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2Addicts | BMW 2-Series forum BMW 2 Series (F22) Forum Regional Forums AUSTRALIA Taking a stance? U.S pricing vs AUS

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      07-30-2015, 08:08 AM   #1
Hazey82
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I want to put this out and wouldn't mind others opinions and thoughts on this. I've been following the M2 and it seems US will pay about 50K and to step up to M3 it's about another 10K. I was getting annoyed when I kept bitching about M2 not getting M seats, CF roof etc etc the U.S. Guys would say get go get the M3 if you want all that and BMW needs to keep the price low. Easy for them to say that because it's 10K difference.

The M2 is getting:
No bespoke engine
No M seats
No CF roof

It's 50K US and maybe 100K AUS

U.S guys are happy to accept the limited bits because they understand it's a cost thing otherwise it starts getting into the range of what a US base stripper M3 is. 10k difference. What do you get for that 10k even on a base M3? You at least get access to the main bits - bespoke engine, M seats, CF roof and more! Such good value compared to us right?

Now when you compare to AUS to get these extra bits your looking at 70K+ WTF!!! No such thing as a base stripper version. Even if there was I reckon your still looking at 40-50K more perhaps?

So where is the fundamental problem here? Is it BMW Germany? BMW Australia and the dealerships? We get ripped off because those who cannot afford the M3 look at entry level M for something like M2 and it gets held back on its value in comparison to U.S

Am I missing something here. I understand wages are different and all and the average wage might be different but it can't equate to this much surely? The gap between M2 and M3 needs to either reduce significantly or both prices of each need to come down and this applies not just to BMW but all German cars.

Anything that can be done ? Is it just were being taken for a ride and as long as everyone sits back and just cops it nothing will change?? I feel like this needs to be on the news with huge public backing? Is it possible?
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      07-30-2015, 10:42 AM   #2
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Probably due to many things such as purchase volume for countries, Poor AU dollar vs US, increased taxes, increased wages, increased shipping, change of drive side, maybe something with holding companies as well US vs UK vs AU. AU is always going to be 40-50% more.
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      07-30-2015, 09:39 PM   #3
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Definitely the volume of purchases, it is the same deal with tyres. For example America buys 200 containers and Australia buys 50 containers, the Americans will have negotiated a far better price. Same for BMW, they have a huge market over there with a much higher population, the Aussie price for BMWs are high but there are a lot of countries especially in Asia that pay a lot more for BMWs.
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      07-30-2015, 11:26 PM   #4
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There's definitely a component of it that is the "down under tax", but the problem is that ALL companies do it and not just BMW.

This is a wider problem not just on cars either.

ACCC recently cracked down on software pricing where Australians were charged a higher price. But in that case it is much harder for companies to justify the higher pricing (as there is no cost difference in electronic delivery), whereas they can probably justify to a large extent the difference in car prices.

The key to bringing down pricing is (IMO) increased competition and/or lower demand. Prices already are better than it was 5-10 years ago.

What is interesting is that BMW Australia just slashed $15,000 off the M3 and I think $10,000 off the M4. On the E92 M3 they didn't do this until the very end of the cycle with the pure editions.
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      07-30-2015, 11:40 PM   #5
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On the note of slashing prices recently. Would that come from BMW Australia's cut or dealers? My point is, if this is new pricing then I shouldn't have to accept RRP (because I'm sure they will play this card and say it's already discounted) and I can demand further discounting e.g 10%
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      07-31-2015, 02:22 AM   #6
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http://www.drive.com.au/motor-news/b...29-gimogq.html

My understanding is that BMW Australia is reducing the RRP on the M3/M4. I'm sure you can get the dealer to do a further discount.

At the end of the day its supply vs demand. If people are buying it they won't drop the price. So without aggressive pricing from competitors they're not going to do anything.
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      07-31-2015, 03:42 AM   #7
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This is such an old topic, which had been discussed to death!!

Ever heard of the Big Mac index? It's not exact science or used properly, it's just a simple theory, however it's simplicity shows that Big Mac in a certain country compared with another. Eg. Aus is 25-30% more than in the U.S.

This applies to most goods, including cars. Everything in simple terms are comparative in price. Obviously taxes, delivery fees, demand and supply and brand prestige/positioning in a particular market are all taken into consideration to the price as well.

For example VW golf in Australia are targeted at the same demographic as Toyota etc. hence the lower comparative price with say the UK.

Another factor is the specifications of cars from manufacturers. Take the m235 as an example. BMW Australia "base" model is a lot higher spec'd than the U.S. Base spec. In Australia you can't get cloth seats, smaller screen for example. It's applies to M3/M4s as well. Or look at somewhere like Hong Kong, they're all fully optioned, or with minimal options.

