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Thread: A look back

  1. #1
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    A look back

    I wrote this up for Hitman a while back on another board after he found out I used to be one of those Grey market importers in the 1980’s. ☺ recently somebody on this board asked me about it so I figured I would just post it up here. Some of it may clarify some things about euro cars and options. It is what I remember and man I wish I had held on to some of those cars I had my hands on. The 600 Pullman and 6.9 come to mind right away. But anyway here’s a look at what it was then and why our euro cars are so different .

    Because of the high value of the dollar during the mid 1980’s, it was cheaper to buy used cars in Europe and ship them here than it was to purchase the same car in the United States. This pretty much created an instant industry that would dry up nearly as quickly.

    The market was for the upper end, and hard to find cars, like e23, e24, 911, 928 and Mercedes SL, SEC etc. E28’s were fairly popular but only in the M series or 535iS models. Hence you don’t see too many 190E or 318i euro; the price difference wasn’t so great to make it worth it in most cases.

    There were several different things to consider when buying these cars from an importers perspective. For example If the car was 5 years old or older, you got a one time EPA exemption if it was imported in your own name and was for personal use, but you still had to do DOT conversion. Obviously this was attractive because you could keep the power and not mess with the electronics. It was also a couple thousand cheaper since there was no EPA stuff to do.

    If you bought the car with the intention of reselling it, you had to do both EPA and DOT federalizing no matter the age. That’s why there is such a disparity in cats vs no cats on cars of the same year. Just depends on who bought it, how it was titled, and how old it was.

    If it was 25 years old you didn’t have to do anything and that’s still true today. The exemptions were really meant for servicemen stationed abroad that owned cars and wanted to ship them home. This was the federal requirement; some states had additional requirements on EPA, like California. I didn’t sell in California but I am pretty sure they were all EPA converted from the very beginning. I could be wrong about that though.

    If you were a registered dealer, then you had to do everything regardless of the age up to 25 years old. What a lot of us did was go find cars for individuals and would import them directly in their name. So in effect we were brokering. If you wanted an e23, I would go to Germany and find it for you, buy it in your name, and ship it. I would also arrange the customs, DOT and EPA conversions or exemptions with a shop I trusted.


    That shop also had to go through an approval process for their conversions. They would have to submit engineering plans to the DOT agency for each car model they wanted to convert and have them approved. The shop I used here in New Orleans had an engineer figure out all of the door and bumper needs and that became the plan. There was a shop in Houston that did any EPA work I needed. 



    The shops were required to photo each car as the work was done and submit them for proof of completion. The shadiness part of the grey market came when they submitted photos and the work was substandard. There were more than a few cars that were caught with electrical conduit in the doors and some flimsy material in the bumpers that couldn’t be ascertained by photos. Others were submitted with photos from other cars and no work was done. Several people went to the klink on that one. That was pure greed. It was really too easy to do it right and you could still make money.


    There were some rules that used to drive us crazy. The headlights were one of them. They used to have us destroy the old assemblies and change them to the inferior US products. I can remember seeing a 55 gallon drum full of euro lights for destruction. I am also quite sure most of those got resold as that was pure idiocy.

    It also wasn’t a guarantee the windshields would be right and this was an expensive one. All glass has to have DOT marks. The Germans sometimes used their own marks. Equal quality, but not the DOT mark, so change the windshield. Did that on a 126 Benz a few times.

    Then there was new cars sales. What complicated new cars was the lack of warranty when they got here, the addition of EPA stuff that was never intended for the car (Johnson box), and the German dealers.

    Virtually every new 126 or SL benz, 911 or 928 Porsche, 7 or 6 series BMW was being snapped up and exported from Europe to the states which was damaging to them in the long term and was causing them warranty complaints in the US. The manufacturers then required that purchasers of these cars have an address in the areas where they purchased the cars. So if I bought a car in Frankfurt I had to prove address there. That made buying New cars tough. Particularly when the new model SL came out.

