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Discussion Starter · #1 ·
hello everyone,
does anyone know when the invoice price sheets(like the ones at eurobuyers.com) are going to be released? i am eager to order a 2003 325ci, and i am doing hte euro delivery. Thanks for any info, everyone have a nice day!
 

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Discussion Starter · #3 ·
Ouch....:(
Thank you so much for the info! Atleast i have a date to prepare for. 2003's do go on sale before that though right? I beleive i read somewhere else that you can order them as early as august(granted, this might be for non-euro delivery deals....i am not sure). Either way, thanks for replying!
 
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yeah, it kind of stinks. Last year I ordered my car on July 26, and didn't even know how much I'd be paying until September 1!

However, the "order guide" which lists all available options/colors etc. should be coming out very soon. Last year it was out by July 23. However, you won't know how much each option will cost, or what the base price is, until September I guess.
 
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shifty said:
im in the same boat (325ci :) ) but without the ED :p
when can you start ordering ? when do they get their allocations?
They get their allocation for the first 2003 models near the end of this month, around the 24th maybe
 
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actually, I just looked through the archives at the org, and it seems that the complete order guide (without pricing) came out on June 28 last year.

Now where is it this year? :dunno: :dunno: :dunno:

Jon Shafer--any ideas?
 

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Based on the rise of the Euro vs. the US Dollar over the past year, is it safe to expect a 10-15% hike in invoice cost and MSRP from BMW NA for 2003? (The chart below is a one-year history of the exchange rate, basically, how many US Dollars is one Euro worth?)



It'll be an interesting margin vs. marketing dilemma for BMW NA. If they raise the price too much, they'll eat into 2003 sales and cause a run on 2002 cars. If they raise the price too little, they'll destroy the margins they've been able to maintain even in a bad economy.

My guess is for a price increase in two stages, like an initial 6-8% hike followed by another smaller increase (3-4%?) in early Q1 if the USD vs. EUR stay around the same value and sales are around last year's levels.
 
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Zarniwoop said:


It'll be an interesting margin vs. marketing dilemma for BMW NA. If they raise the price too much, they'll eat into 2003 sales and cause a run on 2002 cars. If they raise the price too little, they'll destroy the margins they've been able to maintain even in a bad economy.
That's why they won't release pricing info until Sept. 1, so there won't be much 2002MY inventory left for the when 2003's start arriving.
 

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Zarniwoop said:
My guess is for a price increase in two stages, like an initial 6-8% hike followed by another smaller increase (3-4%?) in early Q1 if the USD vs. EUR stay around the same value and sales are around last year's levels.
You really expect a 6-8% increase? That's roughly $1,700-$2300 on a base 325i. :yikes: :rolleyes:

If they raise prices on the 3-series by any more than 2%, especially given the strong new competition, I'd be very surprised. My expectation is that they'll just about hold the line on prices or maybe tack on $200.
 

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Do I expect a price increase? Yes.

The recent drop of the dollar vs. the euro has to have an effect. Most multi-national companies do some currency hedging to limit their exposure to changes in exchange rates, but the current change is sharper and faster than most people could have predicted.

So, BMW could decide to keep prices flat and destroy their margins, but why would they?

1. BMW sales are stronger than ever compared to almost any point in their history. Demand is stronger than supply. It's almost Economics 101: When that happens, prices go up. It's just about the only strong point in the economy, people are buying expensive luxury cars, and BMW is making some very good money because of it. Ask a BMW dealer how business has been, then go ask a non-luxury dealer... you'll be shocked at the difference in outlook.

2. Their costs are rising. From a US consumer's perspective, their European costs have gone up about 15% so far since the last time they set pricing. Historically, when this has happened before, US consumers pay more.

3. BMW shows no signs of accepting smaller margins right now.

IMHO, the question isn't if they'll raise costs, it's how much. However, I think there are factors will have a tendency to keep the increase more modest than where the Euro vs. US Dollar exchange rate will go:

1. Whille the European costs are the majority of the cost of a new BMW, but they are not all of the cost. So the US portion of the costs (distribution, dealer margin, advertising, preparation, labor in South Carolina, etc.) have pretty much stayed the same.

2. Notice the lack of any changes in the 2003MY that increase BMWs costs substantively. It's either all stuff they're already doing on the line (third rear seat) or technology replacement where the old isn't available (DVD navigation). My bet is that they are purposefully not throwing in new stuff that costs more money, but that they will regardless spin new options as part of the justification for a price increase.

3. A sudden and large price hike will dampen sales. They are probably willing to slow down sales a little to keep margin healthy (and the stock market is already assuming this, that's why BMW's stock is down), but they're a smart company: they are willing to trade some margin so sales don't get killed.

4. BMW (and other car makers) have also been pretty clever about options and features as a way to control cost. The last few years, BMW has been really loading on features in the US market. Things that were standard might become options, or they might go away entirely. That keeps costs down, and if buyers don't care that much because all the matters is the sticker, everyone's happy.
 

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Yes, an increase is likely, but it will be small.

My fearless prediction is that the base price of a 325i will go from $27,100 to $27,500, an increase of 1.5%.

BMW margins are so big (2nd highest margin car company, 1st is Porsche) that they won't jump at what could be a short term fluctuation in exchange rates.

The Yen has had wild variations to the Dollar in the past, and the Japanese car manufacturers did not overreact by either raising or lowering the MSRP every year.

BMW has to work within the confines of the US market, and even a sudden 5% price increase will not sit well with the buying public. I bet they'd like to set even higher record sales in 2003, and that means keeping sales volume high.

All this is just my opinion, and the board of BMW obviously has the final say in this, not us. You better be wrong, though, since I plan on purchasing a MY 2003 3-series.
 

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Discussion Starter · #13 ·
Ok Ok..
one last dumb question: Say when it comes time to release the 2003 prices, if the increase is TOO high, will i still have time to place an order for a 2002 model?(or will that time period be over?)
 
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Baptizer said:
Ok Ok..
one last dumb question: Say when it comes time to release the 2003 prices, if the increase is TOO high, will i still have time to place an order for a 2002 model?(or will that time period be over?)
Well, yes, it would be too late to place an order for a 2002 to your exact specs. The 2002 pricing came out after production for the 2001's had ended.

That's not to say that your dealer couldn't locate an inbound 2002 car that matched or nearly matched your specs though.
 

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An observation:

Jon Shafer posted the 2003 MY changes for the M cars. One item for the M3 couple was an example of what I mentioned as a strategy to lower costs by moving standard features to options or removing options altogether:

"The optional Power Seat Package will no longer be offered"
 
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Zarniwoop said:
An observation:

Jon Shafer posted the 2003 MY changes for the M cars. One item for the M3 couple was an example of what I mentioned as a strategy to lower costs by moving standard features to options or removing options altogether:

"The optional Power Seat Package will no longer be offered"
yep, that really sucks, because now to get the power seats presumably you'll have to go full out and get the premium package. That means moonroof.

If that's true that will be a real sahme for anyone that wants power seats but no moonroof.
 

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MB has released C-class pricing for 2003:

C240 29,900
C320 35,200

(Source)

Pricing for 2002 as follows:

C240 30,550
C320 36,950

(edmunds.com w/o destination charge)

Since the MB MSRP has not increased for 2003, IMO, I doubt BMW would risk raising the MSRP by 6-8%.
 

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Discussion Starter · #20 ·
I am sorry for asking this dumb question, but are MB made in Europe also? I mean, if they are, thats good considering all this talk about the us dollar vs. euro dollar....
 
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