# BMW increases base price and metallic paint - Effective August 1st



## tim330i (Dec 18, 2001)

BMW has implemented a price increase effective August 1, 2016. The models impacted and the price changes are as follows:



This comes after BMW has cut No Cost Schedule Maintenance from 4 years, 50,000 miles to 3 years, 36,000 miles for all 2017 models. It looks like 2016 was the year to buy a BMW, for 2017 we're expecting sales to continue to suffer month over month.

As a result of the price increases, the Maximum Residualizable MSRP has been increased from $49,100 to $49,400 for the 330i Sedan and from $51,100 to $51,400 for the 330i xDrive Sedan.

There are no base price changes to the MY2017 M2, M3, M4, 5 Series GT, 6 Series, M6, 7 Series, X5, X5 M, X6, X6 M, i3, and i8.

*Metallic Paint Price Increase*
The option price for Metallic Paint will be increased effective August 1, 2016 from $550 to $700 on all MY2017 models. This includes: i3, 2 Series, M2, 3 Series, M3, 4 Series, M4, X1, X3, X4, 535i Gran Turismo, 535i xDrive Gran Turismo, X5 sDrive35i, X5 xDrive35i, X5 xDrive35d, X5 xDrive40e, X6 sDrive35i, and X6 xDrive35i. Updated price sheets for all models will be posted soon.

*Price Protection*
BMW will price protect all bona-fide retail orders, with a confirmed production number, of the affected models that are produced on or after August 1, 2016 and delivered to customers by October 31, 2016.

*BMW cuts No Cost Scheduled Maintenance to 3 years, 36k miles and no brakes*

Please note that pricing is no longer assigned at the time of wholesale. Vehicle pricing is now assigned once the vehicle completes production, status 160. To ensure that these retail orders are protected, a Center must designate the vehicle in the ordering system as a sold vehicle, with a customer name by the close of business on July 31, 2016. Existing European Delivery orders with a confirmed delivery date will be honored if the vehicle is delivered and RDR***8217;d by January 31, 2017. However, any new European Delivery orders accepted after July 31, 2016 will reflect the new pricing.


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## 1northcar (Mar 7, 2015)

The two increases basically wipe away the $500 one saves through application Of the BMW Club credit. 

Considering that Mercedes waives the shipping fee for its European Delivery cars, the comparative ED savings between the two manufacturers continues to be lessened for BMW.


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## ImolaRedM (May 20, 2013)

tim330i said:


> As a result of the price increases, *the Maximum Residualizable MSRP has been increased from $49,100 to $49,400 for the 330i Sedan* and from $51,100 to $51,400 for the 330i xDrive Sedan.


Wait, what? BMW is using MRM. Is that new for 2017?


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## 328AL (Aug 16, 2013)

ImolaRedM said:


> Wait, what? BMW is using MRM. Is that new for 2017?


 What does it mean?


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## MJBrown62 (Jun 15, 2016)

ImolaRedM said:


> Wait, what? BMW is using MRM. Is that new for 2017?


New for 2017 and just on the 330i/xi.

People have been overbuilding 328's with optional equipment that haven't maintained a value in the resale market.

To address this the MRM program makes it so residualizable MSRPs are capped, with any remaining MSRP added to the Capitalized Cost in full.


This won't take affect until September sales.
Orders in the system will not be affected
Certain packages and options must be Priority 1 Customer Sold to be included. This keeps dealers from overbuilding the 330.

Michael


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## ImolaRedM (May 20, 2013)

MRM, or Maximum Residualized MSRP, is the maximum MSRP that can be used to calculate the residual value on a lease. If the car is optioned out more than the MRM, then the buyer will pay 100% of the cost over the MRM over the course of the lease. This will make heavily optioned vehicles very expensive. Porsche uses MRM which is why you rarely see heavily optioned cars on the dealer lots.


