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BMW sticker-prices their cars closer to the true market value and keeps the supply/demand equation on the side of the dealers, no deep discounting. Volvo seems to put an unrealistic sticker price on it's cars (SAAB is much worse) and then deep discounts them. But comparing the 325i Touring with the V70T5 the "street prices" aren't too far apart., the T5 is a lot faster in a straight line, but the 325iT goes around corners a lot faster.
Rest Of World also gets the 3.0 in the wagon, in fact R-O-W gets the 6-speed with the 540 wagon and, no, I don't profess to understand BMW's marketing strategy. Maybe very plain cloth-seat 540i 6-speed wagons sucking the doors off sports cars is not the image that BMW wants to cultivate in the USA, but it's exactly what I'd want.
They do outsell Volvo by a wide margin, so they clearly understand something that Volvo doesn't.
"You get what you pay for" but in many cases you DON'T get what you pay for. My understanding is that "everything" (including the brake pads) is covered for 3 years/36,000 miles under the BMW warranty. Also the duration of the typical LEASE.
Probably not a bad idea to offer free maintainance if many/most cars are leased, I think the figure is about 14% are bought vs. 86% financed or leased. Do lessees care if they don't change the oil before the 15,000 mile service? The more anal -OWNERS- will go in for early oil changes, I would, but many won't. Obviously some lessees will think it's reasonable to return a car at the end of the lease without having performed any services for 3 years, just reset the lights, imagine trying to "CPO" THAT! Think you may need the computer to do it on BMWs, making it even less likely to happen. Only on a few Volvo years (annoyingly mine included) does one need a special tool. With Volvo, no free maintainance, easily reset the lights yourself, the car's going to be returned in 3 months. Hmmmmmm. What's going to happen? (Does your own dealership replace the motor before you resell such a fine specimen?)
Cordially,
-Phil Punxsutawney
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