[stressdoc]

Originally Posted by StewtheBassman

Great post mate.....stick around, we need more posts as clear as this!

+1.

[Wosby]

It's all about supply and demand. Because of the weak dollar, BMW is said to have cut back on the # of 'allocated' units shipped to the US. With demand the same but supply reduced, the price has to go up. Simple economic.

[Year's_End]

Originally Posted by d_crome

Mate - before you go ahead and say that about home (yes I'm from Down Under as you yanks would say) you have to realize that our TAXATION is considerably HIGHER than yours. For that "average" 60K (which I don't know where you're getting that from, last I heard it was mid 50's) that person would be paying approximately 10%-20% MORE in taxes. However we have generous publicly funded health coverage and we don't have a guy with a cardboard sign asking for change at every intersection like I encounter here on a daily basis.

PLUS living expenses are considerably more - example, a 500ml coke will cost you $3, a pack of cigarettes will cost you over $11, a case of beer will cost you $40, a bottle of Vodka $50, a nice dinner out per person is easily over $150 - Property prices too are at Southern California levels as well.

Petrol (GAS as you say here) was $1.60 a LITRE when I was home last (approximately 4 litres to a gallon – that’s $6.40 a GALLON).

A current base model 335i will put you back around $112,000 AUS (which last month would have been around $100K US due to the near parity of the US $ and Aus $) yet the same car here would be approx $40,000 US (on the assumption of no options - add those and it gets a whole lot WORSE). That’s a markup of over 100%. An M3 will put you back $170,000. A mate just recently purchased an Audi RS4 at a "bargain" price of $170,000 - the very same car here is $66,000.

This price comparison explains the 1 series - a 135i will cost $73,000 - as you can now see, the 1 series makes sense when the comparable 335i is now $35,000 MORE.

Bottom line - the US gets a price advantage due to VOLUME sold here. However I feel that gradually market share will drop as other countries with more wealth will want BMW's product - hence keeping prices low for their American customers may not be BMW's prime concern in 5 years time.

As for anybody believing the "resurgent" US dollar is here to stay - I'd suggest you go "invest" that money on a table in Vegas rather than speculate on US currency - your odds of a good return are a lot higher!! The US is in for some serious pain that will require some extreme fiscal policy restraint in order to get it's numbers back in check. Bill Clinton fixed it last time - it can be done, just takes a little know how that’s all.

To finalize my point - CURRENT US owners of 335i's should be ecstatic over this increase - BMW just made your car worth more in resale.

USA drivers in GENERAL should be ecstatic over the prices they get!!

And to the bloke that said "if you don't like where you live then move to the US to get a cheaper car" - have you seriously even LOOKED at what it takes to immigrate to the US???!! It's not quite that simple.

Then again - good luck to anybody that wants to call Australia home - we make the US look almost easy in comparison....LOL

This post is absolutely epic in how well it paints the picture. Thank you good sir.

[d_crome]

Originally Posted by Bimmer Loyalist

This post is absolutely epic in how well it paints the picture. Thank you good sir.

No worries fellas - just glad to put my 2 cents up.

[F32Fleet]

Originally Posted by lecatrache

Correction here

I bought my 330i in 2006, and I just built a similar car (okay, it's a 335i) and it came out more than $5,000 more!

I acknowledge the 335i has a better engine than the 330i, which was $2000 more in the 2007 model.

But the 2009 are more expensive, and also all the options are more expensive. Is all of this due to our weaker US Dollar and the stronger Euro?

Also, the Logic7 stereo is now optional at $875.

My 2006 330i with Sport Package, Premium Package, Steptronic, Metallic Paint, and Navigation came out at $44,975.

The 2009 335i with the same options plus the now optional Logic7 comes out at $50,325. That's a whopping $5,350 more.

Weak US Dollar is part of it, however BMW buys insurance to hedge against currency fluctuations. IMO..the biggest reason for the increase in price has to do with the introduction of the 1-series (What did u 1'er fanboys think would happen?), and plain old inflation.

[d_crome]

Originally Posted by voltron1011

Man, I really hate when all of the foreigners (no offense) start comparing their countries price (Euro, Pound, etc), and then use the current exchange rate as their tool.
I'll say this one last time: YOU CANNOT MAKE COMPARISONS ON MARKETS BASED ON THE EXCHANGE RATE!!!!!!
Pricing is based on what the local economy is...

