Quote:
Originally Posted by SamS
Negative. People are cheap. Even when spending $40K on a car, some people get really annoyed that a $2K navigation is more expensive and has less features than their $200 smart phone. So they refuse to pay. And BMW can't give away Nav "for free" on a $40K car, so they let people pay the premium. When you get into the $70K base price, then there is enough margin to include it for free.
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Navigation systems are a huge money maker for auto manufacturers. They're one of the most profitable options available in a car. BMW could definitely afford to reduce the price, but why would they? The market bears the cost. The argument that there's not enough margin to fit a nav system by default is pretty weak though. It'd require a price bump, but no where near $2k.