Annoying exchange rate...

BlackFlash · 10-13-2009, 11:11 AM

With the Canadian dollar almost back at parity with the US dollar, it's hard to stomach the huge price difference between the MSRPs of BMWs in the US and Canada. The base 2010 135i in the US now lists at $35850, while the base 135i in Canada is $42900 - about a $7000 difference. That's close to 20% more!

I've heard all the justifications for the price disparity before, and while I understand some of the explanations, it's still tough to swallow.

How did BMW handle this the last time the CAD was above parity? They did nothing, I would guess?

bimmerfile · 10-13-2009, 11:29 AM

Quote:

Originally Posted by BlackFlash

With the Canadian dollar almost back at parity with the US dollar, it's hard to stomach the huge price difference between the MSRPs of BMWs in the US and Canada. The base 2010 135i in the US now lists at $35850, while the base 135i in Canada is $42900 - about a $7000 difference. That's close to 20% more!

I've heard all the justifications for the price disparity before, and while I understand some of the explanations, it's still tough to swallow.

How did BMW handle this the last time the CAD was above parity? They did nothing, I would guess?

Well, here's the problem:
1. The 1er is built in Germany.
2. The cost of building a 1er is calculated in Euros, not $U.S. dollars
3. The exchange rate for the Euro to Cdn$ is currently $1.52 - about where it's been for the past year. So BMW is not making any more or less on a sale in Canada because our neighbour to the south has a currency issue.

If the 1er were built in the U.S., I think we'd have legitimate beef, but just because German auto companies are losing profits on U.S. sales doesn't necessarily translate into them wanting to do the same in Canada..

BlackFlash · 10-13-2009, 11:52 AM

Again, this is why I find it annoying. BMW can afford (i.e. they still turn a profit; they aren't selling them at a loss) to sell a 135i in the US for 35 850 USD = 24 184 Euros, while in Canada they sell the same car for 42 900 CAD = 28 056 Euros. So we pay an extra 4000 euros, or 16% more.

I know in many places it is even worse (e.g. Australia), but maybe it's the fact that I'm only a couple of hours drive from that 4000 euro cheaper sticker price.

Just saying...

supraking · 10-13-2009, 01:06 PM

I feel the frustration. But in all honesty, BMW used to be making the same 28k Euros on that car before the US dollar took a nosedive. BMW isn't necessarily making a huge profit on the 1er even though they're now selling it for 24k. They can't just increase and decrease the price of a car to compensate for the exchange rate, they'd get killed in the marketplace.

So maybe to BMW, it's better to sell a few at a consistent price level based on the competition rather than to increase the price and lose the volume. I'm no expert but I'm sure the auto industry doesn't use cost-plus pricing, and I'm also sure BMW has done the calculations and the dip in volume from a higher price isn't worth the extra per-unit profit.

Lastly, the 1er appeals mainly to younger individuals who are probably buying their first BMW (or at least, it targets that group better than any other new BMW in the lineup). So the value in attaining a new customer who's 25 and going to buy 3-5 more BMW's in his life is, again, a positive benefit here. It's 10 times cheaper to sell an existing customer than a new one.

Like I said, I feel your frustration, but I'd rather the 1er be expensive in Canada and cheap in the US than expensive in both the Canada and the US. I say let our friends in the US get a good deal on a 1er

deeb · 10-13-2009, 09:12 PM

Why don't you just drive to the states and buy one?????

Its a LOT easier to import than you think.

BlackFlash · 10-13-2009, 11:36 PM

How does BMW handle the warranty regarding cross border purchases? If it were a few hundred or a few thousand bucks I wouldn't care and would just buy locally, but when you're talking close to 8 grand....

supraking · 10-13-2009, 11:52 PM

The warranty question is very interesting. Don't think it would matter since the car is made in the same place and warranted by the same company. You can own a car in New York, drive to and from Montreal all the time, and take it in for servicing and nobody will tell you half of the wear and tear occurred in Canada

Lester · 10-14-2009, 03:38 AM

Quote:

Originally Posted by deeb

Why don't you just drive to the states and buy one?????

Its a LOT easier to import than you think.

Buy a used one privately, as BMW Dealers in the USA are not allowed to sell to Canadians. Also, it will cost $3 or $4k to do the conversion and fit in a new speedometer, and chnage the DRL's, get the warranty extended etc.

123D-M · 10-14-2009, 05:45 AM

You complain about it costing 28k euros by the time it gets to Canada! Here in Europe a 135i in standard trim before any options is 39k euros and that is in Germany. In Belgium it is even more and in Norway it is 98k euro!

Basically, stop complaining

BlackFlash · 10-14-2009, 10:00 AM

lol, those Norweigan prices are insane! I can only guess that you Europeans get paid more than us North Americans

dread1 · 01-13-2010, 11:06 AM

Quote:

Originally Posted by Lester

Buy a used one privately, as BMW Dealers in the USA are not allowed to sell to Canadians. Also, it will cost $3 or $4k to do the conversion and fit in a new speedometer, and chnage the DRL's, get the warranty extended etc.

