BMW prices will continue to rise through 2009
If you're in the market for a Bimmer, now is the time to buy. BMW is raising prices this year and next to help ease the burden of unfavorable exchange rates between European currencies and the weak U.S. dollar. CEO Norbert Reithofer told reporters that the company would also produce 20,000 to 25,000 fewer vehicles overall in 2009 and sell 40,000 fewer units in the U.S. Disastrous exchange rates aren't team Bimmer's only problem, either. The German automaker leases 60% of its vehicles in the U.S. during a time when sinking residuals are losing automakers billions. A quick look at July sales figures shows that even the best-run automakers are hurting. Increasing prices twice within a year when people are cutting back likely isn't going to help matters much, but at least just about everybody else is doing it too.
[Source: Auto News (subs req'd)]
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Reader Comments (Page 1 of 2)
BigMcLargeHuge 9:32AM (8/03/2008)
Its not like I was going to see a 123d in the States anyway. But this certainly doesn't help them decide to bring more smaller models here. :(
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2007RC46SP2 8:35PM (8/03/2008)
i spotted one in the wild at the indy 200 at mid ohio a few weeks ago. parked in spectator parking.
Zane 9:38AM (8/03/2008)
There goes my dream of owning a cheap 135i.
When's the BMW 0-series coming out? Everyone needs a Bimmer in their garage ya know.
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J M C 3 1:32PM (8/03/2008)
Yes You can...Buy a used one.Let somebody else eat the depreciation.
I bought a 4 year old M/B E class w/55k mi. for 20K.
I have a gorgeous car and the satisfaction of knowing I got a great deal.
AC 10:13AM (8/03/2008)
This will sound mean, but i kind of welcome this, hopefully it'll help people get over their brand addiction: If you can't afford a BMW, you can't afford it... buy something else (and i like BMW a lot).
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Joshua 11:00AM (8/03/2008)
what does your comment mean? obviously if you can't afford it you don't get it.
besides, brand addiction is probably a good thing as it helps any automaker keep business going better than if there was none.
dave0mary 12:52PM (8/03/2008)
W/O sounding mean - what do YOU mean? People buy stuff all the time they can't afford. It's called the American economy. Mortgage brokers and banks with cc's make sure of that.
DKB_SATX 5:18PM (8/03/2008)
leases and balloon-payment notes based on inflated residual values have allowed many Americans to drive cars they can't afford. Another method people use is long, long term financing and rolling negative equity from their last car into the one they just HAVE to buy. You should never need gap insurance because you should never owe more than the car's worth, it's just a bad situation to be in. It's also entertaining to confuse the finance robots when they push gap insurance on you... when I bought my Legacy the finance drone tried this, and I asked why I should buy gap insurance when there'd be no gap. She looked back and how much I was paying down and got all confused... apparently not many people actually have equity in their cars.
James S 10:20AM (8/03/2008)
Keep in mind that the manufacturer's list price and actual transaction prices are moving further and further apart as the new car market slows in the US. Just because BMW raises the price doesn't necessarily mean you'll be paying more (assuming you can negotiate effectively) and are buying a car in a competitive segment (3-series, Z4, etc.)
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Anton 11:15AM (8/03/2008)
I debut this will change one mans opinion.
If someone was going to buy a Bimmer ,than he WILL BUY IT.
It's not like someone is gonna notice the 2 - 5 % ( I debut the increase will be more than 5 % ).
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Avinash machado 11:31AM (8/03/2008)
Most BMW customers are wealthy anyway so it might not make much of an impact. For poseurs it is a different story.
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DigitalScrap 12:37PM (8/03/2008)
Acutally, I'd say that most of BMW's customers aren't wealthy at all, but are simply middle/upper middle-class people who want to APPEAR wealthy. Which is why over 60% of BMWs are leased. ;)
Brian 2:56PM (8/03/2008)
BMW leases are 60% because alot of people don't want them after the warranty is over. And once the warranty is over the depreciation speeds up even faster. Its costs alot to maintain and repair German cars in the U.S. They are greatly engineered cars but long term they have still yet to be proven reliable. They are well built and have good quality but its the little stuff that continues to go wrong that can break the bank. Another reason why they have never appeared on the CR list. Of course I would listen to them anyway.