    That was the landscape. To be sure most cars were bought used so you got what options you got. I bought most of my cars from owners because the dealer situation was just like here. Some were good and reputable, some very shady. I remember walking on a lot in Frankfurt with a dozen of the cars I was looking for and I thought I hit the jackpot. Then I saw the instrument cluster from every car was sitting on the drivers seat just waiting for the miles to be customized. I asked him why he did that and he told me Americans were too concerned about miles. I moved on.

    I bought cars from all over Germany. Options were all over the map. New, you could order a car with one sport seat for example. That one seat could be velour and the rest of the interior leather. You would find that kind of stuff in 728’s or 732’s. If you moved up the scale, more things came standard so you didn’t see that kind of stuff in a 745, however you could still get velour interiors, sunroof delete, glass roof, gas interior heater (standheizung), headlight wipers, A/C, Auto A/C, electric windows (you could order front only), Seat heaters, etc. In general if I got a car with velour interior, I almost always had to add electric windows and a/c.

    MANY air conditioners were added after we bought the cars and were not factory, particularly on 732, 733. This was not the case for 745 as it was standard. They actually did a pretty good job adding these except for the recirc part. So if you have issues with A/C, as I know you do, part of it could come from this. Mercedes was like this too, Porsche not so much



    One more complication was the aftermarket product business in Germany was huge! Wheels, spoilers, aero kits, seats, chrome trim, radio’s …. You could find good quality, which made it difficult to figure out if it was factory sometimes, or you could find the most awful things on a great car that caused tons of rust,. It was crazy and a blast at the same time. So if you have a car with what seems crazy options it could be for any of these reasons.

    Imagine a 26 year old car guy, travelling around Europe, driving the best cars for a living. What a job!

It ended quickly in about 1986 or maybe 1987. The value of the Dollar fell almost overnight when the US trade deficit became a target of the Reagan administration and the value went from about 3.4 DM for the dollar to 2.2. That was the end of that. Subsequently, there are no more EPA exemptions unless it’s 25 years old so the reduced dollar, manufacturer intervention, and the cost of conversions made this market go away.



    The 745i was a really elite car meant to go after the upper end Mercedes buyers. Really didn’t see many of those and that’s why I really wanted to get one today, which I now have, finally!

    Hope this was useful for you.

  2. #2
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    Great read. Thanks for posting. I've been working on the history of my 745i. From what I can discern, it was imported in the owner's name back in '85.

    Sent from my iPhone using BF.com

    1989 635CSi Alpinewieß
    1989 325iC Alpineweiß II
    1985 745i Cosmosblau / Pacificblau cloth
    1995 525iT S50 / 5 speed Alpineweiß III
    1985 635i Cosmosblau
    1998.5 M3 Technoviolent
    1990 325iC
    1999 528i

  3. #3
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    Thumbs up

    Man, you had a Pullman MB??? That makes these high zoot Executive 745i cars out to be for the peasants.

    Once again, I thank you for taking the time to write this all up. The insider viewpoint is very slick, a local shop here in Dallas knew the shop that imported my black 745i... Xotica Imports. Small world. Hell, maybe you saw it or dealt with it.

    You really should make a book out of this... The Life & Times of The Grey Market Automobile Importer
    I make E23 parts.
    09/1983 745i (stolen spring '13 around Houston, TX Achatgruen on nutria buffalo. 8481080)
    10/1984 745i
    11/1984 745i
    11/1984 735i (10:1-265/6)
    Ford, MB, and GM round out the pack.



  4. #4
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    I probably could write a book. As I said I bought primarily from owners from all over Germany and with pretty much great luck. I did have a lesson I will never forget though. I bought a 732 in freezing rain in Cologne. I looked the car over and the interior was absolutely beautiful blue velour and the people didn't smoke, which was HIGHLY unusual. It drove well and was I thought a good buy. What I missed in the rain was the hail damage and the fact the motor wasn't a 3.5 but a 2.8. Oops! I had to eat that one and I learned not to break the rule: Never buy a car in the rain!

