What Is BMW's 3-Series Doing SO Well That It Is Ruling Entry-Level Luxury Sales?

What Is BMW's 3-Series Doing SO Well That It Is Ruling Entry-Level Luxury Sales?
This has to be one of the most intriguing pieces of data collected in quite some time.

As you can see in the below graphic, the chart is suppose to be a collection of sales from May 2010 and May 2009 in the "Junior Luxury Sedan" class -- not that I think that "class" really exists.

But there are some great numbers being displayed here.

For example, we see that BMW's 3-Series is destroying everything in this data set. But why? What does the 3-Series do that makes it stand apart so much from its cohorts?

Then there is the Buick Lacrosse, which can easily be seen has made a huge jump for the once stuttering brand.

OR how about companies like Acura and Lincoln that seem to losing some ground?

Is there a correlation between sporty and sales OR is it merely brand wars?

Let us know in the comments below...

TTAC Commenter Charles T writes in:

Any chance you could do $30-$40k entry-level luxury, ie BMW 3-series and everyone else gunning for a piece of that pie? For completeness sake, include cars that normally aren’t positioned against the 3-series despite being a similar price (Lexus ES and Lincoln MKZ, for example) just as a sense of their relative market sizes; I’d be curious to see how the sporty vs unsporty dichotomy plays out in the real world.

 

Well, Charles, there’s a reason you used the perennially-popular 3-Series to exemplify this segment. The model dominates sales of sport (and not) junior luxury sedans...

[Source: The Truth About Cars]







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freeagentfreeagent - 6/8/2010 9:07:13 PM
+5 Boost
what it does well is just about everything, and on top of that is tops in the performance categories.


BondMI6BondMI6 - 6/8/2010 9:14:25 PM
-9 Boost
Everyone knows the 3er is basically a hands down winner for primarily one reason- "ZERO MAINTENANCE".

Take this program away and the numbers difference would not be so dramatic. That being said there is still no doubt that in many people's minds the 3er is still the benchmark for the Junior Lux class and this helps it to dominate as well but with a more expensive heavier F30 due out soon this huge success margin may end and most people do not feel the 1er is really a good replacement .........



NannerPusNannerPus - 6/8/2010 9:27:35 PM
+9 Boost
BMWs cost more than the cars they compete against in most cases. The maintenance program is one benefit that offsets some of that price difference, but the cars themselves offset the rest of that difference with simple superiority in many facets from design, features, performance, safety, practicality, and on and on.






DogLbDogLb - 6/8/2010 9:49:34 PM
+2 Boost
While it's partially true that the maintenance is a selling point...let's not forget that they really only cover three service points (once every 15K miles.)

The basic reason this car does so well is reverbs with a variety of audiences young and old - and has a variety of price and option points. I'd be curious how many of the 3er sales are of the 325/328 variety.

cheers


bmwdrvrbmwdrvr - 6/8/2010 10:17:34 PM
+4 Boost
lol BMW has been ruling this category since the E46 its funny I always love those kind of comments that have no basis whatsoever that program is relatively new and was implemented at a time when the 3 series was actually losing ground you may want to check the numbers prior to the program. On a side note the Lacrosse is the most impressive sales numbers here for me its amazing how well its doing I see them all the time now great job GM.


enthusiastx11enthusiastx11 - 6/9/2010 1:52:37 AM
+7 Boost
it's a winner primarily because of free maintenance? are YOU F>>ING NUTS? clearly you're not a driver.


Agent63Agent63 - 6/9/2010 9:49:55 AM
+3 Boost
I think Mercedes in most cases cost more once you near that high end model for each. I think the 3 series offers a comfortable, quiet ride that isn't trying too hard to be a luxury car. Some cars like the IS/ES add that wood grain to make it feel more expensive but BMW and even the C-class can have aluminum and it feels more premium.


t_bonet_bone - 6/8/2010 10:20:30 PM
+3 Boost
As with just about any quality product, it's about getting all the little details rights. This can driving marketing and "brand" experts nuts...the horror that the public might favor engineering over hype.(Not that it happens every time, though)


speed123speed123 - 6/8/2010 11:28:36 PM
-1 Boost
Very simple. People like status symbols and they have cheap leases.


enthusiastx11enthusiastx11 - 6/9/2010 1:55:02 AM
+2 Boost
your logic is flawed.

mercedes is a more prestigious status symbnol...so why isn't the C-class dominant?

lexus IS and ES are much better bargains...so why don't they sell more NOT far less?


enthusiastx11enthusiastx11 - 6/9/2010 1:57:01 AM
+4 Boost
the BASE price of a 328 with a stick, no leather and ZERO options is over $33K. and you'll never find one of those. so according to you the typical camry and accord run well into the $30Ks?


rxh8me9000rxh8me9000 - 6/9/2010 1:25:15 AM
-2 Boost
I'll take a g37 sedan over a 328/335 sedan any day. Looks better IMO and feels much sportier and agressive. The 3 series is too soft for me in the looks department and driving department. Thats why I just skipped to the ///M.


enthusiastx11enthusiastx11 - 6/9/2010 1:51:25 AM
+7 Boost
what it does is EXACTLY what the driver's inputs tell it to do. in other words...spectacularly connected handling/steering, non-existant body roll, smooth inline 6s, fantastic brakes, good looks, supple ride, tons of technology and, well, it's a unbelievable BLAST TO DRIVE. i've had two and now drive a 5-series--but miss my 335.

