KAF

We have always considered that here in the UK we get ripped off on car prices.

For example, the most basic UK Ford Focus (2.0l engine) $28035.
Mazda 3 (2.0) $26162. :thumbsdown:

In the USA, from the manufacturers website, prices for these cars are $13995 and $14225 respectively.

I have chosen 2.0l engines as that appears to be the smallest available in the USA.

Now BMW seems to charge $42500 for the basic 525i in USA, here in the UK it is $53390.

So cars are much cheaper in the USA, we all knew that anyway.

BUT........................

If these prices are right BMW want 303% of the cost of a focus and 298% of the cost of a Mazda for a 525i in USA.

In the UK they only want 190% of the cost of a Focus and 204% of the cost of the Mazda 3.

Now I accept that there will be discounts, some differences in equipment and I do not know what local taxes would do to those prices in the US.

But the RELATIVE cost of the BMW in USA seems awfully high.

Am I missing something here or are our cousins in the USA paying relatively too much for thier BMW's?

swajames

Interesting post - never thought of it that way before. Keep in mind as well that VAT is typically built in to the price in the UK, here in the US the broadly equivalent sales taxes are added to the sale price. That's over 8% here in California.

gIzzE

Interesting post - never thought of it that way before. Keep in mind as well that VAT is typically built in to the price in the UK, here in the US the broadly equivalent sales taxes are added to the sale price. That's over 8% here in California.
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Nah, we are being ripped off in the UK.

Look at lease deals in the states compared to here, I remeber sitting watching TV in my hotel in New York just as the X3 had come out and there was an ad for a 3.0i auto with leather and nav for $399 a month based on 15k miles a year and 5% deposit.
The same car over here was ?550 a month plus tax with a 10% deposit.

Doesn't matter how you look at it we are ripped off, a guy was moaning he thought he had a bad deal on a new S4 at $500 a month with no deposit!

jet190rs

I don't think taking the relative cost of a BMW compared to 2 other cars will show any definitive trends to base an arguement on. We'd have to look at the cost of living, CPI, baskets of goods, etc to see what's what. The price floors around $10k and $20k probably also have an impact on how relative prices get squeezed near those marks.

All I know is all cars are cheaper in the US, but you guys get better options (more colors, BMW Individual, M Sport Models, watch TV, etc.)

It all goes with the mentality that Americans think having a car is a birthright, while the rest of the world think having a car is a privilege. But i'm not gonna get into that right now...


I'm pretty certain you're quoting deals on American leasing - where you don't own the car at the end of the terms.
(Just wanted to make sure we're on the same wavelength here)

KAF

Took prices off the websites www.ford.com and bmwusa.

Both quoted MRSP.

There may be some logic to the pricing, I get the feeling that BMW is viewed much more as a premium brand in the USA than in Europe.

BMW / MB/ Audi are almost compulsory purchases in Germany and if they over charge in the UK for BMW's compared to other makes we just hop on a ferry and buy one from a dealer in Germany, at German prices. That tends to keep a lid on prices.

For you guys in the states they tend to be a bit heavy for hand baggage on a 747 !

JStraw

Very interesting post.

Don't forget, Ford is a US company - so they probably get tax breaks for selling the Focus and Mazda 3 in the US (even though they are made elsewhere - Malaysia, I believe).

Not to mention VAT, exchange rate and different equipment on the cars may also play into the price difference.

UUronL

If you're saying what I think you're saying - then I agree to a point. You can pick from loads of really great cars in the US that are half or less the cost of what I paid for my 530i. If you compare to the 545/550, then a car costing half can be -very- nice. It's not just BMW though - there are many cars here that are that much and more. I see what you're saying though - at a certain point, the law of diminishing return kicks in. A $50K car isn't twice as good as a $25K car (at least not here).

Luckily for BMW, the value proposition stands on its own. While it's an interesting academic discussion, the perceived value relative to other cars is meaningless. If something like that sways a buyer, then they really didn't want a 5 in the first place. Otherwise, the buyer decides on the car, can pay the asking price, and feels that the value is worth the cost.

Concerning the "birthright" comment - in all fairness, the US is huge. We need cars here. I'm pretty lucky - I can pretty much function without a car entirely, but this only happens in well-connected large urban centers. Increasingly, these locations have become ridiculously expensive places to live so for most people, they need their cars. Many other developed nations are smaller and/or better connected, which is why car usage and attitudes are so different.

KAF

There I have to agree, when considering the 5, I spoke to a friend who had a 325, I made the comment 'I'm not sure I can justify the cost of buying a BMW' to which he replied ' You can never justify buying a BMW, the only reason for buying one, is because you want to'

I was talking to the workshop manager at the local dealers yesterday, he told me that they refer to the 'salesmen' as 'order takers'
If you bother to walk in and speak to a sales rep in a BMW dealer, you have already decided you are buying one, all the salesman is doing is tyring to pursuade you to up the spec!

He has a good point.

swajames

I'm a Brit expat lucky enough to live in California and when I got my 545 the first thing I did was look at the equivalent over in the UK and, optioned up to the roughly equivalent spec, my car was getting on for close to 50K GBP at that time but cost "only" around US$65K here. Thats a pretty big difference, and if I was still in the UK I highly doubt if I would be driving a 545. Not for nothing that the auto manufacturers used to refer to the UK as "treasure island" given the differentials in cost between the UK and mainland Europe (and the US).

Nova Invicta

Having lived in the US and priced cars relative to the UK, the UK is definately more expensive. Dollar for pound doesnt quite equate but its pretty close. BMW and all ther other foriegn manufacturers have lowered prices here relative to past times after being challenged by the EC. Then it really was Treasure Island and you had to wait a long time, something US customers will not do generally.
The manufacturers still hide hehind the RH drive premium which is bullshit. UK 3 -series are built in SA where labour is much cheaper, half of Africa is RH drive as is Australia & Japan.