Used m3 value with upcoming tax on autos not made in the US

[ajee622]

Not trying to make this a political thread but read that BMW is holding firm on building a plant in mexico even though Trump is threatening 35% tax....

Our M3's are made in Germany correct?

so i'm assuming moving forward it would be 35% tax???

how do you think it will impact sales and used car values?

[Sephiroth]

I don't think he intends to make the "tax" retroactive. Then again, who knows what goes through his head.

[SDPLV]

Originally Posted by Sephiroth

I don't think he intends to make the "tax" retroactive. Then again, who knows what goes through his head.

I don't think thats what OP was implying.

I think they're insinuating that used M3 prices will rise since that ridiculous tax makes new M3s even more expensive to get.

[ajee622]

Originally Posted by SDPLV

I don't think thats what OP was implying.

I think they're insinuating that used M3 prices will rise since that ridiculous tax makes new M3s even more expensive to get.

Exactly. Am I missing something in this thought process??

I mean surely BMW won't eat that 35%. It will be passed onto consumers. Which will probably limit the potential new buyers thus making existing m3s here in the states more valuable.

I don't know I could be entirely off on this.

[SDPLV]

Originally Posted by ajee622

Exactly. Am I missing something in this thought process??

I mean surely BMW won't eat that 35%. It will be passed onto consumers. Which will probably limit the potential new buyers thus making existing m3s here in the states more valuable.

I don't know I could be entirely off on this.

Sounds right to me.

[Flying Ace]

First of all, it's a threat.

Secondly, he can't reverse these long lead time type decisions. You think automakers can just turn on a dime for these things?

Third, he's a pussy. He won't pull the trigger. 40% of Mexican imports has American content.
He's hurting Americans taxing Mexican made goods.

Fourth, same shit cuts both ways. Mexicans then slap 35% import duties on Ford F150s made in the US.

Fifth, BMW announced a "timely" news that they're also investing more into SC plant. Surprise surprise. Who would have thought they had something like that up their sleeves?


Lastly, depreciation on used cars going to far outstrip any tax rate.

[smyles]

Yeah, real machos draw red lines and stuff...

The 35% tariff is very unlikely, but in general any increase in new car prices will cascade down and raise - relatively - used car values. On the other hand, most new BMWs are probably leased, so not that many buyers would be steered into used market by price hikes. Just my thoughts.

[IB M]

Originally Posted by Flying Ace

First of all, it's a threat.

Secondly, he can't reverse these long lead time type decisions. You think automakers can just turn on a dime for these things?

Third, he's a pussy. He won't pull the trigger. 40% of Mexican imports has American content.
He's hurting Americans taxing Mexican made goods.

Fourth, same shit cuts both ways. Mexicans then slap 35% import duties on Ford F150s made in the US.

Fifth, BMW announced a "timely" news that they're also investing more into SC plant. Surprise surprise. Who would have thought they had something like that up their sleeves?


Lastly, depreciation on used cars going to far outstrip any tax rate.

The real question is would you buy a M3 made in Mexico regardless of price? How does European Delivery work then? Mexican delivery ? Try driving around Mexico in ur new M3, better pack a 9mm and sleep in ur car.

[monterey]

I think tax increases are typically 1-2%. 35% tax increase would end the deficit in one day.

[rich4life611]

Originally Posted by IB M

The real question is would you buy a M3 made in Mexico regardless of price? How does European Delivery work then? Mexican delivery ? Try driving around Mexico in ur new M3, better pack a 9mm and sleep in ur car.

lol Mexican delivery, that's a very good idea

[Flying Ace]

Originally Posted by rich4life611

lol Mexican delivery, that's a very good idea

Nah, I'll just buy the X5 Security.

[pbonsalb]

Buy 10. Speculate. Get rich.

[Haywood]

Originally Posted by Flying Ace

Nah, I'll just buy the X5 Security.

Must have gone though testing in Chicago.

[Flying Ace]

Even for the X5, while it's assembled in South Carolina, IIRC, about 80% of components are not American with 60% of it primary from Germany.

so what's more important these days, a few thousand manufacturing jobs, or where the engineering jobs are?

[Yeru]

I believe the punitive intent is targeted at manufacturers where the parent company is US-based and outsources manufacturing abroad; i.e. resulting in loss of local jobs and local supply chain vendors.

[Flying Ace]

Originally Posted by Yeru

I believe the punitive intent is targeted at manufacturers where the parent company is US-based and outsources manufacturing abroad; i.e. resulting in loss of local jobs and local supply chain vendors.

Not quite.

Intent is targeted for company who manufactures abroad and then sells product back to US. Parent company in US is just a bonus threat.


Ironic bc BMW (and Toyota) set the precedent for being foreign but manufacturing in US to sell here. Now they want to move manufacturing abroad to take advantage of NAFTA, and Trump blows his trumpet.

No one is complaining that Ferrari isn't assembled here... Foreign owned, foreign manufactured, USA is single largest market.

[Eau Rouge]

Originally Posted by IB M

The real question is would you buy a M3 made in Mexico regardless of price? How does European Delivery work then? Mexican delivery ? Try driving around Mexico in ur new M3, better pack a 9mm and sleep in ur car.

Any M3's made in Mexico would be of the exclusive "Individual Armored" variety because getting home alive matters.

[Rat3d ///M]

Wait, so BMW is opening a plant in Mexico? Looks like I left the brand at the right time.

[IB M]

Originally Posted by Rat3d ///M

Wait, so BMW is opening a plant in Mexico? Looks like I left the brand at the right time.

Yep and they're sending the most iconic BMW lineup ever made to be produced there - the 3 series. I get SUV trucks made in USA the home of trucks but I want my 3 series made in Germany.

[JRV]

Originally Posted by Flying Ace

First of all, it's a threat.

Secondly, he can't reverse these long lead time type decisions. You think automakers can just turn on a dime for these things?

Third, he's a pussy. He won't pull the trigger. 40% of Mexican imports has American content.
He's hurting Americans taxing Mexican made goods.

Fourth, same shit cuts both ways. Mexicans then slap 35% import duties on Ford F150s made in the US.

Fifth, BMW announced a "timely" news that they're also investing more into SC plant. Surprise surprise. Who would have thought they had something like that up their sleeves?


Lastly, depreciation on used cars going to far outstrip any tax rate.

Dude this...protectionism leads to recession in the US it has happened before.

[smyles]

Originally Posted by IB M

Yep and they're sending the most iconic BMW lineup ever made to be produced there - the 3 series. I get SUV trucks made in USA the home of trucks but I want my 3 series made in Germany.

You do realize 3 series aren't made exclusively in Germany?

[Raek]

He can't impose the 35% tax he's talking about.

At most, through emergency, he can raise these type of taxes no more than 15% for no more than 150 days at a time.

Silver lining if this makes E9xM pricing go up...I can get my exotic