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      02-23-2008, 05:19 AM   #1
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BMW.ca Canadian Specification Benefits

Hey guys.. Just saw this on the BMW.ca site today. I hadn't noticed it before. It's a document that explains why they are justified in charging higher Canadian prices.

The benefits of a Canadian-specification BMW
Quote:
BMW Group Canada is committed to delivering the Ultimate Customer Experience to Canadians through exceptional products and services. As part of this commitment, we ensure that all of our vehicles are equipped and priced to compete directly with other models in the Canadian market. As a result, we are able to maintain exceptionally high residual values and ensure that our customers are protected by the best possible lease rates and resale values for their current and future automobiles.
Ok.. well I can agree with the resale value thing, because these huge lease rates will keep resale value high. But it's about that "exceptionally high" residual values.. perhaps this mean we won't see the 50% as rumoured here on the boards. As for "competitive pricing".. not so much.

Also, there is an FAQ explaining why the prices are much higher in Canada. Again, it seems very fabricated overall, but still worth a read.
http://bmw.ca/content/pressReleases/...fs.asp?lang=en
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      02-23-2008, 06:29 AM   #2
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^^^^

Everything I've read from BMW Canada clearly shows that they care less about the issue. Despite the recent surge in concern about the price difference, BWM Canada know that only a relatively small amount of their customer are concerned about the issue.

Let's be honest, most manufacturers know that the majority of Canadians are not going to go to the trouble of importing a car. I would suggest that this applies to BMW buyers especially. From my observation, most BMW customers are not the "penny pinching" type nor are they really car enthusiast out for a good bargain. Instead, they are customers that are use to convenience and getting what they want when they want it. Please don't think that I'm saying this is a negative thing, most people buying any luxury goods are like this. In fact, I would suggest that some of the appeal of buying luxury goods is that you can have it when you want it.

I guess, what I'm trying to get to is, until the majority of the buyers stop buying cars in Canada pricing won't change. I'm not supporting them, but honestly if you could make 12000 more on each 135i wouldn't you?
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      02-23-2008, 03:47 PM   #3
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The only benefit to buying a Canadian-spec BMW is that you get a km/h speedometer. The new BMWs don't feature km/h and miles/h. You just get one. So if you did buy one from the US, you'd have to either replace the dash unit or contend with always seeing your speed in miles/h.
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      02-23-2008, 05:41 PM   #4
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BMW dealers in Vancouver lease the large majority of the vehicles they sell so aren't too worried about imports cutting in to their business.
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      02-23-2008, 08:48 PM   #5
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Quote:
Originally Posted by vincenzo View Post
The only benefit to buying a Canadian-spec BMW is that you get a km/h speedometer. The new BMWs don't feature km/h and miles/h. You just get one. So if you did buy one from the US, you'd have to either replace the dash unit or contend with always seeing your speed in miles/h.
well here's a pic of the gauges from the Chicago Auto Show and it's got both

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      02-23-2008, 10:09 PM   #6
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Quote:
Originally Posted by Em_What? View Post
well here's a pic of the gauges from the Chicago Auto Show and it's got both

Thanks for the info.

Canadian-spec BMWs only show km/h, NO miles/h.

However, seems US-spec BMWs show BOTH.

Well, in that case, I guess there isn't any benefit of a Canadian-spec BMW.

Guess I'll be buying mine in the States. Take that BMW Canada. LOL
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      02-24-2008, 03:29 PM   #7
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Quote:
Originally Posted by excel View Post
I guess, what I'm trying to get to is, until the majority of the buyers stop buying cars in Canada pricing won't change. I'm not supporting them, but honestly if you could make 12000 more on each 135i wouldn't you?
Microeconomics 101 I suppose, hey? The "savings" for a lease in their FAQ were huge stretches. They just picked a car that happened to have a decent interest rate at that time and compared to a completely different market with a different interest rate at that time. How dumb do they think we are!?
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      02-25-2008, 01:56 PM   #8
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Quote:
Originally Posted by stefan View Post
Microeconomics 101 I suppose, hey? The "savings" for a lease in their FAQ were huge stretches. They just picked a car that happened to have a decent interest rate at that time and compared to a completely different market with a different interest rate at that time. How dumb do they think we are!?
From what I've read from BMW on this topic, it would appear that they think we're absolutely idiotic! I think that's what makes me the most upset. They use the worst example and give the most dishonest answers. Have you read the article when the President of BMW Canada did a live chat with globe and mail,

http://www.globeautos.com/servlet/st...siness/?query=

What a joke, the guy comes off like an old school used car sales person. He actually got a lot off bad feedback from that live chat! It's no wonder BMW Canada gives the answers they give, with a guy like that at the helm.
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      02-25-2008, 02:27 PM   #9
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Wow.. that guy can't be serious.
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      02-25-2008, 02:53 PM   #10
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^^^

Scary eh? and he's the PRESIDENT! read the comments and you'll see that he still doesn't understand the issue people raise. He actually tries to justify his answers by saying that the Globe told him to treat it like a normal conversation and be causal. Just exactly how does that relate to people complaining about his lack of sincerity?? The guys a joke and really it shows just how little they care about the issue.

I honestly believe that if he just came out and told everyone that the difference in the market size was a serious issue, people would be a whole lot more understanding. It would also shift some of the heat to the government.