Is anyone able to verify the cost to bring this car over?

sorry old thread bump

fwmcb · 01-13-2010, 12:20 PM

To bring a US car into canada you have to pay a BMW dealership to have it converted. You also have to stomach a huge hit in resale.

nordique14 · 01-13-2010, 01:09 PM

Doesn't a BMW in Canada usually come with more content? For example, I know the 2008 128i convertible in Canada came standard with xenon headlight and the cold weather package both of those are options in the US. That is about $1.5k worth of options and might account for part of the difference. But obviously you guys are still getting "hosed" as that still accounts for less than half of the difference.

dread1 · 01-13-2010, 04:59 PM

Quote:

Originally Posted by fwmcb

To bring a US car into canada you have to pay a BMW dealership to have it converted. You also have to stomach a huge hit in resale.

yes according to Canadian customs a BMW is the only entity allowed to convert.

What needs to be converted. The odo is electronic and browsing I found that its simply just options selected electronicaly for f to c and mph to kmh. (imaware they are going charge me a stupid price for this) The Us speedos have both km/h and mp/h unlike the canadian version. My friend just imported an evo and he didn't need to switch out his speedo it still reads MPH.

From Transport Canada:
BMW

1999 TO 2010 All models built AFTER
September 1, 1999 (see Notes 1 and 3)

See explanations section.
Note 1: BMW Canada informed Transport Canada that ALL
modifications MUST be performed (and documented) by an
authorized BMW Canada or MINI retailer and must be
completed before a recall clearance letter can be issued by
BMW Group Canada. Contact an authorized Canadian
retailer for information on exact nature and costs of
modifications required.(Yes I should just call but maybe the forum has some insight) Modifications vary by model and
may be expensive. (K got this part sorted out)

Note 3: Modifications may include: daytime running lights (Just like the euro fogs are the DRL pre-wired on US cars?)
and metric odometer and speedometer labels.
Visit BMW Canada's website at www.bmw.ca for detailed
contact information on retailers in Canada, as well as
information on U.S. vehicle importation.

dread1 · 01-13-2010, 05:02 PM

Quote:

Originally Posted by fwmcb

To bring a US car into canada you have to pay a BMW dealership to have it converted. You also have to stomach a huge hit in resale.

resale isn't much of an issue at this point, nothing beats the crappy resale value on my current car... I plan to keep the car for about 6+ years and the cost savings in the US more than offset the depreciation of a US car.

fwmcb · 01-13-2010, 05:29 PM

I too looked into it, but the conversion costs charged by the dealerships hardly made it worth the hassle, plus I needed financing, so my hands were tied, 128i instead of 135i...

dread1 · 01-13-2010, 05:35 PM

ah ic. I'm looking at doing a cash purchase a I cant find a decent priced one here.
ay idea of the conversion costs quotes that you may have?

