BMW 3-Series defies the money-go-round

The BMW 3 Series. Photo / Supplied

Luxury carmaker BMW is charting its own course through the automotive downturn and will next week introduce the facelifted 3-Series range at prices lower than equivalent current models.

Most carmakers battling the weaker dollar and higher component costs have hiked prices considerably over recent months, but BMW will trot out the 3-Series at around $4000 less than the current car.

The new 320i SE sedan, for example, will start at $68,900 - the outgoing 320i SE has been sitting at $73,000. "Hedging against the dollar's fall has helped, but that won't last forever," said Mark Gilbert, the company's New Zealand managing director.

Gilbert is introducing the new 3-Series under an across-range initative called "OwnerOne," a potential six-year service package aimed at boosting sales and improving residual values.

BMW will include more standard features in the 3-Series, along with an "innovation package" where buyers can bundle items, including satellite-navigation, heated seats and USB interface, for around $1200. The same package would normally cost around $6000.

The company is also pushing fuel efficiency gains across the 3-Series engine range and its lower running costs. The carmaker is acknowledged as the "greenest" of the premium brands.

"It's all about building more value into the product," said Gilbert. "We want to reward new-car customers and keep residual values high.

"A premium carmaker like ourselves has to be seen to be 'premium' in the way it operates. Essentially, what BMW puts in at the front end, customers will get out at the back."

The Owner One programme is an extended service cover from licenced BMW dealers that, for an initial payment of around $600, pushes the current three-year period out to six years.

If the car is sold after four years, for instance, the two years left on the agreement can be transferred to the new owner.

"It's a unique way of improving the residual value of your car, should you decide to sell," said Gilbert.

The 3-Series has long been the backbone of BMW's business in New Zealand.

"But in the current economic climate, any vehicle purchase needs to be a sound investment," he said.

"Buyers are increasingly factoring running costs and residual values into their purchasing decision.

"They are looking beyond the sticker price and realising the need to consider whole-of-life cost of ownership when buying a new or used car."

The 3-Series arrives as new vehicle sales in New Zealand spiral down.

February passenger car registrations of 3795 units were down 28 per cent on January and 38.5 per cent on February 2008.

Commercial vehicle registrations of 1263 were up slighly on January but down 37 per cent on the same month last year.

"One factor causing part of the slowdown is the increase in vehicle prices," said Perry Kerr, the CEO of the Motor Industry Association.

"While registration numbers are down the industry cannot afford to sell vehicles at a loss.

"The overall price adjustment needed to compensate for the weak New Zealand dollar is close to 50 per cent, so there are still quite a number of price increases to come."

Toyota continues to lead car and commercial sales with a February share of 16.5 per cent (832 units).

Ford was second with 12.2 per cent (620) and Mazda jumped into third place with

464 registrations, just pipping Holden with 463. The Toyota Corolla remains the best-selling car followed by the Holden Commodore and Ford Falcon.