[snareman]

If you are waiting for an allocation does having the dealer put your order in their order bank do anything for you getting an allocation sooner compared to if you just tell the dealer to call you as soon as they have an available allocation for that car? Does BMW look at order bank lists and give dealers any preferential for an allocation if they have a guaranteed sale from an order bank car? Or, is it just a way for the dealer to wrangle into ordering the car from them with no affect on when they will actually get an allocation for that car?

[Glen e]

Bmw does not look at anything in the queue that they get from the dealer as different from each other. The dealer matches his allocation with the name/order, submits the order and the car is built. It’s literally that simple.

[snareman]

Originally Posted by Glen e

Bmw does not look at anything in the queue that they get from the dealer as different from each other. The dealer matches his allocation with the name/order, submits the order and the car is built. It’s literally that simple.

Thanks. So no real point in having a dealer put you in their order bank vs just having them call you when they get an allocation for that car. And I also assume thus, no big deal if you get put in the order bank for the dealer and then back out when they call you because you found one somewhere else first? I asked one dealer about that and he basically told me that if I backed out after I was in the order bank that it would be rather impolite and kind of inferred I would be a jerk, but if he just called me when he got an allocation and I wasn't interested it was less of a big deal.

So why do dealers want you to put an order in their order bank?

[Westside Guy]

My local dealer has a one-year waitlist for the M3 and a friend of mine added his name to the dealer's list as he wants a competition model. This dealer honors that list and as their allocation opens up they are placing orders with the factory.

Also there are situations where people have ordered cars and when they arrive at the dealership they change their minds at the last minute. At that point the dealer has their salesmen call people that are on the top of the list for cars that have not yet been put into work and give them first crack at the one that has now become available.

[snareman]

Originally Posted by Westside Guy

My local dealer has a one-year waitlist for the M3 and a friend of mine added his name to the dealer's list as he wants a competition model. This dealer honors that list and as their allocation opens up they are placing orders with the factory.

Also there are situations where people have ordered cars and when they arrive at the dealership they change their minds at the last minute. At that point the dealer has their salesmen call people that are on the top of the list for cars that have not yet been put into work and give them first crack at the one that has now become available.

I don't think you're talking about the same thing. Its 2 different things I'm talking about. One, the dealer asks you to put an order in their order bank (I'm trying to figure out what or if this accomplishes anything useful) OR two, you just get put on a list at the dealer (what I prefer) and they call you when they get an allocation.

[Glen e]

The dealer decides who gets his cars. Nothing he puts in the system changes the way the sales manager wants to allocate the cars to the customers that have orders. Whatever list he has he’s working off of is who gets the cars. BMW allows the dealer to put it into the system so Bmw can see approximately what the demand is for the car but they do not use anything in the system to match a customer to an allocated car.

A dealer that puts a sold car into the order system where he doesn’t have allocations doesn’t go anywhere. It doesn’t help him get allocations. Allocations are determined by an algorithm in the system that takes into account how fast he’s selling that model, how many he has in stock, and his past sales velocity, not how many orders he says he has.The only two ways that you can increase your allocation of a hot model is to make sure you immediately sell the one that you just got in and it doesn’t sit on the floor, and buy/trade /swap other dealers for more of the hot model that has no prev RDR. The latter being almost impossible because no dealer will usually give them up.

Occasionally the district manager will have a car come loose for whatever reason, and he can decide where to put it. But that doesn’t happen very often.

If Bmw was found to be giving cars to dealers based upon what they said they had sold, they would end up in court. Because dealers can lie. An allocation system based upon sales statistics of the dealer are the only thing that allows Bmw to distribute hot cars. A dealer can fabricate anything whatsoever;down payments, buyers orders, etc. Porsche several years ago got into this problem with their hot cars, it’s called a straw buyer.

https://www.investopedia.com/terms/s/straw-buying.asp

[PittsDriver]

Originally Posted by snareman

I don't think you're talking about the same thing. Its 2 different things I'm talking about. One, the dealer asks you to put an order in their order bank (I'm trying to figure out what or if this accomplishes anything useful) OR two, you just get put on a list at the dealer (what I prefer) and they call you when they get an allocation.

