If you are considering buying a BMW, either new or used, and you happen to be in Germany, the question that comes to mind is: Are these cars cheaper here?
Germany is known for being the birthplace of many iconic car brands such as Mercedes-Benz, Volkswagen, Audi, and Porsche. But what about BMW? Being another popular German car brand, many people assume that buying one directly from the source would be more affordable.
In this article, we will examine factors that affect the price of BMWs in Germany, including taxes, dealership discounts, market demand, and competition among other automakers.
We will also talk about purchasing options available to foreign buyers who want to buy a BMW in Germany, such as personal importation or going through a third-party dealer.
“The appeal of owning a luxury car like a BMW can be hard to resist, especially if it might come with a lower price tag than your home country.”
So, whether you are an expat living in Germany, a collector looking for a unique model, or just an enthusiast curious about the prices, keep reading to find out if buying a BMW is cheap in Germany!
Exploring the BMW Market in Germany
The History of BMW in Germany
BMW, which stands for Bayerische Motoren Werke AG or Bavarian Motor Works in English, is a luxury car brand that has become synonymous with quality and reliability. The company was founded in 1916 in Munich, Germany as an aircraft engine manufacturer. After World War I, the Treaty of Versailles prohibited Germany from producing airplanes, so BMW turned its focus to motorcycle production.
It wasn’t until 1928 that BMW produced its first car, the “Dixi,” which was actually based on an existing model made by Austin in England. However, it wasn’t until the late 1940s and 1950s that BMW began producing cars that were truly their own design.
Today, BMW is one of the top luxury car manufacturers in the world, and continues to be headquartered in Munich, Germany.
The Top BMW Models in Germany
When it comes to buying a BMW in Germany, there are plenty of models to choose from. Here are just a few of the most popular:
- BMW 1 Series – A compact hatchback that offers great handling and fuel efficiency.
- BMW 3 Series – A mid-size sedan that is known for being sporty and luxurious at the same time.
- BMW X3 – A crossover SUV that is perfect for families on-the-go.
- BMW 7 Series – A full-size luxury sedan that is the epitome of style and class.
No matter what your particular needs and preferences are, there’s sure to be a BMW model that will suit you perfectly.
BMW Dealerships in Germany
If you’re looking to buy a BMW in Germany, there are plenty of dealerships to choose from. Some of the biggest names include:
- BMW Niederlassung Berlin – Located in Berlin.
- BMW Autohaus Hugelmann – Located in Freiburg im Breisgau.
- BMW Stuttgart GmbH – located in Stuttgart
In addition to these larger dealerships, there are also many smaller ones throughout Germany that specialize in both new and used BMW cars.
Popular BMW Accessories in Germany
One of the great things about owning a BMW is the ability to customize it with a wide variety of accessories. Here are just a few popular options in Germany:
- Roof racks for transporting bikes, skis, or other equipment
- All-weather floor mats to protect your car’s interior from rain, snow, and dirt
- Phone mounts and chargers for staying connected on-the-go
- Sport exhaust systems for upgrading your car’s performance and sound
No matter what your needs and preferences are, there are sure to be plenty of BMW accessories available to help you make your car truly your own.
With all of these factors considered, one might wonder, “Are BMW cheap in Germany?” Well, the answer is not entirely straightforward. While some models may be more affordable than others when compared to the same model in different countries, the overall prices of BMW cars remain high due to their reputation as luxury vehicles with high quality build materials. However, purchasing a car in Germany does have its advantages such as availability and reliability of certified pre-owned vehicles.“The BMW M5 is the ultimate sedan in terms of sporting presence, refinement and luxury.” – Motor Trend
When deciding on purchasing a BMW, it’s important to consider both your budget and what you want out of your vehicle. With such a wide variety of models and accessories available, there’s sure to be an option that will work perfectly for you.
