Downward pressure on EV prices ???

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buickanddeere

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Joined
Apr 27, 2014
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Location
East Coast of Lake Huron
According to a poster "supcrds" over on the spark EV forum Quote " Rydell Chevy has 130 volts in stock at $5000 off sticker" Unquote...............Has anybody else seen EV's of any brand and model gathering dust on dealer lots? Perhaps the BMWi3 a few months after introduction may also be subject to a price discount?
 
This may not be so far fetched. I just dropped by a BMW dealer in northern NE and there was a BEV
for sale. No premium. Ready to go.

Gary
 
If it wasn't for the left hand drive at the current rate of exchange and the US prices I'd be looking to export them back here and make a profit. Maybe we can get some reversed off the dockside onto a ship travelling this way before anyone notices...... ;)
 
A couple of dealers in Colorado have two i3s at about 8% off MSRP. Don't know if they made a mistake. There is a post on Bimmerpost about it.

I think the early Jan buy of a BEV will be discounted before you know it!
They are already sitting on dealer lots, and they just arrived.
 
I have a feeling the i3 has a healthy profit margin priced into it, but it is also the first electric vehicle I have been excited by, and that is saying something. How many people feel the same way?

It is fairly well equipped, but still can't help but think they priced in the 7500 rebate in the US into the price here. I.e. when the president gave the 8000 tax refund for buying a new house, I have a feeling the house prices went up a similar amount. The sellers were getting the money, not as much the buyers.

Eric
 
viking79 said:
I have a feeling the i3 has a healthy profit margin priced into it...
I take this back, it looks like Fiat sells the 500e at a loss of $10,000 to $14,000 US per car sold. http://jalopnik.com/sergio-marchionne-doesnt-want-you-to-buy-a-fiat-500e-1579578914 So my bet is the BMW i3 is priced so it isn't losing money. My bet is it is close to break even, maybe small profit. However, for every EV sold it allows them to sell more gas guzzlers like the X6M which get like 12 mpg and have 550 hp.

Edit... More I think about it this is probably a marketing ploy (reverse psychology) by Fiat as the Nissan leaf is profitable at the same price. http://www.sustainablebusiness.com/index.cfm/go/news.display/id/25362 My guess is Fiat is including some non-recurring costs, or just the fact they don't sell many of them compared to Nissan. So really hard to say. I imagine nationwide sales and local production of Fiat 500e would make it profitable.

Edit 2... or even more likely it looks like Fiat is running a low $199 a month lease, that is probably where they are getting a loss from, basically giving people the car to get them driving one for a few years.

Eric
 
One of the problems that most BEVs have in the US is limited distribution. On the east coast your choices at most dealerships are the Leaf, the Volt, and now the i3. The vast majority of the stock goes to the west coast.
 
I thought it would be beneficial for all to clear up a few things so as to stop the guessing.
Profit margins on any BMW in USA runs about 6.25%. That`s that. So aside from government rebates etc, dealerships in the USA has a relatively low margin.
BMW will not produce these cars or any other model to the point where you will have them sitting here.
Think of M3/M4.
Less allocation creates a supply in line with actual demand.
 
For as much hype as there was for this car I'm surprised there are cars available on lots. It could be because of the leather shortage - maybe BMW pushed more I3s out. Many of them on dealer lots appear to be base plus heated seats. Seen a couple go on eBay with no bids too. Cars.com shows > 100 I3s available in CA.
 
I think this will vary depending on the part of the world you live.

It is evident that BMW have a priority on cars to the US and this coupled with different selling rules means there is some oversupply, mainly low spec demo cars by the sound of it. It still seems difficult to get discount from a car specced to the customers liking though?

In the uk things are different. There appears little chance of a sub 4-6 month delivery regardless of spec and the very few cars to emerge on the used market have all been at a premium (that i have seen anyway).

Here is an example from autotrader i saw this morning:

http://www.autotrader.co.uk/classified/advert/201405314620841/sort/default/usedcars/make/bmw/postcode/cr36hd/quicksearch/true/page/1/radius/1500/onesearchad/used%2Cnearlynew%2Cnew/model/i3/advert-type/standard-listing?logcode=ucnnp

This appears to be a private seller asking for a pretty hefty premium, although there is no guarantee it will sell for that cost.
 