The useful thing it did for me was make my #1 in line for the next allocation they got for an M50i. There are buyers behind me in line for that allocation and the dealer, which I believe is telling me how they act, connects buyers with allocations on first come first served with deposits on an order.

If you want the car I'm not sure why you wouldn't go ahead and put in your order. Regarding my deposit, if I change my mind and don't buy the car after it's built, then they refund my deposit when the car sells to another buyer.

[BMWCCA1]

Yes, and no.
BMW will allocate production spots based on sales criteria outlined here. But it also happens that when an allocation comes up, BMWNA will take an order-bank order and convert that to a production order with the same name and options as originally put in the order-bank. So, does it eventually end up with a production spot? Sometimes. Does it get the dealer more allocations? Not really. It is a place-holder for your order with the dealership. I had three 45e PHEVs move from order-bank to Status 111 for May production just the other day. No doubt that having them in the order-bank helped but by the same token I've had M3s in the order bank for nearly a year without increasing my allocation.

[snareman]

Originally Posted by PittsDriver

The useful thing it did for me was make my #1 in line for the next allocation they got for an M50i. There are buyers behind me in line for that allocation and the dealer, which I believe is telling me how they act, connects buyers with allocations on first come first served with deposits on an order.

If you want the car I'm not sure why you wouldn't go ahead and put in your order. Regarding my deposit, if I change my mind and don't buy the car after it's built, then they refund my deposit when the car sells to another buyer.

But still, I think we're talking about 2 different lists. I've told the dealer that I want, in this case, a 2023 X3 M40 and they should let me know as soon as I get an allocation. I am thus on 'their list'. The question here is, as I am already on that list does having them put my order in their order bank actually help me at all? The reason I'm reluctant to be put in their order bank is that I'm not convinced they will get an early allocation and potentially I would get the car elsewhere. I know I haven't officially signed anything, but the one dealer basically told me that if I put an order in their order bank and then don't wait for that allocation and go somewhere else instead that I'm being a jerk.

So the question is - what's the different to both or either the dealer or me if I'm just on their "call me as soon as you get an allocation" list or have put a specific build in their order bank?

[snareman]

Originally Posted by BMWCCA1

Yes, and no.
BMW will allocate production spots based on sales criteria outlined here. But it also happens that when an allocation comes up, BMWNA will take an order-bank order and convert that to a production order with the same name and options as originally put in the order-bank. So, does it eventually end up with a production spot? Sometimes. Does it get the dealer more allocations? Not really. It is a place-holder for your order with the dealership. I had three 45e PHEVs move from order-bank to Status 111 for May production just the other day. No doubt that having them in the order-bank helped but by the same token I've had M3s in the order bank for nearly a year without increasing my allocation.

I'm confused on what you're saying... BMW allocates based on the above criteria. But you said they will convert an order bank car into a production. But is that really any different than a slightly delayed process of the dealer telling me they have an allocation and then I give them my specifics and they put that in and I get a production number? It sounds like essentially the same thing. Unless BMW just automatically converts it without checking with the dealer or customer first to make sure they still want it. Not trying to argue, just to understand.

[BMWGirlFL]

Originally Posted by Glen e

A dealer that puts a sold car into the order system where he doesn’t have allocations doesn’t go anywhere. It doesn’t help him get allocations. Allocations are determined by an algorithm in the system that takes into account how fast he’s selling that model, how many he has in stock, and his past sales velocity, not how many orders he says he has.... An allocation system based upon sales statistics of the dealer are the only thing that allows Bmw to distribute hot cars.

Also been trying to figure out the best way to secure a future allocation. Think this is close. Correction and clarification welcomed!!

