US vs UK pricing

Horsey · 02-29-2012, 03:41 PM

Trying to while away the time waiting for my X3 … only another 11 weeks, 2 days, 16 hours, 43 minutes and 22.7653s to go (approximately).

The UK BMW site doesn’t have the 2013 options in the configurator … so I ambled along to the US site, and built a car there to see what it was like.

A top spec car there works out at about £37k compared to £58k in the UK … cripes!

I don't know why I am surprised …

… am I missing something?

I am assuming that the US and UK cars are “physically” the same (except for the small detail of the steering wheel being on the wrong side on the US versions).

I wonder where the other £19k goes?

SR40X3 · 02-29-2012, 04:02 PM

Could some of it be tax? Only noticed on my order that >5k was VAT!!

Another point is don't the standard US vehicles have more kit on them?

QTPie · 02-29-2012, 04:08 PM

A combination of them being made in the US (maybe some deal to give US customers preferential pricing?) and difference in market forces in different countries (BMW charges, on a country to country basis, what a customer will pay)?

I know exactly what you mean: what I am paying for a 2.0D could buy a 3.5i with everything on it and still give me some change....

QTPie · 02-29-2012, 04:09 PM

Quote:

Originally Posted by SR40X3

Could some of it be tax? Only noticed on my order that >5k was VAT!!

Another point is don't the standard US vehicles have more kit on them?

Yes, and tax

kingbadger · 02-29-2012, 04:09 PM

Maybe they ship them by first class post?

Horsey · 02-29-2012, 05:24 PM

I wonder what it would cost to get a RHD version in the US and ship back to the UK ...

The sad thing is it would probably be treated as an "import".

I believe that cars used to be made to different regulatory specs depending on the country ... But I can't imagine that's the case here.

It's probably just because we must be easier to fleece ...

lbjgh · 02-29-2012, 06:05 PM

At least there is a two week transit journey from the USA to the UK.

I'm an hour from the US border and screwed on pricing too... Albeit not as bad as you guys. ...and there is nfta that eliminates import duties.

That's. OK, I've got healthcare.

sbt007 · 02-29-2012, 09:30 PM

The answer is: the price is what the market will bear.

JoeyO · 02-29-2012, 09:50 PM

Quote:

Originally Posted by sbt007

The answer is: the price is what the market will bear.

While I'm sure BMW does take that into consideration, it's not the only consideration. I mean, if some third world country said "We can only afford $10 BMW's" BMW is not going to respond by selling them $10 BMW's. I'm exaggerating on the price of course to make a point.

sbt007 · 02-29-2012, 10:29 PM

Quote:

Originally Posted by JoeyO

While I'm sure BMW does take that into consideration, it's not the only consideration. I mean, if some third world country said "We can only afford $10 BMW's" BMW is not going to respond by selling them $10 BMW's. I'm exaggerating on the price of course to make a point.

Of course, you are correct. What I said is a bit of oversimplification :-)

I'm sure there are plenty of considerations, including size of the market, import duties, special country-specific modifications (and legislation), and of course the kind of prices UK customers are historically used to paying (and competitor prices).
BMW can probably price it lower, but feel that they can get get away with pricing it a bit higher. They might also want to hedge against currency rate fluctuations (GBP vs USD). It is easy to drop the price of a vehicle, not so easy to raise it again.

bimmernic · 03-01-2012, 01:43 AM

Those in the UK, US or even Canada are lucky.

Over in Singapore, its SGD282,800 (GBP141,000) for the x35 and SGD256,800 (GBP128,000) for the x28, both fully loaded, and we only get to enjoy our cars for 10 years. After that, its the wreckers or pay another huge amount to use it for another 10 years.

But, guess what, BMW is the number one selling make for 2011. Go figure.

QTPie · 03-01-2012, 02:52 AM

Quote:

Originally Posted by JoeyO

While I'm sure BMW does take that into consideration, it's not the only consideration. I mean, if some third world country said "We can only afford $10 BMW's" BMW is not going to respond by selling them $10 BMW's. I'm exaggerating on the price of course to make a point.

