Reality check : X5 prices !

[billjet]

Can someone explain why there is such a price difference for the same 2008 X5 4.8 ( with the same options / equipements ) from country to country.

Please avoid the corporate mumbo jumbo like:
-Cost of complying with local standards
-Attractive BMW Financial Services Leasing / Financing Programs that are different fron country to country
-Scheduled Maintenance Costs and Warranty that may differ.
-Benefits of higher prices at Resale time in certain countries ( like Canada ).
-Support and benefits from your local BMW Retailer’s investment in facilities, and customer experience.

As of 2007-12-07
All currencies converted to the US$
Comparativly equipped vehicules as per BMW configurator for the respective country ( except for CDN where the quotes are dealer obtained )
Reference price : Base price for a 2008 US X5,4.8 : $55,275.00 ( loaded $71,775.00 )
Base price for a 2008 Canadian X5, 4.8 : $73,500.00 ( loaded $92,745.00 )
Base price for a 2008 UK X5, 4.8 : $109,142.00 ( loaded $135,531.00 )

Base price for a 2008 France X5, 4.8 : $115,848.00 (loaded $135,705.00)
As one can see, in similar markets, France and the UK, the prices are of the "same order", much more expensive than in the new world, but still.
Why is it that the "same order" doesn't apply to the US vs CDN market where the $ are at par?
Are buyers being ripped off in non-US markets?
The US$ is nose diving and almost all other currencies are appreciating a lot against the US$.
But the BMW prices are way out of reality despite the differences in markets!
OK the prices are adjusted to what the markets can bare, but still close to 80% more in Europe !!!
Any good explanations out there?
Is the rest of the world subventionning one of the largest and richest X5 market? The US one.
Why such price variations for BMW and not for other brands?
Example: In Canada, a 2008 X5 is 30% more expensive than the same car in the US with $ at par.
A 2008 Mercedes Benz ML 320 CDI is "only" 10% more expensive in Canada than the US.

The X5 is a great car, I owned three since 2000, but with such a "rippoff" ( in Canada ) I'd rather
drive an ML with 20K more in my pockets!

[Wagner]

Country to country man, different marketplace...different value. People buy them, so it works fine.

[dwarfer]

This can be applied to other things not just BMW and the X5.
Take for example pc hardware which say retails for $200 in the us would be £200 in the uk when it should be £100 based on the current exchange rates. Also you have to take into account the import tax and vat countries apply which can be much higher in Europe. I also think that BMW are having to compete more in the US as the SUV market is much thougher than in many other places. I guess as long as they know they can get away with these prices and were willing to pay for them then they which continue.

[FineProperty]

Minimum wage in France is $7.61 Eur. That would be $11.15/hr here.

[Yosemite_sam]

Do your US prices include sales taxes ? If you took the French & UK prices off the configurator then they will include VAT (value added tax) of about 21%.

Within Europe prices will vary pretty significantly as well. The UK just gets ripped off without any clear explanation (excl taxes UK is one of the most expensive countries to buy a car, Ireland is bad as well)

In Holland on top of the VAT of 21% the goverment also adds a 25% BPM tax (no idea what it means but it certainly helps contain the dutch budget deficit).

Also I presume you've used a recent USD/Euro exchange rate. As the bottom seems to have fallen out of the dollar this also gives a bit of a skewed comparison.

Did quick comparison between base price for my 3.0d between Belgium and Holland and the dutch are 36% more expensive (eg USD 29.000)

[xx3]

US prices are deflated because BMW faces a lot more competitors here (Other Euro brands + Japanese brands & previously American, although not so much anymore).

BMW can do this here because it can shift many many more cars then any of the other countries you described. So for a little less profit here than in other countries BMW sells many more cars.

Being #2 in total luxury car sales & #1 in the luxury car sales is also very important to BMW.

[oredart]

I believe the BPM in Holland is for Bitchin' Primo Marijuana.

[JFW]

The high prices of cars and other goods are a direct result of the tax structure (ie socialism) in Europe. Their is no free lunch, government contuines to tax the middle class to provide all the benefit to the remaining population. Untill this is addressed cost will be higher.

[Kuky]

123.675 USD for my 3.0d in Romania -84.500 EUR, with many options

102.550 USD for 4.8i standard (58.880 EUR + 19% VAT)
78.150 USD for 3.0d standard (44.980 EUR + 19% VAT)

1 EUR = 1.46 USD

[Monty04]

It could also come down to simple economics. A product is worth what the market will bear. As long as consumers keep buying BMWs at their seemingly high prices everywhere outside the USA, BMW will keep charging these high prices. If you want the prices to drop, stop buying them.