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

[TheBingoBalls]

Originally Posted by RigaTony1982

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

Maybe, maybe not. Looking around at BMW dealerships, they don't exactly have stock of inventory. It's not as bad as it was before but the choices of vehicles on the lot are still slim/low.

Until dealers are overstocked with inventory, you're not going to see any significant discounts or incentives from BMW or dealership. Overall sales might be slowing down, but dealerships are loving the inventory levels right now because it's a good mix of having something in stock but not having to really worry about excessive inventory while still being able to sell cars whether it's in stock for factory order - no one is in panic mode. At least not yet.

[RigaTony1982]

Originally Posted by TheBingoBalls

Maybe, maybe not. Looking around at BMW dealerships, they don't exactly have stock of inventory. It's not as bad as it was before but the choices of vehicles on the lot are still slim/low.

Until dealers are overstocked with inventory, you're not going to see any significant discounts or incentives from BMW or dealership. Overall sales might be slowing down, but dealerships are loving the inventory levels right now because it's a good mix of having something in stock but not having to really worry about excessive inventory while still being able to sell cars whether it's in stock for factory order - no one is in panic mode. At least not yet.

Discounts are starting to pick up from what I'm seeing. Just depends on the model and if you know where to look. As mentioned, we're looking for a new car for my wife (either an X1 or an X3). Brokers are offering decent discounts on orders. Off the lot is another story still.

[TheMaxXHD]

Originally Posted by TheBingoBalls

Maybe, maybe not. Looking around at BMW dealerships, they don't exactly have stock of inventory. It's not as bad as it was before but the choices of vehicles on the lot are still slim/low.

Until dealers are overstocked with inventory, you're not going to see any significant discounts or incentives from BMW or dealership. Overall sales might be slowing down, but dealerships are loving the inventory levels right now because it's a good mix of having something in stock but not having to really worry about excessive inventory while still being able to sell cars whether it's in stock for factory order - no one is in panic mode. At least not yet.

This. Demand may slow with the economy, but they already still have trouble meeting demand as is effectively without significant lead times. It's better, but new cars are not bristling in abundance at dealerships. One does not simply walk into a BMW dealership and walk out with a new car the same day. Until that day arrives, everyone's car value will still be high. If you think BMW is doing this with 0 analysis, you are wrong.

They made this decision based on several finance people, projections, data, etc. This actually is a good indication that BMW projects prices of cars will continue to remain high, and some sudden 10,000 -15,000 dollar car value plummet some armchair economic forum members here think, might not actually happen. It may, but it might not. BMW seems to think it won't.

[Mako]

Originally Posted by static_void

Hint: They aren't.

Correct. Credit card debt up over 15% year over year

[Johsonweks]

Originally Posted by quad_drive

X5 , X6 and x7 not listed!! Interesting

Yes they are not listed but a few months time LCI should be available

[TheMaxXHD]

Originally Posted by Mako

Correct. Credit card debt up over 15% year over year

I always caution about making assumptions about who can and cannot afford things. It's financial but also a personal question, based on risk tolerance and life choices and preferences to what and what not to spend money on.

Yes, many Americans are probably overspending on cars. But buying BMWs is not exactly a wise investment at all financially. Buying a depreciating asset period is financially pretty dumb, and when you do, as cheap and reliable as you can go, but here we all are, on a BMW forum, driving BMWs…

[vj123]

Originally Posted by chicagofan00

I ordered my '22 M3 back in April of 2021. At that time the base price was $72,800. It's crazy to see that in such a short amount of time the base price will be $78,600. I know the majority of that increase was at the launch of the 2023 models but it's still a big jump overall.

$6k MSRP update in a matter of 6 months is significant. I think BMW is sick of dealers adding ADMs and want to have their part of the share.

[falconey]

Originally Posted by vj123

$6k MSRP update in a matter of 6 months is significant. I think BMW is sick of dealers adding ADMs and want to have their part of the share.

This! People are paying 5k to 10k over msrp AND are complaining to the OEM about it. Kind of logical to raise prices when you know people are willing to pay them.

[ThesaVeliona]

Stonks moment, just look at some of them like M550i, sheesh.

