BMW US Sales Down 11 Percent in May

[David70]

Originally Posted by firedown31

Residuals are probably the biggest deciding factor, and those have dropped while the MF has gone up.

MY15 M3 in March 15
M3
.00129
15k 63%
12k 65%
10k 66%
http://f80.bimmerpost.com/forums/sho...postcount=1496

MY16 M3 in March 16
M3
.00135
15k 58%
12k 60%
10k 61%
http://f80.bimmerpost.com/forums/sho...postcount=3097

MY17 M3 in March 17
M3
.00140
15k 59%
12k 61%
10k 62%
http://f80.bimmerpost.com/forums/sho...postcount=1457

The best time to buy a 3/4 series was March of 2015 (lowest MF and highest residuals).

This would make sense for why lease rates might be going up and possibly they are trying to set residuals to be closer to reality. Interest rates have also gone slowly up. Unless their "residuals" are lower than actual than I can't say they are wrong or should be pushed up.

I still question why light trucks are up 13% unless reality is people just want light trucks and don't want cars.

Originally Posted by R N M

With the dollar being so strong it would be idiotic for BMW not to want to sell cars here and focus on other markets.

This makes zero economic sense.

Just to add - I had extended test drive in a 540i Msport Xdrive.
While its a nice car, in no way was it even marginally better than my former 535i msport. Although people praise the new interior, I find it no better than my F10 and the fake leather dashboard looks embarrassingly cheap!

Impossible to say that a pricing strategy is idiotic or they are focusing on some other area of the world based only on the numbers sold. People not wanting their product, or the decision to sell more cars at lower profit per vehicle over fewer at higher profit for vehicle are also possible and since we only know the numbers sold (and are the ones buying the product) we will always recommend cutting the price to the customer and getting volume up.

[doug_999]

Originally Posted by R N M

With the dollar being so strong it would be idiotic for BMW not to want to sell cars here and focus on other markets.

This makes zero economic sense.

I think you have this reversed.

In 2014, a $50,000 USD car was worth about $70,000 Euro
Today that $50,000 USD car is worth about $56,000 Euro

Or am I misunderstanding your comment?
(strong dollar is good for us, bad for others...)

[Alpine300zhp]

Originally Posted by Dethsupp0rt

Yep, picked mine up in April '15 (residual was still 65%). Residuals are down, and they're killing MSDs. They're really losing their advantage over their German rivals, and dynamically, everything is catching up/surpassing them.

Yep. You are correct. I locked in March 2015 rates and residuals on my 2015 m4. I take pride in knowing that I got my m4 during the best leasing period for that model.

[David70]

Originally Posted by doug_999

I think you have this reversed.

In 2014, a $50,000 USD car was worth about $70,000 Euro
Today that $50,000 USD car is worth about $56,000 Euro

Or am I misunderstanding your comment?
(strong dollar is good for us, bad for others...)

If you are manufacturing outside of our country (I believe all BMW cars), your cost doesn't change but if you keep the price the same in the U.S. you get more for it.

Example - Previously sold for $56k in the U.S. and this equaled 48k Euro's, now selling for $56k in the U.S. equals 50k Euros because of the strong dollar so BMW actually gets more for the car in their currency.

Building in the U.S. eliminates much of this benefit but also helps them when the issue switches and the dollar drops against the Euro and their costs go up but they aren't getting more for the car.

[doug_999]

Originally Posted by David70

If you are manufacturing outside of our country (I believe all BMW cars), your cost doesn't change but if you keep the price the same in the U.S. you get more for it.

Example - Previously sold for $56k in the U.S. and this equaled 48k Euro's, now selling for $56k in the U.S. equals 50k Euros because of the strong dollar so BMW actually gets more for the car in their currency.

Building in the U.S. eliminates much of this benefit but also helps them when the issue switches and the dollar drops against the Euro and their costs go up but they aren't getting more for the car.

I had the euro going the wrong way

Do remember however that the largest auto exporter from the USA is BMW with their factory in SC

[David70]

Originally Posted by doug_999

I had the euro going the wrong way

Do remember however that the largest auto exporter from the USA is BMW with their factory in SC

Likely will flip at some point.

Good point, everything coming out of the SC plant going outside the U.S. became less profitable. I think manufacturers like to have plants all over the world partly to offset the variability of the currency as it can flip one way or the other.

[Pretender]

Originally Posted by GMe90

New cars are way too expensive, especially BMWs. Buy a used BMW, get the same driving machine and keep $20k in your pocket. Sounds like a no-brainer to me.

