Why The 335i Coupe is a Rip Off

[x5mad]

As most of us already know, we are ripped off to the max. I have used BMW prices in the UK (known to be higher than in Western Europe) which serves the argument well as is right hand drive. The 2 models I have chosen for comparison are the 2 models which I thought about buying before settling on the 135i convertible due to the fact that buying the 335i would be a massive rip off.
I have spec adjusted the UK models so that they match the base spec of the Australian cars.
Prices for the UK are directly off BMW UK, and I have used carpoint.com.au to get up to date car prices for Australia as BMW Australia no longer have new car prices listed.

135i 6MT Convertible: Aus = $80,200 UK = 36,705 GBP Current exchange rate 1AUD = 0.5GBP. If based on exchange rate alone then the price in AUD = $73,410.

Now for the 335i 6MT Coupe: Aus = $112,500 UK = 41, 395 GBP Again if based on exchange rate alone then the AUD cost = $82,790.

The prices quoted for the UK are drive away prices. The Australian ones do not yet even have Registration fees, dealer delivery and other statutory charges.
Difference in cost 335i vs 135i convertible for each country adjusted to dollars:
Australia = $32,300 (not incl statutory charges)
UK: $9,380 (drive away)

Now if you look at the prices for the 135 ($80,200 vs $73,410) you almost could justify the price difference due to our 33% LCT. So, on the face of it doesn’t look too bad and seems like our dealers are working on the same margin as the Brits.

Now when it comes to the 335i coupe, WHY does it cost $32,300 more than the 135i Convertible when there is only a price difference of $9,380 in the UK??? EVEN allowing for the 33% LCT there is still a markup of at least $15,000 ($9380 + 15000 + LCT) compared to the UK pricing. $15,000 WTF!!!??
Not only are we being fleeced by the government with LCT, GST etc but for you 335 owners out there who bought new, BMW Australia have decided to add their own LCT and gouge you for anything left remaining.
Unbelievable! And if you look at pricing in the USA it just gets worse. I say everyone boycott 3 series sales, or better all BMW’s above the 1 series (as 1 series seems to be the closest in price to other countries) for the next 6 months until BMW Australia bring back their pricing of different models more so in line with the rest of the Western World.

Sorry about the long rant. I used to live in the UK and thought new car prices were too high, but now they look like a bargain!

[x5mad]

Martin Roller of Brisbane BMW bought a brand new Ferrari F430 this time last year. Makes you sick doesn't it? We as the consumer = king, really should be doing something about this. My 2 cents

[Breville]

I've got no problem someone who runs a successful company from enjoying the fuits of their labour.

Without trying to add fuel to the fire (we're all entitled to our opinions), we all have a choice and no one makes us buy these cars. Why bitch about it afterwards? I'm a happy customer.

[TimMc]

And Martin Roller told us that most of his profit comes from the massive number of X5s he sells.

I'm in Sydney at the moment and checked out my brother's new (demo model) 335 sedan he picked up for $99K driveaway yesterday. Not a bad discount from the $130K+ asking price.

[dr.bmw]

there are a lot of people being over paid for what they do... most of them are in banking and finance, not in car sales however.
when i buy a ferrari.... well i want you all to know i worked hard to afford it!

[x5mad]

Originally Posted by Breville

I've got no problem someone who runs a successful company from enjoying the fuits of their labour.

Without trying to add fuel to the fire (we're all entitled to our opinions), we all have a choice and no one makes us buy these cars. Why bitch about it afterwards? I'm a happy customer.

Oh don't get me wrong, I agree with running a succesful business and so forth. Was merely highlighting a disparity in pricing. But there is a fine line between running a succesful business and overcharging. There seems to be a consumer watchdog for just about everything but none for the automotive world. It is very difficult if at all possible to import a new car such as a recent BMW. Where is the choice? Limited to a few dealerships who pretty much have the monopoly. Am I free to buy directly from Germany? You could pretty much buy anything else from overseas if so wanted. When I was in the uk I bought my car direct from Germany and saved a substantial amount of money.

Like I said this price disparity seems very "unfair" and no watchdog to protect the consumer. Would it be fair to pay for example $5 a litre for petrol just because you lived in a remote region? The price of oil is governed to a certain extent so that you don't.

I never said I was unhappy with my purchase, on the contrary I am very happy with it. But I would not be prepared to buy a 335 knowing how much of a markup there is.

My point is pricing is not in line with the rest of the world. Taxes are taxes, but overpricing is another issue. And quite rightly as you say the consumer buys what he wants, but we can also use this to our advantage in order to help each other get better prices. The company will still make millions but the consumer will be the one to benefit somewhat. Look at the prices of big v8s now, supply and demand. So it shows that by working together consumers can influence the product pricing.

