03-16-2017, 08:32 PM | #24 | |
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Sold the E46 M3 last summer for the M2 that's been in order since 2/17/16. ED set for the beginning of May and Performance center in June! Can't wait!
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03-17-2017, 05:30 AM | #25 |
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Drives: F87 M2<E92 M3<E46 M3
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Garage List 2017 BMW M2 [0.00]
2016 BMW M235i [0.00] 2012 BMW 120d M Spo ... [0.00] 2010 BMW M3 - SOLD [10.00] 2002 BMW Z3 2.2i Sport [0.00] 2001 BMW M3 - SOLD [9.00] |
The platform was introduced in 2004...
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03-17-2017, 08:41 AM | #26 | |
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03-17-2017, 10:08 AM | #27 | |
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For example, a dealer might make 1.5-2% on an M2 and 6-8% on an X1/X3. |
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M3 Adjuster7904.50 |
03-17-2017, 10:33 AM | #28 | |
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But it is known to be more labour intensive to produce as it needs to get taken off the assembly line at various stages of manufacture. Also, if you kit out a M240i (here in Canada at least) it is only about $5K less than the M2 (MSRP) and still does not have the M4 brakes, suspension and eLSD. The gap rises a bit if you go automatic... but the M240i auto tranny is nothing like the DCT in the M2. True that other vehicles are often available at less than MSRP and the M2 never is (which kind of tells you something else ). But without knowing the precise production costs of BMW, based on the above I am still pretty confident in saying it is less profitable than a M240i. Put another way, if it was MORE profitable they would definitely be making more room on the line at Liepzig for M2 production. |
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M3 Adjuster7904.50 |
03-17-2017, 10:48 AM | #29 |
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How much money BMW makes on its vehicles has nothing at all to do with how much dealerships sell BMW's for. Dealers buy their cars directly from BMW, and are then free to sell them for whatever the market will bear.
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03-17-2017, 11:35 AM | #30 | |
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The incentives for BMW and the dealerships are not always aligned. |
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03-17-2017, 11:51 AM | #31 |
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Good point. BMW sets the MSRP. We need to know whether BMW makes less profit on an M2 than other vehicles when setting MSRP, ( we assume so ) and what percent below MSRP the dealer purchases the car from BMW. I have heard that there is about a 9% difference between MSRP and dealer purchase price. If so, then the dealers are getting a good profit and BMW is lowering its margin for marketing reasons.
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03-17-2017, 11:52 AM | #32 | |
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Strong demand (at least for now) is a tell-tale sign that depreciation - which will inevitably happen - will happen at a slower pace for the M2. |
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03-17-2017, 12:04 PM | #33 |
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03-17-2017, 07:09 PM | #35 |
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Nice analysis by everyone. Can I just get a bottom line on how many regular M2's including LCI will be produced over its lifespan as an F87? I just want two numbers: global and USA/Can.
This will help me decide if I drive the shit out of my coming M2 until the doors fall off versus baby the thing and spend money on Xpel etc. and keep my 325i as a beater. |
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03-17-2017, 07:19 PM | #36 | |
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03-17-2017, 08:33 PM | #37 | |
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Here is a little exercise to demonstrate BMW marketing and sales. Let's assume you are a BMW sales person and here are some of your products that " Joe Customer" is interested in Product A- Available and in stock 9 colors available 7 options/packages No individual 2 door available only good leasing rates ( medium residual) Dealer Profit on base unit - $3K Product B- Backordered - 25 people in line 4 colors available - 1 option package no Individual 2 door available only horrible leasing rates (ridiculously low residual) Dealer Profit on base unit- $4K Product C - Limited stock 7 colors available 13 options/packages Individual available 2 door or 4 door model available very friendly leasing rates (high residual) Dealer Profit on base unit - $6K For this example.. I have kept the dealer profit on each item relatively close.. just to underscore the situation. In reality...I can tell you that the dealer profit on Product B is actually LESS than both A and C... but I am going to create this example with profit amounts rising as the base vehicle price rises.. (even though product price has little to do with profit dollars) because that's what most consumers THINK is how items are priced.. Ok.. Joe customer comes in and is interested in ALL three of these products. as a sales person... if you need to put food on the table TODAY... which model will you recommend to Joe? Product A- the BMW M240 - and the reason you would do so is because 1- it's in STOCK and can be delivered right away - yay ! 2- the customer can choose options that may increase the profit on the sale 3- leasing options provide a good option for the customer If you aren't desperate for tonight's meal.... then more than likely you would recommend Product C- the BMW M3 /M4 and the reason you would do so is because 1- it's either in stock or should be able to be ordered 2- the customer can choose MANY MANY options that may increase the profit on the sale 3- leasing options provide an excellent option for your customer the item that you would NOT want to sell... is Product B - the BMW M2 Why would a sales person not want to make this sale? 1- it's not in stock and back ordered with many people in front of your customer 2 - there is only one option - therefore little room for additional profit on the sale 3- leasing options pretty much are a bad choice for the customer as product C is actually cheaper per month 4- Joe Customer will be calling you 2 x a week for months to see if his order is in Keep In mind the additional profit that can be earned by the sales person products A and C. Product B has nearly no room for additional profit. in many situations... a DEALER Sales manager will handle the sale for a low margin product.. the reason being is that the manager who gets paid off the entire FLOOR sales.. can take additional time to work with Joe Customer. This frees up the other sales duds to sell higher profit items. it doesn't take a rocket scientist to determine that the dealership is going to profit in the same way as the sales person of course.. At the manufacturer level.... the manufacturer will PRODUCE more of their HIGHER MARGIN products for sale, and then sell those to the dealers. The manufacturer will produce LESS of the lower margin items. (notice how the M2 is NOT available in stock... but plenty of X1s are? ) It only makes sense for the manufacturer to sell as MANY of their high margin vehicle as possible. The manufacturer can INFLUENCE the sales of the higher margin products by making less of the lower margin products available. Here endeth the lesson on Manufacturing and costs.. Last edited by M3 Adjuster; 03-17-2017 at 09:06 PM.. |
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03-22-2017, 12:25 PM | #39 |
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I know the numbers are not ramping up but just this past week I have gotten 3 calls/emails about an allocation that is available if I want it. I already have one ordered so I'm passing but seems like a lot of availability right now.
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03-22-2017, 12:32 PM | #40 |
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Where are you getting these calls/emails from? Just curious as I am also in Orlando with an m2 going into production any day now.
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03-22-2017, 01:43 PM | #41 |
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Ocala. Gainesville BMW also called me to offer the special edition one with the m parts added. forget what the package is called.
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03-22-2017, 06:59 PM | #42 |
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Glad to hear there are more of these around. I have passed on two local opportunities on pre spec'd cars: One lbb and one bsm, both were dct. Seems harder to find 6MT allocations up for grabs around here.
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03-23-2017, 09:49 AM | #43 | |
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See high mileage E30 M3 prices ... |
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10-10-2017, 11:12 AM | #44 |
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limited production or lies?
I got this lovely message from some dealer recently, true?
Since this marks the end of the M2 and we are not receiving many we are indeed going to be charging a premium for the remainder ones. In the past we have not asked for a short period of time but now that we know that this will be the last run and have received quite a bit of demand since people know we will be ending the production run of this very popular model. If we stop for any reason I can let you know or if I can get an exception. |
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