Here's an example:

DVD in the USA costs around $20.00 (14 Euros in exchange rate)
DVD in the EU cost around 20 Euros ($28 in exchange rate)

Average income for a Network Engineer in the US is $70,000 (49700 Euros)
Average income for a Network Engineer in Germany 70,000 Euros ($98,000)

You guys get it yet?!?!?!?

EDIT: Sorry seminole, I didn't see your post.

I believe the best way to resolve this would be to indicate the price of the car as a percentage of income earned by an individual.

i.e. US average income (granted this includes some portions of the US that are nearly third world in wages and conditions) $40K.

Therefore a 335i @ $42,000 US would be approximately 105% of an annual wage.

A 335i in Aus @ $112,000 AUS with an Annual Average Wage of $57,000 AUS would be approximately 196% of an annual wage.

Hence:

335i US = 105%
335i AUS = 196%

You guys do indeed live in the "lucky country" - you should see the proverbial shopping list of goodies I get hit with when I fly home - try explaining to customs why you exactly NEED 7 iPods and 3 laptops next time you fly international....

[Staszek]

Originally Posted by GAMEgates

isnt the 328 just as quick as the 330?
Thats what I was told... Get a 09' 328.

But yeah they are getting pricey.
Im just mad at the fact that you can get
shadowline now for e92's

No its not actually

The old 330i did 0-60 in 6.1 manual and 6.3 automatic

The 328i is 6.3 manual and 6.9 automatic.

The distance gets larger at the 1/4 mile mark.

These are stock BMW numbers not mag numbers which all vary (some have the 330 under 6).

[Seminole]

Originally Posted by d_crome

try explaining to customs why you exactly NEED 7 iPods and 3 laptops next time you fly international....

I have a lot of music and porn?

[Fraggy]

I have to agree, the prices of 3 series are getting pretty high, but at the same time, whats not getting more expensive. I guess its time to find a way to make more money

[Couch]

Originally Posted by lecatrache

Correction here

I bought my 330i in 2006, and I just built a similar car (okay, it's a 335i) and it came out more than $5,000 more!

I acknowledge the 335i has a better engine than the 330i, which was $2000 more in the 2007 model.

But the 2009 are more expensive, and also all the options are more expensive. Is all of this due to our weaker US Dollar and the stronger Euro?

Also, the Logic7 stereo is now optional at $875.

My 2006 330i with Sport Package, Premium Package, Steptronic, Metallic Paint, and Navigation came out at $44,975.

The 2009 335i with the same options plus the now optional Logic7 comes out at $50,325. That's a whopping $5,350 more.

Originally Posted by hotrod182

I noticed that with the Logic 7. WTF, it doesn't come with the Premium Package 335i anymore?

You automatically get Logic 7 with the 335 I thought?

[Andy M]

Originally Posted by d_crome

I believe the best way to resolve this would be to indicate the price of the car as a percentage of income earned by an individual.

i.e. US average income (granted this includes some portions of the US that are nearly third world in wages and conditions) $40K.

Therefore a 335i @ $42,000 US would be approximately 105% of an annual wage.

A 335i in Aus @ $112,000 AUS with an Annual Average Wage of $57,000 AUS would be approximately 196% of an annual wage.

Hence:

335i US = 105%
335i AUS = 196%

You guys do indeed live in the "lucky country" - you should see the proverbial shopping list of goodies I get hit with when I fly home - try explaining to customs why you exactly NEED 7 iPods and 3 laptops next time you fly international....

That's a good way to see it. A better comparison is here in Canada.

Suppose you are a new engineer. The base salary in oil-rich Alberta would be around $60,000 CAD (and assume 1 CAD = 1 USD since it's almost on par). After taxes you get about $40,000 take-home.

In the US, engineers make about the same but the taxes are less. So maybe $50,000 take-home.

A 335i base here is around $55k MSRP. In the US it's $40k. So that's about $15,000 difference in pricing and in salary another $10,000 difference. $25,000 net difference. ...more than half of what Americans would pay for a base 335i. Americans just don't know how lucky they are when compared to the rest of the world.

[vladinecko]

Originally Posted by methodtim

No, you're not accounting for the $100 price increase that went into effect in June 08. The price for ZPP is the same, but without Logic7.

right, but i purchased in february when it was still "just" $2,550.

