Will there be a big increase the US price of the e60 M5? - The Unofficial BMW M5 Messageboard (m5board.com)

21st January 2004, 19:21

Will there be a big increase the US price of the e60 M5 due to the significant appreciation of the Euro compared to the US dollar. The e60 M5 could retail for over $100K based on the where the dollar used to be and current price estimates.

vndkshn · 21st January 2004, 20:04

Quote:

Originally Posted by BeastPower

Will there be a big increase the US price of the e60 M5 due to the significant appreciation of the Euro compared to the US dollar. The e60 M5 could retail for over $100K based on the where the dollar used to be and current price estimates.

This has been a long ongoing discussion, but I suspect the answer will be.. it depends.

Some people feel that 5k is a big increase. Others 10 or 20. Based upon the jump in price on the e60s compared to e39s and all the new technology, I imagine that we will see a 10k jump at least. Beyond 15k.. I might reconsider.

The last 03 e39 M5s with NAV and without dealer markup were selling around 75k. At least in my area. The last 540i6s were selling for around 60 with NAV. So, a 15k jump. With the 545i6 hitting around 64k loaded... hopefully we can stick with that 15k jump and land at 80k... figure a 20k jump and we are at 85. Beyond that... the car starts getting a bit expensive.

I think if you look at European prices of the e60s compared to the US prices, the exchange rate is not "hurting" the price of the cars that much. Correct me if I am wrong Euro guys... but some of the prices that I remember make the cars more expensive in Europe than the US, not even considering the taxes.

mumbasic · 21st January 2004, 21:03

I even think that the car will be cheaper! The € is to strong compared to the $.

zzzzMD · 21st January 2004, 21:28

I think BMW is 50% hedged against the US $$$ through 2007.

21st January 2004, 23:28

Quote:

Originally Posted by mumbasic

I even think that the car will be cheaper! The € is to strong compared to the $.

If the exchange rate is an influencer, then the price in the US, in $, will have to go up. With a stronger Euro, more dollars are needed to buy the same amount of Euros. If the e60 M5 was priced at 80,000 Euros a year ago, that would have been $80,000, while today it is $95,000.

It is cheaper for Europeans to purchase US products, but more expensive for Americans to purchase European products.

Cheers.

vndkshn · 22nd January 2004, 00:13

Quote:

Originally Posted by BeastPower

If the exchange rate is an influencer, then the price in the US, in $, will have to go up. With a stronger Euro, more dollars are needed to buy the same amount of Euros. If the e60 M5 was priced at 80,000 Euros a year ago, that would have been $80,000, while today it is $95,000.

It is cheaper for Europeans to purchase US products, but more expensive for Americans to purchase European products.

Cheers.

You would think that... but it is not the case. Wine that in Europe (from Portugal) cost me 79 euros is $50 here. A 330i used was 47,000 euros... we would NEVER pay that much here, even new! US clothes and shoes in Europe were more expensive (funny considering many are not made in the US!) And from this thread:

How much is the 545i where you live?

it appears that even the e60 car prices (minus taxes) are still lower here in the states.

Andy-UK lists the starting price as 41,655 British Pounds. That converts to just over $76k. Not sure about where you are, but loaded they are going for just over $65k.

A quote from Ditto on that thread:
It seem like we USA wins this battle. I heard on the news today (Deutsche Welle) that people in Germany have startet to import German cars from the US instead of buying them at home

Ditto

Gustav · 22nd January 2004, 00:23

This is what Panke said in Detroit.

Panke repeated that two-thirds of BMW's exposure to currency fluctuations was hedged for 2004 but declined to comment on 2005.

So currency will be a lesser factor for 2004.

Gustav · 22nd January 2004, 00:25

I agree. You get alot of options and free maintance that we do not.

Quote:

Originally Posted by vndkshn

I think if you look at European prices of the e60s compared to the US prices, the exchange rate is not "hurting" the price of the cars that much. Correct me if I am wrong Euro guys... but some of the prices that I remember make the cars more expensive in Europe than the US, not even considering the taxes.

sin · 22nd January 2004, 00:25

Quote:

Originally Posted by vndkshn

people in Germany have startet to import German cars from the US instead of buying them at home
Ditto

so ironic

Terk · 22nd January 2004, 04:53

The base price has increased on the E60 530i/545i and the option list is much longer that pushes the potential final price much higher than an E39 equivalent. Depending on how much of the option list becomes standard equipment on the E60 M5 will also factor into how much more the car will cost against the E39 M5. The list price on my canadian '03 M5 (sport leather) was $105K cdn. A fully loaded 545i kisses $100K cdn. I am guessing the E60 M5 could easily be $120K CDN. if not more before all is said and done. These comments obviously have no bearing on US pricing as BMW Canada imports directly from BMW AG. I'm not sure how big of an effect currency will have on E60 prices but I'm sure a large part of the increase will be driven strictly by the new technology included or available for the newer models.

Regards,

Terk.