This guy almost single handily turned me off BMW. Also to me, it really reinforces the BMW image of arrogance.
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      02-25-2008, 11:05 PM   #11
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Here's what I wrote to someone back when the interview was conducted in response to a suggestion that we email Duffield regarding our dissatisfaction (on bimmerfest):


We should all do that. And better yet, buy your next vehicle from the US and bring it up here. The Cdn dealer group is providing misleading economics on the value of bringing in a US purchased BMW into Canada. Duffield made it seem like there was little to no value in buying from the US. What a bunch of baloney. His answers to questions in an interview with one of our local papers (website) were almost condescending. "I hear you got snow in Calgary. It's a great time to buy a xdrive BMW." Piss off, the guy asking the question more than likely already bought his f*(&ing vehicle in Canada and wanted a straight answer as to whether the rebates introduced will apply to 07 vehicles purchased earlier this year. Duffield answered by saying "check with your dealership". What a disgusting politician.

My next BMW will be purchased from the US. I can't stand the way that the Canadian dealership group is screwing Canadians by deceiving and fearmongering.
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      02-26-2008, 04:19 AM   #12
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^^^

I think you're absolutely right. Power comes in numbers, unfortunately people that really care about the price difference is only a small majority. Add to that, the majority of those people will end up purchasing from Canadian dealers in the end and you have a company that just doesn't give a damn.

It's just too bad the guy doesn't have the class and maturity to answer the question openly and honestly.
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      02-26-2008, 10:48 AM   #13
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I almost puked when I read that! What an insult!

The statement only outlines policy decisions taken by BMW to create disincentives to buying a BMW for a lower price in the US. There is no intrinsic advantage to buying a Canadian BMW, only false disincentives to buying elsewhere.

If BMW is going to charge Canadians more, then so be it, but at least go about it honestly. I really resent them trying to placate loyal BMW owners with such an obvious and false sales pitch.

Major PR backfire, IMO...
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      02-26-2008, 03:26 PM   #14
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One thing that really bothered me, is he banks HARD on the import taxes and fees. But that should NOT be part of the equation.. we are comparing the cars themselves. If we are talking economics, these taxes (which are arguably unnecessary for the most part) should be ignored and the value of vehicles to vehicles should be compared, taking options and financing into account.

For example.. I wish they would stop saying, "there are many items standard on Canadian cars that are not on American cars, for example, leather seats." ENOUGH with these "for examples". They never add up.. The reason they state "for example" is because there are little to NO other examples!!

Show me a list.. of each item, what they cost. Show me the discrepancy--which will be massive--and then subtract import taxes, dealer fees, and costs of Canadian compliance. NOW.. explain to me why the discrepancy remains. Then, explain WHY this argument banks on "dealer fees" and import taxes anyway. Economics ONLY. In fact, I believe he mentioned "the prices are based on the Euro". Well.. the Canadian dollar can buy more Euros.. Yes the American market is larger... still don't understand why this problem still exists, though.
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      02-26-2008, 05:08 PM   #15
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^^^
I agree with both of your comments.

Stefan, all his arguments deceptive, period. All his answers, are answers you would give to a first time purchaser with absolutely no knowledge of the car industry, or no knowledge of any economic concept. It just shows how arrogant he is. Don't forget this was a live chat specifically on the issue, you would have thought his PR guys would have told him he was dealing with people that had knowledge of the topic. He keeps telling us 2+2 = 5 when everyone knows the answer.

Spudwest, I think you hit the nail right on the head. Just give us the truth, I think most consumer concern understand why we pay more than USA. We just want you to justify it honestly.
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      02-26-2008, 10:51 PM   #16
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excel I think we are on the same wavelength here.

I want to poll everyone to see... can we start a petition? Is that possible? Will anyone care? Do we have enough support?
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      02-27-2008, 03:05 AM   #17
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^^^

I think it's a great idea and would be up for doing something. However, I think we will run into a few problems:

1) I don't think there are enough members on this site alone to raise a serious petition...but probably worth a try.... I don't think this is specific to 1ers either so if we get all Canadian BMW owners/potential owners, I would think there would be more then enough people.

2) We would need to coordinate with other forums.

I think the best thing to do is start a poll and see who's actually willing to purchase in the US...Hey maybe we should do a US group buy?!
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      02-27-2008, 08:38 AM   #18
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Goto e90post. Many canucks there ...
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      02-27-2008, 01:29 PM   #19
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The thing is, I'm willing to save and I'm willing to import but it's just that the current roadblocks (unknown set of required modifications and their costs) set by BMW just lowers the incentive for importing.
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      02-27-2008, 01:44 PM   #20
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^^^

Ya I agree, that's a major card BMW holds in their hands. I can assure you that BMW Canada is going to do everything they can to make it a pain to import.
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      03-04-2008, 01:24 PM   #21
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^^^

I'm unlikely to consider importing, particularly as BMW ensure that it is a hassle and that the savings are minimized.

Their only concern is to squeeze as much out Canadians as they can, and yet they don't want to admit that. Bottom line is that pound for pound we pay more than in the US. If it HAS TO BE THAT WAY for sound economic reasons, then so be it. But at least extend to the reasonably well educated, well established market in Canada the courtesy of an honest explanation. Not the half-assed sales pitch you'd expect from a used car peddler...
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      03-04-2008, 01:27 PM   #22
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+1
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