E70 Options Pricing Excessive?
 

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.

Pretty well written post/opin, bimmerfan.

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

Bend Over Baby !
 

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) ... :banghead:

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

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.

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!!!:thumbdown M5 here I come.

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!!!!

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.

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 !

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...

Bimmerfan: well written.

As someone said earlier, hello M5! When I priced out my 07 X5 with the options I want it was in the high 60's. That's about 10 grand more than my similarly equipped 2005 X5 4.4i. I just don't see spending $70K for an SUV. As much as I've drooled over the performance and options in the new X, I really don't see myself buying one. I'd rather pick up a previously owned 2007 M5 with a manual shifter for the same kind of money.

You nailed it. That was one of the reason why i bought 4.8is when I was in market to get 4.4i. You do not get money back on options on resale. Having the 'is' replacement at $90k is ridiculous.

Do you think the 4.8is replacement is going to be around $90k? It seems a bit too much. According to bmwusa web, the 2007 M5 is currently starting at $82.5k. Can the 4.8is be more expensive than the current M5? I reckon that at most bmw can charge the 4.8is replacement at around $75k to $80k, what do you think? I just can't see how a 4.8 bi-turbo can be more expensive than a F-1 technology v-10 engine.

Xdrive, oviously I was exagerrating a little bit, but after gas guzzler ,options,( yes the IS REPLACEMENT WILL HAVE SOME) tax and whatever else, it's going to be pushing that number.The cayenne turbo neighborhood!

With the options it will be in 90k range. A fully loaded 4.8i is in 80k neighborhood.

Well put! I wonder sometimes is that strategy part of the reason BMW has remained a privately held company? If the recent troubles at some publicly traded automakers are any indication of the bad that can befall BMW were they to go public, I hope they stay private, but fer chrissakes! Find some way to make the fully optioned-out E70 4.8 less than the current 4.8is!

Just wondering what sort of options you will need for the top of the range model? I thought that most options will be standard in the is model - e.g. Sport package must come standard, right? maybe cold weather package ($900), premium package ($2550), rear climate package ($700), tech package ($2600) and 3rd row ($1200)? Depending on whether the base price of the new "is" is $75k or $80k, it can cost from $83k to $88k. I guess you are probably right.

Bimmerfan, I for one appreciate honest posts like this, it's not about bashing BMW but being honest that the pricing is way off here.

I've been looking at this vehicle for awhile, almost bought a 06 X5 4.4 but held off since this was just around the corner. You are right on the mark the options are just too high, with comfort seat, Prem Sound, Prking sensors, Tech Pkg w/ Nav and ventilated seats (a must for FL) Prem Pkg/Sport Pkg just brings the options over the top. It is bordering on price gouging. Don't even say well if you can't aford the vehicle why are you even looking. That is not the point, why would BMW price out the options so high, they know most people want those items. Finding a loaded up E70 used down the road will be a much better deal if one can wait that long.

I seriously did not think that the E70 would be that much more than the 06 4.4 but with the options added it is way higher than it really should be. Who wants to drive around in a brand new E70 that is stripped down to the bone with no options, how fun is that? I would imagine you will see alot of stripped E70's on dealers lots just to get them out on the roads so the public will buy them but to me, no options = no fun longterm.

I still want to test drive one, I want a new vehicle within the next few months. I would have got the 06 4.4 but I really want a Nav and I hate the fact that you lose having a CD player up front and you get a cassette instead, how outdated is that? I really like the interior layout of the E70 with the Nav.

Thanks for your honest post, it was well written and I agree with you.

This is how I see it.Take an E70 with 95% of the options (which brings it to roughly 75k give or take) that the IS replacement will have as standard, add 5k (very conservative ) for 'IS' EXCLUSIVITY FACTOR,gas guzzler, more options,tax, ect...you end up with a huge number! ''HOLY COW'' BMW's are getting very expensive!!:loco:

One of the best quotes I've read tonight; and very applicable to most of us: "Who wants to drive around in a brand new E70 that is stripped down to the bone with no options, how fun is that?"

I think that's why a lot of us are a bit upset. We've been tracking this auto for over a year now - seeing the excellent reviews, being relieved that it's not Bangled - and now we realize we're going to be hit with a $70K+ sticker.

Yup, they need some serious feedback. And I think they're going to get it through their dealer channel when they're not moving as many units as they anticipate. Especially since it's such a good machine.

I just searched CARS.COM and found several 2006 4.8is trucks with less than 10K miles (some with only a few hundred miles) that are selling for the low $60's. Less money, arguably a better car for the money. :rolleyes:

All I have to say is i am extremely happy I bought an 06 before the 07s came out. I agree they are too much money. I can afford a 80 or 90g pricetag. But if im spending that much its not going to be on an X5. There is a lot of other cars out there i would rather spend 90k on. Especially since my X5 is my work car. I will just buy a cheaper suv for work and spend more money on my sports cars.

:iagree:

can never understand how the pricing structure works in the States but roughly over here the X5 with anything like decent spec is going to come in around 50k gbp.. now on a conversion rate of say 1.870 that going to be
90k dollars.

So dinnae give me this your hard done by story:nanana: ;) only joking but the thing is put against the Audi Q7 where discounts are to be had you can get a better spec for a good bit cheaper.:confused: only motor that's above the X5 in the pricing department I can think of is the FFRR @ 75K GBP. I know the V10 Touareg is verging on 60k GBP but I've had two of them ain't going back to them.

i builded a V6 with SP,PP, and Navi for like 55k. Not that bad, but still alot more then old model with same options. I mean 55k is the asking price, so u can prolly get it for around 51 or 52 with tax, tag, and title.