M5 Prices around the world
09-06-2005, 09:58 PM
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Seems like the price points are set to sell some number of vehicles - not too many of course, but enough vehicles to make it worth BMW's while. My guess is that if someone wouldn't pay 300k USD for the vehicle, it wouldn't be so priced.
On another note, does BMW's pricing speak to a division of wealth in the various countries? In the SF bay area, a professional, two-income family will make $150k (pre-tax) and could seemingly afford an $85k car. How do folks afford the $300k version? Are incomes that much higher? Or are the monthly payments simply higher?
On another note, does BMW's pricing speak to a division of wealth in the various countries? In the SF bay area, a professional, two-income family will make $150k (pre-tax) and could seemingly afford an $85k car. How do folks afford the $300k version? Are incomes that much higher? Or are the monthly payments simply higher?
09-08-2005, 04:42 PM
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Originally Posted by lennynchris' date='Sep 7 2005, 01:58 AM
Seems like the price points are set to sell some number of vehicles - not too many of course, but enough vehicles to make it worth BMW's while.? My guess is that if someone wouldn't pay 300k USD for the vehicle, it wouldn't be so priced.?
On another note, does BMW's pricing speak to a division of wealth in the various countries?? In the SF bay area, a professional, two-income family will make $150k (pre-tax) and could seemingly afford an $85k car.? How do folks afford the $300k version?? Are incomes that much higher?? Or are the monthly payments simply higher?
On another note, does BMW's pricing speak to a division of wealth in the various countries?? In the SF bay area, a professional, two-income family will make $150k (pre-tax) and could seemingly afford an $85k car.? How do folks afford the $300k version?? Are incomes that much higher?? Or are the monthly payments simply higher?
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09-09-2005, 02:00 AM
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How much of a premium are dealers in the US going to add to the price?
That $80,000+ will easily be $100,000+ USD even before tax and registration in some [most?] dealerships.
That $80,000+ will easily be $100,000+ USD even before tax and registration in some [most?] dealerships.
09-09-2005, 07:16 AM
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Originally Posted by cobradav' date='Aug 12 2005, 07:33 PM
There were 2 danes on that board that were discussing their plight.? Jesus what a shame that there cannot be a more equitable cost structure around the world.? U know they aren't making the kind of $$ to warrant such gouging.? If that is the Emmy price what do they have to pay for basic transport.? What can u possibly trade off (lawyers, socialized medicine, etc) to justify prices like that?? 
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12-29-2005, 02:46 AM
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300,000.00?!?!?! that's insane. What do the people do there that can afford it??
12-29-2005, 03:53 AM
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Originally Posted by stream' post='158833' date='Aug 13 2005, 02:37 AM
Keep in mind that most of the price differential between the US and other countries--particularly northern European countries--is taxes, not BMW charging more. I remember when I lived in Amsterdam, there was a 50% luxury tax on cars--plus 17.5% VAT. Check out Denmark--179% tax! Plus don't forget the beating the US dollar has taken against the euro and most other major currencies in the last few years, so translating local prices to US dollars gets distorted. And we Americans complain about our taxes! Don't even get started on income tax!
You hit the nail on the head. Differences are caused mostly by local taxes. Also the US$ is very weak at the moment, so translation is not really meaningful at this stage. I get paid in $'s even though I am based in the UK so I keep an eye on the interest/exchange rates. The thread starter above has converted the UK Sterling amount into US$ at an exchange rate of 1.73. The $ has been weaker in the last few months but I remember a time when it was 1.40 - those were the happy days for me at least. At 1.4 the ?61000 UK price translates to around $85k.
Even at the current exchange rate the UK price of $105,548 isnt too bad. It includes VAT at 17.5%. To the US price of $81,000 you have to add the guzzler tax of $3k and local sales tax which can be as high as another $8k. So all told the real US cost is in the region of $92k.
So its really $105k vs. about $92k even at the ridiculous exchange rate of 1.73. And the bulk of that difference is not BMW overcharging in the UK but due to the fact that VAT in the UK is 17.5% whilst sales tax in the US is 10% at most. When the dollar ticks up again to 1.5 say then the M5 will actually be cheaper in the UK even with the higher tax.
I personally think BMW pricing in the UK is reasonable. RHD conversion also probably costs significant R&D, tooling $$$ etc. On average however our US cousins have it a lot better - just look at Lexus for example.
Even in maninland Europe where some countries such as Holland, Denmark etc have punishing taxes you will find that the pre tax price of the car is actually cheap and probably less than the US. BMW has to keep pre tax prices in those countries artificially low so as to make them affordable post tax. I remember buying a Mercedes from Holland a few years ago
and saving about 26% on the UK price - I bought a UK spec vehicle pre tax from a Dutch dealer and just paid UK VAT after driving it back home. The poor guys in Holland were getting creamed with all sorts of taxes inc something called BTV and BTW. Post tax they were paying way way more than I did. Just look at the Holland M5 price - thats scary.
12-29-2005, 04:12 AM
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skk where are you from?
12-29-2005, 04:19 AM
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Just checked on the BMW Netherlands website. The pre tax price of the M5 is ?79k which is about $93k even at the ridiculous exchange rate of 1.18. The Euro and $ are really parity currencies - not so long ago one Euro was worth only $0.91.
A 525i cost $38k in the Netherlands pre tax -again at the 1.18 exchange rate. Base price in the US pre tax is $42.5k. Post tax in the Netherlands (which is what counts for the locals) the price is a staggering $62k !!! Thats ridiculous. The Dutch should burn their bicycles outside their local government offices (only joking).
A 525i cost $38k in the Netherlands pre tax -again at the 1.18 exchange rate. Base price in the US pre tax is $42.5k. Post tax in the Netherlands (which is what counts for the locals) the price is a staggering $62k !!! Thats ridiculous. The Dutch should burn their bicycles outside their local government offices (only joking).
12-29-2005, 04:34 AM
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Originally Posted by Trev550i' post='216750' date='Dec 29 2005, 01:12 PM
skk where are you from?
