[halB]

Originally Posted by aspiring335

So what's your point?

I posted those graphs to support your point that BMW isn't making more money in Canada but is making a lot less in the US today. Nonetheless they are bowing to public pressure by indicating they will add more freebies in the Canadian market and not raising the price. I won't be surprise if they will raise the US price substantially next year.

Meanwhile Porsche is cutting Canadian price by 10% next year. But their cars, especially options, are so overpriced anyways so they might as well lower the price to stay competative.

It is true that given the high Loonie Bank of Canada rate will have no place to go but down. It may affect third party leasing companies but I doubt it will have much effect on BMWFS rate, especially for high demand models like the E92 or E93. Those rates are governed by the law of supply and demand. A real life example: When I was shopping for a convertible last April I was looking at the MB SLK55 AMG as well. At that time MB lease rate for an SLK350 was 4.5% and there was plenty of stock available. For the AMG there was only a few cars in stock, and the entire 07 allotment for factory orders had already been sold out. Guess how much they want for leasing that car - 8.49%!!

[aspiring335]

Originally Posted by halB

I posted those graphs to support your point that BMW isn't making more money in Canada but is making a lot less in the US today. Nonetheless they are bowing to public pressure by indicating they will add more freebies in the Canadian market and not raising the price. I won't be surprise if they will raise the US price substantially next year.

Meanwhile Porsche is cutting Canadian price by 10% next year. But their cars, especially options, are so overpriced anyways so they might as well lower the price to stay competative.

It is true that given the high Loonie Bank of Canada rate will have no place to go but down. It may affect third party leasing companies but I doubt it will have much effect on BMWFS rate, especially for high demand models like the E92 or E93. Those rates are governed by the law of supply and demand. A real life example: When I was shopping for a convertible last April I was looking at the MB SLK55 AMG as well. At that time MB lease rate for an SLK350 was 4.5% and there was plenty of stock available. For the AMG there was only a few cars in stock, and the entire 07 allotment for factory orders had already been sold out. Guess how much they want for leasing that car - 8.49%!!

My bad, I thought you were posting them to contradict what I was saying.

Porsche's options are legendary. You can all-but double the price of the car if you really go insane with the option list.

The funny thing is even though they have a reputation for premium pricing and minimal discounting, BMW subsidizes lease rates more than a lot of other car manufacturers. The M models and brand new models tend to be untouchable and always have high lease rates, but I've never paid more than 3.4% on a BMW lease simply by timing when I get the cars relative to the model's lifecycle.