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      10-18-2007, 07:58 AM   #1
Chuckbilodeau
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Canadian Prices

After some discussion regarding canadian BMW prices, I figured I would start this thread...

with the 135 scheduled to be priced just under $35k in the USA, and at around $43k in Canada, why would we pay $8k more if our money is now at par with the US$. I know, I know there are economical factors, but for a 20-25% price difference, trust me I'll make the trip south. As for the warranty; first, is it even legal to refuse warranty coverage if we do this?!?!? and second, SO WHAT... for $8k, i'll sacrifice my warranty...
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      10-18-2007, 08:49 AM   #2
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A Canadian guy was interested in buying my M3 but he didn't when he learned that taxes and fees would be about another %20. And he'd have to make modifications to the car to make it street legal in Canada. That was for a used car but I'm sure you'd have similar problems with a new car.
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      10-18-2007, 09:06 AM   #3
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Quote:
Originally Posted by ChuckBilodeau View Post
After some discussion regarding canadian BMW prices, I figured I would start this thread...

with the 135 scheduled to be priced just under $35k in the USA, and at around $43k in Canada, why would we pay $8k more if our money is now at par with the US$. I know, I know there are economical factors, but for a 20-25% price difference, trust me I'll make the trip south. As for the warranty; first, is it even legal to refuse warranty coverage if we do this?!?!? and second, SO WHAT... for $8k, i'll sacrifice my warranty...

I agree with you. I cant believe it is legal to deny a manufacture warranty at the dealer level. If you drive your car from Canada to the US and it brakes down the local dealer will still fix it under manufactures warranty.

Did you hear what Bombardier has done. They told all their US based dealers NOT to sell to someone with a Canadian address. This crap has got to stop. What difference does it make where you live if I am there to buy a car, seadoo, or a pair of pants for that matter.

Car dealers have to start treating US and Canada as the same market and simply adjust the destination and pdi charges to reflect the small differences.
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      10-18-2007, 10:28 AM   #4
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Well after phoning/e-mailing a couple of US dealers, I can say that BMW won't sell New across the border.

Sooo if you're planing to import a 1'er you'll either have to wait for used ones, or have a US address and import after as a used...or find a good friend...either that or maybe it just requires waing a lot of $$ on the right faces...but then that would defeat the point of saving $$ by buying across the border...:iono:
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      10-18-2007, 10:32 AM   #5
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Maaan sucks to be Canadian! haha JK
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      10-18-2007, 10:34 AM   #6
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Quote:
Originally Posted by ChuckBilodeau View Post
After some discussion regarding canadian BMW prices, I figured I would start this thread...

with the 135 scheduled to be priced just under $35k in the USA, and at around $43k in Canada, why would we pay $8k more if our money is now at par with the US$. I know, I know there are economical factors, but for a 20-25% price difference, trust me I'll make the trip south. As for the warranty; first, is it even legal to refuse warranty coverage if we do this?!?!? and second, SO WHAT... for $8k, i'll sacrifice my warranty...
Its not just Bombardier, many auto manufacturer’s including BMW, Toyota, Nissan, etc are telling their dealers that if they sell to Canadians or anyone without a US address, they will face repercussions. These would include limiting allocations of certain model ranges, not reimbursing the dealer for manufacturer incentives, and even revoking franchise or licensing rights. Contractually the manufacturer does probably have it in the dealer agreement that they can do this.

But even the Canadian dealers are feeling the stress of this, Porsche dealers have been especially vocal with their parent company because they are having to do warranty work on cars that they didn’t make sales on.

What makes it really tough is that the price disparity is across international borders and its very hard to file anti-competition suits across international jurisdictions since the company can just argue that there are higher operating costs (which is total crap).

I’d hope that the price difference isn’t $35k US versus $43k Canadian (where did you get that number anyways?). Personally I even think I could probably stomach a couple grand difference, but not $8k.

For existing models the manufacturers are stating that they can’t reduce the prices since it won’t take the bottom out of the used car market, and make a mess the residual values for leased cars. Both statements are true, and for a manufacturer like BMW where a lot of your clientele are repeat customers, with this in mind I can understand why we aren’t seeing prices for existing models coming down. Some manufacturer’s say that they are sidestepping those issues by producing Canadian models with more standard features than their American counterparts, which I’d say could be a reasonable compromise for existing models.