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## ImolaRedM (May 20, 2013)

MJBrown62 said:


> New for 2017 and just on the 330i/xi.
> 
> People have been overbuilding 328's with optional equipment that haven't maintained a value in the resale market.
> 
> ...


That's very bad news.

Is a MRM being applied only to the 3's or across the line?


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## MJBrown62 (Jun 15, 2016)

ImolaRedM said:


> That's very bad news.
> 
> Is a MRM being applied only to the 3's or across the line?


Only the 330i and 330xi. *Just those two models.*


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## mwm1166 (Jul 16, 2013)

tim330i said:


> *Price Protection*
> BMW will price protect all bona-fide retail orders, with a confirmed production number, of the affected models that are produced on or after August 1, 2016 and delivered to customers by October 31, 2016.
> 
> Please note that pricing is no longer assigned at the time of wholesale. Vehicle pricing is now assigned once the vehicle completes production, status 160. To ensure that these retail orders are protected, a Center must designate the vehicle in the ordering system as a sold vehicle, with a customer name by the close of business on July 31, 2016. Existing European Delivery orders with a confirmed delivery date will be honored if the vehicle is delivered and RDR'd by January 31, 2017. However, any new European Delivery orders accepted after July 31, 2016 will reflect the new pricing.


Ok, so my order was made middle of July. I'm on the west coast. I have a production number. So I meet criteria A.

But the car is a 2017 3 series with a South African build slot. It shows my build date is expected 8/31/16.

If my car takes forever and a day in transit and shows up Nov 1 or after, merely because I'm on the west coast and my car is being built at the wrong factory...is BMW going to actually **** 
Me on the price and make me pay the extra money? Is there some way to work on this now. Because I will be God damn pissed off if they do not honor my price.


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## ZoomVT (May 30, 2008)

Why are people building out lower trims, when you can get some of those options already included in the higher trim?
Honest question, out of curiosity - for the most part, the higher trim is typically better (engine, options, etc) - and if you are building them out, price is not the issue.


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## Yinzer (Jul 21, 2014)

ZoomVT said:


> Why are people building out lower trims, when you can get some of those options already included in the higher trim?
> Honest question, out of curiosity - for the most part, the higher trim is typically better (engine, options, etc) - and if you are building them out, price is not the issue.


Ive always wondered that too.


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## jjrandorin (May 8, 2013)

ZoomVT said:


> Why are people building out lower trims, when you can get some of those options already included in the higher trim?
> Honest question, out of curiosity - for the most part, the higher trim is typically better (engine, options, etc) - and if you are building them out, price is not the issue.


I hate to say this, because I might get flamed for this.... but there are many, many BMW buyers who dont care that much about the engine, but DO want all the "goodies".

Its kind of the same reason that you dont find things like DHP on cars on the lot that often (because many buyers dont want to pay for things they dont understand like "upgraded suspension, or better handling) but will pay for things like apple carplay, etc.)

Conversely, if you are looking at the higher engine trim, you will generally find these cars less optioned on dealer lots than the lower trim. When I was searching for my cars I asked dealers about this, and was told that buyers of the higher engine trims typically wanted less options on a car on the lot, because they wanted to have the engine and save money by removing packages.


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## beware_phog (Mar 7, 2003)

jjrandorin said:


> I hate to say this, because I might get flamed for this.... but there are many, many BMW buyers who dont care that much about the engine, but DO want all the "goodies".


I disagree with this premise. I believe what is happening is that 330's engine has become good enough that going with the larger engine doesn't have the pull it used to. Although I drive a 435 today, I would expect to go to a 430 next time around because the 430 has plenty of power. People can take the $5k they save on the engine and get some stuff they may not have gotten at the 440 level.

Well, at least that is how my brain is looking at things now...


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## jjrandorin (May 8, 2013)

beware_phog said:


> I disagree with this premise. I believe what is happening is that 330's engine has become good enough that going with the larger engine doesn't have the pull it used to. Although I drive a 435 today, I would expect to go to a 430 next time around because the 430 has plenty of power. People can take the $5k they save on the engine and get some stuff they may not have gotten at the 440 level.
> 
> Well, at least that is how my brain is looking at things now...


