E70 Options Pricing Excessive?

[bimmerfan]

I am a huge fan of BMW, I've owned 8 or 9 since 1995 and although I haven't been completely thrilled with the newer body styles, I have always continued to purchase BMW when it has come time to buy a new car for myself or my Wife.

However, I must admit that I am experiencing a bit of sticker shock with the pricing structure of the new X5s (and for that matter with that of the 6 series). Frankly, at the base MSRP of a 4.8 E70, items such as bluetooth, idrive, and a stereo system that isn't woefully inadequate (ala my non premium sound MY05 X5), should be standard equipment.

For example, in looking at the list of standard equipment in a V8 Premium Audi Q7 for 60k, we will have to spend around $71.5k to get the same options on a 4.8 X5. That amounts to about 18k in options over the base price. In addition, resale value of a car is (among other things) calculated from the original base MSRP, and options only increase that value by a negligible amount. So, we can basically kiss that 18k good bye the second we leave the lot.

I think BMW has really missed the mark here in terms of what should be standard equipment in what amounts to (even by BMW standards) a very high end luxury vehicle. And unless they develop a "Premium" model X5 that includes the majority of that equipment as standard; we as consumers will take a huge hit in resale if we option up these cars. To the market, a 4.8 E70 X5 is a 55-60k vehicle. But in reality it is a 70-80k vehicle. This will also be reflected in residual values for those of you who are looking to lease (causing the lease cost of a 72k X5 to be in the mid $1300 per month range - whereas an 80k '06 Range Rover HSE (not the sport - but a real rover) is in the mid 1200 range even with its' notoriously bad resale).

And frankly, the prices of some of these options is nothing short of egregious. $1,200 for a third row seat? $1,000 for "Comfort Access"? I'd really just rather have a normal key. As those of you who have had experience with push button start can attest, the novelty wears off after the first day or so. After that, it is simply a PITA to insert something in your dash and press a button to start the car. So, to charge us $1k for a transponder to eliminate step 1 seems rather excessive imo. And after we get the tech package, idrive, navi, we STILL have to give you $1,800 for a decent sound system? Am I missing something here? Or are you gouging us?

Anyway, just my .02 cents. But let's face it: BMW has raised the price of the car several thousand dollars, there is a 10k premium to purchase a V8, and then in addition add 18k to get some decent gizmos... It's simply not competitive in the market place unless compared to a Range Rover HSE.

It makes me wonder how much thought was given to the pricing @ BMW AG and whether or not they looked at any of their competition outside of MB. It simply doesn't add up.

[motordavid]

Pretty well written post/opin, bimmerfan.

[Wagner]

Not too surprising...BMW is in a rush to become MB.

[Bo knows X]

Hi Bimmerfan:
Right on the mark !!!!!!!!!!!!
You just made my day !!!!!!!!!!

And I thought it was just us Crazy Canucks that continually bend over and feel the penetration ... Options $$ and restricted extras .... US/Cdn exchange rates are only 12% yet we are hit with an excess premium of 20% (so much for NAFTA) ... 14% Gov't Taxes .... Lease Residuals of 55% ... Leasing rates of 6.9% (money factor 0.002875) ...

On a positive note ... my wife is still enjoying her 2006 X3 .... great bang for the buck

[skarletknite]

i agree! it ridiculous how they nickel and dime us on things other companies carry standard. yet, i am still bending over and getting one. whY? because its the best car in its segment available. but eventually...something will come out that people like beter...maybe then bmw will learn the hard way.

[canamx5]

I think that BMW did take a look at the competition and are just doing the same.
Take a look at the cayenne's option list it's outrageous! The E70 IMO should be no more than 72K with everything.What is the IS replacement going to cost 90K??? WHAT A JOKE!!! M5 here I come.

[X5Jay]

I just priced one out they way I would want it and the total came to $77690!! I paid about $15K less than that for my '04 4.4 and even that was about $30K over what my budget would call "reasonable". This really bums me out as this new X is out of reach for me. I hate it when they say "it's only a couple $K over the cost of the '06 model" as these options really put this machine over the top. It just doesn't make sense to me to spend that kind of dough on a vehicle and skip some options that you want to save a few bucks, but the options I would want (just about everything but the 3rd row seats) add up to about $22.5K!!! I could buy a top of the line Harley for that kind of money!!! WTF!!!!

[Bo knows X]

Hi Canamx5:

Speaking of Porsche Cayennes .... There will be no 2007 model year for the Cayennes due to lagging sales ..... Porsche will skip straight to an updated 2008 Cayenne model sometime in 2007.

Maybe Porsche might eventually learn something re: their "dear" pricing strategy.

[canamx5]

My point exactly Bo, it's not a good thing ! But they are doing it anyway???The cayenne's slow sales I believe are somewhat due to the option list, but mostly affected by the way it looks (UGLY) at least the X5 looks good. GO HABS !

[TQ2K]

That's the main point! To create the separation in size, feature, and price from the X3... And as far as pricing goes it's not just with the X5, look at the 3 series and try to go crazy with the options and you're almost at $50K...