[NickyC]

Most new cars now are already ridiculously overpriced, loaded with bloat and things I don't need. Even thinking about adding another 25% on top of what we have right now is insane to think about.

If buying new, Tesla is becoming the only realistic option at this point.

[DrVenture]

Originally Posted by ASAP

a tarriff does not go directly on the retail price of the product but rather the import cost... you would not see a 25% price increase... imho likely what would happen is maybe a 15% increase in cost of which BMW would perhaps have to cover 5%... so maybe a 10% increase in price... but none of us have any idea how BMW does accounting or what their import costs are... point being, you will never see a 25% increase in price related to this

Correct, a tariff is applied to the declared wholesale price. If the car's MSRP is $75K, and the invoice price is 10 -15% less, then 10-15% less than 25%. So, a 21.25 - 22.5% tax (tariff) against MSRP. Whether or not a manufacturer or dealer absorbs any of that remains to be seen. Many have stated that they will not.

Even if the end result were a 15-20% increase in price, that is a hefty tax increase. What could make matters worse is if there are reciprocal tariffs on our exports. That would hit multinational exports hard and hurt profits of many Dow and S&P companies, putting the hurt on people's perceived wealth, I.e. - 401Ks.

You would then not to have to be buying anything to take a solid hit. Retirees would feel quite the pinch. People were pretty upset over inflation that never hit anywhere near those levels, and that was despite the stock market remaining positive. Drops in stock prices and sales is followed very quickly by companies shedding workers. We are at the point where idealism meets reality.

[DrVenture]

Originally Posted by NickyC

Most new cars now are already ridiculously overpriced, loaded with bloat and things I don't need. Even thinking about adding another 25% on top of what we have right now is insane to think about.

If buying new, Tesla is becoming the only realistic option at this point.

Almost as if someone planned it that way.

It is not unrealistic to project 20% increase on many imports, a stock market correction, an upsurge in inflation and a return to higher interest rates. All for the greater good, ya know. Give the people what they want.

[kudos]

Originally Posted by DrVenture

Almost as if someone planned it that way.

It is not unrealistic to project 20% increase on many imports, a stock market correction, an upsurge in inflation and a return to higher interest rates. All for the greater good, ya know. Give the people what they want.

Isn't it interesting that as soon as Elon built a Tesla factory in China that BYD really started taking off?

[Mavus]

Originally Posted by NickyC

Most new cars now are already ridiculously overpriced, loaded with bloat and things I don't need. Even thinking about adding another 25% on top of what we have right now is insane to think about.

If buying new, Tesla is becoming the only realistic option at this point.

no not really … for many that option does not work. I would get Toyota or Mazda if need be but not that pile of crap. There is a reason why Toyota is #1

[mvigod]

I wonder if BMW could sell their cars for MUCH less to BMW NA in order for the tariff applied to be very small. So instead of a 80k invoice make it 20k so the tariff dollar amount is 1/4 of what it would be. then just sell the car from BMW NA (the importer) to the dealers at the "normal" invoice price they would have anyway plus the smaller tariff or portion thereof. Is this a workaround?

[DrVenture]

I don't know if customs would fall for that ruse. But there are many currently seeking workarounds, such as front-loading inventory or new suppliers. Both have additional expenses, such as warehousing and even QC issues. A lot of time/effort is already going in to re-jiggering supply chains - that translates to higher costs, as well. As we saw a few years ago, disrupting supply chains is expensive. As is manufacturing domestically with significantly higher wages/benefits. Maybe automation eliminates some workers, but automation is expensive too. Besides costing blue-collar jobs, it can require more expensive labor for engineering, design, software, energy and repair/maintenance.

[NickyC]

Originally Posted by Mavus

no not really … for many that option does not work. I would get Toyota or Mazda if need be but not that pile of crap. There is a reason why Toyota is #1

I would certainly be open to purchasing a Toyota. They were the last cars I’ve owned prior to my uninterrupted BMW purchases since 1998.

With that being said, which current new Toyota offers the same performance as a G80 CS at half the price?

[DrVenture]

Originally Posted by Mavus

no not really … for many that option does not work. I would get Toyota or Mazda if need be but not that pile of crap. There is a reason why Toyota is #1

True, some people would migrate to lower cost ICE vehicles, Toyotas or Hondas. Hyundai (EV) seems to be the one available domestically that is gaining on Tesla fast.

I believe the stated goal was to help the lower classes. Time will tell if this just ends up being another chapter in the book titled, "The Rich Get Richer".

https://en.wikipedia.org/wiki/Distri...total%20wealth.

The trend is not your friend.