I dont consider anyone on this board to be representative of the general populace, though. People here are in the extreme minority IMO, and are much more informed that your "typical" buyer.


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## MJBrown62 (Jun 15, 2016)

beware_phog said:


> I disagree with this premise. I believe what is happening is that 330's engine has become good enough that going with the larger engine doesn't have the pull it used to. Although I drive a 435 today, I would expect to go to a 430 next time around because the 430 has plenty of power. People can take the $5k they save on the engine and get some stuff they may not have gotten at the 440 level.
> 
> Well, at least that is how my brain is looking at things now...


From a CA point of view, this argument has some merit. at 258 lb/ft of torque, you are not too far from 330 in the 340/440. Compared to the old I-6 with 200 at 2500 RPM!

My experience with clients is if they are city/local drivers, the 0-30 in the turbo 4 is adequate. For the highway/mid range driver needed acceleration at speed, and enjoy more steady power that doesn't require a downshift to kick in, they turbo 6 is the choice.

So yes, BMWs premise of "upgrading" the engine to get more standard features might be faulty.

The other premise that could go badly is when people are looking for 330's for price, power and overall fuel economy, but they want some tech and options, BMW won't have as many on the lots.

Michael


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## tturedraider (Nov 11, 2005)

mwm1166 said:


> Ok, so my order was made middle of July. I'm on the west coast. I have a production number. So I meet criteria A.
> 
> But the car is a 2017 3 series with a South African build slot. It shows my build date is expected 8/31/16.
> 
> ...


IF this were to happen the dealer can make a case to BMWNA to extend your price protection and the odds are very high that BMWNA will agree to it. They're not out to screw you over.


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## Alpine300ZHP (Jan 31, 2007)

MJBrown62 said:


> From a CA point of view, this argument has some merit. at 258 lb/ft of torque, you are not too far from 330 in the 340/440. Compared to the old I-6 with 200 at 2500 RPM!
> 
> My experience with clients is if they are city/local drivers, the 0-30 in the turbo 4 is adequate. For the highway/mid range driver needed acceleration at speed, and enjoy more steady power that doesn't require a downshift to kick in, they turbo 6 is the choice.
> 
> ...


Ok, I will bite. I see the logic that was raised as well, but what about the logic that for 5k more you get significantly more car. With the average 3 series and a 60%+ residual, that extra 5k to move up to a higher level car is costing the consumer about 55-60 bucks a month. I think BMW is betting that someone who wants a loaded up 330 will just pay extra for the 340 if he cannot get those options in the 330. In essence, I see BMW saying that they intend for the 320 and 330 to be entry level cars with prices below 50k. After all, that 50k 328 is competing with a 55k 528 and many people will buy the 5 with less equipment over a loaded 3. This is why loaded up 328's depreciate horribly.


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## MJBrown62 (Jun 15, 2016)

tturedraider said:


> if this were to happen the dealer can make a case to bmwna to extend your price protection and the odds are very high that bmwna will agree to it. They're not out to screw you over.


+1


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## 328AL (Aug 16, 2013)

I think MY2017 is going to be a big test for BMW, and 3 series specifically; price increases, maintenance reduction, residual value limitations, etc. All combined - a lot of changes for one year.


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## mwm1166 (Jul 16, 2013)

tturedraider said:


> IF this were to happen the dealer can make a case to BMWNA to extend your price protection and the odds are very high that BMWNA will agree to it. They're not out to screw you over.


I reached out to my dealer. I recognize that BMW isn't out to "screw me over." However, they did put out a pretty strict set of guidelines and it does appear I'm possibly going to slip into the unintended consequences section of the policy. I know it could all work out without a hassle.

I was just venting after a long day and got a tad worked up.


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