NONE of the competitors come close to offering all these things in one package.


als723als723 - 6/9/2010 2:53:27 AM
+7 Boost
There are many reasons why the 3-Series does SO well...

1. Poise. I'm not partial to the sedan, but the coupe is gorgeous, the convertible is gorgeous, and most people I know like the sedan.

2. Practicality. It's larger that many of it's competitors, but not too large to cross over into other categories. It truly is the perfect size. Also, the convertible offers the most cargo room out of all the vehicles in it's class.

3. Price. They're easy to get into. Although priced slightly above some of the competition, they usually have very competitive interest rates, and crazy lease specials.

4. Performance. Even the base engine will get you to 60 in well under 7 seconds. 230hp is not a bad deal, and it still gets in the upper 20's on the highway. Optional turbo diesel gives you crazy torque and great gas mileage.

5. Pedigree. You have a history when you purchase a 3-series. Generations of proper tuning to find the great equation they have today.

6. Passion. The driving experience is the ultimate reason why people buy the vehicle. The engine note, the suspension, the near-perfect weight ratio, the brilliant transmission... all add up to what every magazine salivates over, and why most editors drive one themselves.

7. Pleasantness. Although somewhat built in to the price, carefree maintenance seems to be the deal closer for a lot of people. You won't get the best service or dealer network from a BMW, but at least you won't be out of pocket until the warranty runs out.

Now, do I see other very competitive options out there? Yes. But as far as I'm concerned there is not any car I could see as being a huge threat in the next few years. The mid-size car market seems to be becoming the most competitive market with many very intriguing alternatives to the 5-Series, but everything else in the Entry-Level market seems kind of stale in comparison to the 3-Series.


800over800over - 6/9/2010 10:04:12 AM
+4 Boost
Please remove your lips from the 3 series exhaust pipe.


AgentOrangeAgentOrange - 6/9/2010 1:27:09 PM
-1 Boost
als723;
Spot on, dude.



r15mohdr15mohd - 6/9/2010 8:14:58 AM
-4 Boost
Majority of the sales are the 325/329 variants...basic amenities that most non-luxury brands offer as standard options

the car may drive well, but that's about where it ends. interior is an eye-sore, with the use of fake leather and cheap feel throughout the cabin.

i wouldnt doubt that the lease deals play a huge role in their sales, plus numerous incentives. and that most of the users for the entry level probably buy based on the logo...





AgentOrangeAgentOrange - 6/9/2010 1:28:51 PM
+4 Boost
"Majority of the sales are the 325/329 variants"
Yah, I'm gonna get me one of them thar 329s... :D


r15mohdr15mohd - 6/9/2010 2:19:44 PM
+2 Boost
such nit-pickers...i believe the 8 is rite next to the 9!

3-series...if it aint the M, then it aint worth it!


WhelanWhelan - 6/9/2010 9:17:36 AM
-3 Boost
I saw someone post about a base 328. Funny thing is NOBODY would ever drive a base and if they did, they would be the laughing stock. The bottom line is that the only thing entry-level about the 3 is the size. Price comparisons put it way above competition. And why are they still charging $700 for HID headlamps?


enthusiastx11enthusiastx11 - 6/10/2010 1:58:08 AM
+3 Boost
i LOVED my 325 in the early 2000s. one of my favorite cars i've ever driven. it handled flawlessly, it was so connected to the road. it was comfortable, smooth, had a wonderful engine and, well, i loved every minute i spent in the that car. oh...and it was a BASE. the only option it had was leather and an upgraded sounds system--absolutely nothing that would detract from the pure pleasure of the driving it. ;) the current car remains much the same.


enthusiastx11enthusiastx11 - 6/10/2010 12:31:18 PM
+1 Boost
well, badgewhore, most of the automotive establishment and hundreds of thousands of buyers disagree with you. my 325 was WONDERFUL. prior to that i had driven japanese cars and they all felt like numb toaster ovens compared to my 2004 325. also, it didn't have a single thing wrong with it in the 3 years i drove it.