The Benefits of Buying a BMW in Germany
Lower Prices Compared to Other Countries
If you’re looking for a great deal on a BMW, it’s worth considering purchasing your car in Germany. In general, cars tend to be less expensive there than in other countries around the world, which means that you may be able to save some money by buying a BMW from a dealer based in Germany.
This is particularly true if you live in a country where taxes are high. According to Automotive News, foreign buyers who purchase a German car and reside outside of the European Union are only required to pay 7% VAT as opposed to the standard 19%. This can add up to significant savings, especially when combined with lower base prices compared to other regions.
Access to Unique BMW Models
Another benefit of buying a BMW in Germany is access to unique models not available elsewhere. Every so often, BMW releases special editions or custom models sold exclusively within Germany. While these vehicles may be more difficult to find than their standardized counterparts, they often come loaded with extra features and have unique specifications that make them highly sought after among BMW enthusiasts.
In addition to special editions, certain models may also arrive in Germany before reaching other markets across the globe. For instance, BMW headquarters are located in Munich, where new models are first introduced and released. By buying locally, you’ll be one of the first people to get behind the wheel of the latest BMW.
Opportunity to Customize Your BMW
If you’re someone who likes to customize their car to make it stand out from the crowd, Germany is the perfect place to buy a BMW. It’s no secret that Germans pride themselves on their engineering prowess and attention to detail, which means they have an abundance of customization options available for added personalization.
Aside from tailoring the color scheme or adding different wheels, the German market has access to unique packages and features not found anywhere else in the world. For example, some models may be equipped with advanced safety technology or innovative infotainment systems that you can’t get elsewhere. By buying your BMW in Germany, you’ll have access to these unique features only locals know about.
“Buying a BMW in Germany is one of the best ways to ensure you get the most bang for your buck while also having access to exclusive features not available elsewhere.” -AutoBild
If you’re looking for a high-quality luxury car at a lower price point, consider shopping for a BMW in Germany. With its reputation for engineering excellence and cutting-edge customization options, there’s never been a better time to purchase a BMW in Germany than now.
Factors That Influence the Cost of BMW in Germany
If you are considering buying a BMW in Germany, it is important to understand the factors that influence its cost. While it may be tempting to assume that BMWs are cheap in their country of origin, this is not always the case and depends on several factors.
Model and Trim Level
The model and trim level of the BMW significantly influences its price in Germany. Generally speaking, higher-end models or trims with more features will come with a higher price tag than basic models. For example, an entry-level BMW 1 Series car could cost between €26,000-€40,000, while a 7 series model can range from €85,000-€150,000.
In addition, there are also limited-edition models or special editions that command even higher prices due to their rarity factor. For instance, one such exclusive variant was the BMW M3 “30 Jahre” edition, which celebrated the 30th anniversary of the company’s iconic sports car with only 500 produced globally and costs around $83,280 (circa €70,668).
Taxes and Import Fees
Taxes and import fees make up a significant portion of the final price tag of a BMW in Germany. When purchasing a new car locally or importing from another EU country, customers pay a Value Added Tax (VAT) of 19%. In addition, cars imported from outside of the European Union incur further tariffs, which depend on the engine size and CO₂ emissions of the vehicle. At present, these duties range from 10% for vehicles with low emissions to 37% for high-emitting luxury models.
Making matters slightly better, as part of the German coronavirus stimulus package, a temporary reduction in VAT has been applied until 31 December this year, decreasing from 19% to 16%. This means that customers can currently buy a new BMW at discounted prices plus deduct import taxes as long as the car is supplied in line with European emission targets or includes software for reducing NOx emissions.
Availability and Demand
The availability of particular BMW models also influences their cost. For instance, if there are few units of a popular model, then demand will be highest, which may lead to dealers charging premium prices. Moreover, some cars may not be available in certain regions of Germany, making it harder to get hold of them without extra costs.
