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10k price gap between the 530 and the 330
There is now a $10,000 retail price differential between a 2006 530i and a similarly equipped 2006 330i. Historically the gap has been closer to $5k. The price of a 530i with manual transmission, metallic paint, sport package, PDC, leather, Bluetooth, navigation and satellite radio is about $54k. The same equipment on a 330i is about $44k. The only significant item missing from the 330i is the active anti-roll suspension. When the current 5 came out, there was a big jump in price, presumably to compensate for added equipment and the weak dollar. But with the new 3 series, and an even weaker dollar, there's hardly any price increase at all. Additionally, the new 3 received substantial body, chassis and suspension upgrades to bring it closer to the 5 series. Clearly, there are marketing reasons for this, but I am mystified.  | | Reply » 10k price gap between the 530 and the 330 |
Quote: There is now a $10,000 retail price differential between a 2006 530i and a similarly equipped 2006 330i. Historically the gap has been closer to $5k.
The price of a 530i with manual transmission, metallic paint, sport package, PDC, leather, Bluetooth, navigation and satellite radio is about $54k. The same equipment on a 330i is about $44k. The only significant item missing from the 330i is the active anti-roll suspension.
When the current 5 came out, there was a big jump in price, presumably to compensate for added equipment and the weak dollar. But with the new 3 series, and an even weaker dollar, there's hardly any price increase at all. Additionally, the new 3 received substantial body, chassis and suspension upgrades to bring it closer to the 5 series.
Clearly, there are marketing reasons for this, but I am mystified. | While same-maker pricing deltas may play a part in setting prices, I trust that BMW is using competitive pricing as a more important factor. It is very possible that MBZ or Audi have similar deltas and BMW is just making the 5 series similar to the, for example, A6, and the 3 series similar to the A4.
It is also possible that I am totally wrong and thus equally mystified!
Bill
| | Reply » 10k price gap between the 530 and the 330 |
My completely unsubstantiated theory based on nothing more than what I know:
The price delta between the 3 and 5 will shrink back once the 1 series is released. BMW needs to maintain a presence in the $30k sports-sedan arena. I would think they would price the entry-level 1er around $27k, with a full-bore model (I hope they make a 130i) at almost $40k. Then the E90 is free to move upmarket, price-wise.
| | Reply » 10k price gap between the 530 and the 330 |
Quote: My completely unsubstantiated theory based on nothing more than what I know:
The price delta between the 3 and 5 will shrink back once the 1 series is released. BMW needs to maintain a presence in the $30k sports-sedan arena. I would think they would price the entry-level 1er around $27k, with a full-bore model (I hope they make a 130i) at almost $40k. Then the E90 is free to move upmarket, price-wise. | Speaking of the 1-series (wrong forum, I know), it looks GREAT. Really reminds me of the M coupe. It should sit nicely between the mini and the E90 and draw lots of fans.
Bill
| | Reply » 10k price gap between the 530 and the 330 |
I like your choice of words, "price delta" to describe more succinctly what I was trying to say.
One possible explanation is that price resistance is much greater within the 3 series crowd, and BMW figures (correctly, I might say) that 3 series owners will eventually transition to higher priced BMWs. Hence, customers at the bottom rung of the later are very important from a long term planning standpoint.
Interestingly, the new 2006 325i optioned with nothing beyond leather and the sport package retails for $34,045. Twelve years previous, My former 1994 325is with essentially the same options but 20 fewer horsepower retailed for just under $34,000.
Quote: While same-maker pricing deltas may play a part in setting prices, I trust that BMW is using competitive pricing as a more important factor. It is very possible that MBZ or Audi have similar deltas and BMW is just making the 5 series similar to the, for example, A6, and the 3 series similar to the A4.
It is also possible that I am totally wrong and thus equally mystified!
Bill |
| | Reply » 10k price gap between the 530 and the 330 |
One "problem" (and I use that term loosely) that BMW has been facing is that, due to their pricing, many of the car magazine comparisons ended up comparing the 530i to cars with horsepower ratings closer to the 545's. I think that that happened with the 3's as well. But that doesn't explain that $10,000 difference.
I suspect that it all comes down to pricing in comparison to the closest competition. Given that BMW's have been selling well recently, my guess is that BMW is ok with a "premium pricing for a premium vehicle" approach. Those who don't think that BMW is a premium vehicle probably wouldn't buy one anyway if it was $4000 less, and plenty of us are willing to fork over the money for these cars.
Is a 530i "worth" $10,000 more than a 330i? It's in the eye of the beholder, but I can understand how people could conclude that the answer is "no."
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10k price gap between the 530 and the 330