
So why do they still exist in a time when these brands are trendy? Two words: Customer loyalty.
The marketing people know a nice, budget trip overseas every five years or so is hard to resist.