[redsoxx]

In 2005, I purchased an e46 330i sedan. Options were: Xenons, automatic, leather, cold weather package. MSRP was around $41,400. I'm going to do some estimating here...so don't hold me to exact numbers.

Let's say I had wanted an identically equipped e46 330i coupe. Add around $2000. Let's say I had wanted AWD (if it had been offered at the time)...add another $2000. This additional $4000 is an approximation based on the current base price difference of $4700 between the 328i sedan and 328xi coupe. And...let's say I had wanted the premium package instead of leather, as a stand alone option. Add around $1800. So, the approximate sticker price of this car (I know, X drive wasn't available, but I'm estimating it's cost if it was) would have been around $46,200.

I just recently purchased a 2008 328xi coupe. Options were automatic, premium package, cold weather package, ipod/usb adaptor. This car has everything my above, theoretical, car would have had and more.

It has 5 more horsepower than my 330i had. Remember...in 2005 the 330 had 225hp and the 325 had only 186hp (as it was a smaller six).The new engines are lighter and achieve better gas mileage. It has more options than my theoretical car would have had as the premium package (in 2005) did not include the universal garage door opener, bluetooth or power folding mirrors. And you only got 1 year of BMW assist included, as opposed to four years. I also have an ipod/usb adaptor.

Sticker price of my 328xi coupe: $43,875. That's over $2300 CHEAPER!!!!!!!!

Now...I know some of you will say...."Well...he had the top 3 series model in the 330 and he's comparing it to the entry 3 series model in the 328." But....the bottom line is that I now have a car that is bigger, more modern ,more powerful, more fuel efficient and better equipped than my last BMW. And it cost less money.

Compare apples to apples and, I guess, prices have dropped??????

[jmsent]

Originally Posted by rambalu80

If you hadn't noticed, the USD has been gaining against the Euro. It is better than where it was in January 2008. Click here!

Yes, it's gaining. But relative to where it was a couple years ago, it's still way down. BMW certainly uses their international position and the fact that they produce goods here for export to help compensate for currency swings. Still they haven't come close to compensating for the actual dollar devaluation over the past few years. Had they done so, the price of a 335 would have gone up well over 10% per year.

[StewtheBassman]

I can't wait to see the 2009 pricing for Canada! We're already about 25% more than the US.

[methodtim]

Originally Posted by redsoxx

Compare apples to apples and, I guess, prices have dropped??????

I get what you're saying and what you're getting at, but your argument is pretty much the definition of apples to oranges.

[calleballe]

Weak dollar due to poor fiscal policy by G W Bush. Welcome to reality.

This is just one of many ways it will manifest itself. The lag time is long and this will remain reality across markets for a while.

(Clinton left the federal budget with a $5Bn surplus 8 yrs ago, G W will leave with a $13 Bn deficit.) The fiscal conservatives of today are the democrats.

[Pedal2Floor]

Originally Posted by methodtim

That really has nothing to do with the OTD price of the car as much as it has to do with BMW's really favorable leasing practices. If you know of someone who's driving a car beyond their means, there's a very good change they are leasing it. The good news is that this should be ending as well, based on articles I've seen and the latest info on 09 leasing terms. The bad news is that it probably won't affect resale value of the e9x generation of cars at all since there are so many of them on the road already. If BMW continues to tighten the leasing reins, though, the next generation 3er should be pretty exclusive and we'll see an appropriate increase in resale value. I dunno, is my logic flawed here? It's late and I've been working all day and night...

The head of BMW NA was on CNBC before the BMW Golf Tournament and said that present, 60% of the cars sold are leased and that want to have something closer to no more than 40%. They want to flip the ratio, which means CPOs are also going to be more expensive.

[335xiMTL]

Originally Posted by methodtim

Stop your whining. Do you realize that everyone, and I mean everyone, in other countries pays significantly more for BMW's than Americans do? Try looking through some of the threads where Europeans are paying the equivalent of 100k for a 3 series. I believe it's about the same price in Japan as well. There's also this little thing going on called a recession. You might want to pay attention to it. Our economy is in the toilet and so is our currency.

I'm not saying that the price increases don't suck on a visceral level. Of course they suck. No one wants to pay more than they did before on essentially the same product. All I'm saying is that America has been spoiled rotten with regards to how much we pay for goods compared to the rest of the world. The chickens have come home to roost, as it were. You'd better just get used to it now because it's not going to get better any time soon.

