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Will the BMW 135i price be lowered in Canada?

1-series | September 22nd, 2007 by 36

Well, it doesn't look like it will. With the canadian dollar being nearly on par with the American dollar, everyone has expected the canadian price …

Well, it doesn't look like it will. With the canadian dollar being nearly on par with the American dollar, everyone has expected the canadian price to be the same as the US MSRP.

The rumors going around are talking about the Canadian markets adjusting thier prices to correspond with the strong dollar. But, unfortunately for our canadian neighbohrs, Robert Dexter, a spokesperson for BMW Canada has given them no hope.

He says adjusting prices to reflect currency fluctuations can introduce "instability" in the marketplace, impacting the residual values of leased vehicles and ticking off owners who purchased earlier at higher prices.

Then there's the negative perception of falling prices, Dexter says, which can hurt an upscale image.

"There's a reluctance to discount, which can affect the `premium' brand," he says. Rather than tinker with sticker prices, BMW and other manufacturers prefer to give Canadians more product features for the same price. "We've made efforts to address the currency (valuation) by adding content to our products," Dexter says. "Base models are better equipped in Canada than in the U.S."

 

He explains the reason Canadians will never see identical prices on both sides of the border is because the cost of doing business in the Great White North is higher.

"The U.S. has economies of scale with 10 times the population. Marketing costs are higher here by doing everything in two languages. There is only one port of entry in Canada (for BMW), while there are three or four in the U.S. Taxes are higher here."

  • Dean Roy

    Well I guess I’ll be buying my BMW from the U.S. It’s extremely cheaper to bring it across the border. Adjust your prices or lose our business – simple as that.

  • philip siou

    Can some one check with BMW Canada about their pricing in view of Porsche annoucement today re cutting their 2008 model price by ~8%.

    How long and how high does the Canadian dollar has to go before we get a price parity with our US neigbour?

    What needs to be changed and how much does it cost to make a US mosel 535i to comply to Canadian standard? Given today’s exchange rate, how much extra margin is BMW making over its American counterpart?

  • Fred S.

    I was going to buy a BMW, but now decided not too. I will buy my next luxury car from the first manufacturer who will match their US price in Canada.

  • Chris

    I’m also extremely upset with the auto mfgs’ attitude towards the canadian buyers. I’ll either be keeping my current car until cdn prices are lowered to match us prices, or I’ll import one from the states. My lease is up in 2 years, let’s hope for them they get their act together. The only ones losing will be the local dealerships.

  • Mike L

    I’m glad I am not the only one ticked off at BMW. I was about to purchase a 535i but ran into difficulties with the pricing. By my calculation I can purchase the same car in the U.S., with the options adjusted, ensuring compliance with Canadian regulations paying all taxes etc and saving $15,000.00 Cdn. I emailed BMW and they simply told me that when our dollar was lower than the U.S. no one asked to pay higher prices so why should they now reduce them now that the dollar is at par! What an attitude. Having never purchased a BMW before I am now wondering if this company is worth dealing with. If they could sell the cars and make a profit when our dollar was worth 70% of the U.S. dollar they must really be making a killing now !

  • rhengin L

    I am really ticked off at BMW. After looking into BMW Canadian and US web sites, I don’t think I will be trading in my 328i for a 135i next year. The fact that BMW forbids US dealers from selling to Canadians while hiking Canadian prices almost 30% above that of US ought be considered as price fixing. All Canadians should boycott BMW or better still, sue BMW’s ass for illegal price fixing.

  • MCF

    I looked at a 2007 328i Coupe this weekend at my local BMW dealer. It’s being sold as pre-owned as it was traded in against a new car. It already has 30,000km clocked and they are asking $46K.

    After looking on eBay I see that loaded 2007 335i Coupes are selling for under 30K with low miles. After all the fees, taxes and duty to bring one over the border, one would still save thousands.

    I asked the salesperson about price drops and the line I received was that Canadian cars are better equipped (with options) and we get a better warranty. Fair enough — but for a $20K difference? *laugh*

    I bought a certified 2003 325i from them last year and I paid more than a few loaded 2007 Coupes that are sitting in the US. Ouch.

  • http://importing... raymond deluse

    You can guess that the Canadian 135i will be around 45k if you assume the same price differential between the US 135i and other BMWs. So a 10K difference is not really worth the hassle to import once you factor in the 6% duty you will have to pay (NAFTA for non-NA car) and the fact that everything will be in Miles. The only reason to import one would be out of spite …

  • mf

    To add to the import hassle, warranty will be another big issue. If the car comes from the US and you require warranty work, your local dealer will have to liaise with BMW USA before any work can be done. (This is what my dealer tells me anyway.)

    Resale value will also be affected. I heard that dealers won’t (or can’t) certify cars brought up from the States under the BMW Certified Program. Thus trade-in value and so on will be affected.

    In addition, you may be forced to replace certain parts such as the dash cluster. And that won’t be cheap.