Maybe helps to envision a single system (order bank) connected to BMW AG. AG plans utilization of production slots and distribution to global markets in advance. (Customer really just specifies equipment changes on a previously planned vehicle.) Markets, in turn, distribute slot allocations to stores based upon past store performance and other complex considerations. (Making store selection an important strategic customer choice with limited production models.)

The dealer decides who gets his cars.... Whatever list he has he’s working off of is who gets the cars....

Customer "orders" entered by a store without an available allocation will be at production status 047 in the system. Vehicle production status is advanced to 111 in the system by BMW NA on a first come first served basis as the store receives allocations. My understanding is stores have ability to change equipment and customer assignments. I think this is why there seem to be different store practices and no easy answers.

[SpeedyATL]

Originally Posted by Glen e

Because dealers can lie.

Say it ain't so....

I don't believe this for a minute...never happened, never will happen.

[wtwo3]

I'm waiting with 3 different dealers. 2 of them are maintaining external wait lists while 1 of them submitted my order into the order bank. In asking that 1 dealer why their process was different from the other 2 dealers, they didn't really provide any insight on one approach vs. another, but did mention that by placing the order directly into the order bank, BMW gets visibility on the order, and it also removes any funny business from the dealer to rearrange the waiting order based on customers who are willing to pay more.

Not sure if that's true, and I don't know of any tangible benefit of doing one vs. another. However it does FEEL more official with my order being directly in the order bank with a VIR as opposed to just taking the dealer's word that I'm on a waiting list and trusting they honor that list.

[snareman]

Originally Posted by wtwo3

I'm waiting with 3 different dealers. 2 of them are maintaining external wait lists while 1 of them submitted my order into the order bank. In asking that 1 dealer why their process was different from the other 2 dealers, they didn't really provide any insight on one approach vs. another, but did mention that by placing the order directly into the order bank, BMW gets visibility on the order, and it also removes any funny business from the dealer to rearrange the waiting order based on customers who are willing to pay more.

Not sure if that's true, and I don't know of any tangible benefit of doing one vs. another. However it does FEEL more official with my order being directly in the order bank with a VIR as opposed to just taking the dealer's word that I'm on a waiting list and trusting they honor that list.

Did the order bank dealer tell you what happens if you pull out of the order Bank order? Is it a big deal?

[wtwo3]

Originally Posted by snareman

Did the order bank dealer tell you what happens if you pull out of the order Bank order? Is it a big deal?

If you're asking specifically about the deposit, it did seem to be a little more complicated than simply having your order on an external list. He mentioned if I decided I didn't want the car, they would refund my deposit once they sold the car (which they obviously wouldn't have any issues selling)

Ultimately there's some state laws at play as well. In Illinois at least, you're legally entitled to a refund of a deposit if you pull out of the order. So I would check 1) what the dealer's policy is on deposit refund for an order already in the order bank and 2) what state laws are around getting a deposit refunded.

For me personally, I went with this dealer because I've got a personal connection to them (friend of mine is a VIP client of theirs and referred me to them so they're incentivized to treat me well).

[snareman]

Originally Posted by wtwo3

If you're asking specifically about the deposit, it did seem to be a little more complicated than simply having your order on an external list. He mentioned if I decided I didn't want the car, they would refund my deposit once they sold the car (which they obviously wouldn't have any issues selling)

Ultimately there's some state laws at play as well. In Illinois at least, you're legally entitled to a refund of a deposit if you pull out of the order. So I would check 1) what the dealer's policy is on deposit refund for an order already in the order bank and 2) what state laws are around getting a deposit refunded.

For me personally, I went with this dealer because I've got a personal connection to them (friend of mine is a VIP client of theirs and referred me to them so they're incentivized to treat me well).

Ah, didn't know you put a deposit down. I was on the 'call me when you have an allocation' list at several dealers with my M4. One of them wanted a deposit and said they'd refund it no problem if I got the car elsewhere. I got the car elsewhere and for the most part was a simple process getting them to refund my money. That was the same dealer that said they would either charge me an extra point on the interest rate or I'd have to buy a package like tire and wheel protection. Something for them to make extra profit off me. Nice as the CA was to deal with I'm happy I got the car elsewhere.