10-13-2009, 11:11 AM	#1
BlackFlash poseur (for now) 2 Rep 210 Posts Drives: a piece-o-crap Join Date: Apr 2009 Location: Canada iTrader: (0)	Annoying exchange rate... With the Canadian dollar almost back at parity with the US dollar, it's hard to stomach the huge price difference between the MSRPs of BMWs in the US and Canada. The base 2010 135i in the US now lists at $35850, while the base 135i in Canada is $42900 - about a $7000 difference. That's close to 20% more! I've heard all the justifications for the price disparity before, and while I understand some of the explanations, it's still tough to swallow. How did BMW handle this the last time the CAD was above parity? They did nothing, I would guess?
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10-13-2009, 11:52 AM	#3
BlackFlash poseur (for now) 2 Rep 210 Posts Drives: a piece-o-crap Join Date: Apr 2009 Location: Canada iTrader: (0)	Again, this is why I find it annoying. BMW can afford (i.e. they still turn a profit; they aren't selling them at a loss) to sell a 135i in the US for 35 850 USD = 24 184 Euros, while in Canada they sell the same car for 42 900 CAD = 28 056 Euros. So we pay an extra 4000 euros, or 16% more. I know in many places it is even worse (e.g. Australia), but maybe it's the fact that I'm only a couple of hours drive from that 4000 euro cheaper sticker price. Just saying...
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10-13-2009, 01:06 PM	#4
supraking Captain 49 Rep 759 Posts Drives: 128i Coupe 6MT Join Date: Apr 2009 Location: Montreal iTrader: (0) Garage List 2009 128i Coupe [0.00]	I feel the frustration. But in all honesty, BMW used to be making the same 28k Euros on that car before the US dollar took a nosedive. BMW isn't necessarily making a huge profit on the 1er even though they're now selling it for 24k. They can't just increase and decrease the price of a car to compensate for the exchange rate, they'd get killed in the marketplace. So maybe to BMW, it's better to sell a few at a consistent price level based on the competition rather than to increase the price and lose the volume. I'm no expert but I'm sure the auto industry doesn't use cost-plus pricing, and I'm also sure BMW has done the calculations and the dip in volume from a higher price isn't worth the extra per-unit profit. Lastly, the 1er appeals mainly to younger individuals who are probably buying their first BMW (or at least, it targets that group better than any other new BMW in the lineup). So the value in attaining a new customer who's 25 and going to buy 3-5 more BMW's in his life is, again, a positive benefit here. It's 10 times cheaper to sell an existing customer than a new one. Like I said, I feel your frustration, but I'd rather the 1er be expensive in Canada and cheap in the US than expensive in both the Canada and the US. I say let our friends in the US get a good deal on a 1er
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10-13-2009, 09:12 PM	#5
deeb boss. 19 Rep 216 Posts Drives: 135i Join Date: Aug 2008 Location: Vancouver, BC iTrader: (0)	Why don't you just drive to the states and buy one????? Its a LOT easier to import than you think. __________________ .:08::black::135i::6speed::stick:.
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10-13-2009, 11:36 PM	#6
BlackFlash poseur (for now) 2 Rep 210 Posts Drives: a piece-o-crap Join Date: Apr 2009 Location: Canada iTrader: (0)	How does BMW handle the warranty regarding cross border purchases? If it were a few hundred or a few thousand bucks I wouldn't care and would just buy locally, but when you're talking close to 8 grand....
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10-13-2009, 11:52 PM	#7
supraking Captain 49 Rep 759 Posts Drives: 128i Coupe 6MT Join Date: Apr 2009 Location: Montreal iTrader: (0) Garage List 2009 128i Coupe [0.00]	The warranty question is very interesting. Don't think it would matter since the car is made in the same place and warranted by the same company. You can own a car in New York, drive to and from Montreal all the time, and take it in for servicing and nobody will tell you half of the wear and tear occurred in Canada
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10-14-2009, 05:45 AM	#9
123D-M Captain 32 Rep 930 Posts Drives: BMW 123d M-Sport Coupe Join Date: Jul 2008 Location: Madrid, Spain iTrader: (0) Garage List 1965 Citroen DS19 P ... [0.00] 2009 123D M-Sport C ... [10.00] 2009 Mazda6 [0.00]	You complain about it costing 28k euros by the time it gets to Canada! Here in Europe a 135i in standard trim before any options is 39k euros and that is in Germany. In Belgium it is even more and in Norway it is 98k euro! Basically, stop complaining __________________ 2009 123D Coupe \| Sedona Red \| Black Boston Leather \| Brushed Aluminium Trim \| Tinted Windows \| M-Sport Package \| 6M \| Comfort Access \| Heated Seats \| Navigation \| Park Distance Front & Rear \| USB \| Bluetooth \| Voice Control \| Efficient Dynamics \| Rain & Light Sensors \| Xenon Lights My blog: http://urbanemusings.wordpress.com/
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10-14-2009, 10:00 AM	#10
BlackFlash poseur (for now) 2 Rep 210 Posts Drives: a piece-o-crap Join Date: Apr 2009 Location: Canada iTrader: (0)	lol, those Norweigan prices are insane! I can only guess that you Europeans get paid more than us North Americans
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01-13-2010, 12:20 PM	#12
fwmcb Major 31 Rep 1,107 Posts Drives: 2015 F30 328i X-drive Join Date: Dec 2008 Location: NB iTrader: (0) Garage List 2010 128i [0.00]	To bring a US car into canada you have to pay a BMW dealership to have it converted. You also have to stomach a huge hit in resale.
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01-13-2010, 01:09 PM	#13
nordique14 Major 53 Rep 1,477 Posts Drives: SGM 135i 'vert Join Date: Feb 2008 Location: Sharks Territory iTrader: (5)	Doesn't a BMW in Canada usually come with more content? For example, I know the 2008 128i convertible in Canada came standard with xenon headlight and the cold weather package both of those are options in the US. That is about $1.5k worth of options and might account for part of the difference. But obviously you guys are still getting "hosed" as that still accounts for less than half of the difference.
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01-13-2010, 05:29 PM	#16
fwmcb Major 31 Rep 1,107 Posts Drives: 2015 F30 328i X-drive Join Date: Dec 2008 Location: NB iTrader: (0) Garage List 2010 128i [0.00]	I too looked into it, but the conversion costs charged by the dealerships hardly made it worth the hassle, plus I needed financing, so my hands were tied, 128i instead of 135i...
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01-13-2010, 05:35 PM	#17
dread1 typos 9 Rep 219 Posts Drives: US spec 135i Join Date: Oct 2009 Location: oakville/toronto/whistler iTrader: (0)	ah ic. I'm looking at doing a cash purchase a I cant find a decent priced one here. ay idea of the conversion costs quotes that you may have?
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