The Price Of Admission? German Luxury Cars Being Priced For The One Percenters

it's a smart pricing strategy. base price that APPEARS to compete with competition draws people in, they love the car and then they end up with $20 to $50k in options.

The article is on point. When I first saw the title my mind went immediately to the new 3 series. Notice in every article written on the car they mention how expensive it's become.
On my last Mercedes I didn't find the options tool bad. I just got it with p2 which did cost some $$$ but there was some value. I cannot imagine optioning anything for 30 k.
Sounds like the gl450 that the writer drove was easily into 550 range which would had at least a few more features.
T

Just wait 3 or 4 years when the car has depreciated 40% or more. You can purchase a 07 S550 for low 30's in Atlanta. 09 can be found for low to mid 40s.

A 5-year old S550 for low 30's is neither cheap nor luxurious anymore. The maintenance and repair bills will leave people with a very sour taste.

Let's think back to what drew us to German luxury cars in the first place... performance, design, safety... and (for the most part), reliability.

All of these qualities can now be found in quality cars from other makes - that sell for considerably less.

What made the German cars unique no longer does. Yes, the premium level Porsches, MB's, BMWs, Audis all excel. But their pricing has put them out of touch for nearly everyone.

Dunno, despite the high prices they manage to keep their market share and grow the sales numbers. German cars may not have the latest gee-wiz gadgets that the Japanese sport, but the cars feel completely differently. For the many people that appreciate that the price difference is worth it.

what's your point? these cars never were for 'everyone.' and sales of the high-end mercedes, bmw, porsche and audi models are at all time highs. sounds like their model and pricing strategies are spot on.

Let's see...German union wages and benefits highest in world, European market is bad with no relief in sight, high technology cost race with
competitors, high development costs to introduce downmarket products
with lower margins, high development costs to develop niche products appealing to small slice of market, increasing government demands for more safety and carbon fuel efficiency, engineering ego (we are the best), high cost of electric and alternate development follies, etc etc
....all of the above account for a high price strategy that may work in the short term but maybe not in long term. When cars drive themselves will everyone need to own a car...just have a service send one over when needed and it goes back from whence it came on its own. In some areas one car could service ten or more people. Cars will become commodities except for the super rich to show off and be play things.

record sales, record profits, continued growth. what, exactly, is the problem? just sour grapes from someone who can't afford the cars.

It is all about options. You can start with a "$28,000" A3 and before you head finishes spinning you are at $40,000 with no problem at all. This is a very German strategy and how they are drawing in big profits for themselves. It does not make sense to look at the basic price as this is not what you will be paying for. And don't forget to add all the dealer add-ons.

The option strategy is a marketing ploy more than a price issue. They do not include options you want/need so you choose them and have no one but yourself to blame. If they were included in the base price the base price would be high and many people wouldn't give cars a look.