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X3 F25 (2011 - current)
The latest X3 brings some added style and some new features to the BMW SUV family. Talk about the new F25 now!

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  #1  
Old 05-03-2011, 06:19 AM
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Question US vs. Canadian Pricing scheme

Can anyone share their point of view or arguments of why the Canadian unit prices are so much higher than the US version?
I can agree to a certain extent e.g. the recent rise of CAD vs. USD without the adjustment of the unit prices (hey they're making money- why change??? ), Canadian cars having a bit more installed options as standard, etc.
But I still find it very different...
Unit prices:
X3 28i: starting at $36,750 MSRP (US) vs. MSRP: $41,900.00 (CAD)
X3 35i: starting at $41,050 MSRP (US) vs. MSRP: $46,900.00 (CAD)

A 28i with Exec pack + Prem pack + Tech Pack costs 51K MSRP in Canada!!!
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  #2  
Old 05-03-2011, 06:33 AM
No12 No12 is offline
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This argument applies to so many things in addition to vehicles.

The answers for the higher Cdn price that I have heard over the years include:
- smaller market in Canada
- Cdn regulations and taxes
- cheaper Cdn dollar (no longer applies today)
- less competition between dealers (ie, more spread out)
- Cdn cars have different content (usually more items standard)
- winter conditions add content (heated seats, etc standard)

Take your pick...
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  #3  
Old 05-03-2011, 06:41 AM
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Quote:
Originally Posted by No12 View Post
This argument applies to so many things in addition to vehicles.

The answers for the higher Cdn price that I have heard over the years include:
- smaller market in Canada
- Cdn regulations and taxes
- cheaper Cdn dollar (no longer applies today)
- less competition between dealers (ie, more spread out)
- Cdn cars have different content (usually more items standard)
- winter conditions add content (heated seats, etc standard)

Take your pick...
fair points...
One point which stands out above all is the adjustment of exchange rate... back a few years, the prices in canada were lower than us (due to cheaper canadian $) which eliminated all the other arguments...
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  #4  
Old 05-03-2011, 06:41 AM
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http://www.wheels.ca/article/31673
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  #5  
Old 05-03-2011, 06:43 AM
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http://blog.r4nt.com/2008/04/17/bmws...nce-continues/
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  #6  
Old 05-03-2011, 06:51 AM
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AzNMpower32 AzNMpower32 is offline
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Smaller market, smaller economies of scale, and probably a willingness to pay a bit more. Car companies tend to simplify the options for small markets.

The US has been spoiled over the years with cheap pricing on cars in general. The consequence is fewer models and option configurations compared to some other countries.
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  #7  
Old 05-03-2011, 07:33 AM
Glen E Glen E is offline
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Last edited by Glen E; 05-03-2011 at 07:51 AM.
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  #8  
Old 05-03-2011, 07:47 AM
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Originally Posted by Glen E View Post
so this means the guy that paid 58 in can and took flak here really did'nt pay that much in US standards?

OH....nevermind.."just keeping it real"......
Was it 58k in Canada??????!!!!!
a 35i easily reaches 58k in Canada!!!!
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  #9  
Old 05-03-2011, 07:50 AM
Glen E Glen E is offline
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Originally Posted by Shaw View Post
Was it 58k in Canada??????!!!!!
a 35i easily reaches 58k in Canada!!!!
I stand corrected - it was florida - post corrected
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  #10  
Old 05-03-2011, 07:51 AM
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Stewey is from Florida! So paid in US...
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  #11  
Old 05-03-2011, 08:46 AM
Clivem2 Clivem2 is offline
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3.0 diesel MSport with a very extra few options is $67k including tax.
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  #12  
Old 05-03-2011, 09:19 AM
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Originally Posted by Clivem2 View Post
3.0 diesel MSport with a very extra few options is $67k including tax.
you just added tax?? this means war!!!
in Canada 28i Tech/Exec/Prem (letherette-no cost) is $60,500!!!!
the config you just mentioned above (although we don't have diesel) I reckon that would easily touch 70k+
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  #13  
Old 05-03-2011, 10:29 AM
Clivem2 Clivem2 is offline
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Quote:
Originally Posted by Shaw View Post
you just added tax?? this means war!!!
in Canada 28i Tech/Exec/Prem (letherette-no cost) is $60,500!!!!
the config you just mentioned above (although we don't have diesel) I reckon that would easily touch 70k+
We tend not to talk prices without tax, I suppose we find it simpler but each country has uniform tax rates.
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  #14  
Old 05-03-2011, 01:43 PM
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Quote:
Originally Posted by Shaw View Post
you just added tax?? this means war!!!
in Canada 28i Tech/Exec/Prem (letherette-no cost) is $60,500!!!!
the config you just mentioned above (although we don't have diesel) I reckon that would easily touch 70k+
In the UK, Europe, and most of the world, the prices folks quote in person and on the websites are "On-the road", inclusive of VAT, insurance, and registration. So when you build a BMW on the UK or German website, the price configured includes all fees. What you see is pretty much what you pay.

