German cars have been getting more and more expensive, it would seem. It makes sense, as sad as it is. If you’re selling a lot of something, keep raising the price until people react. It’s basic economics: supply and demand.
German automakers must realize they’re pricing themselves out of some potential sales, however, because they keep offering new entry-level models. Mercedes-Benz, for instance, will sell its new 2014 CLA for around $30,000.
Now BMW has follow suit. At the Detroit Auto Show, BMW unveiled the new entry-level 3 Series: the 320i, which is the last model to hit Stateside from the new 3 Series lineup. Internationally the 320i is powered by either a turbocharged 1.5-liter or a turbocharged 2.0-liter inline four-cylinder gasoline engine. Here in the states, however, we will only receive the 2.0-liter mill.
The Americanized 320i with the 2.0-liter will produce 180 horsepower and 200 pound-feet of torque. If we’re honest, that’s not really much. The new Ford turbocharged 2.0-liter EcoBoost engine produces 240 horses and 270 pound-feet. In terms of acceleration, the 320i will hit 60 from a standstill in 7.1 seconds, and a top speed of 130 mph.
The new 320i gets even more curious when you hear about its fuel economy ratings. With the eight-speed automatic, the 320i will achieve 23 mpg in the city and 33 mpg on the highway, which is exactly the same as the 328i with the eight-speed. But wait, it gets worse. Those 320i fuel economy scores are lower still than the 328i with the manual transmission.
After learning all of that, what might entice someone into the new 320i? Well how about getting the outward appearance of bespoke German luxury without having to pay the price? The 320i will start at $33,445 (not including the $895 destination charge).
We know who will buy the 320i: the person who doesn’t care about power of fuel economy but who simply wants a 3 Series and can’t afford to pay much more than $35,000 for one. This kind of buyer might be onto something, though. How many people really look for the badging when they see a German car pull up? All you really see is someone confidently rolling out of a 3 Series. You don’t think about how little they paid or how puny on power their German luxury sedan might be.
German crap. Leasing is the only way to go. They begin to fall apart after 60K.
Note – Most 3, 5, 6, X and 7 series are leased in US, not bought. A 36 month, 15k mile a year lease on this 320i might be $400/month range, which will attract buyers to this low end model. Purists and performance minded buyers will stick to 328i or the 335i. Or even look elsewhere – new Infiniti Q50, Lexus IS, C class, Cadillac, A4, – there are tons of choices. BMW needs to bring their 2.0 diesel into cars here in US.
A $400-$450 a month payment (post tax) on a brand new BMW (with free maintenance for 3 yrs) is not a bad deal – my cell phone bills are $280 a month alone.