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      01-16-2020, 08:05 AM   #1
denaliman
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Post Canadian Pricing Guide

Here is the Canadian Pricing Guide.
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File Type: pdf MY20 X5 M & X6 M - Retail v1.pdf (106.0 KB, 61 views)
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      01-16-2020, 10:50 PM   #2
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wow that's very decently priced, thank you for sharing
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      01-17-2020, 09:48 AM   #3
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I’m assuming X5 M Competition models (and probably others) are discounted in Canada (in USD terms) to retain market share by partially offsetting a 30% devaluation of the CND since 2015.
Anyone know if that is the case and if they do that in other countries?
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      01-18-2020, 12:33 AM   #4
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Quote:
Originally Posted by denaliman View Post
Here is the Canadian Pricing Guide.
Hmmmm.... MSRP starts at only $6000 more than the M50i I spec'd/ordered yesterday. (And I need to shut my brain off now.)
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      01-18-2020, 12:47 AM   #5
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Originally Posted by RVAGuy View Post
I’m assuming X5 M Competition models (and probably others) are discounted in Canada (in USD terms) to retain market share by partially offsetting a 30% devaluation of the CND since 2015.
Anyone know if that is the case and if they do that in other countries?

I was talking to someone about this from Switzerland (specifically about Mercedes and how much more his was than mine in the Canadian market) and he said pricing is based off the specific countries net average income. When you look at cost of living/incomes in various countries, often where the vehicles are priced significantly higher you'll see a much higher local purchasing power than countries where they cost less.
I don't know if there's any truth to that being how the pricing is done though.

If you like numbers, go to numbeo.com and you can compare various cities/countries, it's pretty interesting.
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      01-18-2020, 04:37 AM   #6
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Originally Posted by scotchy View Post
I was talking to someone about this from Switzerland (specifically about Mercedes and how much more his was than mine in the Canadian market) and he said pricing is based off the specific countries net average income. When you look at cost of living/incomes in various countries, often where the vehicles are priced significantly higher you'll see a much higher local purchasing power than countries where they cost less.
I don't know if there's any truth to that being how the pricing is done though.

If you like numbers, go to numbeo.com and you can compare various cities/countries, it's pretty interesting.
While the pricing to “local purchasing power” conceptually makes sense, it has to be more nuanced than that. I’m curious now if all BMW models in Canada are discounted the same percent or does the discount %’age vary based on price point: higher % for 3 series and lower for 7 series. Also, they probably have to price to achieve a certain volume level to maintain the dealer network. If the CND strengthened to parity with the USD (where it was pre 2015), would they reduce the discount %’age despite no change in local purchasing power?
My curiosity is more “profit” vs “numbers” related as I used to work in the finance area for an international company.
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      01-18-2020, 06:29 AM   #7
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That's simply not true.

There are always some differences in pricing, especially an volatile exchange rate can make a difference, but on the long run, base prices (excl taxes) are very similar everywhere. They want to avoid quickly changing local prices whenever a local currency goes in any direction.

For example, Sweden has a very high purchasing power, but Swedish Krona depreciated lately and now BMW there are more affordable then in other EU countries. If this exchange rate stays, they will slowly adjust the prices.

The opposite example is Switzerland, CHF appreciated significantly and now BMWs in CH are more expensive than anywhere in Europe. But on the other hand, because of that you can get a huge discount, so you end up paying a reasonable price.
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      01-18-2020, 08:38 AM   #8
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Can us citizens cross over the border and buy from a Canada dealership? It’s about 16,000usd cheaper.
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      01-18-2020, 08:43 AM   #9
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Can us citizens cross over the border and buy from a Canada dealership? It's about 16,000usd cheaper.
There is always a way if one is motivated enough, but:

a) I had to sign a non-export agreement. This time it has no teeth, but back in E46 M3 days, it carried a contracted $20K penalty.

b) BMW Canada has pretty tight control over regional sales. Didn't try on this round, but back in E46 M3 days, a dealer in a town 100km away wanted to but couldn't sell to me because my provided residence address was not in their range. Apparently BMW would punish dealers. Ought to be illegal, but Canada is pretty socialist.

c) You'd have to deal with BMW Assistant adding "eh" to everything. 8 months in, that's pretty irritating even for a Canadian.

There are other issues (like warranty, etc.), all likely can be dealt with, but may end up being too much hassle. But I think a fair trade would be that US underground railroads spare tire kits to Canada and gets G05 X5s in return.
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      01-18-2020, 09:15 AM   #10
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Quote:
Originally Posted by LexxM3 View Post
There is always a way if one is motivated enough, but:

a) I had to sign a non-export agreement. This time it has no teeth, but back in E46 M3 days, it carried a contracted $20K penalty.

b) BMW Canada has pretty tight control over regional sales. Didn't try on this round, but back in E46 M3 days, a dealer in a town 100km away wanted to but couldn't sell to me because my provided residence address was not in their range. Apparently BMW would punish dealers. Ought to be illegal, but Canada is pretty socialist.

c) You'd have to deal with BMW Assistant adding "eh" to everything. 8 months in, that's pretty irritating even for a Canadian.

There are other issues (like warranty, etc.), all likely can be dealt with, but may end up being too much hassle. But I think a fair trade would be that US underground railroads spare tire kits to Canada and gets G05 X5s in return.
Thanks for the info - wasn’t aware of some of that. Just curious, did you have to convert your M3 from metric to mph and miles on the speedometer and odometer, respectively? Also, did you have to pay HST/GST which I know can be quite a bit higher than sales tax in the US?

