Why do we pay so much for new BMWs here?

[hybrid 1043]

My friend from the states said he was looking into buying a new e46 (back about 3 years ago) for 30000 USD I was like ?? you're joking right .. he said no

Then just cruising through e46 fanatics I came across this ... this is what they pay for a new optioned up 335i

This works out to about 83k which is pretty cheap. Why are we paying up to $40000 more on a retail price ?

So apart from demand, are we really being government import tax / dealership tax / BMW NZ taxed that high ... or do BMW NZ get charged too much ?

[lidistick 70]

Volume maybe?

[Grant 4]

Last time I was in the US, I went for a wander through Weber BMW in Fresno, and was absolutely amazed how cheap they are there....but it is all relative. Compared to domestic cars in the US, they are still way more expensive.

Cheers

Grant

[BMW POWER 2]

Haha

Edited September 23, 2007 by BMW Power

[318Touring 40]

Haha

LOL, you got it!!

[Matty 0]

Keep in mind there are several other factors to consider here.

One, you can pick up a bargain used import here, which ou can't do in many countries. Our 330i cost $28K, whereas at home (in Australia) the same thing would be about 10-15K more. OK, this has nothing to do with new cars, but it's good anyway...

Two, cars have bugger-all resale value in the US. So the total cost of ownership probably isn't dramatically less.

[hybrid 1043]

Hmmm but upto 40k more per unit ? thats a lot of market inflation ... still wouldn't mind a solid awnser. it surely cant be that much.

[otagomed 0]

may be because our market is small.

I hope new BMWs are as cheap as it is in USA. but we can't compare us to Americans. They are HUGE and it's the market where all sorts of car manufactures are competing each other. It's a country of abundance.

I am originally from Korea and I know that new BMW sales volume there is about 10 times greater than NZ but their new BMW prices are not any cheaper than what we pay here. However recently BMW Korea dropped down their price by around 20% and their sales volume is alot higher than Lexus and Mercedes now.(these are 3 most popular luxury brands in Korea) Maybe one day, BMW NZ may realize that too and drop the price.

I think it's one of those things that we have to suffer by living in a small country. But hey... we got the freshest and cleanest air and water in the world. And of course we got the best and the most beautiful roads to enjoy driving BMWs!

[jjs 64]

Hmmm but upto 40k more per unit ? thats a lot of market inflation ... still wouldn't mind a solid awnser. it surely cant be that much.

When you compare purchasing power parity (differences in mean wages), that 40k gap grows even more!

[allan 295]

For what it's worth off the BMW site the price of a 335i Coupe, auto $119,900, manual $115,900NZ. With the government , BMW NZ and the dealership all wanting a piece of the pie I would say to many sticky fingers in the mix.

At $40,800US with an exchange rate of 72 to the Dollar say that works out around $56,666.66NZ.If my calculator is working correctly that leaves $59,233.34 the difference off the manual price.

The government tax on a new vehicle ???

How much do dealers make ???

What BMW NZ would take ???

[jjs 64]

I wonder if you ordered a new car from a US dealership, they would allow you to have in manufactured in RHD? I heard someone saying that Porsche might do this.

The nicely optioned 335i example above at $48k works out to be just under $65k NZD. (www.xe.com)

Add GST = $73,125

Add shipping = $76k ish.....

Or, from bmwusa.com a new M5 is $82,900. Thats less than $130k to your door in NZ.

[kiwi535 538]

currency and volume I would say,plus of course the BMW dealer have to meet company standards in showroom etc.so with a small market they have to have a highish margin to kep the doors open.If you buy bmw new in germany do you have to deal through bmwnz or can you front up to a german dealer and order a rhd nz market car and come back a few weeks or months later and drive off into the sunset?

[hybrid 1043]

hmm .. just playing devils advocate here. Its just shocking seeing what we do pay over the rest of the world. Also explains the low resale of BMW's compared to other vehicle brands I guess. Would be interesting to see how audi / merc fear. Worth some convo anyways

[Driftit 2069]

Could buy a RHD one from BMW UK for under 100K landed inc GST. Worth the savings though? What about the warranty stuff?