It is also a balance of how desirable the market is to BMW.... In the UK (and sounds like Singapore!) BMW has a good market share. In the USA, not so much yet: so maybe more attractive pricing because they want to get into that market. Maybe they are less interested in "getting into the market" in less developed countries (hence not willing to drop prices incredibly low).

QT

Bimar · 03-01-2012, 03:01 AM

Quote:

Originally Posted by JoeyO

While I'm sure BMW does take that into consideration, it's not the only consideration. I mean, if some third world country said "We can only afford $10 BMW's" BMW is not going to respond by selling them $10 BMW's. I'm exaggerating on the price of course to make a point.

I think its also based on volume and economies of scale, I know for a fact in third world countries BMW will offer less features(eg idrive is an option on X3) for more price before taxes. Eg a fully loaded X6 550i is 200k Euro

SR40X3 · 03-01-2012, 08:03 AM

Certainly from my experience it seems to me most 'worldwide' products are typically £ for $...i.e:£100 item in UK will cost $100 in the US.
Whats other peoples experience of this?
Can only put it down to the US being such a huge open market place??

02420X3 · 03-01-2012, 08:19 AM

Quote:

Originally Posted by SR40X3

Certainly from my experience it seems to me most 'worldwide' products are typically £ for $...i.e:£100 item in UK will cost $100 in the US.
Whats other peoples experience of this?
Can only put it down to the US being such a huge open market place??

That's my experience too, when going in the other direction. If I pay $100 for something in the US then I expect that I'll have to pay £100 for the same item in the UK.

tank531 · 03-01-2012, 09:18 AM

The tax delta from UK to US account for about 10% of the price difference. Then you have diesel vs gas engines. Diesel engines carry a 'premium' in the sales price in the EU due to greater fuel efficiency. Then you have the smaller differences like local pricing and spec.

SR40X3 · 03-01-2012, 09:54 AM

Quote:

Originally Posted by 02420X3

That's my experience too, when going in the other direction. If I pay $100 for something in the US then I expect that I'll have to pay £100 for the same item in the UK.

Although Sam Adams Boston lager is MUCH more expensive over here....

ND40oz · 03-01-2012, 03:57 PM

Quote:

Originally Posted by Horsey

I wonder what it would cost to get a RHD version in the US and ship back to the UK ...

The sad thing is it would probably be treated as an "import".

I believe that cars used to be made to different regulatory specs depending on the country ... But I can't imagine that's the case here.

It's probably just because we must be easier to fleece ...

You wouldn't be able to order a RHD version in the US. You could get a LHD US spec, bring it over, pay 10% import duty (think it's still 10%, might be higher) and then 20% VAT. Then you'll need to do the SVA, which will involve getting the lights converted (probably need all new headlight housings, I did on the 1er) and the rear foglight switch added. After that you can just get your tax disc and be on your way.

Alligator69 · 03-01-2012, 05:07 PM

Depending on the equipment and features, you get a 20d in Italy for a price between 50 and 60 kEuro.