    The Pullman was a trip too. It was evidently Arab owned and had Emerald green curtains and some trim and a bunch of pillows. The 6.9 was odd too. Velour interior but a beast!

    What's crazy is back then the euro cars were considered tainted and were worth less because of the Grey Stigma. Today the euro models are the most desired ones.

    You won't see Euro cars after about 1986, maybe early 1987 model because that's when the dollar collapsed. Based on that i would say the latest model car that could have come here legally without EPA stuff would have been 1982 model year if it was for personal use. Thats why all of our 745 Motronics have the Johnson box. It would have been possible to get some of the Ljets here without that.

  5. #5
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    Do you remember the valentine box for emissions?


    95 BMW M3 Alpine-
    <GO...JIC Cross Coilovers- UUC RCAB, AKG FCAB, Rogue Engineering TM bushings- AA Gen3 Exhaust- Dinan F&R Strut Bars- Dinan F&R Sway Bars- X-Brace- Mishimoto Rad- BBS RK 17x8"- TRM Chip- Dinan BBTB- DIY CAI- JP Performance Headers- 21.5 injectors- JB Racing Flywheel- Bimmerworld TB boot- 540i MAF><SHOW...OE euro clear exterior lights- Depo w/ HID- Hurricane Alcantara interior- Stereo (Kenwood,Sony,MB Quart,Rockford Fosgate,JL Audio)- Black kidneys- Euro 3 Spoke- ZHP Knob- AutoDim Mirror>

  6. #6
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    Great read! Thanks for sharing.
    1984 BMW 745i I always know when im boosting because i can feel the seat springs in my back

  7. #7
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    wow great !!!!!!!!!! love reading stuff like this
    Me E30 87/ 325i + F25 12/ M-Sport + E32 94/ 740i

    G/F’s E34 92/ 525iT + F48 18/ X1

  8. #8
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    Metairie eh? Wish I'd have known this when I was in New Orleans last month. I'da bought you a beer or two just to hear your stories.

    1989 635CSi Alpinewieß
    1989 325iC Alpineweiß II
    1985 745i Cosmosblau / Pacificblau cloth
    1995 525iT S50 / 5 speed Alpineweiß III
    1985 635i Cosmosblau
    1998.5 M3 Technoviolent
    1990 325iC
    1999 528i

  9. #9
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    Quote Originally Posted by ltflint View Post
    Metairie eh? Wish I'd have known this when I was in New Orleans last month. I'da bought you a beer or two just to hear your stories.
    I would have accepted too! What brought you here?

    Quote Originally Posted by CMG View Post
    Do you remember the valentine box for emissions?
    I only had the opportunity to deal with the Johnson box. It was kind of joke though because you just had to put it on. Nobody ever checked the results that I am aware. So as you might imagine they came off just as fast.

  10. #10
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    Quote Originally Posted by espoe View Post

    I would have accepted too! What brought you here?
    Wife and came down for a few days after Christmas. Went on to Houma to visit a friend there.

    Sent from my iPhone using BF.com

    1989 635CSi Alpinewieß
    1989 325iC Alpineweiß II
    1985 745i Cosmosblau / Pacificblau cloth
    1995 525iT S50 / 5 speed Alpineweiß III
    1985 635i Cosmosblau
    1998.5 M3 Technoviolent
    1990 325iC
    1999 528i

  11. #11
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    Interesting as I own 5 grey market cars. Wish I knew more history on them.

    It's sad about the Euro lights. Sealed beams are terrible.
    80 B6, 81 & 82 323, 85 745i, 86 535i-all euro. 01 750iL Blk/Blk 08 335i

  12. #12
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    The dealership that originally sold my 745i in Denmark is still in business. I contacted them and tried to see if I could get any of the original sales documentation. They were nice enough to respond, but apparently don't still have the records from that far back.

