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X5 E70 (2007 - 2013)
E70 BMW X5 produced between 2007 and 2013. Discuss the E70 X5 with other BMW owners here.

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  #1  
Old 11-19-2010, 10:24 AM
rtcage rtcage is offline
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BMW Pricing/Options Strategy

My third BMW is on order after almost 12 years of driving other cars. I've decided to forget the reliability frustrations from the past and pretend the insanely priced options aren't as bad as they are. There certainly is a fit, finish and feel to BMWs that is nice.

I can't help but wonder though what is behind the insane prices of options on BMWs when so many cars now are including so much as standard features. Here's my question, is it:

1. BMW doesn't innovate beyond performance and handling and is forced to license electronics and convenience technology from other entities which then drives up the prices, or
2. BMW is trying to make the base price of the car more competitive when compared directly to the competition, therefore trying to profit more on the options.
3. Both
4. Something else

Like I said, it is what it is and I am obviously willing to tolerate it for the other benefits that come with a BMW. I'd just like more info on what's going on.
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  #2  
Old 11-19-2010, 10:44 AM
XXX555 XXX555 is offline
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2+

Porsche is much worse and known for same garbage.

Bean counters dictate best set up to maximize return on base v. options available.
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  #3  
Old 11-19-2010, 05:06 PM
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AzNMpower32 AzNMpower32 is offline
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First of all, BMWs sold in the US are already discounted compared to the rest of the world. It reflects the US market share and competitiveness; Germans are always frustrated that they have few standard features and pay 50% more than Americans. So put it in a global perspective. The fact that US-market cars get xenons, dual-zone climate, moonroof, metallic paint, electric seats.....and a LOT more standard shows that BMW NA does its best to incorporate American demands for standard features.

Secondly, there are research and development costs for being first. Do you really think Hyundai or Toyota try groundbreaking technologies? Do let me know if the Lexus has Adaptive Drive or an 8-speed Adaptive transmission. Lexus has an 8-AT but it's a lot more confused than what ZF makes for BMW.

Like you said, you're willing to put up with the option pricing for the quality and feel of a BMW. That's what marketing strategy is all about. As for the stupid packages and option limitations, blame that on dealers and their input to BMW NA asking for more simplicity instead of a la carte, made-to-order cars.
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  #4  
Old 11-19-2010, 05:08 PM
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bobamoo bobamoo is offline
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This is my 1st BMW, and also the 1st time I've custom ordered a new car. Have to agree, I was really blown away at the option prices. Mine has about $11k in options, packages and individual. Decided this was a special purchase so what the hell, but there were a few more I wanted but said no to due to cost. And no floor mats in any of the packages??? Oh well, I love my new car, so I guess in the end it's all worth it.
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  #5  
Old 11-19-2010, 07:22 PM
gogatorsx5 gogatorsx5 is offline
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You think BMW options are pricey??? Take a look at a Porsche Cayenne S and option it out similarly to a X5 xdrive 50i. It'll be a wake up call.
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  #6  
Old 11-20-2010, 04:53 AM
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JMK JMK is offline
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+10000!
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  #7  
Old 11-20-2010, 07:26 AM
mrswh mrswh is offline
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I checked out the Volvo XC90 a few weeks ago and initially thought I'd end up getting one for this very reason - they really do include an awful lot of things standard that are options on a BMW. When I equipped the cars the same (which, IMO, doesn't make them even close to equal anyway), the Volvo came out a good $10K lower. However, with BMW's eco credit and holiday cash, and their far more favorable lease rates, I have ordered a 2011 X5d for a lower monthly payment than a similarly equipped AWD XC90. And I just plan on keeping the mats from my current X5.
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  #8  
Old 11-20-2010, 08:24 AM
ard ard is offline
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Quote:
Originally Posted by AzNMpower32 View Post
Secondly, there are research and development costs for being first. Do you really think Hyundai or Toyota try groundbreaking technologies? Do let me know if the Lexus has Adaptive Drive .
Oh please. 1990 Infiniti Q45 had active suspension.... and four wheel steering. So, what?, ~20 years before BMWs "first",,,, don't beleive all the glossy BMW spin. I suspect most of the 'technology' BMW develops is by third parties.

If I had to vote, it would be #3 in the OPs post.
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  #9  
Old 11-20-2010, 08:34 AM
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dalekressin dalekressin is offline
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Quote:
Originally Posted by rtcage View Post
My third BMW is on order after almost 12 years of driving other cars. I've decided to forget the reliability frustrations from the past and pretend the insanely priced options aren't as bad as they are. There certainly is a fit, finish and feel to BMWs that is nice.

I can't help but wonder though what is behind the insane prices of options on BMWs when so many cars now are including so much as standard features. Here's my question, is it:

1. BMW doesn't innovate beyond performance and handling and is forced to license electronics and convenience technology from other entities which then drives up the prices, or
2. BMW is trying to make the base price of the car more competitive when compared directly to the competition, therefore trying to profit more on the options.
3. Both
4. Something else

Like I said, it is what it is and I am obviously willing to tolerate it for the other benefits that come with a BMW. I'd just like more info on what's going on.
You are right
"it is what it is" and you need to decide on what matters most to you.
Low cost driving or the better drivwers' experience.
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  #10  
Old 11-20-2010, 08:35 AM
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dalekressin dalekressin is offline
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oooops [posted too quick


I don't want to dissapoint you but the X5 is no Forunner.
Different vehicles with different priorities.
From your post I worry you just will not be happy.
You know you best to make the best choice for you.
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94 530i sold (That was difficult for me)
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  #11  
Old 11-20-2010, 08:59 AM
rtcage rtcage is offline
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Reliability will dictate whether I buy a 4th BMW. I don't mind paying a premium for a car that performs and handles better even if the convenience technology isn't there.

But back to my original question, it really is just curiosity. From my perspective it seems like the Germans are first with transmission advancements and the Japanese have the edge with electronics. I just don't know enough about the auto industry in the US to know how much cross-licensing of technology is going on.
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  #12  
Old 11-20-2010, 10:50 AM
rickp rickp is offline
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I've never had a problem getting mats for any car I've bought. The trick is at the very end of negotiations on price you say you want mats before you sign. Works for me every time.
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  #13  
Old 11-20-2010, 01:33 PM
ard ard is offline
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Quote:
Originally Posted by dalekressin View Post
oooops [posted too quick

.
That's why there is an "Edit" button on every one of your own posts! So you can go back and edit what you posted too quick....
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  #14  
Old 11-20-2010, 02:01 PM
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the kidd the kidd is offline
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am I mistaken in thinking that if one takes care of a car, it should last long and be reliable. my vote is that it is something else. I don't know what. I do like your comment about the fit and finish. This is my first BMW, and I like it more and more each time I drive it.
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  #15  
Old 11-20-2010, 09:02 PM
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AzNMpower32 AzNMpower32 is offline
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Quote:
Originally Posted by the kidd View Post
am I mistaken in thinking that if one takes care of a car, it should last long and be reliable. my vote is that it is something else. I don't know what. I do like your comment about the fit and finish. This is my first BMW, and I like it more and more each time I drive it.
True in most cases. Then again, there is the occasional "Monday car" that never works right no matter how one pampers it or diligently repairs it.
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