[TNSC_M2]

Hmmm… will they adjust car pricing for the ones currently on the lot? I ask as one could be 75k and a lesser spec’d new arrival could be 90k. Is this real life??

[techwhiz1]

Originally Posted by TNSC_M2

Hmmm… will they adjust car pricing for the ones currently on the lot? I ask as one could be 75k and a lesser spec’d new arrival could be 90k. Is this real life??

Yes! This is real life.
The ones that ship after will have a different sticker price; that is if BMW even ships them at all.

[ASAP]

Here is what makes no sense about all of this on both sides of the Globe-

1. Usually when you throw a tarrif on an item, it is to stimulate a local home grown industry that is the same... except.. this is a blanket tarrif with no subsitute items lol... the US doesn't make an M2 competitor nor frankly any competitor for just about any German cars... are we supposed to buy an F150 as a subsitute?

2. If the EU was smart (hint - they aren't just like us)... couldn't they remove all VAT on German vehicles and significantly lower prices to stimulate sales of their own cars and screw us even more? Their car industry is in shambles right now and the solutions are so simple lol to make up the lost volume.

[techwhiz1]

Originally Posted by M2M3M3

welp....apparently the 25% tRump tax on Canadian and Mexican imports WILL go into effect tomorrow.

So glad BMW let the car I ordered sit at the factory since 23JAN. Not going to get to the US before tomorrow.

Markets immediately started tanking and stand by for inflation.

Items paid for but not yet imported will see a "duty", ie tax imposed on the import price. So while the sticker might be higher BMW USA will be asked to pay a duty on the car. The duty will depend on the price the item is sold the BMW USA for.

I anticipate cancelling my order because with tariffs in effect, I might as well buy an M4. That's until the EU gets hit.

Welcome to the $hit $how.

[techwhiz1]

Originally Posted by LateBrake8

He's a little higher up the totem pole than a sales associate, so I'm hoping his words are well-founded and not just meaningless conjecture. We shall see.

If they come back and say "sorry, its another $5-7k on top," how many of us are backing out?

If it's $5k I'll keepy order. I will not pay an additional $10k.

I'm at $85k with a fully loaded car and MHAS so, I'll eat $5k as it really won't matter. That $5k is well below the fluctuations I see in my portfolio day to day.

[aerobod]

Originally Posted by techwhiz1

I anticipate cancelling my order because with tariffs in effect, I might as well buy an M4. That's until the EU gets hit.

Welcome to the $hit $how.

Looks like 2 Apr for tariffs on the EU, US buyers may be reduced to SUV/SAVs for tariff-free BMWs in the near future, but the price of those may increase due to the tariffs on the parts content coming into the Spartanburg plant.

[techwhiz1]

Originally Posted by Bumpinjeep

Jeez, my build was $76,195. Add 25% and you get $95,243.75. The value proposition there is going to be tough.
On the other hand, how much was a F87CS? Around that price right? The G87 is a better version of that car, so really, that sort of falls in line to what the car could have cost if BMW wanted it to.
Still, my prediction is sales halt until this is resolved. I don't think anyone is going to pay an additional 25% markup on a car that will eventually not have the import tax sooner than later.

Stay strong brothers and sisters and wait it out! You got this! The tax will eventually be dropped and you will get your cars then.

It's not 25% on the retail price.
It will be 25% on what BMW USA; the distributor pays for the car. It's a tax at point of entry. So the dealer has yet to buy the car from BMW USA.

With a base price of $65k what is the price BMW USA pays? Maybe $50k then to the dealer $60k? So it would add $12.5k to the base price of the car.
So base M2 with fees would be $77.5k

Too much since I'm already at $85k and that puts me right there with an M4. So assuming the tariffs aren't coming so soon to the EU. I'll go there. But let's see.

[aerobod]

Originally Posted by ASAP

... couldn't they remove all VAT on German vehicles and significantly lower prices to stimulate sales of their own cars and screw us even more?

That would not be a particularly smart move. The general principle behind VAT applied in most countries is as a consumption tax on non-essential items that is applied equitably across all goods, not a lever of trade policy.

It would also break the supply chain principles of VAT inputs as credits against the VAT sale outputs, leaving the governments giving credits back without appropriate tax revenue.

[LateBrake8]

At this point I have blue balls and I think I'd be down for whatever price tag BMW hits me with. I want my M2 god damn it.. If its seriously inflated by $10k+ I might have to reconsider and start window shopping used GT3s, with depression and drained wallet in-hand. As always, glass half full. Best of luck, gents.

[andrewr]

I wouldn’t just be worried about the cars and parts for them, but the wider impact this could have - electronics, computers, telephones, wiring, trucks, petrol/gas/oil, batteries etc. A lot of these will start to see the 25% tax applied.