I agree the allocation list seems more official. My long time CA described it to me as "now BMW know you're interested in a car" for whatever that was worth as I seem to be gleaming from this thread.

[wtwo3]

Originally Posted by snareman

I agree the allocation list seems more official. My long time CA described it to me as "now BMW know you're interested in a car" for whatever that was worth as I seem to be gleaming from this thread.

Yup that's pretty much what they told me as well. But yeah.... not sure what that's worth really or if it's just words that are nice to hear when you're desperate for an allocation

[snareman]

Originally Posted by wtwo3

Yup that's pretty much what they told me as well. But yeah.... not sure what that's worth really or if it's just words that are nice to hear when you're desperate for an allocation

Right. When I first heard it it was such a comforting thing. BMW knows I want a car. Eventually I decided it was all dealer speak.

[BMWCCA1]

Originally Posted by snareman

I'm confused on what you're saying... BMW allocates based on the above criteria. But you said they will convert an order bank car into a production. But is that really any different than a slightly delayed process of the dealer telling me they have an allocation and then I give them my specifics and they put that in and I get a production number? It sounds like essentially the same thing. Unless BMW just automatically converts it without checking with the dealer or customer first to make sure they still want it. Not trying to argue, just to understand.

In many cases, BMW will simply take an order bank spec and purchaser name and add it to a production spot. Doesn't mean the dealer can't modify it for the buyer, or sell it to someone else, or change the Priority if they want to. I've had X5 45e orders in order bank pop up in the DAR as 111 status with the same spec and customer name during the monthly allocation. I've also had anything from i3 to M3 just sit in the order bank for a year without changing into production. Your being in anyone's order bank doesn't change anything with BMW or the dealer. I doubt BMW will see that you've put yourself in multiple dealer order banks, either. Without an allocation for a production spot, the order bank really means nothing.

[PittsDriver]

So when I gave my dealer a $1,000 deposit on a car for which they had no allocation, that very definitely did something for me. The dealer put me first in line ahead of others that came after me wanting to order a car. I've since gotten my name on the allocation with a week 20 build locked in. I know nothing of what "order banks" mean and it might not be written in stone anywhere that it has to work that way but the dealer, in my opinion, did the proper thing behaving in this manner. So the effect of my committing to the order got me the first allocation possible for my purchase. Would they have gone through their rolodex calling potential customers for the allocation? Likely, but who knows if I would have answered that call before they went on to the next customer.

[Glen e]

There is a huge difference between trying to match allocation with a customer if the car is hot. If you’re ordering anything like an X3/x5/3 series etc. etc. and you give them a down payment, they usually will have an allocation within 60 days, sometimes much quicker. It’s only the super hot stuff (m3, etc) that is the subject of this thread. In those cases, nothing you do , nor nothing the dealer can do with the order bank etc. will get an allocation faster. getting a slot open Has to do with his past history and sales velocity. I allocated cars to dealers in Texas, Florida and Pennsylvania for 20 years before I retired from BMWNA, and every month I would get a sheet and it would list my dealers and what exact models they were to spec out for production. It came directly from national distribution/DCS and could not be manipulated.

[JoeyDDD0919]

Originally Posted by Glen e

There is a huge difference between trying to match allocation with a customer if the car is hot. If you’re ordering anything like an X3/x5/3 series etc. etc. and you give them a down payment, they usually will have an allocation within 60 days, sometimes much quicker. It’s only the super hot stuff (m3, etc) that is the subject of this thread. In those cases, nothing you do , nor nothing the dealer can do with the order bank etc. will get an allocation faster. getting a slot open Has to do with his past history and sales velocity. I allocated cars to dealers in Texas, Florida and Pennsylvania for 20 years before I retired from BMWNA, and every month I would get a sheet and it would list my dealers and what exact models they were to spec out for production. It came directly from national distribution/DCS and could not be manipulated.

Do you know or can you share who gets more allocation?