[Taymaishu]

Breville's right. I'm happy to pay the price i did for mine.

Then again, we can't justify asking for the same UK prices when you consider shipping costs, stamp duty and import costs.

[x5mad]

Originally Posted by Taymaishu

Breville's right. I'm happy to pay the price i did for mine.

Then again, we can't justify asking for the same UK prices when you consider shipping costs, stamp duty and import costs.

you misunderstand, I actually agree that the 1 series is the better value for money choice. I am talking about the price jump from 1 series to 3 series. It's huge, USA has even less of a price gap from 1 to 3 series. They too import like we do and I have even taken into consideration the taxes and LCT. The question is why is there a price difference of more than $30k between these 2 models as compared to 5-10k? So the actual price is not what I am talking about but the leap between models, with statutory charges and such all being accounted for.

The 1 series like I said is good value for money.

[Taymaishu]

Originally Posted by x5mad

you misunderstand, I actually agree that the 1 series is the better value for money choice. I am talking about the price jump from 1 series to 3 series. It's huge, USA has even less of a price gap from 1 to 3 series. They too import like we do and I have even taken into consideration the taxes and LCT. The question is why is there a price difference of more than $30k between these 2 models as compared to 5-10k? So the actual price is not what I am talking about but the leap between models, with statutory charges and such all being accounted for.

The 1 series like I said is good value for money.

No no, I do agree. Why get a 335 when you can get (what in my opinion) is a better looking car with the 135 at a fraction of the price?

I do completely understand and agree with what you're saying. The jump from 135-335 is exponentially greater, relative to exchange rates.

I guess it's just our price gouging bastards!

[Breville]

Being a POM it narks me too, as in the UK you can buy from Europe and save some money. I think the whole personal import market is not here as we're so far from other RHD markets and it goes in the too hard bin (yes, yes I know JP is nearer than the UK, but we're talking about where the actually RHD vehicle is built). How does the price get effected by being here? I imagine the more a country's respective market can handle then the price point is going to be lower. However I understand the point about mark up compared with the UK 335.

[Taymaishu]

Let's all move to Denmark for some ridiculous LCT!

[OOOSQ]

Originally Posted by x5mad

you misunderstand, I actually agree that the 1 series is the better value for money choice. I am talking about the price jump from 1 series to 3 series. It's huge, USA has even less of a price gap from 1 to 3 series. They too import like we do and I have even taken into consideration the taxes and LCT. The question is why is there a price difference of more than $30k between these 2 models as compared to 5-10k? So the actual price is not what I am talking about but the leap between models, with statutory charges and such all being accounted for.

The 1 series like I said is good value for money.

Exchange rates only mean so much when your dealing with highly competitive markets where buyers are far more price conscious than here. Let alone shipping freights from Europe to Australia which would set a massive price variance compared to north America. North America would be a large segment of BMW sales (as would Europe), Australia is small time comparitively - pricing a minimal market competitively wouldnt be a concern from those up top if we are all still willing to pay what we already do - particularly given they run at extended lead times for favoured models. Why charge less when people still buy is the addage.

[Zuzu]

X5mad is 100% correct in what he is saying..

The BMW pricing in Oz SUCKS when model comparing.

Even when comparing 135i to M3 prices in the USA..
In OZ you pay 150% price difference between the two. In the USA it is roughly 55% increase over the two...Figure that out.

[BMW86]

I'm going to go against the grain here and say the 335i is actually spot on for pricing. When you consider other competing makes and models from Audi Merc and so forth, the 335i is pretty much on par with other cars in its class for dollar value. In Australia we get stung on all imports and luxury makes. Spending an odd 120k on a 335i seems way over the top but we've been used to being slugged by heavy taxes which up the price for any cars in this segment. If you cross-shop against other Euro brands there isn't much under 100k.

This brings me to my point that I think the 135i is an exceptional bargain. For around 80-85k it slots as one of the cheapest bang for your buck German cars in the Australian market. x5mad I do understand that your point is that after working out your calculations that there is an odd 30k gap between the 135i v 335i when if following other markets it should be about 10k less. Unfortunately I think the 335i pricing is bang spot on for our market, look at other cars in the BMW range, they are all evenly distributed. For example, the M3 may seem overpriced to us but it's not far off other cars it competes against - the C63 AMG, RS4.

