Quote:
Originally Posted by michal12
I am based in Prague. In here, the new M3 is priced approx. 10% BELOW the old model
The reason for that is appreciation of our currency. I am from a small country where exchange rate fluctuations immediately are reflected in pricing of cars.
So guys from US excuse me now but you have no idea how lucky you are. With current USD exchage rate the car simply should be priced at $89,000 (equivalent of EUR66,000 which is EU price more or less). Period.
But since US is a major market (hence oligopsonistic buyer), the prices never get adjusted accordingly. The rest of the world sort of pays for you guys since BMW needs to cover exchange rate losses from US market elsewhere.
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Wow that is great, not sure I have ever explicitly heard of such a thing happening. However, determining the price for a region with straight currency conversions is nonsense. It is all simply about supply and demand. Furthermore if you want to think about "fairness" rather than straight economics you will need to take into account income and cost of living vs. the prices of goods such as cars.