In recent times, scarcity and stronger-than-expected demand for plug-in hybrid models have led to some frustrated German drivers facing delays of several months when purchasing a BMW PHEV, particularly the higher-spec X5 xDrive45e. However, first-time EV buyers are significantly supported by country incentives like demanding Plug-In vehicles pay no motor vehicle tax for the remainder of five years after its initial registration and benefits on company car taxation together with an increasing number of public fast-charging stations nearby.
“The performance/price ratio is excellent among all BMW models.” -Consumer Reports
While it may be possible to find more affordable BMWs in other countries, you should take into account that buying one in Germany offers the advantages of customization, warranty packages, and generally better customer support from manufacturers’ authorized dealerships (after parts and service backup). Additionally, positive aspects include competitive pricing policies offered throughout the Bimmer range compared to most competitors in distributed expenses over features & quality guaranteed satisfaction.. This said, keep an eye out for additional costs such as value-added taxes, tariffs, options, inflation rates rising lately.
Comparing Prices of BMW in Germany and Other Countries
Price Comparison with the United States
BMW is a luxury vehicle brand that has become an icon for its quality, style, and engineering. The company produces some of the most desirable cars globally, including sedans, SUVs, and sports cars. However, while many people lust after these vehicles, they are not always within reach due to their high cost.
The prices of BMW vary significantly depending on where you buy them, and this raises a common question among car enthusiasts: “Are BMW cheap in Germany?” Many believe that buying a BMW in Germany would save them money as opposed to buying one from other countries such as the US.
So let’s compare the prices of BMW in Germany with the US to see whether there is any truth to this assumption.
According to CarAndDriver.com, the 2021 BMW M5 Competition base price starts at $112,995 in the United States, compared to €133,100 or approximately $158,067 in Germany. A difference of over $45,000 is quite significant, but it’s crucial to note that taxes and tariffs can greatly impact these prices.
In Germany, cars include a value-added tax (VAT) of 19%, which increases the price of the car by around 20% as compared to the rest of Europe, including the UK, where taxes are lower. In contrast, in the United States, sales tax varies considerably depending on your state, ranging between 0% -8%.
“The US isn’t known for having the highest VAT rates, so it makes sense that cars will be cheaper here than many European countries,” says Autoblog.
Therefore, although buying a BMW in Germany might seem like a cost-effective option at first glance, the overall prices may not differ as much from those in the United States when one factors in taxes and tariffs.
Price Comparison with Japan
In Japan, cars are known for being expensive due to high import taxes. Therefore, it’s no surprise that BMWs come with heftier price tags compared to other countries, including Germany.
For instance, an entry-level BMW 2 Series Gran Coupe starts at ¥3,860,000 or approximately $35,290, which is more expensive than its equivalent model in Germany, priced at €28,200 or $33,803. This difference can be attributed to several factors, including import tariffs, sales tax, and shipping costs.
JAPANTODAY.com argues that “Although foreign car producers often cite the country’s steep automobile tariffs of around 10%, analysts say Japanese consumers’ preference for safety features has contributed to higher prices.”
Therefore, while buying a BMW in Japan might seem like a good idea initially, car enthusiasts should calculate differing expenses such as insurance, taxes, and upkeep before making any final decisions about whether to purchase a BMW overseas.
Price Comparison with the United Kingdom
The UK market presents high competition among various automakers, creating different pricing strategies. Even so, BMW still manages to hold its own within this competitive context.
The price comparison between BMWs sold in the UK and Germany is affected by models and spec levels. However, based on CarMagazine.co.uk estimates, a seven-seater BMW X7 xDrive30d M Sport would cost £74,935 ($105,321) versus €90,300 or approximately $107,658 in Germany.
The significant discrepancy exists mainly because of the extra equipment provided as standard in the German market. This includes features such as panoramic sunroof and adaptive comfort suspension, which add to the overall value of the vehicle.
Despite this price difference, it’s important to note that once again, taxes and tariffs impact these prices greatly. For instance, CarMagazine explains that “For UK buyers buying a car built for sale abroad (including non-EU), we still have to pay VAT plus any duties or compliance costs.”
