BMW M5s have BECOME SO CHEAP! Should you buy one? - ADME

The quick read

The F10 BMW M5 is now available at a fraction of its original price on the Australian used market.
The used F10 M5's low price point may attract buyers away from new, lower-specification BMW models.
Other luxury car manufacturers may need to reassess their pricing strategies in response to the F10 M5's price drop.
Dealerships should focus on promoting the benefits of purchasing a new vehicle to justify the price premium over used models.

For dealers: The F10 BMW M5's price drop on the Australian used market requires dealers to reassess their pricing and inventory strategies to remain competitive.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

The F10 BMW M5's drastic price drop on the Australian used market poses a significant threat to new car sales, particularly for dealerships relying on high-performance vehicle sales.

Pricing and Margin Pressure

BMW's premium pricing strategy is under attack as the used F10 M5 is now available at a fraction of its original price, which could lead to downward pressure on new car prices and reduced margins for dealers.

The used F10 M5's low price point may also attract buyers who would have otherwise considered purchasing a new, lower-specification BMW model, further eroding new car sales and revenue.

Competitor Response and Market Dynamics

Other luxury car manufacturers, such as Mercedes-AMG and Audi, may need to reassess their pricing strategies in response to the F10 M5's price drop to remain competitive in the Australian market.

Dealerships carrying these competing brands should be prepared to address customer inquiries about the price disparity between new and used high-performance vehicles.

Strategic Response for Dealers

To mitigate the impact of the F10 M5's price drop, dealerships could focus on promoting the benefits of purchasing a new vehicle, such as warranty coverage, latest technology, and personalized service, to justify the price premium over used models.

This week, dealers could take decisive action by reviewing their inventory and pricing strategies to ensure they remain competitive in the market and can effectively respond to customer inquiries about the F10 M5 and other used high-performance vehicles.