My original guess was $85K base with $5-$10K options, plus tax etc. will end up around $100K out the door. Was your friend's guess including options?M5 Fever said:My buddy is sales manager at local dealership and his best guess, and I repeat, Best guess, is that the average E60 M5 will sticker out around $92-$93.
E39 M5s were pretty much fully loaded. They only had a handful of options. Does your buddy think the base E60 will be lacking in standard features and thus people will add options?M5 Fever said:The $92-$93 guess was based on average number/amount for options. I will ask him what he thinks a fully dressed version will be.
Unfortunately, one more thing to consider. We're talking about a 2006 model E60 M5 vs others 2004 or 2005 prices. I don't know how long the German car mfg's can hold down prices with the euro as strong as it is.Jim Dolan said:Lets consider this some more.
Base price for the E39 was $69,900 or so. Add the gas-guzzlers tax and all the options and the sticker was about $73,400. Minimal options as well.
At the same time the E39 540i was priced loaded at around $58,000. A spread of about $12,000.
The current E60 545i is priced at about $64,000, adding a fifteen thousand dollar premium (slightly larger car) would bring the price of the E60 M5 in at $79,000 plus gas guzzler tax with options about $83,000. Now hear me out.
The price of the 645i coupe is about $75,000; I'll leave out the cab version as not comparable. BMW has on tap the M6 in a close time line with the M5 and is facing slow E60 sales. The M6 will be the new flagship of BMW performance, taking some of the luster off the M5 and the M6 did not exist when the E39 M5 hit our shores. So the dynamics have changed. Rumors of higher prices are just that, rumors.
Aggressive pricing of the M5 makes no sense giving these facts and would be out of character for BMW who will make for the US market maybe 12,000 units. The market for the E39s kind of dried up toward the end and many sat on lots in the first half of 2004 and late 2003 in some markets. Heads are turned to many car types and models these days. BMW must recognize this and want to look successful and it is my hope that the price will be not more than $79,000. That would be $10,000 dollars more that the E39 and that's consistent with prices we’ve already seen.
Finally, consider the price of gasoline. I expect the V10 to produce about the same of slightly better mileage than the E39 giving its same displacement as the E39 and better engine management. During the model run, BMW has to consider the rising price of gas, by projecting future gas prices and taking that into account in its pricing of the M5.
Also consider the current E55 pricing, base price $78,550. In the former models they were about the same, the E55 and M5. Even though the M5 is a V10 the performance will not be that much different, the displacement the same and performance gains will be had at the higher speeds.
So I’m hopping and yes praying the Price will be no more than $79,000 plus gas guzzler tax and options totaling no more than $83,000. Again minimal options.
Higher than that and I will opt out of the car, with that kind of money there are many performance cars with better resale values to consider.
Mfg's trade in currencies to offset these losses, BMW has very strong and significant manufacturing facilities here in the US and finally all models have a large cushion between the cost to manufacture and deliver cars and the retail price. That's why year-end sales, model closeouts and the like often have a sixteen percent or more discounts in the price at the dealer. You haven't heard of many dealer's going broke. And the X5, X3 and Z4 are a major part of BMW's profits.Wolverine said:Unfortunately, one more thing to consider. We're talking about a 2006 model E60 M5 vs others 2004 or 2005 prices. I don't know how long the German car mfg's can hold down prices with the euro as strong as it is.
How do you know what the M5's resale value will be? In my experience, early adopters of cars like this can make back all their investment (and maybe a premium on top of that) within the first six months of buying a car such as the E60.Jim Dolan said:Higher than that and I will opt out of the car, with that kind of money there are many performance cars with better resale values to consider.
While I think you've hit many high points, I think you are leaving out the following factors:
* We here are early adopters, by and large, and our perceptions of brands will be ahead of the curve, BMWs brand is now stronger than MB and M is stronger still. They may want to see what they can get out of the market.
* The exchange rate will have to be a factor- their hedges have run out and I don't know how they hedge again and what the price to do so is.
* The engine and to a slightly lesser extent the transmission in the E60 M5 are brand new developed by and for M. The V10 especially. Although there is a lot of marketing hype, its really not that much directly derived from their F1 efforts. The cost to develop an engine from scratch has got to be higher than the cost to take an existing engine and tweak it- albeit they really did do it right on the S62 from the E39. SMG is jointly done with Siemens (I think its them). So the costs they need to recover are probably higher- and getting back to the exchange rate, those costs were incurred probably mostly in DM or Euros.
* Finally, a loaded up 545i sport is $69,945 before taxes, etc. There is a 20% increase in the price of the M5 over the 540 in your example. So adding another 20% on to a loaded 545= ~$84k.
My gut feeling is the base price will be low to mid 80s. My guestimate on prices before taxes, etc:
M6 Cabrio: $106k- produced in ultra low volume in the last 1.5 years of the product cycle. Just a guess.
Its all relative to what the other cars cost over here. An E55 is in the ~80k range, would be hard for BMW to price the M5 much above that.António Duarte said:How come you guys all think an M5 at 100k is a "little high", a "bad deal" or whatever?!