Euro Pricing vs US Pricing

[128er]

Ok guys I did a little detective work. I took the UK BMW 335i M Sport model price and compared it to the US 335i. There's like an $8,000 (USD) price difference. We cannot rely on Europe's price for US price information. The U.S will have its own price.

[bradford]

[inTgr8r]

Originally Posted by 128er

Ok guys I did a little detective work. I took the UK BMW 335i M Sport model price and compared it to the US 335i. There's like an $8,000 (USD) price difference. We cannot rely on Europe's price for US price information. The U.S will have its own price.

Yes, the rest of the world supports the US market.... :frown:

[antto]

Originally Posted by 128er

Ok guys I did a little detective work. I took the UK BMW 335i M Sport model price and compared it to the US 335i. There's like an $8,000 (USD) price difference. We cannot rely on Europe's price for US price information. The U.S will have its own price.

How did you work that out? According to Car & Driver the list price for the 335i coupe in the US is $42,000. In the UK the 335i M-Sport is £35,775 - which is $73,000 at today's exchange rate.
Prices in the US and Europe are never directly comparable - partly because European prices include VAT (15-25%, depending on country) but mainly because Americans are used to the lower prices of US-built cars and simply won't pay European prices.

And the rest of the world doesn't support the US market: that implies that BMW makes a loss in the US, in which case it would simply pull out and focus on those markets where it can make a profit.

antto

[128er]

Originally Posted by antto

How did you work that out? According to Car & Driver the list price for the 335i coupe in the US is $42,000. In the UK the 335i M-Sport is £35,775 - which is $73,000 at today's exchange rate.
Prices in the US and Europe are never directly comparable - partly because European prices include VAT (15-25%, depending on country) but mainly because Americans are used to the lower prices of US-built cars and simply won't pay European prices.

And the rest of the world doesn't support the US market: that implies that BMW makes a loss in the US, in which case it would simply pull out and focus on those markets where it can make a profit.

antto

I have a tool on Windows vista that does currency exchange but there was a big difference.

[123d]

Originally Posted by 128er

I have a tool on Windows vista that does currency exchange but there was a big difference.

You don't need a tool, just go to http://www.xe.com/ucc

[guyatherton]

Originally Posted by antto

How did you work that out? According to Car & Driver the list price for the 335i coupe in the US is $42,000. In the UK the 335i M-Sport is £35,775 - which is $73,000 at today's exchange rate.
Prices in the US and Europe are never directly comparable - partly because European prices include VAT (15-25%, depending on country) but mainly because Americans are used to the lower prices of US-built cars and simply won't pay European prices.

And the rest of the world doesn't support the US market: that implies that BMW makes a loss in the US, in which case it would simply pull out and focus on those markets where it can make a profit.

antto

BMW makes a profit in the US but makes more in places like the UK etc so the US is being supported a little. One trade off for having a lower price is less options - such as only two engine choices for the 1 or 3 series. They have to have economies of scale somewhere.

[brfbmw128i]

Originally Posted by 128er

Ok guys I did a little detective work. I took the UK BMW 335i M Sport model price and compared it to the US 335i. There's like an $8,000 (USD) price difference. We cannot rely on Europe's price for US price information. The U.S will have its own price.

i agree completely

[torv]

Originally Posted by 128er

Ok guys I did a little detective work. I took the UK BMW 335i M Sport model price and compared it to the US 335i. There's like an $8,000 (USD) price difference. We cannot rely on Europe's price for US price information. The U.S will have its own price.

That has always been the case, my friend. An M3 in South East Asian country such as Thailand or Malaysia cost about 300K US Dollars. We have it good over here.

[ibeam81]

Although you can't just do a price conversion (because of taxes and the like), you can look at the price ratios between countries for existing models and then use the ratio to determine the price of a new model.

[torv]

So do the ratios come out the same every time? This is not meant to have a go at you, I'm just curious. If the ratio is fixed all the time, then yeah we can use it.

In this case, what is the ratio between Euro and US? Maybe we can have a better idea on pricing.

[ibeam81]

Originally Posted by Torv

So do the ratios come out the same every time? This is not meant to have a go at you, I'm just curious. If the ratio is fixed all the time, then yeah we can use it.

In this case, what is the ratio between Euro and US? Maybe we can have a better idea on pricing.

Check out the main pricing thread at:

1er coupe U.S. price point???

ZweierCoupe has some good examples, although not everyone agrees with him. YMMV.

[128er]

Originally Posted by guyatherton

BMW makes a profit in the US but makes more in places like the UK etc so the US is being supported a little. One trade off for having a lower price is less options - such as only two engine choices for the 1 or 3 series. They have to have economies of scale somewhere.

So your saying that the 1 series coupe will be much cheaper in the states compared to Europe?:iono:

[ibeam81]

Originally Posted by 128er

So your saying that the 1 series coupe will be much cheaper in the states compared to Europe?:iono:

I don't think that it's so much that they are cheaper in the US, but that the rest of the world taxes the bejesus out of people on car purchases. :eyebulge: