Why are Audi cars so cheap compared to respective BMW & MB models in terms of price?

It's very simple... when you are the leader and sell the most cars you can charge the most, when you are playing catch up you need to compete on price so you must charge less.

For exmple there are MANY watches every bit as well made or BETTER made then Rolex but none can charge the premium that Rolex does. Rolex has the name and the rep and they can charge for it. Likewise BMW and Benz has the names and the rep, Audi does not so they must charge less.

Simple economics.

TVT01: actually lately most Audis have been contracted at a higher price than BMW; and this even in the States.
I just read an article not long ago that profits were down on the sale of each BMW model.

Audi follows VW Philosophy….making cars for the people by the people ---Why does vw/audi treat it’s employee’s well with pay and compensation and not pass it off to the customer, it is called GOOD Business. They don’t NEED to OVER PRICE their cars if it isn’t necessary. Maybe your GODS at BMW can take a lesson.

The price is cheaper you probably have several reasons, here are some:

1. Better control on the R&D and cost perspectives. Audi can disperse these costs via Lamborghini, Seat, Skoda, VW, Bentley. BMW does not have those resources and must bear the brunt fully. BMW spend a lot of F1 without an apparent direct flow of technology back to the consumer. Audi as a philosophy must race to bring innovation back to the consumer, a direct link. So in Audi’s case it is a R&D expense, BMW it is more of a liability.
2. Parts and dealer infrastructure. Audi has an upper edge here too parts and source are similar in many cases to sister brands, the lower the total parts needed on hand for multiple lines the easier it is to contain costs and maintain stock of parts. Audi also uses VW parts distribution network, which is far larger and more efficient than BMW.’s. New VW and Audi arrive on the same ships as well also saving shipment costs..
3. Profit margin, Due to BMW’s inability to offset costs through use of multiple nameplates they must charge more to recoup the inherent costs.
4. Mass purchasing, VW, Audi, Skoda, Seat, Bentley, Lamborghini, and Bugatti total purchasing power dwarfs BMW. As we all know the bigger the purchase of whatever the lower the price per unit.
Advertising, BMW advertises a lot, Audi is not blanketing the globe with commercial and magazine ads. Theirs seem to be more selectively placed over all.

How about the fact no would buy Audi's if they were not cheaper. Who would pay more for crap? Thats why BMW rules followed by MB

BMWRocks - How does that big head of your fit inside your car? You guys are so stuck on yourselves.

RacerRX: I happen to work for BMW N.A and we get compensated very well with 100% fully paid benefits. Don't you think Audi would increase the prices for their vehicles if they knew they had a guaranteed buyers for them? They are cheaper to be more competitive in the market.

BavarianMotorrad - Nice benefits package! I know GM pays about $2000 a car to cover their healthcare cost. I wonder how much BMW is? Audi has no problem clearing the lots. BMW has done an excellent job creating demand for their marquee in the USA. Their only real issue is that Audi may over take them outside the US.

Mentioned above, but worth repeating...
BMW has a large market share. They can stand to increase the margains without a large risk of losing many sales. Audi doesn't have such a market share. If they happen to raise prices and they lose the same number of sales that BMW might with the same increase, that affects them much harder.

This new Autospies format -- where lame users can copy 001's format of posing misleading questions as provocative stories -- is really funny.

Audi is not cheaper than BMW in the US. Do the math, option for option.

crackityjones,

The new format allows us to have our news AND user news/opinions/etc.

Unlike other sites, our number one priority are our readers.

And always will be.

001

You have a great site because the articles you post are useful. When the articles posted by users are misleading or just plain wrong, the usefulness of your site goes down. It's your site, and your decision, of course.

BMWRocks - You must be a kid. Really. How old are you?
Your ignorance is apparent from your postings.

BavarianMotorrad--that is a cool package.


But let me get this staright, because BMW decides to keep their profit margin up, and getting people to pay more for a BRAND, means that it is better.
RIGHT, RIIIIIIGGGHHHHHHHHTT.

Do you also get a flex day?

ExxonMobible also manages to sell more fuel and keep its margins up. I guess that is the bes gas to use too.

BMW and Mercedes have been around for awhile. They have the image and the customers willing to pay for image. They can charge prestige prices.

Audi is fairly new and has to play it slowly. Just like Lexus in the late 1980s.

PlanoA4 and Courtstone,

Looks like I hit a nerve. Here is another one. Audi is cheap and lame. Ha!

The only answer is that AUDI IS CHEAP!!!! and remember that a shiny interior doesnt always b the best!

Again some dumb comments from BMW lovers. Is an Audi S8 cheap? I bet you would be very happy if you had one.

