BMW Car Sales - The cost to be Number 1

[36654]

Interesting story from Bloomberg. The last paragraph seems to sum it up.....lower resale value.

http://www.bloomberg.com/news/artic...ales-numbers-by-paying-dealers-to-buy-loaners

 

[lkchris]

Did you know that of all vehicles made in the USA, the manufacturer that exports (sends abroad) the most by value is BMW?

http://www.wrdw.com/home/headlines/BMW-exports-almost-10B-of-cars-from-SC-in-2015-368458361.html

 

[Subman]

Bought my wife's 535xi last year as a used loaner. Had 9K miles on it and came in at $13K less than the original sticker. Completely spotless car, and the miles were so low as to be a non-factor.

 

[Omega Man]

Interesting story from Bloomberg. The last paragraph seems to sum it up.....lower resale value.

http://www.bloomberg.com/news/artic...ales-numbers-by-paying-dealers-to-buy-loaners

Meh, stir the results anyway you want. To someone who buys a car with some intelligence, all a non- issue.
OM

 

[pampero]

Is it really news that with very few exceptions BMWs have lousy resale value? The only people who think they're worth a lot are the dealers, and that's only when they're selling, not buying.

 

[exgman]

The problem (if it is one) with BMW cars is that they're so much darn fun to drive. Before Mrs. ExGMan got her first BMW (E60) she drove a bunch of cars, but once she tried the Bimmer she was hooked: "I'm not going back to Lexus ever!"

Now her F10 diesel in "Sport" mode quickens the steering, hardens the suspension, and has serious torque (413#-ft at 1500rpm).

No BMW is an economy car. Driving beyond warranty can be expensive, but it's so much darn fun to drive. Here's the disclaimer: YMMV.

Wait! Isn't this a BMW motorcycle forum?

 

[36654]

Did you know that of all vehicles made in the USA, the manufacturer that exports (sends abroad) the most by value is BMW?

http://www.wrdw.com/home/headlines/BMW-exports-almost-10B-of-cars-from-SC-in-2015-368458361.html

Next thing you know, they'll be paying their workers GM & Ford wages......

 

[exgman]

Sounds like they're paying a lot more than the US automakers. See: http://on.wsj.com/1QnMVxB

 

[36654]

Sounds like they're paying a lot more than the US automakers. See: http://on.wsj.com/1QnMVxB

Hmm.....can you show me the sentence or paragraph that lists the salaries paid to the workers?

 

[36654]

Bought my wife's 535xi last year as a used loaner. Had 9K miles on it and came in at $13K less than the original sticker. Completely spotless car, and the miles were so low as to be a non-factor.

On your side of the equation, that's the local move. A new car 4-yr warranty and, perhaps, a 20% reduction in price.

The issue for BMW comes when the discounts impact resale values to point that lease deals become non-viable. In my experience, most 3 & 5-series BMW leases (which account for ~50% BMW sales) were based on a nominal resale values of ~60% after 3-yrs. If the cars are worth less than assumed end of lease value, someone has to eat the difference or the cost of the lease needs to increase. While we can argue the relative merits of lease vs purchase, for BMW NA is matter that impacts 50% of sales......so, it isn't trivial.

 

[exgman]

Nope. Seems to be a good deal for the many workers at the BMW Greer plant, & the workers at their SC suppliers' plants.

When it warms up, 36654 aka Jon, take a trip down to Greer and see how it looks. Talk with people there. It's not the right place for me, or possibly you to live, but it is for a bunch of folks.

 

[rangerreece]

The Mrs. Is very fond of her 328i 2009 stick shift. It's her "BMW" riding experience.

 

[jconway607]

For a lot of people in this country, money means absolutely nothing. The more money they can spend on a vehicle, with the most and latest in electronic gadgetry, the happier they are. The management at BMW are extremely satisfied with this situation. Fudging the sales numbers to make their vehicles look like they are beating the pants off their pricey competitors is all part of catering to the well-to-do. They wouldn't dream of owning less than the "best" machinery, and of course they expect it to be the "leader". Why else would you buy it?

 

[exgman]

They wouldn't dream of owning less than the "best" machinery, and of course they expect it to be the "leader". Why else would you buy it?

Well, to answer your question, the next time you're considering a vehicle purchase, just for the heck of it (and make sure you leave your checkbook and title for the trade at home), go by a BMW Center and drive a 3, 4, or 5 series car for a couple of hours. Stomp on it (the dealer will encourage this), see if you can break it loose, hit off-ramps at 60-mph, brake hard. Then, you'll know why you'd buy it. Just sayin...

 

[exgman]

The Mrs. Is very fond of her 328i 2009 stick shift. It's her "BMW" riding experience.

A happy wife means a happy life is one motto I've heard. Looks like no snow in your neighborhood this year. Come to think of it, it never snows just south of you in P'Cola, right?

 

[rangerreece]

A happy wife means a happy life is one motto I've heard. Looks like no snow in your neighborhood this year. Come to think of it, it never snows just south of you in P'Cola, right?

Yes, I go to Pensacola often. Was there last week getting new rubber on the 1200. Rhonda is from Pensacola. It does snow here occasionally. Hopefully not this year.