I apologize for the snarkiness of this post. This is about the 50th post I've seen complaining about how much 3ers cost. It's a very US-centric high-pitched whine and it's cause me a bit of annoyance. If you feel you have to flame me, go for it, I'm game.

+1

I live in Canada, and a 335xi Coupe runs me $54,100 BEFORE tax -- BONE STOCK. No packages whatsoever.

I see people leasing m3's for the same price we lease 328xi's up here. And the 335 ( $600-$750 range in US ) gets you a nicely loaded Acura TL -- if your lucky

One thing is for sure, if i'd be in the states id be driving a sweeeeeet ride cause i'd find everything to be a bargain

[Seminole]

Originally Posted by calleballe

Clinton left the federal budget with a $5Bn surplus 8 yrs ago,

Under a Republican congress number one. And much of it helped by the Republican Contract with America. Secondly, most economists agree that George H.W. Bush laid the groundwork for the huge economic growth of the 90's. There was a great documentary on I believe either A&E or National Geographic about GHWB (I think this is it http://store.aetv.com/html/product/index.jhtml?id=75784). Remember George's campaign slogan? "No new taxes!"? Well remember he ended up raising them towards the end of his term? He new it was going to be political suicide, especially since it was one of his main campaign promises, but he knew it had to be done. That was because the economy was feeling the effects from Regan's out-spend-the-commies-till-they pop policy. Because of it, inflation was running rampant. Bush's increase in taxes helped to keep inflation in check, hold down interest rates, and contributed to the tremendous growth of the 90's. During most of the last two years of his presidency, the economy wasn't getting any better. But if you look at the last few months you could see that it was recovering. That turned into the expansion of the 90's.

Also, we have had a Democrat controlled congress for the last 4 years. Tell me one thing they have done. I really can't think of anything.

But we are talking about cars. Lets keep the political nonsense off these boards.

[John 070]

Originally Posted by d_crome

I believe the best way to resolve this would be to indicate the price of the car as a percentage of income earned by an individual.

i.e. US average income (granted this includes some portions of the US that are nearly third world in wages and conditions) $40K.

Therefore a 335i @ $42,000 US would be approximately 105% of an annual wage.

A 335i in Aus @ $112,000 AUS with an Annual Average Wage of $57,000 AUS would be approximately 196% of an annual wage.

Hence:

335i US = 105%
335i AUS = 196%

You guys do indeed live in the "lucky country" - you should see the proverbial shopping list of goodies I get hit with when I fly home - try explaining to customs why you exactly NEED 7 iPods and 3 laptops next time you fly international....

Just get an A-1 and you don't have to explain anything to customs nor wait in any lines. Also, why would anyone spend more than their annual salary on a car? We should have schools, parents, friends, colleagues that discourage such behavior. imho if a person earns 40k, they should be thinking about what they have to do to make 50k next year, 60k the year after that, and maybe 140k at some point. That to me is the avg. 3 Series buyer. Of course, if a person lives in a high cost-of-living area, had kids, etc., all bets are off.

[calleballe]

Originally Posted by Seminole

Under a Republican congress number one. And much of it helped by the Republican Contract with America. Secondly, most economists agree that George H.W. Bush laid the groundwork for the huge economic growth of the 90's. There was a great documentary on I believe either A&E or National Geographic about GHWB (I think this is it http://store.aetv.com/html/product/index.jhtml?id=75784). Remember George's campaign slogan? "No new taxes!"? Well remember he ended up raising them towards the end of his term? He new it was going to be political suicide, especially since it was one of his main campaign promises, but he knew it had to be done. That was because the economy was feeling the effects from Regan's out-spend-the-commies-till-they pop policy. Because of it, inflation was running rampant. Bush's increase in taxes helped to keep inflation in check, hold down interest rates, and contributed to the tremendous growth of the 90's. During most of the last two years of his presidency, the economy wasn't getting any better. But if you look at the last few months you could see that it was recovering. That turned into the expansion of the 90's.

Also, we have had a Democrat controlled congress for the last 4 years. Tell me one thing they have done. I really can't think of anything.

But we are talking about cars. Lets keep the political nonsense off these boards.

Kind of hard to keep politics off since the OP topic is just about that. BMW NA adjust prices as a consequence of weak dollar...