Price Comparison with China
The Chinese automotive industry is gradually catching up with significant players in the field by producing more competitive cars at cut-throat rates. However, the BMW brand remains luxurious even among its expensive Japanese contemporaries such as Lexus and Infiniti.
A base 2021 BMW X5 SUV model imported into China can cost up to ¥822,000 or $126,654 in today’s exchange rates. The same spec BMW X5 in Germany starts from €68,400 or approximately $81,753.
It’s essential to know that high import tariffs significantly influence this pricing discrepancy. According to South China Morning Post, “China imposes one of the highest levies on luxury-car imports worldwide, currently charging a steep tariff of between 40% and 50%. Thus, foreign automakers are burdened with expanding their operations in China through joint ventures with local companies.”
This means that purchasing a BMW in China might require you to adjust your budget accordingly and factor in some additional expenses like logistics and transport fees, amongst others.
While many people believe BMWs come cheaper when bought directly from Germany, taxes, tariffs, shipping costs, and currency exchange fluctuations make determining exact prices challenging. Rather than prioritizing savings, prospective owners should consider several factors such as maintenance, structural stability, safety features, and affordability before making a final purchase decision.
How to Purchase a BMW in Germany
Research BMW Models and Dealerships
If you are considering purchasing a BMW in Germany, the first step is to do your research. Look for information on different BMW models that meet your needs and budget. Visit the official BMW website and read reviews and ratings from other customers who have purchased BMWs in Germany.
You should also research dealerships in the area where you plan to buy your BMW. Check out dealership websites and look for customer reviews and ratings. Consider factors such as location, facilities, service options, and special offers or deals that may be available at different dealerships.
“When it comes to buying cars, it’s always important to do your research. This applies whether you’re shopping for a new car or buying used.” -Lance Draizin
Test Drive and Inspect the BMW
Once you have identified potential models and dealerships, schedule test drives and inspections of the BMWs that interest you. This will give you the opportunity to get behind the wheel and experience the driving performance of different models firsthand.
During the inspection process, pay close attention to the condition of the vehicle, inside and out. Look for signs of wear and tear, damage, or other issues that could impact the long-term value and reliability of the BMW. If possible, bring along a mechanic or someone with expertise in auto repairs and maintenance to inspect the vehicle more thoroughly.
“Always take a car for a test drive before buying. No amount of online research can compare to the feeling of sitting behind the wheel!” -Jordan Taylor
Arrange Financing Options
If you decide to purchase a BMW in Germany, you will need to arrange financing options. This might involve getting a loan from your bank or credit union, finding an auto finance company, or working with the dealership to secure financing.
Before you sign any paperwork or commit to a specific financing option, be sure to carefully read and understand all of the terms and conditions. Consider factors such as interest rates, fees, repayment schedules, and prepayment penalties that may impact your ability to pay off the loan over time.
“When it comes to financing a car purchase, it’s important to shop around and compare different offers before committing to a loan.” -Liz Weston
Complete the Purchase and Registration Process
The final step in purchasing a BMW in Germany is to complete the purchase and registration process. This involves signing all necessary paperwork, paying the agreed-upon price, and registering the vehicle with the local authorities.
Be prepared to provide proof of insurance and valid identification during this process, and to pay any additional taxes or fees that may be required by law. Once you have completed all of these steps, you can drive away in your new BMW knowing that you have made a wise investment.
“Purchasing a car is one of life’s most significant investments, so take your time, do your research, and make informed decisions based on your needs and budget.” -Denise McCluggageAre BMWs cheap in Germany? While prices for BMWs vary depending on the model, year, and condition of the vehicle, many people believe that buying a BMW in Germany can be more cost-effective than purchasing one in other countries due to lower VAT taxes and import fees. However, it is important to do your own research and weigh the pros and cons of purchasing a BMW in Germany versus other locations before making a decision. By following the steps outlined above, you can ensure that you have all of the information and resources you need to make an informed decision.
