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Subject: We are seeing BMW carefully executie a very deliberate market strategy...
Author: Brian : member since January, 2005 : 8599 posts
Posted on: 2009-05-28 09:24:00      
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BMW is taking their cars up a notch or two in the marketplace. Part of that is driven by the dollar tanking against the Euro, but BMW still wants to raise prices. Furthermore, they have plains to maintain higher used car pricing as well. Look at the recent history of how BMW had priced a reasonably equipped version of the last few models. (These are not base prices-- these are my recollection of the prices of models with a few of the common options.)

E32 740iL: Around $65K
E38 740iL: Around $75K
E66 750Li: Around $87K
F02 750Li: Around $102K

BMW has dramatically racheted the prices on these cars, and it is not an accident. They have historically been priced a little lower than Mercedes Benz, and BMW wants some of that cash. These cars are no longer meant for junior executives, they are now intended for senior executives and captains of industry.

Unrelated, but look at BMW's pricing across the line. They are taking the whole brand upscale a little bit. Have you priced a new Z4? It is absolutely crazy. If you price out a Z4 sDrive30i (small engine) with just the Premium Package (to get "normal" stuff like leather interior, UGDO, automatic A/C, auto-dimming rear view mirror, power front seats, etc.), the MSRP is $51K. If you add the fun stuff that most of us here would want, like Premium Sound, heated seats, navigation, Bluetooth, and Satellite radio, the price is $56K. Few people will spend $56K on two-seat car in this class. Heck, I used to regard the Z3/Z4 as a basic, entry level BMW, but that price is more than I have spent on any car in my life.

Still, I will probably buy an F02 when the used market pricing falls.

Brian's 2000 E38 750iL



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