My opinion is that I think the 135i would still be a great seller even if it was 20k more than what it already is meaning the difference would only amount to 10k which falls in line with the European market. If the 335i was actually 20k cheaper making it only 10k more than the 335i then I can see that car being the performance bargain of the year and maybe not so much the 135i. The reality is in the Australian market we continue to pay way to much for our cars and we're not only used to it, but we can't really do much about it.

[Zuzu]

So.... Your saying that we are blessed in that the 135i is really underpriced in compared to the 335i, than the other way round..

[BMW86]

Originally Posted by Zuzu

So.... Your saying that we are blessed in that the 135i is really underpriced in compared to the 335i, than the other way round..

Yes exactly Zuzu. But I still wouldn't mind it being a few more $$$ cheaper

If I couldn't get the 135i I would be hard pressed trying to decide what else I would have bought and I still would have wanted the 135, nothing else can fill that void - it's in a class of its own. If I was spending and odd 120k on a 335i I would have a few other cars to choose from.

As I said before I have no doubt the 135i would still sell if it was 20k more to bridge the gap and make it only 10k difference between the 335i. The 135i is still a great car and not everyone wants a 335i.

[Gumball]

BMW's, Mercedec etc are a rip off in Australia and one day I hope this changes.

If I lived in the US I would probably be driving an M3 for much the same money....

And paying 30k extra for a E92 is a little crazy, no way I could ever justify the extra price, inferior car which is only slightly bigger inside and yes looks a little nicer but not 30k nicer.

[johndeere]

I feel for you guys.

I live in Canada and picked up an 09 135i manual with a sunroof, on the road after taxes and everything came to around $49K AUD....your prices are ridiculous to say the least.

[x5mad]

Originally Posted by Gumball

BMW's, Mercedec etc are a rip off in Australia and one day I hope this changes.

If I lived in the US I would probably be driving an M3 for much the same money....

And paying 30k extra for a E92 is a little crazy, no way I could ever justify the extra price, inferior car which is only slightly bigger inside and yes looks a little nicer but not 30k nicer.

Also as a reminder the example I did was from 135 convertible to 335 coupe (see my original post for the reason behind this comparison). If we did coupe to coupe comparison the difference is nearer 40k!

Member ''BMW86'' mentioned:

''the M3 may seem overpriced to us but it's not far off other cars it competes against - the C63 AMG''

I would have to disagree with this one as C63 = <145k M3 Coupe = 162k. In the UK it is the C63 which is actually more expensive than the M3 coupe by about 10k AUD. So in actual fact kudos to Mercedes for being that bit more competitive and a big thumbs down for BMW pricing the M3 where it is.

Westside has a BMW M3 convertible listed at 193k drive away. They sent me an email offering it for 173k drive away. Has less than 4k on the clock. They will stilll make a profit on this car even despite dropping the RRP on this car by 20k!

[takahashi]

911 GT3 is 72000 quid in UK. I could afford that!

But Porsche AUS wants $280K from me...

[RadiuM]

One thing I noticed on the US site a while back is the US cars do not come with a few things the australian cars come with as standard. I found this on the UK site just then.

stock, the uk cars do not come with.
leather (stock with cloth),
electric seats + memory,
xenon headlights,
bluetooh phone prep (stereo pro with cd player)

I found this the same with the US, except in the US they come with the sunroof standard, wtf?

I know it doesn't equate to much but in those economies they are making the cars as cheap as possible to make them fit in and sell as they have a crapload of competition and such a wide selection of cars to choose from. If you've ever been to japan (and europe/america) you will know what i mean, there's a billion models of toyota's and nissan's you will never ever see over here.

Over here there is nothing really in the same price bracket that is in the same league so I guess they can crank the damn price up a bit. Also thank the government for that 33% LCT too the bastards!

I'm happy paying what I paid for my car, were in australia not shitty america or the uk so live with it

taka, that makes me sad too

[sparoz]

I guess every place has their pricing policy for a certain market. I don't have any problem with a 335 or a 1er. I know it seems there is a big disparity in prices from the UK and the US. However, it comes back down to what is the market going to pay.

Competition for BMW is Audi and Merc, and it is where they pitch the pricing at. If you look at Germany's price, it is actually not that much cheaper than Aust.

In comparison of the price, that's why many US buyers think the 1 is overpriced, and why we think the 1 here is valued.

Having said that, I was pricing a spec upped 335i coupe before I bought the 3, and it is under 110k. Which is only a small margin over the 1er. If you done your homework, it's actually not that much difference.

Martin I think has earned what he got. Brisbane always provide good customer service despite some interesting hire recently. Their workshop wasn't the best, but they are always courteous and attentive.

If anything, I would winge about their wait on getting your car service - four to six weeks if you want a loan car is just a little bit rediculous.