Though I hope for a new vehicle such as the 1-series, they acknowledge the situation with the CDN vs US dollar and bring that price spread down. Fingers crossed, but I guess we’ll know soon enough.
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      10-18-2007, 10:36 AM   #7
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Quote:
Originally Posted by Khobin~ View Post
Well after phoning/e-mailing a couple of US dealers, I can say that BMW won't sell New across the border.

Sooo if you're planing to import a 1'er you'll either have to wait for used ones, or have a US address and import after as a used...or find a good friend...either that or maybe it just requires waing a lot of $$ on the right faces...but then that would defeat the point of saving $$ by buying across the border...:iono:
Yup, I went to Performance BMW when I was Chicago/Naperville and they were pretty apologetic about not being able to do anything because I wasn't the first Canadian who'd come to them and asked about bringing one across the border. But their hands are tied and I'm sure they see the passed up opportunity for a few more sales as well.
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      10-18-2007, 11:47 AM   #8
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More info on the current class action: http://www.jruslaw.com/classactions/carprice.shtml
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      10-18-2007, 11:55 AM   #9
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Dealers get paid for warranty work regardless if they sell the car. They would actually be further ahead if the didnt sell it. No sales allowance, insurances, etc. The money is in the service bays.

Bottom line is it is all BS we are being fed by the manufactures. I can understand their being a difference between NA and the middle east for example. But the difference between Canada and US should be alot less then it is. They never made this kind of noise before when the dollar wasnt as strong.

Lets have our american freinds but the 135i for us and then resell it to us. Any of you guys want to start a 135i used car dealership?
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      10-18-2007, 03:12 PM   #10
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Quote:
Lets have our american freinds but the 135i for us and then resell it to us. Any of you guys want to start a 135i used car dealership?
might as well get some broker to buy it and do all the paper work for you :biggrin:
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      10-19-2007, 09:38 AM   #11
Chuckbilodeau
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I have a US address, looks like I'm going to have to use it!
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      10-20-2007, 09:16 AM   #12
Chuckbilodeau
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Just spoke about this issue with my salesman. Looks like BMW will be trying to compensate for the difference with more options coming standard in Canadian cars (ie, winter pack...). I think that if we can get for $3-4k worth of options, I would be satisfied...(even though I prefer to choose my options)
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      10-20-2007, 10:00 AM   #13
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Quote:
Originally Posted by ChuckBilodeau View Post
After some discussion regarding canadian BMW prices, I figured I would start this thread...

with the 135 scheduled to be priced just under $35k in the USA, and at around $43k in Canada, why would we pay $8k more if our money is now at par with the US$. I know, I know there are economical factors, but for a 20-25% price difference, trust me I'll make the trip south. As for the warranty; first, is it even legal to refuse warranty coverage if we do this?!?!? and second, SO WHAT... for $8k, i'll sacrifice my warranty...

This discussion shouldn't be taking place here, but on the political forums...!
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      10-20-2007, 10:42 AM   #14
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BMW Canada hopes cash rebates will keep buyers out of U.S.

GREG KEENAN
From Saturday's Globe and Mail
October 20, 2007 at 12:36 AM EDT

BMW Canada Inc. is offering cash rebates to some customers in an effort to keep Canadians buying vehicles here amid the perception that people can save thousands of dollars by buying cars in the United States.

The BMW program involves rebates to buyers who pay cash or finance their purchases through non-BMW sources. It comes as consumers and dealers put pressure on auto makers over perceived and actual price gaps between Canadian and U.S. vehicles, with the Canadian dollar trading above the U.S. dollar.

Porsche announced last month that it will cut prices on 2008 models by 10 per cent or more from 2007 levels, but the action by BMW – which sells more than 20,000 vehicles a year – will spur other auto makers to make similar moves, dealers and industry sources said.

“BMW is a lot more mainstream than Porsche,” said one dealer, who suggested the program will be successful. “They're giving that cash buyer the disincentive to even think about going south.”

The Canadian unit of the Germany-based BMW AG has been setting sales records regularly for several years – including in September, when the clamour about the dollar discrepancy in auto prices began taking off.

“We've had a policy of ‘extend the lead,' ” said Joe Lawrence, director of sales at BMW Group Canada. “We want to continue to extend the lead.”