I would expect that in the US after the initial rollout is complete that BMW would carefully manage the number of vehicles entering the US market so as not to produce an oversupply. They're not going to slash prices, at least not at first, they'll sell them somewhere else in the world where they can get a better price. Not surprisingly, these vehicles are very popular in countries where gasoline is $10 - $14 a gallon.
 
Not sure where the gasoline is that expensive but I would guess in those places BMW does not sell a lot of large ICE cars or the emission credits are not available, so they still need to sell enough in US in order to be able to get the credits needed for them to sell their other cars in US without penalty or by buying those credits from Tesla ...
 
bxb40 said:
Not sure where the gasoline is that expensive but I would guess in those places BMW does not sell a lot of large ICE cars or the emission credits are not available, so they still need to sell enough in US in order to be able to get the credits needed for them to sell their other cars in US without penalty or by buying those credits from Tesla ...

Well......

...let me see.... I guess average in the UK is in the order of £1.30 per litre. Today's average. Highest today is £1.44. We have been upwards of £1.55 recently. So we have 4.54 litres to the gallon. $1.60 to pound just about reaches the $10 figure. However I have to say the imperial and US gallon comes into the mix but given the view that we are at a temporary low in prices we expect to get to $12-$15 easily in the winter.

BMW sold a lot of X5s that established a real market for luxury SUVs below the range rover level. Recent CO2 tax regimes mean that those are now mostly diesel models now with significantly better mpg. Higher fuel prices have depressed demand but BMW has responded by making new models much more efficient as well as alternative models such as X3.

Due to the high annual road tax value. First year tax is over $2000 for co2 above 255 and thereafter £800 per annum. That has really hit second hand values as people switch to more efficient models. (This is in addition to purchase tax and sales tax VAT).

Hence our 9 month waiting list for an i3. ;-)
 
Personally, the drivers in the USA are spoiled...big roads, frequently straight, cheap (by international standards) fuel is one reason why our cars were so big - it's a long ways to anywhere if you live say in most areas of the western part of the country - I'm talking easily 100-miles to the next town with any reasonable services. So, our cars evolved differently.

Most states and the federal fuel taxes have not changed as the vehicle fleet was mandated to become more efficient. So, we have lots more cars and trucks on the road, using less fuel per vehicle to travel those miles every year, and the net result is that the roads and bridges and support structures are wearing out, and there's not enough tax money to keep them repaired. Most people don't want to pay up front, they'd rather someone else foot the bill. But, in the end run, we end up spending as much or more on vehicle maintenance as we perform more alignments from the bumpy roads, and replace more tires (RFT as used on BMW's and some other brands may be worse at this than some, but I think a lot of it is people mod their vehicle or opt for VERY low profile tires/wheels for the look, rather than practicality) - all a result of that poor maintenance on the roads. So, if we actually paid more taxes on our fuel for our vehicles, and the government actually reserved that money for the roads rather than some other crisis, our roads would be better, our cars shocks, tires, springs, alignment maintenance wouldn't be as costly, and it would come out about the same...but, if you can afford to swap the vehicle when the warranty runs out, that cost gets passed onto the next person, not you.

IOW, we're not paying enough for our fuel in the USA...and, as a result, some places are experimenting with a fee per mile verses x-amount per gallon of fuel (especially important to recoup the cost of wear and tear on the roads from hybrid and EVs since they may never pay any taxes towards the roadways), and remove that tax at the pump I wouldn't be surprised if that becomes more common in the future, and with nav systems, they could apportion that to the state(s) you happen to be driving through, rather than just to where you have the vehicle registered (might be problematic in a place like New Hampshire, where a good portion of those living in the south may commute into Massachusetts to work!). But, fairer to the states that must shoulder the loads.

So, until that happens, there's a good incentive to buy a more efficient vehicle, whether battery powered or hybrid, or diesel (we in the USA get a very poor choice over the engines available elsewhere partly because our diesel, even with the lower sulphur mandated some years ago, is still much dirtier than that sold elsewhere in the world, at least in Europe).
 
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