European Launch
 

Anybody out there in Europe expecting their E70 around the European Launch dates (i.e. the end of this month!)

I have a 3.0si on order being built in April so expecting June Delivery.

WHy not buy one in the US and ship it to Europe? A friend of mine from Russia wants to do that with a 4.8i. since in Russia they are asking close to $150k for it.

My car is on the boat and I'll get it on April 28th (UK launch date).

I'm getting ready to order a 4.8I and my salesman gave me a number of a guy who is buying FX's (my current car) by the boatload to send to Russia. What is going on over there that there's such demand for these cars?

Lots of reasons:

1. Arranging shipping
2. Import Duties + VAT
3. LHD versus RHD
4. Legal requirements for European cars are different to US cars
5. Insurance costs
6. Lower residuals
7. UK Specification is more flexible than in the US, you can pick and choose exactly what you want

I'm sure there are more on top of that. My 3.0si will cost me about $90k through a UK dealer, including all taxes.

I am not sure of FX but in case with 2007 X5 every one wants to be the first one on the block to have one. A small showroom in Perm, Russia was flooded with orders and deposits even without having a vehicle in the showroom. I know BMW North America does not like it but if you have $70k for a 4.8i another $35k for docs, customs and shipping and three weeks later you have your car in Russia, thus saving at least $25-30K.

Pardon my ignorance here..., but when we're talking about 90k, 150k, etc... are we talking euro's or USD, and are all cars overseas sold at such higher prices than in the US or just the new X5 because of high demand?

As much as I love BMW and the X5, for $150k, I want a Carrera or a barely-used Ferrari, not an X5......

On the car sites in Germany you already see quite a few new "US" X5s for sale. By the time you have them registered, duties paid etc, you will save some money (not as much as in Russia) but then considering the negatives as mentioned by StumpyPete, you re safer to wait. The dealers here say that they do not have the software to service US-spec vehicles, and they wont receive it untill the summer. Not sure if this is just a thing to prevent grey imports. Official release in Holland is March 24th

Another fact: a lot of cars stolen in US show up at these high price markets. My buddy was on vacation in Belize few years ago and he saw a BMW driving around with New York plates. I guess the buyer paid premium for NY plates. :rofl:

For Completeness I meant 90k USD (and that includes about 15k of options). We don't have Euros in the UK....we still use GBP.

As for high prices this is the norm for other countries. It's not just the X5. You guys have it lucky in the US, just about everything is cheaper there. I am paying about $7 (USD) for a Gallon of fuel (US gall not imperial).......but it is 100 RON. So a tankfull of fuel is 157 USD.

Exchange Rates play a big factor as well. If we use exchange rates from March 06, my car would only be 82k USD, so it's appears to be 10 percent more expensive due to the current weakness of the dollar.

Incidentally, I don't know if Taxes are relevant, my 90k USD includes 17.5% VAT, so that accounts for about 13.5k of the 90k USD. The prices also include Delivery, plates, registration fees and excise duty. This accounts for another 1.5k USD.

For reference in the uk list price for a Cayenne is 37,100 GBP (or 71,500 USD) without any options. The Audi Q7 SE 3.6 FSI Quattro (280 PS) is 40,700 GBP (or 78,500 USD). The base X5 3.0si price in the UK is 39,505 GBP (76,165), the 3.0sd is 40,120 GBP.

I've used the exchange rate from today's Financial Times (1.928)

That VAT is about double the sales tax I would pay in NY, so that is a part of it as well, but in the US, I'll be looking at $70k USD + $5-6K in taxes, so about $76K or so for a 4.8i with 15k worth of options.

I guess I've never given foreign markets/economies sufficient thought, but I'd have to assume most other things (salaries, etc..) somehow balance these things out.

Nope....can you please tell my boss to give me a rise :rofl:

Seriously though, I just did a couple of checks online. For my job it suggests that I would get paid roughly the same amount in USD if I worked in NY versus what I get paid in GBP (i.e. If I earned 100k GBP, I could expect 100k USD for the same job). So crudely you could make a 1:1 comparison for a real terms comparison.....this is very unscientific though!

A body of mine bought a 2006 Audi S4 in the US for $60k got it shipped from Boston to St. Petersburg Russia for $1,200 paid customs duties and still had it for under $100k. If he went to Germany where the car is built he would have had to pay 60k Euros (roughly $90k) still pay for shipping and duties to end up with a $130-$140k car. As long as US $ stays relatively weak against Euro and Pound europeans can really find bargains in the US. Russia's tarrifs of 48% on new vehicles does not stop whole bunch of rich 20-30 something from laying out this money to be the first in a 1 million + city to have these new wheels. As far as vehicle models are concerned it comes in waves like fashion: first it was Nissan Patrol, followed by LandCruises and Mitsubushi Monteros, then Mensedes G series, X5, Cayenne and now back to X5.

But that would technically mean you're earning more in the UK for the same job, once you adjust for the exchange rates (100k GBP > 100K USD), so just like comparing cost of living in NY City versus upstate NY, you'll make a lot more in the city, but also spend a lot more on basically everything you do (rent/mortgage, food, etc...).

Keep in mind there is always worse... I think in Norway the tax level on cars like the new X5 4.8i is one of the highest in the world. I found an article on a Norwegean website saying the 4.8 would sell just under 1.400.000 kronen which is USD. 190.000,- (!!)

That really puts you in an exclusive club of X5 owners.

StumpyPete,

I have a build slot late April/Early May for a 3.0d here in the UK, delivery late June/ealry July. I was offered an earlier slot but want to get the USB/Ipod connection available from April.
Monaco Blue/Beige with far too many options, managed to hike the list price by 40%....
As far I know, there hasn't been any delivery yet in EU...
C

I heard that all the X5 will be delayed because of production issues with the Wheel suppliers.
By Dealer told me today that I will not get my X5 before July !
(I placed my order in Feb !).:rolleyes:

The French Dealers are getting the First X5 Now. I saw one today.

what you don't realize is that for a Carrera or a Ferrari you'll be shelling out a lot more than $150k in those countries... Its not only X5's that have price inflation, its all cars in europe...

that, and I just looked up that the F430's are now selling over $350k USD... Thought they were more around 225 like the 360's were.... From the salary and vehicle purchase prices, it seems like it's all relative.

yep and technically it means that my X5 will cost less in proportion to my salary in the UK than it would if I was in the US......I'm staying here!

The pound is now worth over 2 US dollars - I believe you would be greatly underpaid if your position paid 1 pound to 1 US dollar in the US.