[Juve29]

73 000 USD that a lot of money.

In Canada we pay 15% sale taxe, so it's $45 000 plus 15% sales taxe, which comes out to almost $52 000.

[3aficionado]

Sometimes I feel like I'm trying to reason with a brick wall... there's just no point in continuing this thread.

[icedragon]

Well, on the bright side ... Canadians are paying more for German-built BMWs which have high labour costs ... and Americans are paying less of South African-built BMWS which have slightly lower labour costs ...
AND on the 325i, Canadians get Xenons standard and cold package standard ... so life in the Great White North isn't that unfair.

[canucklion]

Originally Posted by 3aficionado

Sometimes I feel like I'm trying to reason with a brick wall... there's just no point in continuing this thread.

agreed!

[petefalzzz]

Originally Posted by Juve29

, and Montreal is the best city in world.

Now that's a real stretch.

[shack]

It's a surcharge for U.S. defending North America.

[mBechara]

Besides guys none of you mentioned that average income for Canadians is less than Europeans Americans, the Japanese, etc. That makes BMW not affordable for an important portion of Canadians, which also decrease the market size. So except the Americans if Europeans or others are paying more for their BMW that might be normal considering their income.

[gdcwatt]

The 323i MT with light-weight rims and 17" heavy summer run-flat tires should be as quick as a 325i AT, but $3,000 less than a 325i MT(given that you keep the 16's for your snow tires, and need new summer rubber for either car).

The Acura TSX might also provide some leverage - more power, "cheap" non run-flats, lots of standard features, and discounts are approaching $3000Cdn. Acura also doesn't ask for $1000 for the car to be painted.

[Robert A]

The only reason for this is the weakness of the USD. Several years ago when the dollar was strong, cars cost less in Canada than the US. BMW, like other car makers, does not adjust local prices for currency fluctuations.

FWIW, BMWs are cheaper in the US than in Germany right now too, so don't feel so bad.

Originally Posted by Juve29

I just configured a silver 325i with the sports package in the US website, and I noticed that their cars cost about $35,000, while here in Canada it costs about $45,000$.

By doing the currency conversion the American car cost about $39,000 canadian. Moreover, the american model comes standard with a sunroof and wood trim, while we get titanium which is not even aluminum.

Why are we paying $7,000 more than the americans. The preparations and transportations fees here in Canada are $1,595 while the Americans pay $695.

We canadians are getting srewed.

That's what happens for being TO NICE.

[gdcwatt]

Fortunately, the competitive environment is improving, which should help on negotiations - and you might not really think that a V6 Accord 6MT is in the same league as a 325i [but 0-60 in 5.9 seconds is awesome], but what do you tell your BMW salesperson?.

New things to look at: VW Jetta Turbo, VW Passat, V6 Accord 6MT, 06 TSX with 205hp and features everywhere, Lexus IS 250/350... use these introductions to your advantage.

[seevemonka]

I don't think the low dollar is much of a consideration,because i am pretty sure they hedge there currency>The biggest reason many countries pay more,is because,america is a REAL free trade country.The us isn't taxing to death there imports,and dosn't tax to death there citizens.

[Juve29]

Originally Posted by seevemonka

I don't think the low dollar is much of a consideration,because i am pretty sure they hedge there currency>The biggest reason many countries pay more,is because,america is a REAL free trade country.The us isn't taxing to death there imports,and dosn't tax to death there citizens.

Very good point!

[BLK325]

Price points are set for many reasons, not the least of which is exchange. None the less, BMW, like most profitable companies, set prices in a cost plus margin scenario. Costs are not just the value of the car but the cost to maintain the distribution and service network across said country. So per country you have:

Cost to manufacture the car
plus
Delivery
plus
Import Fees
plus
Federal, Regional, and Local taxes
plus
Cost to support the BMW franchise in your area
multiplied by
Profit Margin

Some of these items are the same in different countries some are not. Either way it is simple economics that determine pricing, including supply and demand. I know I oversimplified this but I didn't want to get into developing the entire business model for BMW.