STJ88STJ88 - 6/9/2010 9:18:44 AM
+3 Boost
The infiniti G is realy gowing strong! And that with a single engine option! Just wait for the G25 come's out, the C-class is dead!


0to600to60 - 6/9/2010 10:27:34 AM
-3 Boost
The name. Thats why they sale more 328's. If ppl were to want a 3 for performance/handling, they would pay a little extra for the 335. What is the difference in the sales numbers for the 335 compared to the 328.

Purchasing the 328 is typically for the badge only. In many cases - when you cant use other measures to boost self esteem.


S1000RRmanS1000RRman - 6/9/2010 10:43:51 AM
+5 Boost
Er yeah.. the typical 15%-20% price MSRP increase over the 328 is nothing to do with It guess?? Or the fact that a 328 is likely to be cheaper to run?






0to600to60 - 6/9/2010 10:58:13 AM
-1 Boost
no, there are much better options than a 328 for a lower price. Its the badge.


S1000RRmanS1000RRman - 6/9/2010 11:11:42 AM
+3 Boost
So what you are saying is that there are only 2 reasons in the world why people buy cars....

1) Performance/Handling
2) Badge

I think you're wrong.

A 328 is more affordable and offers pretty much the same day to day experience, it's a more 'sensible' choice.




0to600to60 - 6/9/2010 1:56:23 PM
+1 Boost
What makes it more sensible than the others? No, but there are a lot that buy for that reason.


0to600to60 - 6/9/2010 1:58:09 PM
0 Boost
and i am sorry but the 328 is not impressive what so ever. Now the 335 is a great car.


enthusiastx11enthusiastx11 - 6/10/2010 2:01:14 AM
+1 Boost
poor thing. you don't have a clue. i would drive a 328 over any car in its class.

IS250, not a chance i be caught dead in that corolla.
C-class, great for ladies.
A4, good at everything, great at nothing.



0to600to60 - 6/11/2010 2:52:12 PM
+2 Boost
I would get the G


S1000RRmanS1000RRman - 6/9/2010 10:49:39 AM
+8 Boost
Interesting graph, would be nice if they had managed to spell BMW right!




JB007JB007 - 6/11/2010 4:30:11 AM
+2 Boost
Can't be that hard can it?


LexSucksLexSucks - 6/9/2010 11:52:51 AM
+2 Boost
The 3-series is an overrated MILF car. All I see are females driving them. Plus they are Boring. And a Limited-Slip Diff would be nice (3-series doesn't have that). The 3-series is the Iphone of cars.


LexSucksLexSucks - 6/9/2010 1:33:28 PM
-1 Boost
PatrickBateman,

I don't converse with people who attack and insult. Go on about your business.


JRobUSCJRobUSC - 6/9/2010 12:03:08 PM
+3 Boost
I know the graph says "sedans" but are all those sales, in fact, the sedan version of the 3-Series? Because aside from winning a lot of comparison tests and generally being considered the benchmark for the segment, which certainly aids sales, one pretty major reason the 3-Series always has such dramatically higher sales figures than the competition is that BMW sells five different 3-Series sedans, five different coupes, three different convertibles, and two wagons, for a total of fourteen models, and that's not including the M's. The Acura TL has two versions, the Audi sells four or five A4/S4 models, Mercedes sells three C-classes, Infiniti sells four G-classes, Lexus sells five IS's, etc. So it's not surprising that 3-Series sales are so high -- they offer multiple bodystyles from $30-70k, so there's something for anyone who can afford one.


AlleVierAlleVier - 6/13/2010 9:02:58 PM
+1 Boost
My question, as well. BMW is undoubtedly the clear winner here, but I'm guessing that the A5 doesn't get counted as an A4 coupe.


izfuneyizfuney - 6/9/2010 12:12:52 PM
-1 Boost
Why does the 3 series sell so well
1) Great branding
2) Inexpensive leases ( typically they run in Camry territory for the 328)

The vast majority of cars sold are the 328 automatic and no, as its been mentioned before its got nothing to do with dynamics and everything to do with cachet @ cost.

Lexus has the most expensive leases in general and doesn't want to compete with BMW Financial in this place ( as 3 series is the bread and butter of BMW and they will are willing to fight it out while Lexus is honey and Jam for Toyota and they dont wanna sacrifice margins)

That leave MB which typically doesnt really make a lot of money of its C class but may be changing a bit . Expect some segment capture.

The big dog in the rear view mirrors is Audi. They clearly have put their corporate house in order and will aim the A4 to go after the BMW 3'r . How much is Audi willing to sacrifice to fight it out ? That my friends is for all of us to see and enjoy as the leases will get cheaper.



pushrod27pushrod27 - 6/9/2010 2:05:07 PM
+1 Boost
Audi in the rear view mirror??? according to the chart, BMW is selling about 3 times as many 3s as Audi sells A4s in America. the Infiniti G outsells the A4. the real competitor is Lexus, their two-prong IS/ES strategy seems to be doing well for them.


