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hugo_nz

Rant and feedback request - BMW Part Prices

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I get that New Zealand is small, but am I the only one who feels that BMW (and probably most auto parts providers) are taking the piss when it comes to part prices? Here's an example:

6WB Digital cluster for F10/12 etc. BMW ETK net price is listed at Euro1453.51, Dealer base price is Euro1729.94. At today's exchange rate it's $2888.09. Add GST and it becomes $3321.30. BMW NZ's price... $4950+GST ($5692.50). That's basically a 72% markup. Even with freight, customs etc. that still seems awfully high. I asked the parts guy why the price is so high compared to ETK, and he said that they cannot even see the Net price...they get pricing direct from BMW New Zealand.

Another example:

Ignition coils. A common part shared with pretty much every model line. Europart wants $90+gst for a generic Chinese part or $50 for a used part. BMW charges close to $500 for a single coil + labour. I ordered 8 Bosch new generation ignition coils, 8 high-power ZR5TPP33 spark plugs, front brake pads, both engine air filters and a deflector pulley online for...wait for it...$970 including shipping, customs, MPI and GST. (versus the $828 the generic Chinese coils alone would've cost). For interest sake, that same Bosch ignition coil according to ETK is net E30.32, dealer E48.90=$81.64 ($93.86 incl)...

Am I missing a fundamental piece of the New Zealand economic puzzle here? There's no duty on part imports, only GST. and on GST. of more than $60 there the MPI and Entry fees, but even those are not outlandish. What am I missing?

If you have recently purchased parts from BMW direct (or original new BMW parts from somewhere else) feel free to post the part numbers here and I will get the most up-to-date ETK pricing for comparison.

Edited by hugo_nz
updated info

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This has been flogged to death on here. Just buy online. 

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Main dealer parts pricing for German (at least) auto parts does contain a massive mark up. It's not the individual dealership marking up - the manufacturer representation in NZ have to pay for their fancy showrooms somehow.

It's not just later model vehicles either - parts for older models are also affected.

There's a part I recently bought for a Mercedes which is available ex-US as a genuine MB part at 24-off for around $36 (US). (Shipping needs to be added.) MB in NZ want $11.86 each. BMW and VAG pricing seems similar.

I don't know if Japanese car parts are similarly affected.

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Your observations are correct @hugo_nz and no, there's no valid reason for it. It's monopoly price gouging, shop abroad, they don't deserve our money locally (unfortunately).

And adding GST to sub $400 packages come October is going to make no difference.

 

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12 hours ago, hugo_nz said:

I ordered 8 Bosch new generation ignition coils, 8 high-power ZR5TPP33 spark plugs, front brake pads and a deflector pulley online for...

Care to share where from?

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16 hours ago, hugo_nz said:

BMW charges close to $500 for a single coil + labour. 

LOL... genuine coil is $149 from BMW so don't know where you are getting that number from

E: all N engine series are at least 

Edited by Gaz

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the dealers do not have line pricing either. youll find if you price at different dealerships youll get a different price. 

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11 hours ago, M3AN said:

Your observations are correct @hugo_nz and no, there's no valid reason for it. It's monopoly price gouging, shop abroad, they don't deserve our money locally (unfortunately).

And adding GST to sub $400 packages come October is going to make no difference.

 

 

What happens in October?

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10 hours ago, Gaz said:

LOL... genuine coil is $149 from BMW so don't know where you are getting that number from

E: all N engine series are at least 

That's what Auckland City BMW charged me 3 weeks ago...

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Bmw wanted $1200NZD for transfer case actuator motor, $380US online or the same part using a landrover part number $240US online

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2 hours ago, hugo_nz said:

What happens in October?

New tax law is coming into effect, GST should be charged/collected on all imported goods, not just lots over $400. How that pans out in practice remains to be seen of course...

 

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8 hours ago, M3AN said:

New tax law is coming into effect, GST should be charged/collected on all imported goods, not just lots over $400. How that pans out in practice remains to be seen of course...