  • Mr. Real

    ye canada sucks

  • Mr.Real get real

    ye BMW sucks

  • guytch

    What a stupid argument from the part of BMW. Back when we weren’t at parity, prices were higher that in the USA by about 25%, while the xchange rate was around 0.75USD/CAD . Now with exchange rate at parity, they still want toretain that same 25% markup.

    THe problems listed above, namely economies of scale and points of entry, were present right from the start and we didnt have a huge disparity in prices.

    Looks like this Dexter didnt get straight A’s in his business 101 classes…

  • Jack

    Fuck BMW!

  • Pedro

    If that’s the kind of treatment BMW provide to its Canadian
    Costumers before we buy their cars I can only imagine after.
    I have a deposit for a 135I but still waiting for the MSRP.
    I went on BMW USA and the car with the option I selected is around 40K.
    I’ve also done some research on the cost to bring the car from the US. My Response to Robert price it accordantly or my money is not going to BMW Canada or BMW at all… and I wont be the only one…

  • http://www.edbmw.com Irv Robinson

    Pedro, you’re right, I’m not sure why BMW will differentiate and treat you guys differently.

  • MCF

    Pedro, if you buy from BMW USA you will have grief if the car ever needs warranty work. The Canadian resale value of the car will also take a big hit (if you decide to trade it in at BMW). It’s unfortunate, but that is the way BMW has set it up. For example, they won’t certify US cars in Canada under the Certified Pre-owned Program and they make the warranty servicing a hassle too.

    One reason that we are treated differently is based on the marketplace. In Canada we are a small marketplace and as such we’ll have very little impact upon the overall BMW picture if we decide to boycott BMW Canada. In the US, the picture is much different. I believe it’s also trade — US pays much less in duties and other trade-related fees from my understanding.

    One other problem is the people are still buying and leasing BMW cars here as much as they always did. So why would they change if the model still works for them?

    All that said, I still think the price gap is pure BS.

  • I Gaveup on BMW

    The whole attitude of BMW Canada just stinks. They showed me absolutely no appreciation for my customer loyalty that I gave up on them. Instead of paying through the nose for a new 3-series, I bought a fully tricked out Saab 9-3 Turbo for thousands less. I truly hope that customers kick BMW Canada right where it hurts — in the pocketbook!

  • Gilles

    I own two BMWs both 3 series and what I saw on the news today – BMW and Mercedez in cahoots with Transport Canada and charging astronomical fees to validate the car to be imported in Canada is just a SCAM to protect their Canadian BMW dealers by charging up to 30% more here in Canada.

    Well I will reconsider my next purchase and go Japanese model like LEXUS or something.

  • MCF

    The pricing is a scam. I own a 3-series now, and want a new 335i coupe. I priced this car online at bmw.ca, and to my specification the car comes to $59,400.

    I then went on the US site and prices out a fully loaded 2008 M3, paying extra for all the options that come standard on Canadian cars. This fully loaded (no navigation package) M3 comes to $63,225. That’s just plain ridiculous.

    How can I ever justify the 335i when a loaded M3 is not much more down south?

  • Shah

    I have to agree with everyone on here. I just saw Lexus dropped the IS prices by $5000. Base 335xi in Cdn is $54,100 and in US it’s $42,600 – and Cdn dollar is higher than US… I know they don’t want to kill resale values in Canada but come on – drop it by $5000 – I’m sure if it was the other way around they would jack it up that day.

  • MCF

    For those of you buying new cars, BMW or otherwise, you should check out the Automobile Protection Association of Canada at http://www.apa.ca. Members can receive three free price quotes and information/resources to help better negotiate a purchase. You provide the car you would like, with all the options and specifications. The APA will send you a quote that tells you what the dealer cost is, not only for the car, but for all the options too. They can also provide the name of a dealer who will honour a “special price” for APA members. This way you can save up to a few grand.

  • Pingback: BMW Car Afficionados » The E92 M3: Higher Performance at a Bargain

  • http://bmwblog a darmo

    I was ready to buy a 335i coupe, then checked on a infiniti g37s coupe, the diff. was nearly $15000!! in canada. guess what car i bought. the g37s.

  • notimpressed

    Boycott BMW!! Either BMW is completely out to lunch on their pricing strategy or this is a SCAM. Either way BMW Canada isn’t too concerned about Canadian customers. I will be importing my next vehicle from the US or purchasing from a manufacturer that provides price parity on US and Canadian vehicle pricing. Eventually this will catch up to BMW and other manufacturers who refuse to recognize that the Cdn economy is robust and the dollar will stay above 90 cents for a very long time.

  • Luigi H. Metz

    BMW is gouging Canadian customers, it is as simple as that.

    If a few thousand of us walked into BMW dealerships, selected cars we wanted to buy, then told the salesmen we would not be buying north of the border because of the outrageous pricing and unceremoniously walked out, these scumbags would lower their prices to realistic levels overnight. I guarantee it. Try it and see.