So yea I don't look into this anymore, you live where you live. You can't change that (well you can if you move for a car lol).
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      07-31-2015, 03:48 AM   #8
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So we just have to rely on what BMW just recently did with reducing the price and then hope the government pisses off the LCT and we should be about right I think.
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      07-31-2015, 04:38 AM   #9
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I'm sorry but there's no softer way to put it, those who do not like it and/or cannot afford it, need to play Japanese and not German. It's been like this forever. It's the same for other consumer goods. No point losing any sleep over this.
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      07-31-2015, 05:36 AM   #10
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Quote:
Originally Posted by Hazey82
So we just have to rely on what BMW just recently did with reducing the price and then hope the government pisses off the LCT and we should be about right I think.
Well yes LCT is a huge component to the price. $20k!

But no LCT is here to stay. So yea if you want a top premium car you have to folk out the money
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      07-31-2015, 07:50 AM   #11
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Wish I was in the market for an M3/4 now!

If you are deciding between an M2 and M3/4, I'd say go with the M3/4 if you can afford to.

You'll never have wished you got an M2 if you bought an M3/4.

On the other hand if you bought the M2, you'd always think 'what if', every time you pass an M3/4.

Well that's what I would think!
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      08-03-2015, 08:46 PM   #12
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Quote:
Originally Posted by im_dave
Wish I was in the market for an M3/4 now!

If you are deciding between an M2 and M3/4, I'd say go with the M3/4 if you can afford to.

You'll never have wished you got an M2 if you bought an M3/4.

On the other hand if you bought the M2, you'd always think 'what if', every time you pass an M3/4.

Well that's what I would think!
To be honest it really depends on the person's situation. I could've bought the m3/m4 but I don't have a family, I rarely have more than 2 passengers (once a month maybe?) I think it was really unnecessary for me to drive a 4 door sedan or a large coupe. That's why I bought the m235i...

Therefore I'd understand why some might pick the M2 over the M3/M4 if they don't want a big car, I think they've gotten too big.

But in saying that they're really great cars.

Ps I'd never move from a m235i to M2, it's like moving from a gti to R. I don't think I can justify the money.

After saying all that I'd still probably move to a c63s or M4 in a year or two's time lol
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      08-03-2015, 09:04 PM   #13
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Reason for M2 is I'm looking for a modern iteration of the e46. I'm someone who loves their subject matter and wants the drivers car. Unfortunately the F8x has become too large and I think too overpowered for what you can utilise on the street or nice twisty backroad. The M2 won't have that issue but unfortunately is being held back with certain goodies like non S engine, no CF roof and no M specific seats.

If the M2 doesn't deliver then it will be the M3 I just have to get over the exhaust sound and larger size.
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      08-03-2015, 10:37 PM   #14
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Quote:
Originally Posted by Hazey82 View Post
Reason for M2 is I'm looking for a modern iteration of the e46. I'm someone who loves their subject matter and wants the drivers car. Unfortunately the F8x has become too large and I think too overpowered for what you can utilise on the street or nice twisty backroad. The M2 won't have that issue but unfortunately is being held back with certain goodies like non S engine, no CF roof and no M specific seats.

If the M2 doesn't deliver then it will be the M3 I just have to get over the exhaust sound and larger size.
Yea that's always going to be the problem for the M2 or the previous 1M, it kinda have to be "held back" or else it will be too close to the M3/M4. If they put a more powerful engine in the M2, the power to weigh ratio would be higher than the M3/M4, which is an absolute no no for BMW. No CF roof and M seats is just to keep the car "baby M" rather than a full blown M car.

If it's going to be anything like the 1M, it will be a very raw car, and great handling, but to me still not a full blown M car despite the badge.

The 2 series is the perfect size tho, if you're after the E46 M3 style car.
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      08-04-2015, 01:48 AM   #15
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Quote:
Originally Posted by Hazey82 View Post
Reason for M2 is I'm looking for a modern iteration of the e46. I'm someone who loves their subject matter and wants the drivers car. Unfortunately the F8x has become too large and I think too overpowered for what you can utilise on the street or nice twisty backroad. The M2 won't have that issue but unfortunately is being held back with certain goodies like non S engine, no CF roof and no M specific seats.

If the M2 doesn't deliver then it will be the M3 I just have to get over the exhaust sound and larger size.
Hazey, maybe you need an E92 M3? Low ks special colour etc? Manual?
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      08-07-2015, 02:43 AM   #16
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I have considered the e92 and it's really only the engine that's appealing to me. Nothing else
It lacks in the looks and brakes department compared to the new gen
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