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      08-05-2008, 10:37 AM   #1
gmund1948
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09 Price increase plus 40K less BMWs to the US

If you were waiting for the 09 you may be looking at a healthy price increase

BMW news in Germany is they are disgusted with the lease losses in the American Market as well as the weak american dollar SO

They are working on 40K less cars from the US Market to more profitable
markets and on top

Dont be surprised to see up to a 10 percent difference in Pricing


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      08-05-2008, 11:01 AM   #2
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Are you on crack? Please, if you want to claim this please at least provide a reliable source, and don't say your CA. No way they are going to divert 40K cars, or raise the price by 10 percent. Both are ludicrous.
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      08-05-2008, 11:04 AM   #3
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I strongly doubt the prices will go up much, particularly for the M3 which is already an expensive car for the US market and doesn't change much from 08 to 09.

Probably a 1% to 2% increase on some key updated options (i.e. new iDrive) and that's it. The M3s are not selling that well and jacking up the price would not help in the US market that is so important for the M cars. I would expect maybe something like $500 increase for the updated regular E90.

The main point here is that BMW wants to encourage people to finance rather than lease. Consequently they will probably make the leasing terms a lot less appealing and encourage financing by keeping the prices somewhat where they are and offering lower rates.

We know that most people (about 60% according to BMW) can only afford BMWs because they are leasing them. I am assuming that the 40K less cars this year will come from these people.
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      08-05-2008, 12:00 PM   #4
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I am no economist and have no data but I would not be surprised with a significant 3-5%price increase and shifting of large number of units to growing economies as the american consumer becomes more tapped out and people who were on the fringe are now out of the car market. Reading the forums it is apparent that we have it good here with regards to price and that won't last forever.
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      08-05-2008, 12:12 PM   #5
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Business 101:

1) Increase price by 10% when products are NOT selling well

Yup, that will get the demand up...
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      08-05-2008, 12:21 PM   #6
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Originally Posted by HappyNDing View Post
Business 101:

1) Increase price by 10% when products are NOT selling well

Yup, that will get the demand up...
i don't think that the OP has had this class.
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      08-05-2008, 12:37 PM   #7
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We do know price increases are coming for the world and particularly the US market, we just don't know how much. I would suspect significantly more than 1-2% (which just matches inflation).

In some of the interviews / reports from the BMW Board, the price of steel and oil have increased 60-70%.

My guess would be a 4-5% increase in price.

No idea on allocation but it would make sense to send cars to markets where BMW would make more money.

One other comment that was interesting, BMW is still very much focused on marketshare in the US market and they will address with product lines like the Mini.
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      08-05-2008, 03:19 PM   #8
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Quote:
Originally Posted by T Bone View Post
We do know price increases are coming for the world and particularly the US market, we just don't know how much. I would suspect significantly more than 1-2% (which just matches inflation).

In some of the interviews / reports from the BMW Board, the price of steel and oil have increased 60-70%.

My guess would be a 4-5% increase in price.

No idea on allocation but it would make sense to send cars to markets where BMW would make more money.

One other comment that was interesting, BMW is still very much focused on marketshare in the US market and they will address with product lines like the Mini.
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      08-05-2008, 03:23 PM   #9
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Quote:
Originally Posted by gmund1948 View Post
If you were waiting for the 09 you may be looking at a healthy price increase

BMW news in Germany is they are disgusted with the lease losses in the American Market as well as the weak american dollar SO

They are working on 40K less cars from the US Market to more profitable
markets and on top

Dont be surprised to see up to a 10 percent difference in Pricing


:
thats one of the biggest reason i got mine now! especially with the huge discounts .
anymore 09 holder, maybe you make want to reconsider !
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      08-05-2008, 07:31 PM   #10
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Quote:
Originally Posted by gmund1948 View Post
If you were waiting for the 09 you may be looking at a healthy price increase

BMW news in Germany is they are disgusted with the lease losses in the American Market as well as the weak american dollar SO

They are working on 40K less cars from the US Market to more profitable
markets and on top

Dont be surprised to see up to a 10 percent difference in Pricing


:
That would seriously suck. I have a pretty early 09 build date (week 37) and recently got a print out of the order from my CA to confirm everything, etc. MSRP on everything there is still listed as 'Blocked'. CA thought the increase for 09s would be around 1% (but then what else is he going to say). But 10%? 6k? I dunno if I will be willing to swallow that kind of an increase.

