• Aug 3rd 2008 at 9:24AM
  • 19
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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    • 1 Second Ago
      • 7 Years Ago
      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.
      • 7 Years Ago
      "BMW prices will continue to rise through 2009"

      Then what, price stability?
      • 7 Years Ago
      I lease a '08 328i and it doesn't surprise me at all that 60% are leased (the dealer said 70%+ lease out of that Chicago dealership). Face it, BMW leases are subsidized by the manufacturer so it makes no sense to actually buy the car.

      If you have $40,000 in cash, invest at a risk free rate of 6% a year and pay the lease, by the end you end up with a ~$300/mo lease out of pocket (ignoring inflation).

      People who cannot possibly afford a car or would rather put that money into a non-depreciating asset lease. Everybody in the middle buys.
        • 7 Years Ago
        The real smart person buys a cheaper car outright and keeps it for longer than 3 years.
      • 7 Years Ago
      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.
      • 7 Years Ago
      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 % ).
      • 7 Years Ago
      I'm not very surprised. With the bad exchange rate, bad/slow/horrible (you pick) economy, high gas prices, this was bound to happen.
      They need to lower prices to attrack more buyer but can't afford to do so. It's a damned if they do, damned if they don't type situation.
      I see all VW and Audis vehicles built in EU suffer the same fate.
      On a similar note, BMW needs to start selling their small diesel engines ASAP for their smaller vehicles imo.
      • 7 Years Ago
      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.)
      • 7 Years Ago
      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).
        • 7 Years Ago
        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.
        • 7 Years Ago
        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.
      • 7 Years Ago
      BMWs have some of the highest residuals around. They are in demand.
      • 7 Years Ago
      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!
        • 7 Years Ago
        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?
        • 7 Years Ago
        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.
        • 7 Years Ago
        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.
      • 7 Years Ago
      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.
      • 7 Years Ago
      “BMW prices will continue to rise through 2009”
      Until when?
      In fact prices at all the cars have increased and will increase. Do you know any car example which dropped considerably prices?
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