BMW i8 Worth $100,000 Price Mark Up?

3 years ago by Inside EVs Staff 19

BMW i8

BMW i8

Supply and Demand. It’s what makes the capitalist economy go round and round. It’s no secret that the first year’s run of BMW i8s are sold out. But here’s the kicker, if you are willing to pay over sticker, they are still available. The question is, how much will they cost you.

Just this month a well heeled prospective buyer was told an i8 was available if he was willing to pay “Market Value.”

“Good morning Mr. X,

Thank you for your interest in our BMW i8. We are scheduled to get our first i8 in September but the information as to build and options is limited to us at this point. To date we have four clients who have given a deposit and you will be the fifth. The deposits at this point are just holding the clients place in line to have the right of refusal or purchase.

However, this BMW will be sold at “Market Value”, not MSRP. In short, the input we are receiving is the selling price of the i8 will be between $50,000.00 to $75,000.00 above MSRP.”

BMW i8

BMW i8

We have also learned that some dealers sold their i8s for as much as 100,000 over sticker, that’s nearly a 75% surcharge. Then there was the very special one-of- a-kind BMW i8 Concours d’Elegance Edition, which was auctioned off for $825,000, nearly $700,000 over sticker last week. This though was sold in a Gooding auction to raise money for a Pebble Beach Charity and can’t really be considered a market indicator.

BMW i8 At Auction

BMW i8 At Auction

The i8 is truly a remarkable sports car. Its exotic looks are matched by its exotic construction, a carbon fiber reinforced plastic body with an aluminum subframe complete with a plug-in hybrid power train capable of 0-60 in 3.8 seconds. It can run up to 23 miles on pure electric mode at speeds up to 75mph.

The front wheels are powered by an electric motor with 131 hp and provides instant off the line torque. The rear wheels are powered a three cylinder 1.5 liter motor putting out 231 hp and 236 lb-ft, making it the most powerful motor of any BMW production motor at 154hp/liter.

Back in April when we test drove the i8 and parked it on Rodeo Drive, people literally swarmed the car, snapping cell phone pics and selfies with it. Driving it hard through the canyons revealed the i8 to be a true sports car.

BMW i8

BMW i8

*Editor’s Note: This post appears on BMWBLOG. Check it out here.

For a full review of our drive of the remarkable and revolutionary i8 read here.

So this brings back to the original topic: why would anyone pay $100,000 over MSRP for the i8?

1. It’s a limited run of a very special car, the demand can readily outstrip the supply. Historically, this is a point at which in a free economy some are willing and able to pay over MSRP for the ability to purchase as vehicle they would not have otherwise gotten at that moment in time.

2. There is no question that the BMW i8 is a truly special car. Add to that the accolades from the automotive press and widely publicized fact that the first year’s run of i8s are sold out in the US and there is the perfect storm for i8’s going substantially over MSRP.

3. Some people just want to have the latest and greatest, at no cost and they enjoy the bragging rights. In this case, money is no object to them and this is just another toy.

But why wouldn’t it make sense to pay so much for the i8?

1. There is no way that the i8 is going to be a limited edition run car. BMWBLOG has been told by a BMW AG representative several months ago that BMW will manufacture as many i8 cars as customers want. That’s not to say there aren’t limitations in the rate of production.

2. The i8 is a incredibly complex gull winged carbon fiber machine. So for the near future, demand will exceed supply.

Without a doubt some BMW Dealerships are shortsighted and choose to sell for what the market will bare. It is normal and not uncommon. Other stores will value long term relationships with their customers and immediate profit is not their long-term strategy.

Only time will tell where the i8 will shake out in all of this, but it is my belief that supply will catch up with demand sometimes after 2015. BMW has invested too much into the new sub-brand BMW i to make the i8 a limited run production car.

Let us know what you think.

Tags: ,

19 responses to "BMW i8 Worth $100,000 Price Mark Up?"

  1. The opportunity to ruin a relationship with a high net worth client seems manifest.

    If prices drop, as they have with every other EV produced, the early buyers who paid substantially over MSRP are probably going to feel like they were taken advantage of, or at least that they made a very poor decision.

    I might pay $135k. But I definitely wouldn’t pay $235k, nearly the cost of a fully optioned Model S P *and* Model X.

    1. Stephen says:

      As I walked past a parking lot the other lunch time I heard this conversation.
      “Is that a new car? How much did you pay?”
      “$19k, it was $14k, but I was overcharged”
      The car in question was a Kia!
      Suckers born every day.