If BMW lovers weren't scared of the coupe that is happening, there wouldn't be such stupid comments. BUT THEY FEAR THE TRUTH.

What gets me is the conradiction.

BM-Lovers---"AUDI is cheaper and for people who cant' afford a BMW"

What about the RS4?

BM-Lovers---"Well the M3 is going to be just as fast as the RS4 and probably cheaper"

So you point is what again.....
Are you saying you can't afford the RS4?

BM-Lovers---"Well the dealer told me that I will look better in the BMW--he said it is the ulitmate driving machine--, and I feel good paying the inflated price..." the dealer just sold you this dream, so he could keep up the lease payments on his AUDI..

I also have this bridge in Brooklyn for sale, I can give it to you for more then you should pay for it, just let me know!!!!

GermanNut what is with you and all of these discussions about Audis vs. BMW. If you don't like your Audi just sell it guy. On this topic, there is one reason why Audis are cheaper then Bimmers. This is because BMW are regarded as superior to Audis by many people. So for Audi to make itself better than BMW it has to get more people to buy its cars. People will buy the Audis over the BMWs because they offer the same thing for less. Audi has to sell cheaper because they don't have the BMW image and reputation.
Now the cheaper price is good because Audis are really good cars.

I think this story is about 2 years old. Go into your BMW dealer and ask for a quote for a 750 lease, 550 lease, vs a A6 or A8. Then get a "real" quote on an Audi. The Audi is more. Audi use to "buy" market share. I remember selling the 2004 2.7T S Line for $399 a month with $0 out of pocket. A A6 Lease is easily well over $600 a month and most leases for the 3.2 is in the 7s to 8s. That is for the 3.2 the 530 =

I remember hearing in the 90's "I could buy a MB or BMW for that!" That has changed to where people are willing to pay more. The other day I sold a A6 4.2 to a person that had a done deal on the 550 BMW and the payment was $150 less a month more then the Audi. He went with the A6 (even though he was a little mad that the A6 was so much) He just wanted what he felt was the best.

The A6 4.2 FSI S-Line is a good looking car.

Have you seen a Payment on the A8L? The only way you get the payment under $1,300 is to get a base car and put a lot of cap reduction. Most of the A8's we sell is into the high 80k to 90k range. The $120,000 to 130k A8 6.0 outsells the BMW and MB combined internationaly.

The RS4 is thousands more then the BMW. The S8 and S6 will be closer to 100K and we have several deposits on both. The R8 will be big bucks and is not out for a long time and we already have a waiting list. The Q7 is more then the MMB or X5 on a lease. Most people in the USA lease and Audi charges high money factors on all these cars.

Yes the Audi is a better value but I guess you know that GermanNut. That is why you have this stupid post.

BMWrocks- you are the perfect example of what a BMW idiot is. Have you said one smart thing in your life? I can picture you in your 318 with your driving gloves rocking out to The Fixx. BMW ROCKS DUDE

Let me post your reply - "Audi sucks and your a menie but I can't stop talking about Audi!

blah blah blah quattro vs RWD I can't drive so i think RWD is better"

blah blah real cars don't need Turbo (that was before BMW coppied Audi and came out with the turbo 3
blah blah blah "

blah blah blah I am living in the 90's when Audi was not there to make my life so sad like they are today.

Blah blah if I don't post stupid things all the dime Audi will continue to improve in the USA and overtake my BMW brand and I will not be as cool as I think I am.

or something like that

iamevilhomer, bmw rocks doesn't have a 318.

he has a 316 compact.

"laugh at his expense"

well at least that's what i imagine him to drive.
and you are so right about how his mind goes

Agree with Iamevil and Logical...recently went shopping, the A8 lease is more than a 750il, with lease prices so low these days, even the valet parker drives a Bimmer in LA.

Diablo69 - a good example is the Toyota Prius

People pay big bucks to drive a cheep Toyota because Hollywood drives one. The other hybrids don't do as well ie.. Honda Civic

Huu76 - I love how the envirowackos moved to CO2 what happened to the old days when I couldn't use airspray and eat styrofom hambergers? MB and Audi have great diesels that have almost 0 co2 . The MB idea that we get this year will have a uria tank.

You can drive your 2 lb car with fake numbers for the hybrids

http://www.usatoday.com/money/autos/2004-06-10-diesel-vs-hybrid_x.htm

and cars that are decigned to last under 100k

I don't know how se got on this subject but go to Youtube and look up 800 mile A8

Diesel fuel takes less to refine and I would take a 45 mpg A4 or A3 anyday We are less then 60 days from having low sulfer in the USA and we can get the great cars

BABY