I think higher volume stuff will slowly transition to US manufacturing, but that will likely take years. Lower volume (like the M2), who knows. Three options that I see; BMW take the 25% hit, BMW pass some or all of the 25% onto consumer, BMW stops selling certain models in the US.

[ASAP]

Originally Posted by aerobod

That would not be a particularly smart move. The general principle behind VAT applied in most countries is as a consumption tax on non-essential items that is applied equitably across all goods, not a lever of trade policy.

It would also break the supply chain principles of VAT inputs as credits against the VAT sale outputs, leaving the governments giving credits back without appropriate tax revenue.

Germany's economy is in shambles now and the auto manufacturers are leading the way... this is precisely how you stimulate the economy. There is no need for such a consumption tax nor any reasonable explanation for why a BMW needs to cost more in Germany than the USA... in fact, its absurdly poor policy.

[F87inJAX]

Originally Posted by andrewr

I wouldn’t just be worried about the cars and parts for them, but the wider impact this could have - electronics, computers, telephones, wiring, trucks, petrol/gas/oil, batteries etc. A lot of these will start to see the 25% tax applied.

Add to that the cost of auto insurance, which will go through the roof due to the increased costs of parts, if the tariff nonsense doesn’t stop. Life in general is going to get a lot more expensive.

[Polo08816]

Originally Posted by F87inJAX

Add to that the cost of auto insurance, which will go through the roof due to the increased costs of parts, if the tariff nonsense doesn’t stop. Life in general is going to get a lot more expensive.

The Fed should focus on price stability and raise the Fed funds rate another 300-600 basis points. Should be able to counter the price increases.

[87M3]

Good luck to all who have an order incoming. I'd also add the % drop to equity portfolios in this equation. Those who are beating the market congrats!

[BizzyG87]

I picked mine up this past Sunday after waiting 4 months. Boy did I dodged a bullet on this one..

[BMWCompact]

Originally Posted by andrewr

I think higher volume stuff will slowly transition to US manufacturing, but that will likely take years. Lower volume (like the M2), who knows. Three options that I see; BMW take the 25% hit, BMW pass some or all of the 25% onto consumer, BMW stops selling certain models in the US.

Easiest decision for BMW is to stop selling the M2/2 series in the US, and to stop importing any 3 series cars to the US from Mexico; ramp up 3 series production in South Africa and Europe, unless of course those regions are hit with tariffs. Perhaps South Africa will get an exemption due to their representation in the new administration.

[MisanoblueZ4]

This thread is PRIME example of why the USA has never wanted to even attempt to fix its manufacturing and economic problems….just keep kicking the can down the road and let the deficits keep uncontrollably climbing….keep on doing the easy thing until a complete collapse occurs. Free money here free money there, no consequences.

It’s all about me me me me.

Go around town next time and take a look around at what is happening. This is a consumer built economy, you gotta sell hamburgers/coffee or cheap crap from China to have a storefront. Once people stop purchasing stuff this country has no recourse. With AI advancing many office jobs will dry up, with no manufacturing your going to have a generation with fewer employment opportunities.

The fork in the road is here, so I credit the Administration on attempting this reboot. In the meantime foreign built cars will cost a bit more until those jobs are brought back home.
I suggest those complaining the most suck it up and use it as motivation to “stick it to orange man” and fork over the added cost in protest.

[TNSC_M2]

I’m in step 14 (In Transit) as of this morning on the app. Does that mean that it could be on a truck headed to the dealership?

[torentmonkey]

"Germany's economy is in shambles now and the auto manufacturers are leading the way."

Nope, I don't concur. Whilst the world is on a downturn, Germany is fine. Basically switching from cars to tanks due to a small dude with a complex in the east poking and a cheeto POTUS.

That being said, tarrifs "worked", my order is now 2 months early and set for production in April. It's been hours and orders from US already being canceled.

"fork over the added cost in protest."

That would only show the tarrifs work and the bully economic measures would skyrocket. A good solution would be what the EU does, incentives to build stuff locally and after it's up and running fight dumping prices only with tarrifs whilst keeping the competition up.

[ednir98]

Originally Posted by torentmonkey

It's been hours and orders from US already being canceled.

Where did you see this? Just curious

[two_three_two]

alright ill be that guy... what does this do to used prices and current owners do we reckon? short term, medium term, long term?

[M2M3M3]

Originally Posted by TNSC_M2

I’m in step 14 (In Transit) as of this morning on the app. Does that mean that it could be on a truck headed to the dealership?

mine just switched to that also. it means it is on a ship. probably same one mine is on. it is sitting in Veracruz, Mx

next update will be going back to step 13, in port, when it hits a US port.

https://www.marinetraffic.com/en/ais...417120/zoom:14