2023MY BMW Pricing Increase Announcement (Effective Production Starting Jan 1, 2023)

[G30 B58]

Originally Posted by TruthOne

How are most Americans affording a $800 car note?

Job(s).

[iroc86]

I have an appointment to look at a new 2 Series this week. The lease on my '20 F22 is coming due in April and the dealer is "searching for well-maintained vehicles to expand [their] pre-owned inventory and [is] interested in purchasing [my] BMW." I'm preparing myself for the pittance they're probably going to offer for my car that just turned over 6500 miles on a 30k lease.

And the crazy used car valuations? Despite being several years into this nonsense, the residuals for leases are still nowhere near fair for the prospective lessee. They might be a percent or two higher than they were before the pandemic, but the real-world value is somewhere closer to +20% these days.

It's getting hard to justify a BMW when the prices keep going up and consumers are still forced to accept the reality of no MSRP rebates, insulting incentives, and unreliable loyalty discounts.

[19G20]

Buy it out.

Originally Posted by iroc86

I have an appointment to look at a new 2 Series this week. The lease on my '20 F22 is coming due in April and the dealer is "searching for well-maintained vehicles to expand [their] pre-owned inventory and [is] interested in purchasing [my] BMW." I'm preparing myself for the pittance they're probably going to offer for my car that just turned over 6500 miles on a 30k lease.

And the crazy used car valuations? Despite being several years into this nonsense, the residuals for leases are still nowhere near fair for the prospective lessee. They might be a percent or two higher than they were before the pandemic, but the real-world value is somewhere closer to +20% these days.

It's getting hard to justify a BMW when the prices keep going up and consumers are still forced to accept the reality of no MSRP rebates, insulting incentives, and unreliable loyalty discounts.

[19G20]

Everybody knows how to code remember.

Originally Posted by G30 B58

Job(s).

[iroc86]

Originally Posted by 19G20

Buy it out.

Yep, that's been my plan. But then I have to sell it later... and I hate selling cars!

[static_void]

Originally Posted by TruthOne

These prices are getting out of hand then again the average car is now 50k. How are most Americans affording a $800 car note?

Hint: They aren't.

[wdeerfield]

Originally Posted by TruthOne

These prices are getting out of hand then again the average car is now 50k. How are most Americans affording a $800 car note?

They're not. Starting to see lots of repos. And with lots of layoffs coming, it'll only get worse. BMW raising prices is expected but they should expect slower sales then as interest rates keep going up as well. We're due for a global reality check and it's starting.

[TruthOne]

Originally Posted by G30 B58

Job(s).

Most people make less than 50k a year. Math isn't adding up .

[chujk1985]

Glad my m3 was just produced and sitting at port

[apwm340i]

M550i priced higher than a M3 comp … is this because of it being a v8

[G30 B58]

Originally Posted by TruthOne

Most people make less than 50k a year. Math isn't adding up .

Most people aren't buying BMWs.

[ASAP]

Originally Posted by G30 B58

Most people aren't buying BMWs.

but they are buying median priced cars at 44k w a median salary lf 50k

[ScreamingChicken]

Originally Posted by TruthOne

These prices are getting out of hand then again the average car is now 50k. How are most Americans affording a $800 car note?

I believe the average new car sold is around $50k. Lower income Americans buy used, so this average $50k new car is likely being bought by someone with a higher than average income.

[G30 B58]

Originally Posted by ASAP

but they are buying median priced cars at 44k w a median salary lf 50k

... and maybe that's why someone mentioned repo's?

[TheBingoBalls]

Originally Posted by static_void

Hint: They aren't.

I didn't want to say it.

Reality is, when leasing became a popular thing, a lot of people overextended themselves just so they can be seen in a BMW. This is likely still happening but might slow down with all the increases. Not criticizing just stating what we know from data. Regardless of leasing or financing, a lot of people are likely paying more for a vehicle than they should be.

The new C Class is supposed to be the hot thing, but those are hardly moving for a new model.

[RigaTony1982]

Between the higher starting MSRPs, lack of incentives/discounts and higher interest rates/money factors, I think a lot of people are going to be in shock, especially if they are coming off a lease that they took out in 2020 or early 2021 (I believe a decent percentage of luxury cars are leased).

If won't affect those purchasing the M cars or 7/8 series cars as much, as one assumes those people have more disposable income. But all those folks who have an X1, X3 30i, 330i, etc. are going to start looking elsewhere.

My wife's lease on her X1 is up in early 2023 and we've started shopping for a replacement. She likes the new one, but payments are going to be like $200+ more per month than her current one. I've seen people on this board and lease hacker getting M340i quotes for $1,000+ a month. My payment is in the 600's. While I like the car a lot, it wouldn't be worth $1,000+ a month for me on a lease.

We're going to just purchase our next cars since the leasing market is brutal at the moment. We'll probably stick with BMW because we've had good experiences, like our cars, and are fortunate enough in our financial situation that we can afford the price increases. At some point though, it may just just not be worth it.

[Quadruple VANOS]

When dealers are adjusting prices upward to meet market conditions, the manufacturer doing the same is downright appropriate. The dealer will now need to back off their adjustments to meet market acceptance.

[Garycoral]

Originally Posted by stoked335d

Picked up my 22 X3M comp at end of May when base prices was just below 70k locked in 2.26% at 60 months. $ 4500 increase in less than 8 months by. Jan 23 on base price. Sold my used car 6k more than what it is worth now as well so $10k savings makes me very happy about my timing.

Good for you Jack!

[Jason60051]

Everything will be on sale in 6-12 months. The tide is starting to turn.

[stoked335d]

Originally Posted by Garycoral

Good for you Jack!

Thanks Gary!

I was planning on keeping my 9 year Audi for another year or 2 but saw this coming with rate hikes and low inventory.

[RigaTony1982]

Originally Posted by Jason60051

Everything will be on sale in 6-12 months. The tide is starting to turn.

I think you're right here. Makes the timing of this on BMW's end seem odd.

[Fishbuddy]

BMW can jack up the msrp all they want, but when more people are losing their jobs and with rates keep rising the demand is going to fall off the cliff. When that happens we're going to see 10%-15% off msrp.