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Message
re: BMW tariff price increases will go live effective May 1, 2025
Posted on 3/27/25 at 5:26 pm to stout
Posted on 3/27/25 at 5:26 pm to stout
BMW isn’t a necessity and people who drive those over priced pieces of shite won’t have a problem coughing up an extra 2k. They probably are already financing them over seven years anyway.
0
Posted on 3/27/25 at 5:26 pm to Flats
quote:
I'm not acting like anything at all. Adding a tax to something makes the cost go up; who knew
Yeah cause everyones buying BMWs
And like you are
Posted on 3/27/25 at 5:27 pm to BuckyCheese
quote:
I did read what you said.
Then you didn't comprehend it.
There isn't anywhere for the "tariffs are free!!!" crowd to maneuver here. You either get higher prices OR you get no protection for your domestic industry. The higher price is the protection.
All you're saying is that the higher prices will be delayed a bit. You haven't introduced some third outcome as a result of your "look at the longer term", you've just said the price hikes haven't hit yet.
Posted on 3/27/25 at 5:29 pm to stout
quote:
The market will shake things out for them. I am sure if they feel they can increase the price more they will but at some point they will cede market share
Exactly. And they may not have to cede market share. Tell me - what would you do if you are GM or Ford, and your models that compete with BMW have become extremely cheap relative to BMW at normal type margins?
Posted on 3/27/25 at 5:43 pm to Flats
quote:
Then you didn't comprehend it.
There isn't anywhere for the "tariffs are free!!!" crowd to maneuver here. You either get higher prices OR you get no protection for your domestic industry. The higher price is the protection.
All you're saying is that the higher prices will be delayed a bit. You haven't introduced some third outcome as a result of your "look at the longer term", you've just said the price hikes haven't hit yet.
Let me spell it out for you in very simple terms that you can understand;
You spiked the ball saying "See, that doesn't help domestic manufacturers!"
I responded with "Not so fast."
Arguing otherwise is simply ridiculous, but I'm used to that around here.
*btw A 4% increase in May is not normal.
Posted on 3/27/25 at 5:43 pm to SDVTiger
quote:
But i was told that tariffs are passed along to the consumer??
Roger will not be pleased. He is probably treating his buss like a prog does a Tesla.
Posted on 3/27/25 at 5:45 pm to David_DJS
quote:
Exactly. And they may not have to cede market share. Tell me - what would you do if you are GM or Ford, and your models that compete with BMW have become extremely cheap relative to BMW at normal type margins?
Take market share.
That doesn't mean they wouldn't raise prices at all. It does mean they could raise prices slightly while still massively undercutting the competition.
Longer range, it means the foreign competition will have less money to spend on development of new models and production facilities. They either move their operations to the US or wither.
There is a limit to what you can charge for a vehicle while still selling enough to be profitable. Seems some do not understand this simple fact.
This post was edited on 3/27/25 at 5:48 pm
Posted on 3/27/25 at 5:48 pm to BuckyCheese
quote:
You spiked the ball saying "See, that doesn't help domestic manufacturers!"
No, you lying dumbfrick, that's not my quote. I was responding to a post that claimed that the tariff essentially didn't raise prices at all, and I said IF that's the case then you haven't helped domestic manufacturers.
quote:
If this is the case then the tariff did nothing to help domestic manufacturers.
Posted on 3/27/25 at 5:48 pm to stout
quote:
Yea we keep it hearing that but it's almost as if doing business in America is so important that companies will do what they can to keep their market share
This.
Which is why it makes no sense that US automakers would raise their prices to take advantage of increased margins. What is far more likely is they’ll get more aggressive with pricing so they take market share from the imports.
Posted on 3/27/25 at 5:50 pm to Robin Masters
quote:
Which is why it makes no sense that US automakers would raise their prices to take advantage of increased margins.
Yeah, they're going to leave that money on the table because they love America.
Posted on 3/27/25 at 5:50 pm to Flats
quote:
No, you lying dumbfrick, that's not my quote.
Yes, it is.
quote:
If this is the case then the tariff did nothing to help domestic manufacturers. You guys have never quite put that together.
Now go frick yourself shithead.
I put it together just fine.
This post was edited on 3/27/25 at 5:51 pm
Posted on 3/27/25 at 5:51 pm to BuckyCheese
quote:
Yes, it is.