Fcking agreed. BMW lease is ridiculously expensive. ///M badge abuse is out of this world: they use ///M badge for every series beside the true ///M. On top of that: Alpina Bx whatever vs ///M6/7xxx, overlapping series: 7ers vs 6 Grand Coupe or 3ers vs 4Grand Coupe. What a mess!
My 2017 X5 35d is my last BMW. My next one: Tesla 3 to replace my 330! and once the X5 lease is up, Tesla Model X will be the one.

[Pretender]

Originally Posted by doug_999

Really? Comparing 2017 X3 to 2017 Q5, most reviews prefer the X3.

Once again, no clue where you are coming from here. The car is a hit with most reviewers (and how in the world you think it falls short on both the inside and outside...). Sells 3-4X what the A8 does. S class has always outsold it - and yet, if you find the S class interior superior, well, wow... not sure what to say.

Let me ask you this, what would you like to see for sales per month of a car that costs $100K? What would define "success" in your mind?

Ha! Just saw this. Funny. Have you driven both? Are you in the market niche for these cars? I suspect you are not. Because they appeal to two very different clientele.

No, I'm a hard core BMW, but I would pick Q5 over the current X3 any day. In fact, I even pick Current X1 over X3!

[ShocknAwe]

Originally Posted by Pretender

In fact, I even pick Current X1 over X3!

Really? I get the Q5 comment but man, the current gen X1 is a real turd. Had a great product last generation and totally screwed the pooch.

[Pretender]

Originally Posted by ShocknAwe

Really? I get the Q5 comment but man, the current gen X1 is a real turd. Had a great product last generation and totally screwed the pooch.

X3, X1 ain't performing cars. Why would I get X3 which is less in every room (look at the spec) over fuel economy C1. Don't even bring the RWD drive in X3 in...X3 35 is a waste. Besides, X1 looks 10x better.

[ShocknAwe]

Originally Posted by Pretender

X3, X1 ain't performing cars. Why would I get X3 which is less in every room (look at the spec) over fuel economy C1. Don't even bring the RWD drive in X3 in...X3 35 is a waste. Besides, X1 looks 10x better.

Not wrong there. Really don't know what BMW is up to, because the old X1 actually handled fairly well. Can't speak for the X3. Current platform is a huge departure from the past direction.

[Pretender]

Originally Posted by ShocknAwe

Not wrong there. Really don't know what BMW is up to, because the old X1 actually handled fairly well. Can't speak for the X3. Current platform is a huge departure from the past direction.

X1 is more for soccer moms or those who don't care about the driving dynamics but small platform SUV that also looks great and has goo fuel economy. X5 35d is what ones should get if considering BMW SUV.
HP should never be a buying factor for SUV and a lot of people being fooled by the marketing numbers on brochures. Who cares about 0-60 in a SUV which is more of heavy lifter kind of cars? Torque is what I care in heavy X5. Beside, how many 0-60mph one has done since owning a BMW, once a week: not even, once a month: not really, once a year: maybe? Also, most US freeway is limited at 70mph or less. So, at that speed, the engine revv is probably <2500 rpm. What # of HP is available at <2500rmp?

[IvanLZ]

Originally Posted by Pretender

X3, X1 ain't performing cars. Why would I get X3 which is less in every room (look at the spec) over fuel economy C1. Don't even bring the RWD drive in X3 in...X3 35 is a waste. Besides, X1 looks 10x better.

How is this a fair comparison? The X3 is on its last year cycle.

[Pretender]

Originally Posted by IvanLZ

How is this a fair comparison? The X3 is on its last year cycle.

If you looked at the threat from the beginning, I didn't compare these 2. I was talking about Q5 vs X3. I believe X3 should be discontinued. I don't see the value of it! Instead, make X1 35 for those who want small SUV with the performance!

[Mike991M4]

Originally Posted by Jason

[bpnews="BMW US Sales Down 11 Percent in May"]
Attachment 1632230
[B]BMW brand sales decrease 11.0 percent

Not because of me! I did my part

[IvanLZ]

Originally Posted by Pretender

If you looked at the threat from the beginning, I didn't compare these 2. I was talking about Q5 vs X3. I believe X3 should be discontinued. I don't see the value of it! Instead, make X1 35 for those who want small SUV with the performance!

The new Q5 looks worse and we haven't seen the new X3. I wouldn't count it out just yet.

[lemetier]

Originally Posted by alex2364

Their sales have dropped because they're killing their lease programs. It will continue to drop if that continues.

That is, after all, the goal.