So for example, I configured a X3 xDrive30d with options and colours i liked. Came out to exactly 60.000 (and doesn't have Professional radio/iDrive ) and that includes 19% VAT in Germany.
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  #15  
Old 05-03-2011, 07:56 PM
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That is correct. I lived in Europe for 6 years and I'm pretty much familiar with the VAT... I also tend to like the "what you see what you get" concept more appealing than the "stuffing" trick in NA...
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  #16  
Old 05-03-2011, 08:06 PM
flyingbyhere flyingbyhere is offline
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in the US it's usually quoted pre-tax here since taxes/fees vary by region/state/city and so otherwise would not be comparable
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  #17  
Old 05-04-2011, 05:14 AM
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The concept of "taxes are extra" is a marketing tool itself. Phsycologically, the brain sees the lower amount even though you are paying the extra taxes...
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  #18  
Old 05-04-2011, 05:22 AM
Clivem2 Clivem2 is offline
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I've always found it strange that US shops price everything without tax. It tends to be a country where things are simplified pragmatically but it's also a country where commerce is king so I suppose making prices seem lower wins out.
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  #19  
Old 05-04-2011, 05:41 AM
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right!
Imagine my X3 was priced at $50,800 ...hey great stuff!!!
Though in reality, I ended up paying $58,000 !!!
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  #20  
Old 05-04-2011, 07:52 AM
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Quote:
Originally Posted by Clivem2 View Post
I've always found it strange that US shops price everything without tax. It tends to be a country where things are simplified pragmatically but it's also a country where commerce is king so I suppose making prices seem lower wins out.
Yeah. Marketing tools like "dollar menu" and $0.99 don't mean squat (except in some tax-free states) because one has to tack on anywhere from 5-10% tax after that, effectively making it NOT a dollar item. A lot of adverts scream "Get (Insert Product here) for less than $ XXXX!!!" and then forget about taxes and fees.

A most localities in my state also charge fees like "prepared meals tax" on top of the sales tax for any hot food items, including fast food. So that $14,99 meal is actually $16,33-$16,71 (a 9 to 11,5% combined rate) out of pocket. And then don't forget the gratuity, service charges, etc.....it's all getting out of control.

In Europe, what you see includes service charges, tips, etc....so it's very easy to know exactly what one is paying. In spite of the European debt crisis, I'm still bent on moving to Germany in the future.

Last edited by AzNMpower32; 05-04-2011 at 07:53 AM.
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  #21  
Old 05-04-2011, 08:14 AM
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This is becoming a financial discussion rather than bimmer topics... but what the h... , it is interesting!!!
The European system for including the VAT on the actual price is good indeed but don't underestimate the tax structure in Europe which is very exhausting!!!
You are charged 19% (in Germany) and around 21% in some other neighbouring European countries (Belgium and France). Not to mention that as a "salary-earner", you are already contributing to high tax rates (easily upto 38% depending on the income level). So as you see the tax rates are quite high...
Also with the recent up-rise of Euro in the past few years, it is even worse. Euro has to struggle a lot to sell something which is 100 Euro vs. something that is the same but $100 So a person with an average income ends up paying 50-55% of his monthly income on taxes and social security!
The up side of the story is: The taxes and SS you pay are well spent into the system and the services you get are extremely good (health system, education, public transport, civil, etc.). No doubt better than US and surprisingly better than Canada (everyone here says they've got a good healthcare system, but when I compare it to Europe... it's nasty!- With Harper back in business, I think the health system will continue to drain even more )
But the most intriguing of all: I could drive my 3 series in Germany with a decent speed of 180-200 km worthy of what a Bimmer is supposed to offer in an excellent highway from Cologne to Hamburg!!! Now that's something you can certainly not do in NA!!!!
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  #22  
Old 05-04-2011, 03:25 PM
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AzNMpower32 AzNMpower32 is offline
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Completely off-topic, but fun.

Quote:
Originally Posted by Shaw View Post
The up side of the story is: The taxes and SS you pay are well spent into the system and the services you get are extremely good (health system, education, public transport, civil, etc.). No doubt better than US and surprisingly better than Canada (everyone here says they've got a good healthcare system, but when I compare it to Europe... it's nasty!- With Harper back in business, I think the health system will continue to drain even more )
But the most intriguing of all: I could drive my 3 series in Germany with a decent speed of 180-200 km worthy of what a Bimmer is supposed to offer in an excellent highway from Cologne to Hamburg!!! Now that's something you can certainly not do in NA!!!!
Exactly. Investment in domestic infrastructure and services is clearly evident in Europe, not so much in the US. Take a drive on America's broken roads. Ride the ancient trains. Wait on the tarmac at the airport due to our outdated plane radar system. There's a great article from last week's The Economist that talks about all this. I say raise taxes and cut spending at the same time.

And now back to your regularly scheduled programming............
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