Tips for Negotiating the Best Price for a BMW in Germany
Research the Market Value of the BMW
If you are planning on buying a BMW in Germany, it is important to research the market value of the car you want. Knowing the market value will give you an idea of how much you should expect to pay and can serve as a bargaining tool when negotiating with the dealer. You can do this by checking online resources like Kelley Blue Book or Edmunds, or by visiting local dealerships.
It’s also important to understand that prices may vary depending on where you are located in Germany. For example, cars tend to be more expensive in big cities like Berlin and Munich compared to rural areas. Keep this in mind when doing your research and setting your budget.
Bring Up Any Defects or Issues with the BMW
When negotiating the price of a BMW in Germany, bring up any defects or issues you notice during a test drive. This gives you leverage in negotiations and allows you to negotiate for a lower price if repairs need to be made. However, make sure to get a professional inspection to determine the true extent of any issues before starting negotiations.
You can also use online resources like Carfax or AutoCheck to see if there have been any accidents reported for the car you’re interested in. This information can also help you negotiate for a better deal.
Consider Trade-Ins or Financing Options
If you have a car to trade in, consider bringing it up as part of the negotiation. Dealerships often offer lower prices on new cars if you trade in an old one. Make sure you research the fair value of your trade-in beforehand so you don’t get low-balled by the dealership.
Additionally, consider financing options before negotiating the price of your BMW. If you have good credit, you may qualify for a lower interest rate which can save you money in the long run. However, be aware that taking out a loan will increase the overall cost of the car.
Be Willing to Walk Away from the Deal
The most important tip when negotiating the best price for a BMW in Germany is to be willing to walk away from the deal if it doesn’t meet your expectations. Don’t feel pressured to make a purchase on the spot or settle for a higher price than you’re comfortable with.
Remember that buying a car is a major financial decision and it’s crucial to take your time and find the best deal possible. Be prepared to negotiate and don’t be afraid to shop around at different dealerships until you find the right car at the right price.
“Negotiation is not about winning or losing. It’s about creating better deals, agreements, and relationships.” -Tony Robbins
Buying a BMW in Germany can be a great experience with the right preparation and negotiation skills. By researching the market value, being aware of any defects or issues, considering trade-ins and financing options, and being willing to walk away from a deal, you can ensure that you get the best price possible on your new car.
Frequently Asked Questions
Are BMWs more affordable in Germany compared to other countries?
Yes, BMWs are generally more affordable in Germany compared to other countries due to the country’s strong automotive industry and competition between dealerships. Additionally, German residents are eligible for special discounts and incentives when purchasing a BMW.
What factors contribute to the pricing of BMWs in Germany?
Several factors contribute to the pricing of BMWs in Germany, including the cost of production, taxes and fees, import/export tariffs, and the level of competition between dealerships. Additionally, the model, features, and customization options selected will impact the final price.
Is it cheaper to buy a new or used BMW in Germany?
Generally, it is cheaper to buy a used BMW in Germany compared to a new one due to the high depreciation rate of luxury vehicles. However, the price of a used BMW will depend on factors such as the age, mileage, condition, and features of the vehicle.
What are the taxes and fees associated with buying a BMW in Germany?
When buying a BMW in Germany, you can expect to pay a value-added tax (VAT) of 19% on the purchase price of the vehicle. Additionally, there may be registration fees, insurance costs, and other administrative fees associated with the purchase. Import/export taxes and tariffs may also apply if you are importing or exporting the vehicle.
Are there any discounts or promotions offered on BMWs in Germany?
Yes, BMW offers various discounts and promotions on their vehicles in Germany throughout the year. These may include cashback incentives, low-interest financing, and special lease offers. Additionally, German residents may be eligible for special discounts and incentives when purchasing a BMW.