 

[ka5ysy]

Well, to answer your question, the next time you're considering a vehicle purchase, just for the heck of it (and make sure you leave your checkbook and title for the trade at home), go by a BMW Center and drive a 3, 4, or 5 series car for a couple of hours. Stomp on it (the dealer will encourage this), see if you can break it loose, hit off-ramps at 60-mph, brake hard. Then, you'll know why you'd buy it. Just sayin...

+1.

I would add that taking a test-ride in a BMW car is kind of like doing so on a BMW motorcycle: don't do it unless you are prepared to buy one.

A friend of mine and his wife were looking around for another car for her. They looked at a number of vehicle and firmly stated "we don't need such an expensive vehicle" (He makes a huge amount of money so this is a weak argument for him). About a week into the quest they finally went by our local BMW dealership and tried out an X1. Which they immediately purchased !. He told me that they were stunned at how much fun that car is to drive, and he routinely drives it, instead of his fancy late model Corvette .

I love my current 2015 X5 diesel. It gets 28-30mpg in city, and on highway runs will routinely show 32-35mph cruising at 75 mpg. Recently made a Florida run and was just matching I-10 speeds to avoid being run over by maintaining 80-85 pace and was showing 31 mpg. Usual tank range is 600-700 miles. If I actually set the cruise at 70, the mileage is generally around 35-38mpg.

It replaced a 2010 X5 diesel that was totaled when a teenager nailed me head-on doing about 55mph. If you want to get hit head-on, this is definitely the vehicle to do it in. The felt impact was not bad except for the loud bang when the airbag fired.

We did a Performance Center delivery in Spartinburg, SC. Anyone taking delivery of a BMW should take advantage of this option. You get a briefing early in the morning and are put on the test track in four exercises, in a similar vehicle you are purchasing, that let you see what the vehicle your are purchasing is actually capable of. I discovered that the big X5 is, in fact, a hot sports car disguised as an SUV !. Afterward we were taken to the delivery area and introduced to our new car by one of the delivery center people. All in all an outstanding delivery experience where you are treated like royalty by all the staff. After taking delivery we departed the Performance Center and spent an additional evening in Spartinburg and made a 1000 mile run down to Florida and back home, altogether a great way to enjoy a vehicle that is a technical marvel as well as a hoot to drive. It is as much fun as the RT to drive.

My wife drives an X3 lease due to her low mileage, and will probably go with the X3 diesel next year. That vehicle should get really great mileage. She previously drove a 328 which was really fun to drive, but decided she needed the slightly larger capacity of the X3 in addition to sitting much higher up than the 328.

 

[36654]

Nope. Seems to be a good deal for the many workers at the BMW Greer plant, & the workers at their SC suppliers' plants.

When it warms up, 36654 aka Jon, take a trip down to Greer and see how it looks. Talk with people there. It's not the right place for me, or possibly you to live, but it is for a bunch of folks.

I was to Greer in 95 or 96, just after the visitor center opened. The museum in Munich is much better experience and the people are far more polite. They (the folks in Munich) even apologize if there are no plant tours available. When the same request was made at Greer, the person at the front desk........Said it was a car factory, not a tourist site.

Relative to the pay, I'm sure the folks at FOXCONN or the Ford engine plant in Mexico feel the same way. All the workers at those Caribbean resorts, are happy too. Of course, they'll never know anything like a civil service retirement.............

http://www.seattletimes.com/business/bmw-finds-skilled-workers-for-less-at-sc-plant/

 

[MCMXCIVRS]

Experiencing the truth of this first hand from both perspectives as buyer and seller. My wife purchased a nearly new 435xi last summer with only 3500 Kms on it for a good discount over new. Now we are still trying to sell her previous 2008 335i six months later. It is no help that our local economy is in severe free fall with the effects of low oil prices.

 

[jconway607]

+1.

(He makes a huge amount of money so this is a weak argument for him). ....he routinely drives it, instead of his fancy late model Corvette .

We did a Performance Center delivery in Spartinburg, SC. Anyone taking delivery of a BMW should take advantage of this option. You get a briefing early in the morning and are put on the test track in four exercises, in a similar vehicle you are purchasing, that let you see what the vehicle your are purchasing is actually capable of. I discovered that the big X5 is, in fact, a hot sports car disguised as an SUV !. Afterward we were taken to the delivery area and introduced to our new car by one of the delivery center people. All in all an outstanding delivery experience where you are treated like royalty by all the staff.

I believe those statements reinforce my point. Yes, I'm sure the cars are fun to drive. $60,000 worth of fun? I'd say that was debatable. Tack on the dealer repair prices when they're out of warranty, and the hefty depreciation upon trade-in/resale, and you really have to want that "fun". I don't think most people are trying to " break it loose, hit off ramps at 60mph". But, then again, a lot of people drive like idiots these days, doing just that and acting like the highways are their personal race course, so I'm probably wrong there. Hey, if you've got the money to burn, might as well torch it at the BMW dealership. And if the car will do it, well then, as they like to say, "Drive it like you stole it!" I'll try and get out of the way.