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      07-07-2007, 09:14 AM   #101
PMP
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Drives: 2006 330i Sedan
Join Date: Sep 2006
Location: Tampa

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Just scanning through these posts is seems that some of the basic concepts of economics are being ignored. At the heart of the matter is the fact that (many) BMW owners will pay a premium for their cars and for luxury items like blue-tooth connectivity, special lighting, upgraded sound systems, etc. Ergo, BMW slides the price over to the right. You vote with your wallet and we have spoken.

Also have to consider some of the less obvious costs of building a BMW over a Nissan (note, I wrote 'cost' and not 'price'). I recall, when my car was brand spanking new, being very concerned about that first post-break in oil change. I have a good friend who is a BMW mechanic and asked a million questions about it. He told me that every BMW engine is fully tested and broken in using a special lubricant before it is even put in the car. Said not to fuss with it (although he did say to change the oil at roughly 2x the BMW recommended cycle due to valve fouling). Think about the cost of doing this break in. You have to have an extra area in your factory, technicians to babysit the engines and make any necessary adjustments, etc. All that costs money which is passed along to you. Meanwhile, Nissan just pops the engine in and makes certain that it will run. It is a fact that Nissan motors run forever, so I have no complaints with their system. But, BMW takes it to another level. That kind of thinking permeates the company. Then, because their cars are so darn fun to drive, they get to tack on a higher profit margin. At the end of the day, the car ends up priced 25% higher than some of the competition. There you have it ... if you want the car you have to pay extra. The add ons just push the price even higher, so they give you the choice of paying $45k or $55k.

I think it is important to also consider some of the very expensive "standard" options that BMW's include like rear wheel drive, DTC, huge brakes (more important than a turbo charger), automatic brake drying system, rear mounted battery, 50/50 weight balance, standard RFTs, sport tuned suspension system (at $1k that is basically included in the price), etc. I'm not sure if half those things are even available on a Nissan. I'm not knocking Nissan. My first car was a Nissan and it was a great car. It never broke, wasn't particularly fun to drive but it held its own, and looked almost new when I sold it with 150K miles on the odometer.

Consider Ferrari. They hand build their cars. At the end of the day, a Corvette will deliver similar performance. But, it is not hand built. Is hand built better? In some cases, it probably results in MORE problems. But, it is hand built! I've driven a Ferrari and a Corvette and they were both awesome to drive. But I'd take the Ferrari 100% of the time given the choice.
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