02-29-2012, 03:41 PM	#1
Horsey Lieutenant 35 Rep 449 Posts Drives: F25 35d MSport & 135i Join Date: Feb 2012 Location: London iTrader: (0)	US vs UK pricing Trying to while away the time waiting for my X3 … only another 11 weeks, 2 days, 16 hours, 43 minutes and 22.7653s to go (approximately). The UK BMW site doesn’t have the 2013 options in the configurator … so I ambled along to the US site, and built a car there to see what it was like. A top spec car there works out at about £37k compared to £58k in the UK … cripes! I don't know why I am surprised … … am I missing something? I am assuming that the US and UK cars are “physically” the same (except for the small detail of the steering wheel being on the wrong side on the US versions). I wonder where the other £19k goes?
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02-29-2012, 04:02 PM	#2
SR40X3 Private 2 Rep 89 Posts Drives: X3 Join Date: Feb 2012 Location: UK iTrader: (0)	Could some of it be tax? Only noticed on my order that >5k was VAT!! Another point is don't the standard US vehicles have more kit on them?
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02-29-2012, 04:08 PM	#3
QTPie Private First Class 13 Rep 161 Posts Drives: BMW X3 2.0D M Sport Join Date: Feb 2012 Location: UK iTrader: (0)	A combination of them being made in the US (maybe some deal to give US customers preferential pricing?) and difference in market forces in different countries (BMW charges, on a country to country basis, what a customer will pay)? I know exactly what you mean: what I am paying for a 2.0D could buy a 3.5i with everything on it and still give me some change....
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02-29-2012, 04:09 PM	#5
kingbadger Enlisted Member 0 Rep 33 Posts Drives: X3 (F25) 3.0D MSport Join Date: Sep 2011 Location: UK iTrader: (0)	Maybe they ship them by first class post? __________________ X3 F25 3.0D MSport - Carbon Black, Black Nevada, Professional Media, 6NR, DAB, variable dampers, folding mirrors, heated front seats, extended storage. Delivered 1st June 2012
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02-29-2012, 05:24 PM	#6
Horsey Lieutenant 35 Rep 449 Posts Drives: F25 35d MSport & 135i Join Date: Feb 2012 Location: London iTrader: (0)	I wonder what it would cost to get a RHD version in the US and ship back to the UK ... The sad thing is it would probably be treated as an "import". I believe that cars used to be made to different regulatory specs depending on the country ... But I can't imagine that's the case here. It's probably just because we must be easier to fleece ... __________________ F25 X3 xDrive 35d M Sport Alpine White, Black Nevada Leather, Speed limit info, TV, Prof. Nav & Speakers, HUD, M Sport steering wheel, Sport gearbox, BMW Apps, Internet, VDC, Comfort with Powered boot, Hi-speed synch, VSS, Top View, Electric tow-bar, Heated steering, Storage, DAB, Heated electric seats, Moonroof, Adaptive High beam assist Xenons, Servotronic, Performance control, etc.
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02-29-2012, 06:05 PM	#7
lbjgh Lieutenant Colonel 104 Rep 1,511 Posts Drives: 2013 AW X3 M-Sport Join Date: Dec 2011 Location: North of Toronto iTrader: (0)	At least there is a two week transit journey from the USA to the UK. I'm an hour from the US border and screwed on pricing too... Albeit not as bad as you guys. ...and there is nfta that eliminates import duties. That's. OK, I've got healthcare.
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02-29-2012, 09:30 PM	#8
sbt007 Major 625 Rep 1,093 Posts Drives: 2021 X3 M40i Join Date: Feb 2012 Location: CA iTrader: (0) Garage List 2021 BMW X3 M40i [10.00]	The answer is: the price is what the market will bear.
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03-01-2012, 01:43 AM	#11
bimmernic Private First Class 1 Rep 109 Posts Drives: F10 (523) Join Date: Apr 2010 Location: SG iTrader: (0)	Those in the UK, US or even Canada are lucky. Over in Singapore, its SGD282,800 (GBP141,000) for the x35 and SGD256,800 (GBP128,000) for the x28, both fully loaded, and we only get to enjoy our cars for 10 years. After that, its the wreckers or pay another huge amount to use it for another 10 years. But, guess what, BMW is the number one selling make for 2011. Go figure.
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03-01-2012, 08:03 AM	#14
SR40X3 Private 2 Rep 89 Posts Drives: X3 Join Date: Feb 2012 Location: UK iTrader: (0)	Certainly from my experience it seems to me most 'worldwide' products are typically £ for $...i.e:£100 item in UK will cost $100 in the US. Whats other peoples experience of this? Can only put it down to the US being such a huge open market place??
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03-01-2012, 09:18 AM	#16
tank531 Deckhand 5 Rep 389 Posts Drives: F25 2.0D SE xDrive (Sep 11) Join Date: Mar 2011 Location: Coventry - UK iTrader: (0)	The tax delta from UK to US account for about 10% of the price difference. Then you have diesel vs gas engines. Diesel engines carry a 'premium' in the sales price in the EU due to greater fuel efficiency. Then you have the smaller differences like local pricing and spec.
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03-01-2012, 05:07 PM	#19
Alligator69 Private First Class 1 Rep 143 Posts Drives: X3 F25 2.0d Mineral Silver Join Date: Jan 2012 Location: Italy iTrader: (0)	Depending on the equipment and features, you get a 20d in Italy for a price between 50 and 60 kEuro.
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