    Sent from my iPhone using BF.com

    1989 635CSi Alpinewieß
    1989 325iC Alpineweiß II
    1985 745i Cosmosblau / Pacificblau cloth
    1995 525iT S50 / 5 speed Alpineweiß III
    1985 635i Cosmosblau
    1998.5 M3 Technoviolent
    1990 325iC
    1999 528i

  13. #13
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    I bought a few E9 variants from Al in Manhattan Beach in the early '80s...and I always found it peculiar that if he had a red 2800CS...he had 3. If he had a white 3.0 CS with black velour upholstery...he had 3. But it wasn't until he went away that it made sense that a set of polaroids for EPA/DOT/CARB was cheaper than actually doing all the conversion work on each car. Duh.

    Wild times. Almost as crazy as Ferrari World in the late '80s.
    Last edited by andyleonard; 01-28-2013 at 12:01 AM.

  14. #14
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    It was crazy then for sure. I would go to car lots all over Germany and there would be Americans at nearly every one. Frankfurt had a street the had used car dealers on both sides of the street for blocks (never got one from these places, too high and too shady).

    What puzzles me today is that every now and then I will see a Euro car for sale and it will have full US bumpers. I never saw a converter do that, they always reinforced with steel. I guess there were a few out there that installed a whole new bumper set up. I am sure that was costly.

    BAck then Mercedes in this country was pretty exclusive and you could only get them loaded. In Germany they had totally deluxe versions down to Taxi cabs. For example, I could get a 116 model 450se as a fully loaded model, or I could find it with cloth (plaid!) interior and roll up windows. That also helped with the price difference between US models and Euro models.

    But really the most challenging thing was getting rid of the smell of cigarette smoke from the interiors. In the US we had begun kicking the habit, but over there they were still going strong. Velour interiors were really challenging. I steam cleaned them, baking soda spread around, apples under the seats, you name it, it was putrid!

  15. #15
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    Great post.

    There is an article on Wikipedia about grey market cars. There is not a whole lot of information there. Have you thought about contributing to that article? You are a subject matter expert, and your information would hit a wide audience.
    Last edited by dmac156; 01-29-2013 at 09:23 AM.
    Euro '85 635csi E24, '03 E46 325xi wagon 5-speed, '05 325xi sedan 5-speed, '67 VW Bug, '14 F150, '17 Jetta
    http://sites.google.com/site/eurobmw635csi/


  16. #16
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    Interesting as the grey market cars I have known, not many, were bought new and imported. I have the bill-of-sale for my e23 from Kolh BMW in Aachen made out in DM.

    Using the bank rate for that day this car cost about the same as the US list price for the 535i and the e23 has a lot of options (a bit more than the US 5) as well as some before sale modifications from one of the tuners. All told, this car was probably 10-15k less in Germany than a comparable model in the US. That explains the reason folks would jump through hoops to get the higher powered euro cars. Not that all of them were the more powerful motored cars.

  17. #17
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    Thumbs up

    Quote Originally Posted by espoe View Post
    It was crazy then for sure. I would go to car lots all over Germany and there would be Americans at nearly every one. Frankfurt had a street the had used car dealers on both sides of the street for blocks (never got one from these places, too high and too shady).

    What puzzles me today is that every now and then I will see a Euro car for sale and it will have full US bumpers. I never saw a converter do that, they always reinforced with steel. I guess there were a few out there that installed a whole new bumper set up. I am sure that was costly.

    BAck then Mercedes in this country was pretty exclusive and you could only get them loaded. In Germany they had totally deluxe versions down to Taxi cabs. For example, I could get a 116 model 450se as a fully loaded model, or I could find it with cloth (plaid!) interior and roll up windows. That also helped with the price difference between US models and Euro models.

    But really the most challenging thing was getting rid of the smell of cigarette smoke from the interiors. In the US we had begun kicking the habit, but over there they were still going strong. Velour interiors were really challenging. I steam cleaned them, baking soda spread around, apples under the seats, you name it, it was putrid!


