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View Full Version : My 2004 Price increase


TedW
11-26-2003, 12:55 PM
Effective January 1, 2004 there will be a 1.2% retail price increase across the board excluding X3 which will remain the same. Please don't :bang: the messenger.



Ted

___lk___
11-26-2003, 01:11 PM
wow 6 grand more for the X3 w/ 3.0L engine over 2.5L :yikes:

what else do u get for that premium? more standard stuff on the 3.0...? if not, then holy f*ckin' sh1t...!

Mr. The Edge
11-26-2003, 01:19 PM
wow 6 grand more for the X3 w/ 3.0L engine over 2.5L :yikes:

what else do u get for that premium? more standard stuff on the 3.0...? if not, then holy f*ckin' sh1t...!

yep...cruise control with MFSW, Foglights, Power front seats w/driver memory, OBC.

Total of $2,030 in options

racerdave
11-26-2003, 01:48 PM
Effective January 1, 2004 there will be a 1.2% retail price increase across the board excluding X3 which will remain the same. Please don't :bang: the messenger.



Ted

Ted... is this just on the base vehicles themselves? Or all options as well?

So does this mean order before January? I was planning on ordering in February or March, but if it saves $500+ bucks, it may be worth it ordering early...

Jon Shafer
11-26-2003, 02:07 PM
wow 6 grand more for the X3 w/ 3.0L engine over 2.5L :yikes:

what else do u get for that premium? more standard stuff on the 3.0...? if not, then holy f*ckin' sh1t...!

What you can deduce from this is a shortage of 3.0L powerplants...
:eeps:


It's called the "forced-choice" paradigm.
;)

HW
11-26-2003, 02:11 PM
:dunno: that's a pretty small increase considing that the usd has drop considerably compared to last year around this time relative to the euro.

TedW
11-26-2003, 02:12 PM
Ted... is this just on the base vehicles themselves? Or all options as well?

So does this mean order before January? I was planning on ordering in February or March, but if it saves $500+ bucks, it may be worth it ordering early...




Option prices will remain unchanged. The price increase will take effect on anything invoiced to the dealer on or after 1/1/2004. Your car will have to arrive at the dealership prior to 1/1/2004. There will be no price protection.



Ted

HW
11-26-2003, 02:13 PM
wow 6 grand more for the X3 w/ 3.0L engine over 2.5L :yikes:

what else do u get for that premium? more standard stuff on the 3.0...? if not, then holy f*ckin' sh1t...!


there's 6.9K between the 325i and 330i :confused:

AF
11-26-2003, 05:28 PM
Ted is the man !!!!

thanks for posting :thumbup::thumbup:

swchang
11-26-2003, 05:33 PM
Aw crappers. I just put in an order for a car. Unless it arrives in < 4 weeks... :(

H330cic
11-27-2003, 01:00 AM
Effective January 1, 2004 there will be a 1.2% retail price increase across the board excluding X3 which will remain the same. Please don't :bang: the messenger.



Ted

Including ED price? Doh! Oh well, a few hundred ain't gonna break the bank.

Waverz
11-27-2003, 04:37 AM
Not sure if anyone of you noticed this, but it seems like the X3 will come with manual climate control as standard :eeps: and automatic will only come with premium package. Not sure about other people, but after living with auto climate, manual climates seems very odd :dunno:

Sean
11-27-2003, 12:57 PM
Boo! :thumbdwn: :thumbdwn:

SARAFIL
11-27-2003, 04:05 PM
Boo! :thumbdwn: :thumbdwn:

What do you expect? They haven't changed prices much since the time when the dollar-euro ratio was nearly 1 USD :1 EUR-- It's now near 1.2 USD :1 EUR. That makes a huge difference in their profits.

___lk___
11-27-2003, 05:06 PM
That makes a huge difference in their profits.

not really... i'm sure BMW is well-hedged against flucuations in currency exchange rates. sophisticated hedging in financial derivatives markets allow global companies like bmw to lock in capital positions for months, even years in advance.

there's just way too much $$$ at stake for them to ride the vagueries of the markets like a mom-and-pop investor does. :rolleyes:

aardvark
11-28-2003, 04:16 PM
Of course, they eliminate some currency risk by hedging, but they can't eliminate it all. At some point, if the Euro gets too strong it does negatively affect earnings. There's really no way around that.

A similar thing happened to the Coca-Cola Company a few years ago when the U.S. dollar was very strong. Coke hedges like crazy since they're in even more markets than BMW. They've done so for decades and are masters of that game. At a certain point though, the dollar crossed a line beyond the limits of Coke's hedging. Profits tanked.

missing23
11-29-2003, 04:28 PM
What you can deduce from this is a shortage of 3.0L powerplants...
:eeps:


It's called the "forced-choice" paradigm.
;)

Jon, is it really a shortage? Does BMW just not make as many 3.0's on purpose as they could? Or is the 'yield' on the 3.0's lower than on the 2.5?