None of this matters as what you need to concern yourself with is resale value or most importantly the cost of ownership per year of use. Do the math and you will see that we are pretty close to the US in this area. It changes all the time with exchange rates but hey, welcome to a global market place.

[ashecnc]

Originally Posted by canucklion

yeah, but we get heated seats, fold-down rear seats + xenon HID's as standards...

yes, we're paying more, but like epiphone3 said, it's partly due to our relatively small market size, and you think we're really getting screwed? take a look at this thread:
http://www.e90post.com/forums/showthread.php?t=7330
the Europeans are getting screwed like the new kid that just dropped the soap in the jail shower... and the car is made over there! so count your blessings my friend

your sig pic is hilarious, is that your cat?

[user1]

Originally Posted by BLK325

Either way it is simple economics that determine pricing, including supply and demand.

It's far from simple economics. Supply and demand has nothing to do with how BMW sets MSRP. BMW sets MSRP before they know the demand for a vehicle and independent of supply as they control the supply of a vehicle. Individual dealers may have different prices due to their own supply and demand for a vehicle. But individual dealer pricing isn’t a factor in why Canadian BMW MSRP is higher than US BMW MSRP.

[canucklion]

Originally Posted by ashecnc

your sig pic is hilarious, is that your cat?

haha, no dude, it's a pic I found on the net a while back.

[ashecnc]

Originally Posted by canucklion

haha, no dude, it's a pic I found on the net a while back.

Oh, well it's funny

[ward]

also canadians get a neutered version of sirius sat radio

The Canadian says were getting screwed and the American says were are getting neutered. OUCH!!!!

[canucklion]

Originally Posted by ward

also canadians get a neutered version of sirius sat radio

[JoeBlack]

You should all be really happy you dont have to buy in Ireland.

E90 320 i SE base price €44050

Grey leather €2460
Titanium Silver €1075
Star Spoke Style 155 7Jx16 €475
Sports Leather Steering Wheel €210
Rain Sensor (def needed in Ireland) €175
Delivery charges €950

Total Cost of car €49400 or $58500 or R372,250 for a 1995cc engine. Its insane! But I went ahead with it anyway, there is no way to import cars because the government will tax it until the value is the same if you had bought it in Ireland. It makes the UK look cheap which is an achievement in its own right.

68,628.91 CAD for a 320i SE in Ireland

[BLK325]

Originally Posted by user1

It's far from simple economics. Supply and demand has nothing to do with how BMW sets MSRP. BMW sets MSRP before they know the demand for a vehicle and independent of supply as they control the supply of a vehicle....

All very true but I will defend my theory of "simple economics". BMW sets a price where by they can reach the margins they want. Before they do this the figure out their real costs and then determine pricing. In order to calculate the cost they must determine how many vehicles they are going to sell in that country/region. The volume (supply) is paramount to the overall cost of the vehicle. Smaller volumes = higher costs. Simple isn't it? Does it have anything at all to do with the US exchange rate.....no.

Lexus follows a similar formula, set a price, negotiate very little and maintain the brand image.

Want to see what happens to a manufacturer who gets it wrong? Just look at GM. Forget all the hype in the paper, their problem is they are structured to manufacture and sell a certain number of cars (structured in this case means that the bean counters got together and made a determination a year in advance as to how many vehicles they were going to sell. Using the formula above they determined the price they had to sell the vehicles at given the volume to be sold. This is called Forecasting or as we call it at the office Guesstimating). When they don't sell the volume they calculated, their margins shrink quickly. In order to survive, they will shrink their manufacturing base down so that capacity matches the volume sold. It is difficult for them to decrease volume as some of their costs, labour and overhead, don't go away due to union contracts and lease obligations. An ugly situation that has led to Junk Bond status.

GM+reduced Demand=Over supply=no margin (profit)

On the flip side, BMW has been overselling the last few years. This means that the cost to manufacture has decreased and their profits have risen. I think they may even be the most profitable auto manufacturer in the world?

I am no economics expert but I have been in business long enough to know the formula I learned in Econimics 101 are still in force today and is the reason why we pay more than the US. Sorry for the long post.