 

This is the NZ Government idea where the seller (overseas) collects GST for the NZ Government?

 

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Small market and no suppliers.  I still agree, it's sh*t not being able to buy anything here.

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2 hours ago, gjm said:

This is the NZ Government idea where the seller (overseas) collects GST for the NZ Government?

 

Yes... let's see how that goes!

 

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14 minutes ago, M3AN said:

Yes... let's see how that goes!

?

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It took 2 days for something i purchased recently to clear customs, despite the seller (Dick Smith) taking GST already. if everything that comes into NZ takes that long, instead of flying through customs like it currently does if under $400, it'll be mayhem.

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Here's a specific example of some of this craziness :

From one of the forum sponsors from a UK Bimmer forum, was quoted £1975 for the M Perf. LSD and £1065 for the M Perf. Exhaust with full carbon tips, cheaper with steel tips.

That includes freight to NZ but not tax, by the time I add 15% GST and a clearance fee, it works out to roughly $6800 NZ landed. 

For comparison, in NZ the LSD alone is $10,860 inc GST and the MPE with carbon tips is $3560, prices ex dealership current as of 3 weeks ago.

So I can land it, paying all shipping and tax myself, buying direct from a BMW dealership on the opposite side of the planet, for under half what I can buy it for locally.

‘Official channel’ BMW parts in NZ seem to simply be daylight robbery. There is literally no justification for charging the additional $7620 in my example above, they're not even stock parts, have to import it same as I do - and the UK dealer isn't doing it for free, he'll be making good money on the deal as is!

Edited by BlackrazorNZ

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Hang on, Dan.  Did you subtract 10% discount on the NZ dealer retail for showing your  membership card of BMW Car Club NZ?

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16 minutes ago, Olaf said:

Hang on, Dan.  Did you subtract 10% discount on the NZ dealer retail for showing your  membership card of BMW Car Club NZ?

Negatory. Did not know this was a thing.

Means it's only $6178 more expensive ?

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IMHO, if it's on the shelf, they've got inventory costs... and then I don't mind paying 'a little extra' on the basis that it's there for me, and they're a business and they need to make a profit.

What I find difficult to reconcile is where the part isn't in NZ, so it's indent order - no inventory costs - and it'll take two weeks and cost you an arm and quite possibly a leg or part of your reproductive system... and it's way more speedy and way slower than ordering it yourself from USA or Europe.  

 

EDIT:  and most of the time, when it is on the shelf, it's still rather pricey.

Edited by Olaf
EDIT:

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A wee update. I emailed BMW NZ about this, including my calculations and the info from ETK in the email.  The reply:

"Yes I agree, the price you have been given is excessive, however Continental BMW have given you the correct prices that is currently in our system.

The pricing in our system is not based on the German euro price, as you have calculated below, but it is normally close.  We have not sold this part for many years and for some reason the pricing has not been updated automatically like it should, which I will look into.

If you decide to order this part, we will do it for $3289 + gst, which is much closer to your calculation below.  I have included the Parts Manager from Continental BMW into this email."

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20 minutes ago, hugo_nz said:

A wee update. I emailed BMW NZ about this, including my calculations and the info from ETK in the email.  The reply:

I'm amazed you got one. I emailed them 3x and still haven't heard a peep back.

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This reminds me.  I have some parts I need to get overnight.  Murica.

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On 2/24/2019 at 10:44 PM, Olaf said:

IMHO, if it's on the shelf, they've got inventory costs... and then I don't mind paying 'a little extra' on the basis that it's there for me, and they're a business and they need to make a profit.

What I find difficult to reconcile is where the part isn't in NZ, so it's indent order - no inventory costs - and it'll take two weeks and cost you an arm and quite possibly a leg or part of your reproductive system... and it's way more speedy and way slower than ordering it yourself from USA or Europe.  

 

EDIT:  and most of the time, when it is on the shelf, it's still rather pricey.

and further more on special order parts over a certain value i am asked to pay for it before they will even place the order, so they dont even run the risk of being lumbered with something they cant sell. 

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