Lexus Slashes MSRP in CANADA - Audi Follows Suit - Is BMW Next

[baillout]

So if the IS250 dropped its MSRP by $4700 and the A3 and A4 have dropped their prices in response. Therefore if the 3 series is next will that drive down the relative Canadian Price for the 1 series. Anyone in the know have an opinion on if BMW will follow. I don't want to get locked into a contract if prices are going to drop. Nothing worse than paying a lower MSRP a few months after a purchase.

Persistent high dollar forces automaker's hand

Tony Van Alphen
Business Reporter

Feb 01, 2008
Toyota Canada has become the first major automaker to cut retail prices on most models because of the persistent high dollar.
The company announced today it is reducing the manufacturer's suggested retail prices (MSRPs) on 16 Toyota and luxury Lexus models.
Analysts say they expect other automakers will follow Toyota's move for competitive reasons because consumers will use them in comparison shopping.
Some luxury automakers have slashed their MSRPs by several thousand dollars in recent months because of the soaring value of the Canadian dollar after consumers complained they were not getting enough bang for their buck.
However all major automakers have not lowered MSRPs during a model year because it would upset company planning and consumers who bought earlier. Furthermore, automakers were uncertain how long the dollar would retain its lofty status.
Instead, the companies responded by jacking up incentive packages by several thousand dollars on many models.
Toyota had also offered incentives but said this morning it is now converting them into clear, consistent price reductions.
The MSRP cuts at Toyota range from $750 on the Toyota Yaris subcompact to $8,100 on the luxury Lexus GX series.

[InOttawa]

We all should call our dealers and say that we are buying Lexi because of the drop in price.

[Devon K]

Originally Posted by InOttawa

We all should call our dealers and say that we are buying Lexi because of the drop in price.

Yeah, that will really be believed....

[Klinn]

Originally Posted by Devon K

Yeah, that will really be believed....

Hey, for me it's a possibility. I have an E46 now and I certainly like the 135 so far (still need to see one in the flesh) but I'm not wed to the brand. If the cost difference is big enough, it may be worth looking elsewhere.

[Khobin~]

As for Audi they dropped all their MSRPs(not jus the A3 and A4) about 1-2 weeks ago...I noticed one evening when I went on their website...

A base A3 dropped 1 g to 32,900, and according to the online configurer it's N/C to select leather instead of cloth...

I think the A4, A6, etc, all dropped by more then the A3.

[InOttawa]

Originally Posted by Devon K

Yeah, that will really be believed....

Well, it's better than surfing forums and doing nothing.

[Bringinthewolf]

It looks like BMW Canada has priced the 1 much more competively vs. the U.S. model.
If I look at my 135i Cabrio, the base price is only $7000 less than the U.S. car. The 335i Cabrio that I almost ordered has a base price difference of almost $20,000 more compared to the US car. Ouch.
It would be difficult to drop the price of an existing model without destroying the resale on vehicles that have already been sold. Much easier to start a new model like the 1 at a more realistic price spread over the U.S. which it looks to me like they have done.
Now if we could do something about the $2195 FPDI vs. the U.S. 750, that would be nice.

[InOttawa]

Originally Posted by Bringinthewolf

Now if we could do something about the $2195 FPDI vs. the U.S. 750, that would be nice.

That's exactly how they "reduce" the MSRP; they jack the price up somewhere else. FPDI was $1295 a few years ago.

[pwong888]

Today i talk to one of the BMW sales concern about the monthly leasing payment of the 1er, he give me the rate of 6.9% 135i with automatic, premium package, primium sound package and sport package and calcultate the monthly payment of $930(tax include) which will be almost the same as the monthly payment of a 335i (4.9%). For $930 monthly for leasing a 135i, i think it is pretty expensive.
Now I am thinking of cut down the Premium package(3500)and the premium sound upgrade(1200) and just add the sunroof(1500) to see the outcome.
I wish they can lower the MSRP or the leasing rate to make it cheaper, otherwise I will consider Lexus or the Mercedes benz C300 start at $41000 and come in standard with sunroof, leather seat and sport package.

[BrownBoy]

Let's all hope BMW follows suit!

[InOttawa]

Originally Posted by pwong888

Today i talk to one of the BMW sales concern about the monthly leasing payment of the 1er, he give me the rate of 6.9% 135i with automatic, premium package, primium sound package and sport package and calcultate the monthly payment of $930(tax include) which will be almost the same as the monthly payment of a 335i (4.9%). For $930 monthly for leasing a 135i, i think it is pretty expensive.
Now I am thinking of cut down the Premium package(3500)and the premium sound upgrade(1200) and just add the sunroof(1500) to see the outcome.
I wish they can lower the MSRP or the leasing rate to make it cheaper, otherwise I will consider Lexus or the Mercedes benz C300 start at $41000 and come in standard with sunroof, leather seat and sport package.

