Login


09212012, 12:24 PM  #1 
Enlisted Member
2
Rep 44
Posts 
Price Comparison
Since i'm in banking I love numbers and also like to question price differences in the market. The other day I was in the dealership getting a routine oil change service and saw the price of the new M6 vs. current 6 series and thought to myself "There appears to be a smaller margin between the 6 series and M6 vs. the 3 series and M3."
So I did the math as a percentage and thought that the following was interesting: Test 1 Base Price Comparison  Highest level 3 series (335 X Drive) vs. M3 335 X Drive = $44,800 M3 Coupe = $60,100 Price Gap as % = M3 is 26% more than the 335 X Drive 650 X Drive = $88.5k M6 = $106.1k Price Gap as % = M6 is 26.6% more than the 650 X Drive So you're probably thinking.. what's the deal both price gaps are nearly the same eh? Well onto test #2.. Test 2 Base Price Comparison  Lowest Level 3 series (328i) vs. M3 328i = $36.5k M3 Coupe = $60.1k Price Gap as % = M3 is 39.3% more than the 328i 640i = $74.4k M6 = $106.1k Price Gap as % = M6 is 29.9% more than the 640i So the question is, why does an M3 have a 10% higher price gap vs. the base model 3 series vs. the M6 when comparing to the baseline 6 series... While there are many answers/thoughts i'll let you reply/post/flame/troll etc 
09212012, 12:30 PM  #2 
Captain
21
Rep 894
Posts 
Base 6 series is more optioned to begin with, so less goes into "making" an M6?
I don't know, it's Friday...
__________________
2010 E70 X5M  Black  Black  Stock for now.
2008 E90 M3  Interlagos Blue  Speed Cloth  Sold 2011 E92 M3 ZCP  Space Grey  Black  Sold 
Appreciate
0

09212012, 12:32 PM  #3 
Private First Class
7
Rep 154
Posts 
Because a base model 3 series is the base model of the BMW fleet, and the base model 6 series is already a significant upgrade above "base" when considering all BMWs.
__________________

Appreciate
0

09212012, 01:12 PM  #5 
New Member
0
Rep 13
Posts 
Base model 3s sales are way higher than a base 6 so the profit per car is probably less as volume makes up for it.
Price is also kept lower on the base models as they are designed to be a stepping stone into the brand. Buy and enjoy the 3/brand, move up in models as you get older/make more $ etc. 
Appreciate
0

09222012, 11:29 PM  #7 
Second Lieutenant
2
Rep 262
Posts 

Appreciate
0

09232012, 11:45 AM  #8 
Happy Camper
256
Rep 7,877
Posts
Drives: C63 AMG & 280 SL on Weekends :
Join Date: May 2010
Location: GTA, Ontario  Canada
iTrader: (0)
Garage List 1969 Restored Merce ... [2.50]
2011 M3 Coupe TRADED [3.67] 1987 BMW 535is [0.50] Cars from the Past [1.50] The ///M3 Engine S65 [4.78] 
Good post nice work ... now check out the Canadian and Australian differences ... good luck
__________________
Cheers, RolfDieter
Life will take us to some interesting places, fortunately The ///M3 will too with a many of us know this very well, now my C6.3 AMG with 487 HP does it too > Click here for some good stuff I found 
Appreciate
0

09232012, 11:53 AM  #9 
Private
0
Rep 85
Posts 
"M3 is 39.3% more than the 328i"
Your pricegap math doesn't translate into English that well... The M3 is, according to the math above, ~60% more than the base 3series. The pricegapaspercentage difference is as you say. But you don't specify if the pricegappercentage is of the 3Series or M car's price. I don't think the pricegap percentage is a good idea for comparison, straight percentages would work better. The reason being that those numbers are not very specific, unless commonly used. I suppose in finance that's the case. Check out the MSRP comparisons in different countries! :) 
Appreciate
0

09232012, 12:04 PM  #10 
Lieutenant Colonel
36
Rep 1,704
Posts 
if you really want to have fun, Mr. Numbers. Try building a regression model using options as binary values, 0/1, year, milage, perhaps even color as binary inputs, etc to determine what car's represent good prices on the market, and which are overpriced. Then share the model with the forum.
You'll probably need to find at least 30 or 40 cars, but I bet you'll be able to get an Rsquared for the model of over 70%.
__________________

Appreciate
0

09242012, 12:09 AM  #11  
Second Lieutenant
2
Rep 262
Posts 
With n values that low I'd be more concerned with delta Rsquared than just Rsquared.
Quote:


Appreciate
0

Post Reply 
Bookmarks 
Thread Tools  Search this Thread 

