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Why is BMW so much cheaper?

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Old 04-13-2020, 12:00 PM
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Default Why is BMW so much cheaper?

I have been configuring vehicles online to get an idea as to comparative costs for similarly equipped SUV’s. After numerous builds, BMW always comes up significantly less expensive for an X5 vs. GLE 450 vs. Q8 or Q7 when equipped as much alike as possible. BMW seems to think they are in the same class but beginning to wonder if price is any indicator.
Old 04-13-2020, 04:02 PM
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BMW's are cheaper because they have to be. Who would buy them if they weren't? I will still never buy another at any price. And - yes, former BMWCCA Member. They fell fast and hard.
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Old 04-14-2020, 01:55 PM
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Not sure I follow.
Audi generally comes with more standard features. BMW you pay for the options to bring it up to par with the Audi
Just using configuration info...not actual sales prices.
X5 xDrive40i $65,550
-20" wheels
-Leather
-Parking

Q7 (which already comes with those things) $65,390

The Q8 $73k is obviously the next level more comparable to the X6 +21's $69k...still pretty close.

Old 04-14-2020, 04:00 PM
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With regard to leases, BMW monthly leases will always come in less expensive than Audi simply because BMW has traditionally artificially supported their deals with higher residual values plus subventing their leases with more factory money. Audi, conversely, ended those practices years ago after giving up on getting caught with U.S. end of lease inventory that was substantially overvalued versus true market value. Apparently BMW had an advantage over Audi with a stronger pre-owned market that afforded BMW’s flexibility with how they propped up (and continue to better support) their leases.

Additionally (I was told at the time several years ago) that Audi AG was convinced their vehicle MSRPs were undervalued vis-a-vis MB and BMW, and began to increase pricing on new models beyond their previous practices—which they did with the introduction of the D4 A8.
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Old 12-19-2020, 10:46 PM
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It’s a good question as I’ve never really looked at BMWs as I consider my self an Audi person since Wu had a 2002 A4 and we have a 2014 Q5 TDI. As I likely will get a Q8 I looked at X5, X6, and even X7 for fun as I didn’t think many had factory tow hitch as easily to get compared to the Audi etc...

While I think it’s true that Audi Q7 (for sure) and Q8 is easier to find with tow package the price do a 2021 BMW for all three models was way cheaper than I do expected. I inquired about a $79,500 X6 and was provided a quote for 10% less from an online request. I have seen X5, X6 and X7 range from $67,000 - over $100,000 but I’ve seen even an X7 with MSRP at $82,000 unsure if it would get the 10% off MSRP or not but that starting price of just over $80,000 seemed low to me etc...
Old 12-20-2020, 12:14 AM
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BMW sells a lot more cars than Audi in the US. Their business model for years has been to offer the most aggressive lease programs and move a ton of vehicles.






Last edited by jrjunior31; 12-20-2020 at 12:16 AM.
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Old 12-20-2020, 07:16 AM
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Interesting! Thanks for sharing... didn’t know that at all.
Old 12-20-2020, 08:48 AM
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Originally Posted by jrjunior31
BMW sells a lot more cars than Audi in the US. Their business model for years has been to offer the most aggressive lease programs and move a ton of vehicles.



BMW SUVs are produced in USA. Audi in Europe. This explains partly the difference in price. In Europe prices of Audi, BMW and MB are comparable. And much higher than in USA
Old 12-20-2020, 09:11 AM
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Originally Posted by retom
BMW SUVs are produced in USA. Audi in Europe. This explains partly the difference in price. In Europe prices of Audi, BMW and MB are comparable. And much higher than in USA
I’ll assume the Q8 is even more rare in the US!
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