___lk___
11-29-2003, 08:40 PM
At some point, if the Euro gets too strong it does negatively affect earnings. There's really no way around that.

sure there is.. u continue to manage your risk. BMW is (probably) not interested in currency exposure, and it's entirely manageable by modern corporate finance via derivative products that are readily available on world markets.

i really dont see a scenario where fluctuations in dollar-euro relationships can amount to a single worry for BMW...they know what they're doing. :rolleyes:

aardvark
11-30-2003, 01:10 AM
sure there is.. u continue to manage your risk. BMW is (probably) not interested in currency exposure, and it's entirely manageable by modern corporate finance via derivative products that are readily available on world markets.

i really dont see a scenario where fluctuations in dollar-euro relationships can amount to a single worry for BMW...they know what they're doing. :rolleyes:

Obviously, the market disagrees with you. With the Euro hitting record highs on Friday, the German auto stocks tanked.

"EURO CASUALTIES
In the auto sector Germany's DaimlerChrysler <DCXGn.DE> lost 1.6 percent, BMW <BMWG.DE> slipped 2.3 percent, Volkswagen <VOWG.DE> gave up 1.6 percent and Porsche <PSHG_p.DE> ceded two percent. "
http://www.forbes.com/home_europe/newswire/2003/11/28/rtr1163048.html

Why should investors have any concerns at all that a strong Euro will hurt European automakers' profits if, as you suggest, these companies will simply make up any losses with gains in the derivatives market?

Is this just investor irrationality? Or do these investors correctly recognize that the perils of a strong Euro can't be completely hedged away?

___lk___
11-30-2003, 08:58 AM
Is this just investor irrationality?

yes....classic case i'd say. irrationality is the wrong word, but the herd mentality is at work here.

have u ever worked in the markets? if so, then u know bad/good news is always followed by sharp spikes in trading of related sectors. it usually has little/nothing to do w/ the actual news, and ALWAYS has lots to do w/ what u think the other guy is going to do in response to this news.

is there any mathematical basis for the sell-off on friday? is it really THAT much stronger than it was on thursday? where were all those sellers on thursday?

no, but the touchy-feely terms like it "set a record", or "all-time high" is what sparks the herd mentality that drives many short-term trends. :rolleyes:

xfactor
12-02-2003, 02:53 AM
Aw crappers. I just put in an order for a car. Unless it arrives in < 4 weeks... :(
Didn't you already sign a contract for the final purchase price of the car?

swchang
12-02-2003, 03:26 PM
Didn't you already sign a contract for the final purchase price of the car?

Well, I signed a buyer's order, but from what they were telling me, it's not a "contract" because it's not binding on my part (and so I assume it's not binding on their part). Also, they never put the options I ordered on the buyer's order because I completed the deal over the phone and they'd already ordered the car once I went in to sign the buyer's order...

Maybe I should go in and ask that they fill out another buyer's order properly?

SARAFIL
12-02-2003, 03:27 PM
Didn't you already sign a contract for the final purchase price of the car?

Most purchase agreements allow for the price to change if the manufacturer changes the price. Also, BMW has announced the increase well enough in advance with the intention that dealers will pass the information along to all those that will be affected so that accomodations can be made.

swchang
12-02-2003, 03:33 PM
Most purchase agreements allow for the price to change if the manufacturer changes the price. Also, BMW has announced the increase well enough in advance with the intention that dealers will pass the information along to all those that will be affected so that accomodations can be made.

Yeah, that's the weird thing. They never told me about it...

SARAFIL
12-02-2003, 03:40 PM
Yeah, that's the weird thing. They never told me about it...

They just found out a few days ago. Everyone got the same notice that Ted W. got (and posted here). I would expect that you'd here from them soon. If they wait until you take delivery to tell you, then there would be a problem.

swchang
12-02-2003, 03:42 PM
They just found out a few days ago. Everyone got the same notice that Ted W. got (and posted here). I would expect that you'd here from them soon. If they wait until you take delivery to tell you, then there would be a problem.

Ah... Then I hope they lost my number... ;)

xfactor
12-02-2003, 04:12 PM
Maybe I should go in and ask that they fill out another buyer's order properly?
Did the paperwork you sign include a price for the car? If price was not negotiated at that point, there probably is not a contract formed and thus you might have to pay any price increase if the price changes between now and then.

SARAFIL
12-02-2003, 04:20 PM
Did the paperwork you sign include a price for the car? If price was not negotiated at that point, there probably is not a contract formed and thus you might have to pay any price increase if the price changes between now and then.

I just checked one of our Purchase Orders to see how it was written, and it clearly states that should the manufacturer increase the price of the vehicle prior to time of delivery, the dealer may change the final sale price. It then states that the buyer has the right to cancel the deal if such change occurs.

swchang
12-02-2003, 07:22 PM
Did the paperwork you sign include a price for the car? If price was not negotiated at that point, there probably is not a contract formed and thus you might have to pay any price increase if the price changes between now and then.

Yes, they were very clear about the bottom line price we agreed upon, which was listed on the form, and kept saying that it was the total I would pay, i.e. not a penny more. I don't know how this invoice price increase will change their agreement with me, but I guess we'll just see...

swchang
12-02-2003, 07:25 PM
I just checked one of our Purchase Orders to see how it was written, and it clearly states that should the manufacturer increase the price of the vehicle prior to time of delivery, the dealer may change the final sale price. It then states that the buyer has the right to cancel the deal if such change occurs.

So if the model invoice price goes up by $400, do the dealers actually pay the full $400 extra? I've heard from many sources that dealers don't really pay invoice for their cars, and even if you buy a car at invoice (including all associated fees like MACO, whatever), they still make a profit. Does that mean that there would be leeway to bargain in the "$400" increase?