M1 Likely High Volume Car

[madfast]

Originally Posted by Bimmer-Bob

I get what you're saying, but they're not THAT different in concept. I think their target demographic will overlap quite a bit, with the M1 perhaps biased towards a younger crowd. I still think that if these two cars are being sold side by side that cross-shopping will take place and one will cannibalize sales of the other. I know if I was in the market at that price-point I'd be weighing both.

the 1 is a small car. not that the 3 is huge, but i doubt people are going to cross shop those two regardless of price similarities. either you want more space and possibly more lux features (335is or optioned out 335i) or you want a smaller, faster (stock), better handling small car. if you want both space and speed, you have to pony up the cash for a M3. simple really.

and we're only talking about the base/stripper M1 here. you betcha most cars are going to be optioned well past 55k perhaps into 60k+ after DCT, M Dynamic, leather, CF goodies, etc. if anything, prospective M3 buyers will look into the M1 as a cheaper albeit not as awesome (M3 V8 = ) alternative. and that's really what it should be no?

[PrimoM3]

I think the ///M1 will eat into ~20% of ///M3 sales, ~50% of 135i sales, and ~30% of 335i sales. Just pulling these numbers out of the air but they feel about right. We shall see.

[HondaGoneRogue]

I highly doubt it would be 50% of 1er sales. There aren't THAT many enthusiasts. I agree on 20% of the M3 though. Maybe more.

[Beemer323]

In Aus its a 6+ month wait on 135i (last time I checked).

Could only test drive a ragtop.

[Beemer323]

Hello, that's fine mate. I’m glad there were responses as I’m intrigued by the comparisons also!

Average wage in Aus is around 55-60 AU so yeah, 50ish in US coin. Minimum wage though is about AU$35k for an adult in a business. You know, a 1st year accountant Assistant/supermarket/etc. Cant really make a comparison as many factors are relevant when determining a wage.

Your Pontiac GTO is about AU$55k down here, the Holden Commodore SS.

Tell you one thing though, BMW Aus completely gouges us with pricing and parts. Many people resort to buying parts from Pelican Parts etc. Same with anything though, I buy Honda parts for my bike from the USA as its less than half the price delivered.

Regarding leasing/financing, yes, its quite common. You can imagine tying up AU$85-95k in a 135i is just not sensible unless you have the cash lying around doing nothing. So to lease a 135i with a few options would cost about AU$1600-2000 a month with insurance, etc.

Regards, Doug.


BTW, I want Euro delivery!! You lot are so lucky...

Originally Posted by JasonCSU

There is obviously differences in wages and cost of living among countries. What's the average salary and the average cost of a vehicle in Australia? What percentage of income do people typically spend on a car payment? Going by your exchange rate conversions, hardly anyone in this country would be buying "lower end" BMW's such as a 135 if they cost US $70k and higher. I believe the average salary in the US is around $50k which is a figure from a few years ago. It is probably slightly higher now.

In Australia, do people typically buy cars that cost more than their annual salary and finance them for many years, or is leasing more common? I really am just curious; not trying to start any arguments.

[PrimoM3]

Originally Posted by HondaGoneRogue

I highly doubt it would be 50% of 1er sales. There aren't THAT many enthusiasts. I agree on 20% of the M3 though. Maybe more.

My logic was that about half of prospective 135i buyers would probably opt for an ///M1, while the other half would stick with the 135i. I don't think it would take any measurable amount of sales away from 128i shoppers.

[singular]

Originally Posted by BrokenVert

Holy crap...my vert cost less than your coupe, and I have a lot of options.

I think that the M1 should cost about 46-47K Thats the same difference between a 135i coupe and a 135i vert.

Remember the base price on a vert is 41K. Expect the base on an M1 coupe to be a couple K above that.

MRSP on my 'vert was about 53K. I've got similar options to RobMason. I wonder what a fully optioned M1 'vert will cost?

IMO BMW will increase performance of the M3 and also lift it's base price. Then the base of an M1 coupe will be midway between the 135i coupe and the M3 coupe. This might cannibalize some of 335i coupe, but overall the idea is to capture more market share from the competition and more of your hard-earned cash to buy the M badge.

[larryn]

Well, my 135i optioned out to something around $45k in 2008. I think that if the M1 were within a few thousand of that (highly likely - if not exactly around that neighborhood), I would not have even considered the 135i.

I would say that most 135i's stickered for +$40k, and when you're that close to an M, it becomes VERY compelling. 50% might be overstating it, but I don't think Primo is that far off.

[PrimoM3]

Originally Posted by larryn

Well, my 135i optioned out to something around $45k in 2008. I think that if the M1 were within a few thousand of that (highly likely - if not exactly around that neighborhood), I would not have even considered the 135i.

I would say that most 135i's stickered for +$40k, and when you're that close to an M, it becomes VERY compelling. 50% might be overstating it, but I don't think Primo is that far off.

[dmboone25]

Originally Posted by larryn

Well, my 135i optioned out to something around $45k in 2008. I think that if the M1 were within a few thousand of that (highly likely - if not exactly around that neighborhood), I would not have even considered the 135i.

I would say that most 135i's stickered for +$40k, and when you're that close to an M, it becomes VERY compelling. 50% might be overstating it, but I don't think Primo is that far off.

+1 My 135 was just over 41K--if I can get an ///M1 for 7-8 grand more--it isnt even a question to me what I would have done.....

[JasonCSU]

Originally Posted by Beemer323

Hello, that's fine mate. I’m glad there were responses as I’m intrigued by the comparisons also!

Average wage in Aus is around 55-60 AU so yeah, 50ish in US coin. Minimum wage though is about AU$35k for an adult in a business. You know, a 1st year accountant Assistant/supermarket/etc. Cant really make a comparison as many factors are relevant when determining a wage.

Your Pontiac GTO is about AU$55k down here, the Holden Commodore SS.

Tell you one thing though, BMW Aus completely gouges us with pricing and parts. Many people resort to buying parts from Pelican Parts etc. Same with anything though, I buy Honda parts for my bike from the USA as its less than half the price delivered.

Regarding leasing/financing, yes, its quite common. You can imagine tying up AU$85-95k in a 135i is just not sensible unless you have the cash lying around doing nothing. So to lease a 135i with a few options would cost about AU$1600-2000 a month with insurance, etc.

Regards, Doug.


BTW, I want Euro delivery!! You lot are so lucky...

Very interesting information; thanks for sharing. If new cars in the US had equivalent pricing to that of Australia, I imagine we'd see a drastically different market. I'm sure the manufacturers know that if they used that kind of pricing in the US their sales would tank. The general public in the US just isn't willing to pay, or can afford that much on a new car.

Euro Delivery is definitely an experience. If you ever get the chance for it, I highly recommend to do it.