That's the thing with leases: they play games with the interest rate and the residual to effectively remove the MSRP from equation (or reduce it's impact).

Do you know what residual he used?

[Khobin~]

Do you guys really think that BMW will lower the price/lease rates on a brand new model that has orders going into June/July delivery already??...:iono:

And yeah, 2 g's for Freight and pdi is absurd...there are other cars being shipped from Germany for less :wink:

but then so is $800 for metallic paint, $399 for an admin fee, and etc.

[baillout]

It is not that they need to change the price in the first year. But if they want the card to succeed in Canada there has to be a price differential between the 1 series and the 3 series coupe. These moves by lexus and audi will put downward pressure on the pricing of the 3 series and they will lose market share to those brands if they do not respond. If the 3 series drops by 10% and they do not adjust the pricing on the 1 series then everyone will just move up to the 3 series after the 1 series losses its first year shine.

That or they eliminate the 323 when they lower the price on the 328.

[Russo]

cost my dad $2k to ship his c32 from Germany... supply and demand...

[Road Runner]

VW has just followed suit...

AJAX, ON, Feb. 13 /CNW/ - Volkswagen Canada announced today a reduction of its Manufacturer Suggested Retail Price on most of its 2008 models, ranging from the 2008 Rabbit (up to $700 reduction) to the 2008 Touareg 2 (up to $5,800 reduction). The new prices take effect on Friday, February 15, coinciding with the opening of the 2008 Canadian International Auto Show in Toronto.
Price decreases were also announced on some upcoming 2009 models. The 2009 Jetta TDI, which was introduced at the 2008 Montreal Auto Show, last month, benefits from an MSRP that has dropped by $1,200, to $24,275 for the Sedan and $25,675 for the Wagon. The 2009 Jetta Wagon 2.5's starting price will now be $23,475, which represents $1,500 less than the price announced in Montreal.
"We have been taking great strides to provide Canadian consumers with affordable German-engineered vehicles", noted John White, President and CEO of Volkswagen Group Canada Inc. "These very significant pricing actions not only demonstrate our commitment to the Canadian market by recognizing the sustained strength of the Canadian dollar, but also continue to reinforce Volkswagen's message of affordability. We are a brand that, more than ever, offers great value to the Canadian consumer."

Here is the list of the vehicle MSRP reductions and adjustments,
depending on model and equipment package level:

<<
Model Previous MSRP Reduction New MSRP

Rabbit 3-door $20,175 $200 $19,975

Rabbit 5-door $21,675 $700 $20,975

New Beetle $22,775 $800 $21,975

New Beetle Convertible $27,795 $820 $26,975

Jetta A5 Sedan $23,475 $1,500 $21,975

Jetta GLI $32,175 $2,200 $29,975

GTI 3-door $29,575 $1,600 $27,975

GTI 5-door $30,575 $1,600 $28,975

Eos $37,175 $1,200 $35,975

Passat Sedan 2.0T $30,975 $3,500 $27,475

Passat Sedan 3.6 4Motion $48,075 $5,100 $42,975

Passat Wagon 2.0T $32,475 $3,500 $28,975

Passat Wagon 3.6 4Motion $49,775 $5,100 $44,675

Touareg 2 V6 $49,975 $5,000 $44,975

Touareg 2 V8 $64,775 $5,800 $58,975

[TitoSkulls]

I guess this was to be expected. I'm sure Nissan will be next. I still think the 1 series has been priced appropriately in Canada. Considering the 135i's direct competition 350Z at $50K, STI recently reduced to $44K, and the new EVO GSR at $41,500 and MR at $47,500, the bimmer is actually priced lower than I would have expected.

[ipp]

High dollar? Huh? It's almost lower than ever. It doesn't make sense to me. The US prices should rise if it's how 'strong' the dollar is.

edit: Sorry didn't realise you were talking about CAD.

[M3Newbie88]

Originally Posted by ipp

High dollar? Huh? It's almost lower than ever. It doesn't make sense to me. The US prices should rise if it's how 'strong' the dollar is.

edit: Sorry didn't realise you were talking about CAD.

LOL you are forgiven.. well if prices don't drop lets hope rates are lower.. they gotta do something.. today the CDN dollar is above the US geez.. lol..

[stefan]

Porsche reduced their prices by 10% as well. And I totally agree with the above post.. To me a $5000 reduction isn't quite as important as a significantly lower interest rate. With a high interest, you aren't throwing your money at a car.. you are throwing it at.. absolutely nothing. Bit of a choke.