Last edited by GSG5; 01-18-2020 at 09:16 AM.. Reason: Correction
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      01-18-2020, 09:34 AM   #11
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Quote:
Originally Posted by GSG5 View Post
Quote:
Originally Posted by LexxM3 View Post
There is always a way if one is motivated enough, but:

a) I had to sign a non-export agreement. This time it has no teeth, but back in E46 M3 days, it carried a contracted $20K penalty.

b) BMW Canada has pretty tight control over regional sales. Didn't try on this round, but back in E46 M3 days, a dealer in a town 100km away wanted to but couldn't sell to me because my provided residence address was not in their range. Apparently BMW would punish dealers. Ought to be illegal, but Canada is pretty socialist.

c) You'd have to deal with BMW Assistant adding "eh" to everything. 8 months in, that's pretty irritating even for a Canadian.

There are other issues (like warranty, etc.), all likely can be dealt with, but may end up being too much hassle. But I think a fair trade would be that US underground railroads spare tire kits to Canada and gets G05 X5s in return.
Thanks for the info - wasn’t aware of some of that. Just curious, did you have to convert your M3 from metric to mph and miles on the speedometer and odometer, respectively? Also, did you have to pay HST/GST which I know can be quite a bit higher than sales tax in the US?
I am Canadian!

So no conversion necessary and yes, we pay taxes. For US, you should be able to eventually get Canadian taxes back on import, but will have to pay your local taxes in return, I believe.
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      01-18-2020, 11:49 AM   #12
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Quote:
Originally Posted by LexxM3 View Post
Quote:
Originally Posted by 2fast0 View Post
Can us citizens cross over the border and buy from a Canada dealership? It's about 16,000usd cheaper.
There is always a way if one is motivated enough, but:

a) I had to sign a non-export agreement. This time it has no teeth, but back in E46 M3 days, it carried a contracted $20K penalty.

b) BMW Canada has pretty tight control over regional sales. Didn't try on this round, but back in E46 M3 days, a dealer in a town 100km away wanted to but couldn't sell to me because my provided residence address was not in their range. Apparently BMW would punish dealers. Ought to be illegal, but Canada is pretty socialist.

c) You'd have to deal with BMW Assistant adding "eh" to everything. 8 months in, that's pretty irritating even for a Canadian.

There are other issues (like warranty, etc.), all likely can be dealt with, but may end up being too much hassle. But I think a fair trade would be that US underground railroads spare tire kits to Canada and gets G05 X5s in return.
In addition to the "eh", the assistant constantly says "I'm sorry" and apologizes for everything.

I've heard that too, if you've purchased in another country they'll try to not warranty anything because it came from a different market. (Doesn't make a ton of sense, what if you had moved countries?)

I don't know that new cars can be exported easily anymore. It's my understanding that with a lot of vehicles considered luxury it's a bit of a process to even allow you to purchase them, you can only lease to prevent them from being sent overseas. (My SA said he didn't think purchase wasn't an option on the X5, I didn't push because I wanted to lease). When I got our Mercedes 2.5yrs ago I was told anything AMG or higher models were lease only. They said that Benz tracks how many leave the country, and whatever that number is, they get that many less allocations for future models.

That said we get a bit of a "deal" on them compared to the US. Once spec'd what I just ordered was $110,000 cad. Based on US pricing it should be $130k cad. (Sorry eh)
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      01-18-2020, 11:56 AM   #13
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Quote:
Originally Posted by LexxM3 View Post
I am Canadian!

So no conversion necessary and yes, we pay taxes. For US, you should be able to eventually get Canadian taxes back on import, but will have to pay your local taxes in return, I believe.
What are auto taxes like in Ontario?
Here in BC if it's over $57K it's 15%, over $125K 20%, over $150K 25%. It doesn't matter if it's new or used either, same rates for both.
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      01-18-2020, 12:00 PM   #14
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Quote:
Originally Posted by scotchy View Post
Quote:
Originally Posted by LexxM3 View Post
I am Canadian!

So no conversion necessary and yes, we pay taxes. For US, you should be able to eventually get Canadian taxes back on import, but will have to pay your local taxes in return, I believe.
What are auto taxes like in Ontario?
Here in BC if it's over $57K it's 15%, over $125K 20%, over $150K 25%. It doesn't matter if it's new or used either, same rates for both.
13% HST across the board in Ontario.
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      01-18-2020, 02:56 PM   #15
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Quote:
Originally Posted by scotchy View Post
Quote:
Originally Posted by LexxM3 View Post
I am Canadian!

So no conversion necessary and yes, we pay taxes. For US, you should be able to eventually get Canadian taxes back on import, but will have to pay your local taxes in return, I believe.
What are auto taxes like in Ontario?
Here in BC if it's over $57K it's 15%, over $125K 20%, over $150K 25%. It doesn't matter if it's new or used either, same rates for both.
QC: 5% GST and 9.5% QST = 14.975%
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      01-18-2020, 03:00 PM   #16
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Quote:
Originally Posted by 2fast0 View Post
Can us citizens cross over the border and buy from a Canada dealership? It’s about 16,000usd cheaper.
Funny, a buddy of mine moved from Ontario to California with his X3 under TN visa of the old NAFTA agreement, I don't think he pay any tax or anything like that
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      01-19-2020, 05:19 AM   #17
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Quote:
Originally Posted by scotchy View Post
I was talking to someone about this from Switzerland (specifically about Mercedes and how much more his was than mine in the Canadian market) and he said pricing is based off the specific countries net average income. When you look at cost of living/incomes in various countries, often where the vehicles are priced significantly higher you'll see a much higher local purchasing power than countries where they cost less.
I don't know if there's any truth to that being how the pricing is done though.

If you like numbers, go to numbeo.com and you can compare various cities/countries, it's pretty interesting.
Well that explains why I pay $40k more for the same car over here.
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