    My green 745i has DOT bumpers, no sidemarkers, and no cat installed. I was told it also had something to do where the car was imported and its final destination. Not sure how true that is, as I was under the impression most came into the Port of Houston.

    A local guy in Houston has a 745i he has had pretty much since new and his had DOT bumpers installed too.



    HA, on the velour MBs. I found an '84 280SE in the junkyard with plaid velour and crank glass. My '79 280S is an ECE car too down to manual climate, manual velour seats, skinny bumpers... and that POS Solex 4A1 carb.

    I used to own an ECE W126 1980 MY 380SE with tons of oddly optioned stuff. Auto HVAC, one heated seat (yes, one), leather, LSD, power glass, and no rear speakers. Also have seen junked 126s with front and rear SLS like those W116 6.9s. Hell, I have seen only ONE 500SEL with the four place seating we love in these high zoot 745i. Apparently that was a crazy high dollar option around 10,000 DM from what I recall.
    I make E23 parts.
    09/1983 745i (stolen spring '13 around Houston, TX Achatgruen on nutria buffalo. 8481080)
    10/1984 745i
    11/1984 745i
    11/1984 735i (10:1-265/6)
    Ford, MB, and GM round out the pack.



  18. #18
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    Quote Originally Posted by Hit Man X View Post
    My green 745i has DOT bumpers, no sidemarkers, and no cat installed. I was told it also had something to do where the car was imported and its final destination. Not sure how true that is, as I was under the impression most came into the Port of Houston.

    A local guy in Houston has a 745i he has had pretty much since new and his had DOT bumpers installed too.



    HA, on the velour MBs. I found an '84 280SE in the junkyard with plaid velour and crank glass. My '79 280S is an ECE car too down to manual climate, manual velour seats, skinny bumpers... and that POS Solex 4A1 carb.

    I used to own an ECE W126 1980 MY 380SE with tons of oddly optioned stuff. Auto HVAC, one heated seat (yes, one), leather, LSD, power glass, and no rear speakers. Also have seen junked 126s with front and rear SLS like those W116 6.9s. Hell, I have seen only ONE 500SEL with the four place seating we love in these high zoot 745i. Apparently that was a crazy high dollar option around 10,000 DM from what I recall.
    The only thing I can think of is maybe they didn't have engineering for the 745 bumpers conversions and it was easier and cheaper just to go ahead and put the US bumpers on there since they were already approved.

    I have to say I never saw a 126 outfitted with the rear seats like that, didn't even know that was an option. The thing was if you lived in Germany you could order a car just like we used to to order Chevy's. I remember my father ordering a 70 Chevelle with whatever options he wanted. You could do that with those cars as well. Completely blew my mind the first time I saw a car with one sport seat. I thought sure there was something funny going on until they showed me the build sheet.

    I think another contributor to all of the hoopla was the quality difference between US and Japanese cars, and the German cars, was astronomical. If you had an american car with 100K miles you could be sure there was an engine rebuild, front end replacement in your future. Squeaks, rattles and fading paint.

    I can't tell you the cabs I got in with 300k Miles on the original engine and there were absolutely no squeaks or rattles. They used to give me the hardest time about finding cars with under 50k miles. They just laughed at me when I brought up the idea of a 100k mile car being over the hill. If only they had A/C! Most every car did not.

    Another thing was I favored BMW cars for the same reasons we all love them. By far though, the Germans favored Mercedes. Can't say they were wrong, just the 2 at that time were different animals. So I solved it for me by having one of each! 1980 733 4 speed, and a 1980 380 SE auto AMG outfitted. Both amazing vehicles at the time. If you could get someone to drive one they would buy one.
    Last edited by espoe; 01-31-2013 at 11:03 AM.

  19. #19
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    A look back

    K
    Last edited by espoe; 10-27-2018 at 08:07 AM.

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