    2. Pagla says:

      Don’t compare this beast to your lame duck Model S commuter car! Phlease!!

      1. EV says:

        Your right, its an insult to compare any car to the Model S, as no car compares and every car is a joke.

    3. Thomas J. Thias says:

      Heh electriccarguestdrive,

      You said:

      “[…]I might pay $135k. But I definitely wouldn’t pay $235k, nearly the cost of a fully optioned~[…]”

      WHAT!

      Somthing tells me you you are clueless, so let me help you.

      The M.S.R.P. is fully $100,000 less then what you infered above-

      The Tesla S P85 kWh Performance, maxed out per the Tesla Web Build It Web Site, M.S.R.P. is $129,970.

      Link Goes To Tesla Design Studio-

      http://www.teslamotors.com/models/design

      It is true that the BMW i8 is sold out after selling only 9 in the USA market in August.

      Their stratagy was to build on demand rather then a full year production run release as GM did with the Stuning Cadillac ELR Extended Range Electric Luxury Coupe.

      The ELR is near one half the M.S.R.P. of the BMW i8 and curently outselling its nearest competitor, the Porsche Panamera S E-Hybrid, 774 Vs 612 in US sales YTD!

      Thus far, Cadillac ELR ERELC has sold through almost half of its 2014MY allocation and sales are on an upword spike!

      Best-

      Thomas J. Thias

      517-749-0532

      Twitter.com/AmazingChevVolt

      1. Nick says:

        He said:
        “… Model S P *and* Model X”

        1. Thomas J. Thias says:

          ……….and he was off by $100,000 to high!

          Best-

          Thomas J. Thias

          517-749-0532

          1. sven says:

            Reading comprehension is not your forte! Math is also not you forte! $130,000 Model S P85 + $105,000 Model X = $235,000 total cost for a Model S P85 *and* a Model X!

            Best-

            Sven Gali

            555-867-5309

            Twitter.com/YouAreClueless

      2. > Somthing tells me you you are clueless, so let me help you.

        That is frequently the case, Thomas.

        Thank you Nick, for your comprehension and kind reply.

        Although I did pay $100k for my Model S, I’m pretty sure I wouldn’t have considered it at $235k either, no matter how fast and pretty it is.

  2. energysf says:

    I certainly hope that the CA EV rebates are not given when people are paying above MSRP. Obviously not needed for those customers. CARB is correct in limiting the rebates for high priced vehicles.

  3. Priusmaniac says:

    The i8 is a scam, it is a thermal engine vehicle not an ev. It is worth peanuts and i would not even give 20000 $ for it.

    1. Trace says:

      Some people buy Prii. Others love cars.

      1. Priusmaniac says:

        The Prius is a thermal engine vehicle as well, but that one got the electrification of cars for the broad public going, so it had some merit. The i8 is just a show scam that pretends to be an electric like the Tesla but it is not even close.

        1. Trace says:

          So cars for “the broader public” should only be made and performance/tech enthusiasts should just flake off without their “show scams”.

          I thought Prius owners being sanctimonious brow beaters was a stereotype. Guess I was wrong.

  4. ffbj says:

    Pretty good argument to show Musk is correct when he questions the true value of dealerships. The value is only for those dealers as they overcharge for the products which they are dealers of.

  5. It really is fascinating to watch. I wonder if anyone will take the time to calculate the value destruction to the BMW brand if $50-$100k markups for the i8 hold for more than a few months.

    At the same time NADA makes the case for the value the dealerships create, a few of their members roll cement trucks up to the village well.

    Tesla will not even have to make the case. It will be made for them by anyone even remotely paying attention.

  6. Ryan says:

    If you like a performance sports car with limited production go buy a used Tesla Roadster for half the MSRP of an i8!

  7. Winfield100 says:

    23 miles on electric. What a joke

  8. John Robert says:

    After a blown fuse on one of two fuel pumps in my 740iL became a “you need a $7,500 engine rebuild” I decided that I had had it with BMW’s. While a 23 mile limit to electric range would get me half way to the dealer, I fear that the battery issues will make this a very expensive gee whiz man toy. The design is marginal at best and the carbon fiber, retro clamshell doors, short life of incredibly expensive batteries, and sub-Tesla performance, this isn’t the must have automobile that designed scarcity has made it 3 times the current non-dealer selling price. I ‘ll take a M4 and have a lot of Cash left for some other toy.