  • topb18c1

    The bmw sales people are scammers, my salesman told me that the 335i is better equipped in Canada…which is total bs! All you have to do is add the winter package ($750) to the us model and voila your almost equally equiped but not quite equal, now you must add $2000 to the canadian model to get the same wheels as you get the US model, so realisticly the US model is better equipped! No way in hell will the Canadians have a better version of anything compared to the US. Everybody boycott bmw or keep waiting until the match US prices!

  • Michael

    I am planning on buying a brand new X5 3.0. the difference in price across the border is almost 24k. add to that, the way they option it in the states makes it easier to get exactly what you want, not a whole package for one item. Also, an option like automatic tailgate open/close is available in the states and not in Canada. accessories are cheaper there (price an aero kit!!!).
    BMW Canada is very irrogant. They treat you like dirt even when you are buying from them. as if they are doing you a favour for selling you their cars…I say, BMWUSA you will get my money and if I need repairs, I am only 30 minutes from the border.

  • Kevin

    I thought you would like to know that BMW Profit is down17%, they only made 487 million euros hurt in part by the weakening U.S. dollar.This is just fresh off the news wires.

  • topb18c1

    If you buy a bmw from the states, when you are ready to sell it, just sell it back in the states. So no extra depreciation and no real hassle. If they don’t warranty your car (obviously they will now) whats the worst case scenario? Take it back to the states 45min to an hour away. No real hassle. They say that they buy the cars in euros and our cdn dollar is ONLY strong against the US dollar which is bullshit.
    1.00usd = 0.65euro 1.00cdn = 0.64euro as of today May 3/08 from http://www.xe.com
    So its obviously a straight gouge and they continue to do it because canadians are willing to pay the price. So every canadian seriously needs to hold off buying a bmw in canada. No matter what it will still be cheaper to buy a bmw in the states even after all the costs, even if it saves you up to a few grand, just out of spite we should buy in the states.

  • Gouge Me Not

    One of the excuses BMW Canada was using to not lower prices was because they did not want their current customers to get upset for paying higher prices. This statement applies to 3, 5, 6, 7, X, and Z series.
    Why the hell is 1 series more expansive in Canada compared to US. BMW just released this car in North America. BMW Canada should have matched 1 series prices with US pricing.
    The ‘higher level of equipment in Canada Models’ is total BS. I was comparing the price of ‘Comfort Access’ and Canadians pay $250 more for it. Why is there a substantial price difference in the cost of a factory installed accessory? Does the Canadian specification ‘Comfort Access’ does more than the US version?
    I think BMW USA is doing an excellent job of keeping US prices stable in the face of falling US dollar.

  • Arnold P. Twarman

    I have decided to buy no more BMW’s in Canada because they quite plainly are cheating their loyal customers. They deserve to suffer the consequences. I will either buy further cars stateside or buy a car from a competing manufacturer. It’s high time arrogant BMW Canada learned not to take its customers for granted.

  • Artmic

    BMW Canada is crazy, illogical and they do not deserve any loyalty or respect in Canada.

    They charge way too much for their cars, and the old pompous fools that drive the 3 series of cars think they are getting good value for the dollar by leasing or purchasing from Canadian dealers,

    NEWS FLASH,

    20 year old kids in the USA are driving these entry level BMW’s to the mall, while old pompous old idiots think these entry level cars are “Status” symbols here….

  • Kyle

    This is part of the response from BMW Canada to my e-mail to BMW Canada over Canada versus USA pricing:

    “One of our worldwide pricing philosophies is that we price to the market and not to exchange rates that have no bearing on our costs, since they are all in Euros and not in US dollars.”

    The Euro is now worth about $1.55 Canadian. Over the last 2 years, it has fluctuated between $1.33 Can and $1.60 Can. The Euro is now worth about $1.48 US, and has fluctuated between $1.24 US and $1.60 US over the last 2 years. In other words, a relatively small difference between US and Canadian currencies when compared to the Euro.

    If BMW pricing is truly based on Euros, then the price difference between the US and Canada should be a few %, and not the 25% to 33% it is now. Nice scam by BMW.

  • coykendall

    writing from edmonton…i bought a 2006 530xi in the US for 30K, another 4K for duty and gST and 1400.00 for transport…20,000miles…at my dealer, where i bought my previous 4 nbmw’s, the identical car is listed for 50k, with 20,000 more kms…

  • John Toronto

    I am looking forward to 335d and plan to buy it by next spring. But I will most certainly be buying from the US. If I can save even 2-3K I will do it. And, please, don’t give us this “Canadian models are better equipped for the same price” BS. I don’t want your features, and I don’t want you to make me pay for them. I want a performance car at a reasonable price.

  • New BMWer

    I just bought my first BMW, a USA based car, still cheaper then a Canadian with all of the same features….

    Sure wish my dollars stayed up here, but well, I need to count the dollars and to save a few thousand is not just peanuts…..

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