[sweetm3 180]

A couple of years ago I was in the States visiting my brother, we called into a BMW dealership a new M3 had a window price of approx $60.000 US. With cash you pick it up for around $53-55000 US.

I did the sums, exchange rate, right hand conver and shipping it worked out a lot cheaper than here.

Approached the dealer, said I want to buy a new M3 from him. Everything was fine till I said I wanted a right hand drive.

I got the impression that once he figured out that I was only interested in purchasing the car and taking it to NZ, that it in some way infringed on NZ BMW franchise.

I'm positive volume has a lot to do with the price difference, but it's still frustrating when you need a part and you see on the web ex brake switch $80.00NZ $18.00US. New set of 4 rotors for a M3 incuding pads & sensors $592.00US

NZ Quote $1700+GST. NZ 10days to receive the parts. Shipped from USA East coast to NZ 3 days.

New Zealand

Volume NO

Competition NO

Most properly great profit margins

Ah that feels better.

[SKT174 1]

Not only BMW's ... almost everything is much more expensive here.

My friend in the US went to Germany, picked up a 2007 E92 335i coupe for aprrox NZ$ 55000

[BMW POWER 2]

Iwonder if it'd be possible to private import? Or would the tariffs, quotas and import licences be too much?

Jeremy what would the legalities be?

[nath 134]

Its perfectly possible to privately import- When i was at JC we stored for a customer 2 cars he imported- a new 320d, and a new 525d...

Sucks though because BMW NZ isnt fully tooled/ parted up for the 525d (or wasnt at the time, and im pretty sure the model isnt on offer here still)

[jimbo01 0]

Lets use the 750i - with basically the same spec in the US and NZ.

A 750i in NZ will cost NZ$219,000 or US$151,638 (Made in Germany)

A 750i in the USA will cost NZ$110,537 or US$76,575 (Made in USA)

A 750i in the UK will cost NZ$169,511 or UK 62,345 (Made in Germany)

Given our BMW's come from Germany like the English ones this is a fair comparison. Yes we are far away so transport cost rise, but come on!

Comparison

A Legend in NZ will cost NZ$86,750 or US$64,493 (Made in Japan)

A RL (Legend) in USA will cost NZ$62,568 or US$46,280 (Made in USA)

A Legend in UK will cost NZ$98,817 or UK 36,352 (Made in Japan)

This would be the car that Honda NZ claimed would be the best value Legend in the world - yeah right. At least BMW isn't making out they are giving the buyer a "value price".

However I think we can confirm that BMW is charging what the market can stand - silly rich buggars are too easily parted from their money!

Edited September 25, 2007 by jimbo

[Mark 178]

When it comes down to it, it's simple statistics.... The U.S has 250 million people....we have 4 million.

They are BMW's biggest market worldwide.... Take a look at the new Mini Clubman for example: It has one rear door for backseat passengers to get in & out through. This door is on the right hand side of the car so that Americans can step out onto the footpath. In RHD markets the door stays where it is (this is potentially dangerous as passengers step into traffic) but Mini didn't create a model with the door on the left because it would've cost too much money and, who cares, because they sell the most cars in the U.S anyway...

I visited America recently and everyone though I was from England or Australia... no one knew where New Zealand was, we are but a blip on the map!

OT: Gratuitous pics of me and my mate with two of the girls from Hooters Hollywood... whom we took out on a date...no bull... I'd tell you what happened next but this is a family website. (or is it?) 

[jimbo01 0]

Take a look at the new Mini Clubman for example: It has one rear door for backseat passengers to get in & out through. This door is on the right hand side of the car so that Americans can step out onto the footpath.

Not forgetting allowing continental Euopeans to step out on the foot path...

[Gus 5]

nice work ^^

BMW, because they can..people pay for it so why not? the states is much more competitive too. i am sure you could buy one from uk/us/germany and bring it in without too much hassle...but it is a bit of a hassle sorting it..could be fun though!