Yes, I quoted myself correctly. You lied and put something in quotation marks that wasn't accurate.
quote:
Now go frick yourself shithead.
I had no idea conditional statements were too complex for some folks to handle.
Posted on 3/27/25 at 5:52 pm to Robin Masters
quote:
Which is why it makes no sense that US automakers would raise their prices to take advantage of increased margins. What is far more likely is they’ll get more aggressive with pricing so they take market share from the imports
So tariffs are actually deflationary?
Posted on 3/27/25 at 5:52 pm to Flats
quote:
Yeah, they're going to leave that money on the table because they love America.
No you use it to sell more cars and increase market share while earning a customer.
Which has the added benefit of being one less car your competitors have sold.
Posted on 3/27/25 at 5:54 pm to stout
Those BMW prices are around 5% increases. Seeing online that people are getting 10% off MSRP. I'm guessing they won't be budging off of MSRP starting in May.
If current MSRP is X, then current purchase is 0.9X.
New price is 1.05X and purchase price is 1.05X.
Increase to consumer is 1.05/0.9 which is a 16.7% increase in the cost to buy the car. This is passed on to the consumer. This math is backed up below.
Since domestic auto makers know these prices are going up, they can raise their prices as well. Also, most of these manufacturers make vehicles overseas and in the US, so they'll increase MSRP on US made vehicles as well to share the cost. Everything is going up in cost.
Auto parts will also be part of the tariffs.
From autoguide.com:
About 45% of vehicles sold in the U.S. are imported, and every 2025 model-year vehicle includes at least 20% content from outside the U.S. and Canada, meaning few models will be fully exempt.
Consumers should prepare for higher vehicle prices across the board—how much more buyers will be asked to pay will depend on each automaker’s ability—or willingness—to absorb additional costs. Still, even conservative estimates suggest average new vehicle prices will rise by several thousand dollars. PAID BY THE CONSUMER
From KBB:
Tariffs could impact new vehicles priced under $40,000 by adding $6,000 to their manufacturing costs, which could send car prices soaring.
For the BMW example, the price to buy a $40k MSRP vehicle would be $36k if you get 10% off MSRP, and, if they raise the price by 5% then that vehicle is $42k and if they are not budging off of MSRP, that is a $6k difference. 6/36 is 16.7% increase in purchase price
New vehicle transaction price in 2020 was at $40k, and now it's at $48k. That's 20% in less than five years. If it goes by up $5k (conservative estimate) due to tariffs, that would be an instant jump to 32.5% compared to 20%. The rise is even more if you go back just a few months to look at pre-covid pricing in early 2020.
“Compared to February 2020, [the average transaction price] is up 25% while incentives are down 13% and monthly sales are down 9%, said executive analyst Erin Keating with Cox Automotive. “Auto loan rates are higher now as well, making new vehicle affordability a real challenge for most households.”
A Cox Automotive report shows that tariffs will directly impact 40% of new cars priced under $40,000. The report estimates that the average tariff on Canada or Mexico-assembled models would increase the cost of a vehicle by nearly $6,000, amounting to almost 17% of an average new vehicle price.
“For economists like myself, the unthinkable is coming true, with tariffs being applied to our free trade partners across North America. We have no history to study for this, but there will be implications,” Smoke said. “It is not even clear if the U.S. government has a way to efficiently track the movement of goods and impose duties, but set that aside: Production will be disrupted, supply will be restricted, and prices will go up. This is happening when supply is tight already, and just as tax refund season approaches critical mass in dollars is being distributed to consumers.”
He added, “Consumers with potential buying plans are very likely to act swiftly, so the short term is likely positive for sale volume. But once prices shift higher, demand will decline. It will also jeopardize the trajectory of the overall economy, further weakening growth potential later in the year.”
Guess the lesson is, if you must get a new car, buy it right now. Incentives have been coming up, prices in neutral, although interest is higher and insurance is higher. The wild card seems to be auto parts and possible tariffs on aluminum and steel. Those could present serious issues.
Tariffs = inflation. Auto makers were finally getting the lesson in how pissed off consumers were. Prices were somewhat neutral but incentives were coming up. Still a massive ripoff to consumers, though. Now Trump is going to introduce 15%+ inflation to the car market, probably a lot more, starting in about 34 days. This is not America First.
If current MSRP is X, then current purchase is 0.9X.
New price is 1.05X and purchase price is 1.05X.