The rebates amount to $3,000 for cash buyers of 2007 model year cars in the company's best-selling line, the 3-series, Mr. Lawrence said.

They represent the difference between the standard BMW loan rate of 8.25 per cent and the company's subsidized rates, which range from 3.9 per cent to 6.9 per cent for 2008 model year vehicles.

The gap between U.S. and Canadian manufacturers' suggested retail prices is greatest in the luxury vehicle segments, according to an analysis done by DesRosiers Automotive Consultants Inc. earlier this year.

A class-action lawsuit has been launched in Canada against General Motors Corp., General Motors of Canada Ltd., American Honda Motor Co. Inc., Honda Canada Inc., Chrysler Canada Inc., Chrysler LLC, Nissan North America Inc., Nissan Canada Inc., along with the Canadian Automobile Dealers Association and the National Automobile Dealers Association in the U.S.
For their part, auto makers have said that simply comparing MSRP levels in the two countries does not reveal the true pricing picture.

Some incentives – including federal rebates on fuel sipping vehicles introduced in the March budget – are not available to Canadians who buy U.S. cars.

http://www.reportonbusiness.com/serv...y/robNews/home
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      10-20-2007, 10:47 AM   #15
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It looks like they are acknowledging the issue of the pricing disparity. I think this is good news for us for the 1er.
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      10-20-2007, 11:02 AM   #16
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Quote:
Originally Posted by Garrett View Post
This discussion shouldn't be taking place here, but on the political forums...!
Oh whatever!! There is nothing wrong with this discussion here!
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      10-21-2007, 09:58 AM   #17
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Quote:
Originally Posted by Garrett View Post
This discussion shouldn't be taking place here, but on the political forums...!
WTF????? This discussion is taking place in the "Canadian Prices" thread in the "Ordering and Pricing Discussions" sub-forum.
That's where pricing issues are SUPPOSED to take place.
If Americans had to pay 20% more than Canadians, there'd be an entire forum dedicated to it.
BTW, Why would you even enter a discussion clearly labelled "Canadian Prices".:mad:
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      10-21-2007, 10:38 AM   #18
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^^^^Werd up!
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      10-26-2007, 12:51 PM   #19
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Globe and Mail online discussion with the President of BMW Canada re: pricing in Canada versus the US...

http://www.reportonbusiness.com/serv.../Business/home
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      10-26-2007, 03:22 PM   #20
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I blame Canadians for this

Quote:
Originally Posted by Road Runner View Post
Globe and Mail online discussion with the President of BMW Canada re: pricing in Canada versus the US...

http://www.reportonbusiness.com/serv.../Business/home
Ultimately as long as Canadians keep buying we'll keep getting gouged. Canadians are still buying cars like they are being discontinued or something.

That whole interview was very disappointing... unbelievable if anyone agrees with any of that _________.

my fellow stoopid Canadians, please stop buying new vehicles! I myself recently purchased a new old model, I saved almost 30% ...which is the only reason the deal went through. I'm sure their are better deals to be had so please, for all of us, if you must buy something new today, low ball low ball low ball.

I don't mind paying full pop for a vehicle as long as I know I'm getting value, but when full pop is 1/3rd less in the U.S. I just know I'm getting hosed.

Neil
(prospective 1 series buyer)
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      10-26-2007, 03:57 PM   #21
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"Mat Dech from Canada writes: Can you state for the record if Canadian dealers/BMW Canada will honour the original warranty, if you purchase a used vehicle in the U.S.?
Lindsay Duffield, BMW Canada: Hello Mat, at this time BMW Group Canada will honour the warranty, assuming the car is in full compliance with Canadian specifications. We have a compliance process that is available via any authorized BMW retailer in Canada."

:thumbup:
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      10-26-2007, 05:31 PM   #22
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Quote:
Originally Posted by 123d View Post
"Mat Dech from Canada writes: [/B]Can you state for the record if Canadian dealers/BMW Canada will honour the original warranty, if you purchase a used vehicle in the U.S.?
[BLindsay Duffield, BMW Canada: [/B]Hello Mat, at this time BMW Group Canada will honour the warranty, assuming the car is in full compliance with Canadian specifications. We have a compliance process that is available via any authorized BMW retailer in Canada."

:thumbup:
You're not reading between the lines!!!

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