LexusKindaGuy12LexusKindaGuy12 - 6/9/2010 12:41:43 PM
0 Boost
probably going to get deboosted for this, but the ES + IS sales makes Lexus second place. haha


HSCenterconsoleHSCenterconsole - 6/9/2010 1:27:04 PM
+4 Boost
So using your logic, it takes two Lexus' to ALMOST beat one BMW.


AgentOrangeAgentOrange - 6/9/2010 1:34:24 PM
0 Boost
LexusKidaGay12;
OTOH, if we put all the Buick models together it would be the number 1 entry level seller...


pushrod27pushrod27 - 6/9/2010 2:06:21 PM
+5 Boost
it's true, the two car strategy at Lexus seems to be working for them.


LexSucksLexSucks - 6/9/2010 1:47:58 PM
-1 Boost
I owned a 2001 BMW 330i (with Sports Package) and had several newer E90 330i and 335i loaners. The 330i was nice but far from being the performance king that people are making them out to be.

1) The 3-series doesn’t have an LSD (which pretty much makes it 1 wheel drive). The inside wheel spins like crazy during banzai cornering. I once had one wheel on some ice (more than once actually) and the other wheel on dry pavement. The car would only put the power down to the side that the ice was on, spinning like crazy but not going anywhere. I was stuck even though one of the wheels was on dry pavement. A car with a LSD wouldn't have experienced that (like the G37)

2) I thought that my 330i was fast until a stock Honda Prelude was able to run neck-and-neck with it. I got beat by a 2005 V6 accord Coupe BTW.

3) The New 335i is fast but boring. Especially compared to the car I have now (2008 Lancer EVO MR). And for the folks who’s about to attack me for saying that I submit this: http://www.insideline.com/mitsubishi/lancer-evolution/2010/comparison-test-2010-bmw-335i-vs-2010-mitsubishi-lancer-evolution-mr-touring.html




Terry989Terry989 - 6/9/2010 1:46:51 PM
+2 Boost
I have to disagree with PatrickBateman on this one. I drove a BMWs for 20-years straight. I watched their cars slowly change from smallish, light weight, fun to drive cars to luxurious limos. This is what America wants, and so they have been very successful. Along the way though, BMW lost something - - - the right to call themselves the "Ultimate Driving Machine". They are now a luxury brand, and there are cars out there that drive better. The modern 3 serious is a great car that is very well rounded, but I think the E36 was the last of the really fun to drive car - - - a great road feel, very tossable in the corners, predictable on the mountain roads and AutoX course.


LexSucksLexSucks - 6/9/2010 1:53:30 PM
+1 Boost
I agree. After driving a 335i (had it for about a week) I was underwhelmed. When BMW replaced the E36 with the E46... Thats when they stared to get big and heavy, and the E90 even more so. The only BMWs I would even consider now are the "M"s. The rest aren't really barnstomers (even with the powerful engines). BMW is a luxury car company now.


LexSucksLexSucks - 6/9/2010 2:38:53 PM
0 Boost
Not yet. But the "iS" still doesn't have an LSD. Which is unacceptable in such a powerful RWD car. The "iS" enhancements seem to be more about fluff. I doubt that the "iS" 3-series will be that much different. The car really needs a complete tranformation. Oh... They did that, it's called the M3 :)


thstonethstone - 6/9/2010 3:56:57 PM
+2 Boost
RE: "the BASE price of a 328 with a stick, no leather and ZERO options is over $33K. and you'll never find one of those. so according to you the typical camry and accord run well into the $30Ks?"

Not true. There is one in my garage that my wife drives everyday. She demands a manual trans and doesn't want any of the electro-gadgets. Her theory is "All of the bang for the least buck".




enthusiastx11enthusiastx11 - 6/10/2010 2:02:58 AM
+2 Boost
clearly your wife knows how to drive....and appreciates the a car for its engineering...not it's gizmos.


enthusiastx11enthusiastx11 - 6/10/2010 12:25:32 PM
0 Boost
badgewhore:

so you know his wife? or are you just making generalizations about 50% of the population?

also, what, EXACTLY, does the BMW badge stand for? it's got to be a status symbol for a reason. please share.


JB007JB007 - 6/11/2010 4:37:36 AM
+1 Boost
BMW Badge stands for "Bayerische Motoren Werke" which effectively means best cars in their respective class.

AUDI stands for Always Unsatisified Driving It !!

Mercedes Benz stands for over 50s

the rest of the cars on the list should not even be compared in any way to these 3 brands apart from the comparison that they all have 4 wheels.


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