Increase to consumer is 1.05/0.9 which is a 16.7% increase in the cost to buy the car. This is passed on to the consumer. This math is backed up below.
Since domestic auto makers know these prices are going up, they can raise their prices as well. Also, most of these manufacturers make vehicles overseas and in the US, so they'll increase MSRP on US made vehicles as well to share the cost. Everything is going up in cost.
Auto parts will also be part of the tariffs.
From autoguide.com:
About 45% of vehicles sold in the U.S. are imported, and every 2025 model-year vehicle includes at least 20% content from outside the U.S. and Canada, meaning few models will be fully exempt.
Consumers should prepare for higher vehicle prices across the board—how much more buyers will be asked to pay will depend on each automaker’s ability—or willingness—to absorb additional costs. Still, even conservative estimates suggest average new vehicle prices will rise by several thousand dollars. PAID BY THE CONSUMER
From KBB:
Tariffs could impact new vehicles priced under $40,000 by adding $6,000 to their manufacturing costs, which could send car prices soaring.
For the BMW example, the price to buy a $40k MSRP vehicle would be $36k if you get 10% off MSRP, and, if they raise the price by 5% then that vehicle is $42k and if they are not budging off of MSRP, that is a $6k difference. 6/36 is 16.7% increase in purchase price
New vehicle transaction price in 2020 was at $40k, and now it's at $48k. That's 20% in less than five years. If it goes by up $5k (conservative estimate) due to tariffs, that would be an instant jump to 32.5% compared to 20%. The rise is even more if you go back just a few months to look at pre-covid pricing in early 2020.
“Compared to February 2020, [the average transaction price] is up 25% while incentives are down 13% and monthly sales are down 9%, said executive analyst Erin Keating with Cox Automotive. “Auto loan rates are higher now as well, making new vehicle affordability a real challenge for most households.”
A Cox Automotive report shows that tariffs will directly impact 40% of new cars priced under $40,000. The report estimates that the average tariff on Canada or Mexico-assembled models would increase the cost of a vehicle by nearly $6,000, amounting to almost 17% of an average new vehicle price.
“For economists like myself, the unthinkable is coming true, with tariffs being applied to our free trade partners across North America. We have no history to study for this, but there will be implications,” Smoke said. “It is not even clear if the U.S. government has a way to efficiently track the movement of goods and impose duties, but set that aside: Production will be disrupted, supply will be restricted, and prices will go up. This is happening when supply is tight already, and just as tax refund season approaches critical mass in dollars is being distributed to consumers.”
He added, “Consumers with potential buying plans are very likely to act swiftly, so the short term is likely positive for sale volume. But once prices shift higher, demand will decline. It will also jeopardize the trajectory of the overall economy, further weakening growth potential later in the year.”
Guess the lesson is, if you must get a new car, buy it right now. Incentives have been coming up, prices in neutral, although interest is higher and insurance is higher. The wild card seems to be auto parts and possible tariffs on aluminum and steel. Those could present serious issues.
Tariffs = inflation. Auto makers were finally getting the lesson in how pissed off consumers were. Prices were somewhat neutral but incentives were coming up. Still a massive ripoff to consumers, though. Now Trump is going to introduce 15%+ inflation to the car market, probably a lot more, starting in about 34 days. This is not America First.
Posted on 3/27/25 at 5:58 pm to Robin Masters
quote:
No you use it to sell more cars and increase market share while earning a customer.
Yes, everybody in business wants to sell more product and earn customers. But they still charge what they can because that's how capitalism works. You think car dealers have the same margin on all models? Hell no, they have the low margin models and high margin models, because that's what people will pay. They don't sell a Raptor based on what they cost to produce, they sell a Raptor based on what someone will pay.
They charge as much as they can get away with and the consumer shops around and pays as little as he can get away with. That's not going to stop because Trump is president and helped them out with a tariff.
Posted on 3/27/25 at 5:59 pm to POTUS2024
Your math is laughable as you do not understand how automobile pricing is done in the manufacturer/dealer relationship.
Posted on 3/27/25 at 6:05 pm to POTUS2024
quote:
Trump just caused inflation.
A transaction must occur, for this to be realized. It's in grey, wispy, la la land, at the moment.
Posted on 3/27/25 at 6:06 pm to stout
My favorite was the people stocking fear gunniess would go up. They of course didn’t realize they brew beer in Maryland
This post was edited on 3/27/25 at 6:13 pm
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