Anyone have an idea on when the updated pricing comes out? If they stay on schedule, they will start building in 4 weeks.
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      08-05-2008, 07:58 PM   #11
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Yeah, that will be nice. Raise the price on a vehicle that is not selling. As is, C63 AMG is priced way below the M3, and by raising the price on the M3, the C63 will be much better attractive to purchase.
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      08-05-2008, 08:14 PM   #12
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I am also hoping to get an early September allocation, and I really want to know the new 09 prices. I have been checking many dealers to get the best deal off whatever the MSRP ends up being. If it is $6000 more then I might end up in a $10000 off MSRP 08 Cayman S.
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      08-05-2008, 08:17 PM   #13
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WSJ Article

Here's a link to the post with the WSJ article titled "BMW to cut production, raise prices world-wide". We don't know how much the impact will be to the US M3, but the C63 went up a little over $1300 for comparison.

http://online.wsj.com/article/SB1217...5.html?mod=DAU
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      08-06-2008, 12:42 AM   #14
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My guess will be that BMW will try to avoid hiking prices in the US. They know the state of the economy there and realistically understand that they are more likely to sell more vehicles when the price is as low as possible. I am banking on a 2-3% increase on MSRP and a few increases on a couple options. BMW will likely try to absorb this throughout the rest of the world by raising prices more significantly on european or foreign based BMWs. Because M3s are so much more expensive throughout the rest of the world, the buyers of those vehicles are much more wealthy than the average M3 owner (in US dollars terms). Those people will be less likely to change their decision to buy with a bigger % increase IMO.
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      08-06-2008, 01:13 AM   #15
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A little more from Germany

Quote:
Originally Posted by Big Windy View Post
i don't think that the OP has had this class.
The goal of BMW is to be profitable, I would not say that the 10% is across the board, BMW has announced the 40K vehicle shift fom the US publically
and has had its share price hammered by lease writedowns in the US market.
They are under huge pressure. The increase may be incemental or at once. with exchange rates versus the Euro the M3 is cheaper in North America than any other Market they sell into.




The personal attacks on the OP are not necessary

Actually ,

I think I started with remedial business then had to take Business 101 twice
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      08-06-2008, 07:17 AM   #16
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Is it possible I bought a car at the right time? I got 5k off and now possible increases? If price increases are on the way, shouldn't the discounts be going away, even if they are 08's? If you are on the fence, 10k for essentially the same car could be a good incentive to buy now!
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      08-06-2008, 09:27 AM   #17
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The fun has started my American friends....the end of cheap leases..... I have not confirmed this personally but dang!

http://www.m3post.com/forums/showthread.php?t=161523

On a 36 month lease, 6.48% interest with a 50% residual.....

Hope you guys committed in July!
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      08-06-2008, 10:06 AM   #18
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Quote:
Originally Posted by T Bone View Post
The fun has started my American friends....the end of cheap leases..... I have not confirmed this personally but dang!

http://www.m3post.com/forums/showthread.php?t=161523

On a 36 month lease, 6.48% interest with a 50% residual.....

Hope you guys committed in July!
That sucks...this follows the idea that BMW is trying to discourage leasing and encourage financing. I'll bet we'll see some improvements on their financing offers to compliment this.
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      08-06-2008, 11:11 AM   #19
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I strongly, strongly doubt that the base MSRP of the M3 will increase by more than $1000.

If BMW is planning on such a huge increase like some suggest, then why, when they raised prices just two months ago

http://www.bimmerfile.com/2008/05/06...-as-of-june-1/

were the increases so nominal, and in fact no more than a normal price increase for BMW or indeed any car company? Things have not changed so drastically in just these past two months to expect such a dramatic increase.
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      08-06-2008, 11:19 AM   #20
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I think for BMW to raise prices, even slightly, during the middle of the model year was a pretty extreme measure and says something about the state of production costs, transportation costs, exchange rates, etc. My guess was that this was merely a stop-gap measure, and that we may see some significant increases given BMW's recent announcements regarding changes in their business model. I hope not because I have an '09 on order, but we'll see.

If it turns out to be more than $2k on my car as optioned, I'm going to revisit the idea of a Cayman S or a used 996TT.
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      08-06-2008, 12:16 PM   #21
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Quote:
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I think for BMW to raise prices, even slightly, during the middle of the model year was a pretty extreme measure and says something about the state of production costs, transportation costs, exchange rates, etc.
I disagree with this mainly becuase it is commonplace for BMW to do this. I recall the 335i increased in the middle of MY07 for example. In fact it was by roughly the same amount as it did in June.
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      08-06-2008, 12:28 PM   #22
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Quote:
Originally Posted by T Bone View Post
We do know price increases are coming for the world and particularly the US market, we just don't know how much. I would suspect significantly more than 1-2% (which just matches inflation).
Inflation rates are 4-5% right now, and if you are the type that feels the government deliberately underreports inflation, they are higher.

Officialish stats:
http://www.inflationdata.com/inflati...tInflation.asp

We could see quite a price increase for that sweet new iDrive
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