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Noz 3:00PM (8/03/2008)
That's hilarious...60% of its car are leased. LOL.
Well....that explains why I see so many douche bags driving around in brand 3 and 5 series cars...so they can all look unique.
Penile enlargements probably cost alot less.
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stratojet 4:02PM (8/03/2008)
Where I live, I see lot's of BMW's. Most of the customers I see driving them are quite young to be this wealthy. In fact, they are not. The real affluent people don't necessarely drive German Iron.
Another trend is that a lot of women want the trendy BMW look (SUV, Convertible, Mini) and this brand is absolutly perfect for this. It fits well with their Louis Vutton handbags, stilettos, and their mortgaged to the roof lifestyle.
The reputation of BMW's owners is far from beeing flattering. In fact they are often perceived as pretentious, full of themselve and stuck-up. The last car I would own I I were to win the lottery. Too trivial and obvious.
The tanking residuals will also start to hurt Mercedes, BMW and Audi. Most of their customers are living in an artificial world. When the germans will stop subsiziding their cars, the same customers will go back to what they can afford, Hyundai, Toyota, Honda. I am not even sure they will go for Chevrolet since they can't lease it now!
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trashcan 4:09PM (8/03/2008)
BMWs range from 30k to 100k. You don't have to be rich to afford one.
"The reputation of BMW's owners is far from beeing flattering. In fact they are often perceived as pretentious, full of themselve and stuck-up. The last car I would own I I were to win the lottery. Too trivial and obvious."
I think this says more about you than anything else. Why are you worried what other people think about your car? Why are you so important that you think anyone else cares about your car?
Frank 4:56PM (8/03/2008)
BMW, Mercedes, etc are cheaper in Germany. Massive subsidies aren't what make them affordable in europe. but in europe they are offered w/o leather and all the goodies u guys have and up until recently u had to pay extra for just an A/C. Also w/o all the goodies that maintainence isnt that bad b/c all "the small things" dont break, the engines are good for at least 200k miles, its the other crap they tack on for the US market that blows. My mom has had the same 95 BMW 5 for over 200k miles and is still going strong, and my uncle has a Diesel 3 94 that has over 300k miles in germany and its still going strong, too. and as for the pretentious remark, smart people buy the best ONCE hold onto it for as long as possible and then buy again, try that w/ a daewoo u f'n schmuck.
learn before u go spewing crap u have no idea about.
Uda880 5:00PM (8/03/2008)
Bitter much?
Perhaps the people in your neighborhood are poseurs who love to drive BMW for the brand and can't afford anything else outside of their car payments, but not everyone who owns one of these brilliant driving machines are living in debt related ignorance.
Just because you can't afford it, doesn't mean you should insult those who can.
So they're raising the prices. Those who can still afford to pay for additional car payments and unfriendly loan terms will still buy one, regardless of the price is higher or lower. Just those of us who are more logical (ironic, isn't it? Logic in car buying) won't buy one until the economy turns for the better.
Noz 9:11PM (8/03/2008)
Trashcan...but that's the reality...whether you like it or not. It says more about Stratojet's understanding of the situation than yours.
The problem with such people is that they screw up the overall balance of things. These people who go and buy BMW's that they can't afford, are also the same douchebags who speculate on the housing market, bid up home prices, etc....and they ruin the market by doing so.
You digg?
Sj 4:43PM (8/03/2008)
BMW will be fine. It’s just bad time for everyone now, but there’s no doubt that BMW will come up with a solution to what we’ve been paying for the gas…maybe BMW 0series, all electric with the performance that all current BMW cars have. I know they can do it.
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