[BimmerXdrive]

These price increases matter to us regular people lol and to think Ferrari has sold out for the next two years on their $370k suv. SMH hahaa

[SapphireBaby]

Nah this makes no sense if you are going to increase on the M3 better add heated back seats like the F80 had. They literally just went up by $3400 earlier this year now another nearly $1500?! Cmon man

[Habber]

I don't think any dealerships will be carrying the inventory they used to given the market.

I don't think there will even be dealerships in 10 years. Just maintenance dealers.

Order online like Dominoes and Tesla.

[ctelimad]

I think a lot of people will start cancelling orders and in 1 year will be seeing 10% off MSRP if not more
Been waiting 4 months for my M3 allocation while using a broker
At least myself i am cancelling my order and i am not paying the price increase
This is a rip off

[hmd5859]

BMW has done the same in Europe with vehicle pricing while stripping a lot away. I'm sorry as beautiful as they are, no longer worth it. Way to expensive.

[therealm3]

I said this on another thread: I think 2018-2019ish was the high point for purchasing power and getting "value" with what you purchased. Check out the features on a my19 or my20 vs what you get now. Throw in incentives and low rates and it really was the peak. Maybe one day we'll get back there, but I doubt it.

[cj0817]

the M3 went up again gtfo

[Fugly M3]

I'd say the price increase is definitely curious. As some have said, BMW clearly doesn't do this without considerable analysis. And yet, the economy seems to be trending in the cool down direction. Hard to know really.

I work in financial services, so I am somewhat immersed in "expert" exposure. I'd say there are three types of experts. First are the traditional Doctoral-level economists. They study the past and try to apply everything they've learned to the present. Second are the long-tenured industry experts...the ones who have seen it all, except for the next thing. They generally shrug their shoulders and move on. Finally, there are the experts who made one big call once and got famous on it. They rarely make the same prescient call a second time. What do they all have in common? They almost never see the next thing coming. Example: FTX.

I'm in the camp that there will be discounts soon. I don't think that has to involve a terrible recession or crash, though it could. Mostly, it's just that price increases coupled with interest rates will reach a crescendo or critical mass. At that point they'll have to come down. It's the natural course of things.

[TheJerseyDon]

Again, more money with less standard features and lack of options...

Buy used my friends...

[adhrp]

Originally Posted by therealm3

I said this on another thread: I think 2018-2019ish was the high point for purchasing power and getting "value" with what you purchased. Check out the features on a my19 or my20 vs what you get now. Throw in incentives and low rates and it really was the peak. Maybe one day we'll get back there, but I doubt it.

Originally Posted by TheJerseyDon

Again, more money with less standard features and lack of options...

Buy used my friends...

Exactly why I purchased a fully loaded 2020 M550i xDrive recently (that too for a very good price) and couldn't be happier!

[Westside Guy]

Originally Posted by RigaTony1982

Don't see Z4 on there either. Hopefully there's no change to that, since I want to order one here.

Unfortunately, even though it is listed on the chart I would expect to see an increase on the G29 also.

[tgrundke]

While repos are increasing, they are increasing from a VERY LOW baseline and haven't even yet reached the historical mean.

Originally Posted by wdeerfield

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.

[tgrundke]

Spot on analysis.

The increase in rates and in prices will pinch the aspirational buyers the most. Unless other potential BMW owners go on a buyers strike, then BMW retains pricing power. If buyers balk, then first you get dealership discounts, then you'll start seeing OEM rate buy-downs, lease support, incentives, etc.

We're a long way off from that considering there are still backorders for most new cars.

Originally Posted by F8SEVEN

I'd say the price increase is definitely curious. As some have said, BMW clearly doesn't do this without considerable analysis. And yet, the economy seems to be trending in the cool down direction. Hard to know really.

I work in financial services, so I am somewhat immersed in "expert" exposure. I'd say there are three types of experts. First are the traditional Doctoral-level economists. They study the past and try to apply everything they've learned to the present. Second are the long-tenured industry experts...the ones who have seen it all, except for the next thing. They generally shrug their shoulders and move on. Finally, there are the experts who made one big call once and got famous on it. They rarely make the same prescient call a second time. What do they all have in common? They almost never see the next thing coming. Example: FTX.

I'm in the camp that there will be discounts soon. I don't think that has to involve a terrible recession or crash, though it could. Mostly, it's just that price increases coupled with interest rates will reach a crescendo or critical mass. At that point they'll have to come down. It's the natural course of things.