4 cylinder BMW 318i SE £24,050
6 cylinder BMW 325i SE £28,530
Slightly more metal for the block, a couple of pistons, conrods etc. £4,500, or as near as makes no difference.
Why do bigger engines cost so much more to buy?
If you can produce a 318i ES for £22k, i can't see how it takes £10k more to get a 330i SE out the door.
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Because the punter thinks they are getting more!
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There is so much more to it than that, yes the margins for the manufacturers are greater on the bigger engined variants though it is not only the engine that is different, the gearbox, brakes, electronics etc etc are all different on, say, a 330i relative to a 318i.
Yes, back in the day when the difference between two Cortinas was only the size of the holes in the block, the pistons and the final drive ratio then it could be argued that the larger engined one cost no more to make though that argument does not apply today.
In fact where there is little difference in spec between variants with different engine sizes, say 1.25 and 1.4 Fiesta then there ia also little difference in price.
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I think you're being too kind Cheddar. Most of the extra price is because they can, would be my guess.
I remember a pal who worked for Ford telling me years ago that it was very much a fixed cost business. A Fiesta cost about £5000 to build, fully costed. The marginal (variable) cost of making the entire thing was less than £2000, so what price a bigger engine (or the same engine with bigger holes in) and a few other bits?
If you want an even starker illustration of the ability to charge more for "added value" then the power steps are interesting. For years VAG have produced the same engines (first PD then CR) of the same size but with different power outputs from 105-170bhp. The Mercedes 3 litre diesel ditto - 280/320 with 200/240bhp and not much difference except the engine map and the boot badge.
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>> The Mercedes 3 litre diesel ditto - 280/320 with 200/240bhp and not much difference except
>> the engine map and the boot badge.
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The turbos (which may be a bit dearer) and injectors (which are probably the same price) are different.
I think this is one of those things were we really get scammed compared to the US - their entry level Mercs (and BMWs) are all 6 cyl and they don't see the same sort of price differential between engine sizes at all.
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There is a big price difference between the Passat I order (2.0d 170PS) and the lower power/torque version (140PS). But if you look at the specs the cars actually weigh a different amount believe it or not. So there is a difference mechanically. Probably different turbos.
It is said the lower powered one can be remapped to around 170PS but the 170PS will get to 200PS. Indeed VW have a 200PS (ish) 2.0d available... well soon I think. Don't think I will need a remap though.
But there is a difference in these engines and ancillaries. So maybe BMW are the same. The 325i model has a 3.0 petrol engine... and don't get me started on MB engine size vs model.
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You don't really imagine it costs all that much extra to make, do you? It's about perception: four-cylinder BMWs are ten - or at least two - a penny. Those who fancy they know better want a six and are prepared to pay for it. So BMW prices the fours so a rep can have one when he graduates from trainee and feel he's made it (and still makes a healthy margin because a 318 costs scarcely more to make than a Mondeo), and jacks up the sixes to maintain their 'exclusivity'.
Good business, provided your product has the cachet to start with; Rover tried to play the same game but got found out.
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Give me that straight six any day.
Although I wouldn't mind living with an Aston V12.
One day my Premium Bonds WILL get lucky....
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>> Yes, back in the day when the difference between two Cortinas was only the size
>> of the holes in the block, the pistons and the final drive ratio
The old 1100 and 1300 Escorts used the same block. The pistons, con rods and crankshaft were different, as was the gearbox and final drive.
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Actually the 1.6 to 2 ltr Pintos may have been a stroke change rather than bore though you get the point.
Where there is perhaps little difference is the 325i / 330i, both 3ltr 6 cyl (though the spec is different) and the 318i / 320i, both 2ltr 4cyl though while the 318d and 320d are both 2ltr TDs the turbo is, I understand different, likewise of course the 118d and 120d - and the 123d while also being a 2ltr TD has twin turbos, larger brakes inc vented rears etc when, you look at the spec differences the price difference is quite reasonable.
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>> of course the 118d and 120d - and the 123d while also being a 2ltr
>> TD has twin turbos, larger brakes inc vented rears etc when, you look at the
>> spec differences the price difference is quite reasonable.
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"reasonable" is an unfortunate word in this context. It's too overloaded with ideas of fairness and justice, and way too subjective. The cold facts of the marketplace rule, as usual.
The fact is, we don't know the actual cost of the extra engineering that goes into bigger engines, and even if we did it doesn't really matter.
An example, 2.0 litre model A costs 25000. 3 Litre Model B costs 30000.
Model B only actually costs the manufacturer a few hundred pounds extra to make, and he therefore makes a bigger profit on it.
Do we care? No! If the manufacturer makes a bigger profit on a particular car then good luck to them. Consumers choosing between the two cars within their budget care only in weighing the perceived benefit of each car against the cost of its purchase. If model B is worth the 5 grand extra to you, and the manufacturer makes a bigger profit as well then everyone wins.
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You might start to see a swing the other way now especially where the brand has a strong company car presence.
Take your own BMW example. An Alpina D3 Bi-turbo costs almost the same as BMW 330d.
While I'm sure the Alpina can be tuned further the standard 330d has to make more sense as a starting point if you like performance. However, as the D3 is only a four cylinder I'm pretty sure it's 144g/km rating against the 330d's 152 makes a difference to the cost conscious company car driver.
Who knows ? Perhaps we'll see more D3 Bi-turbo badges on the road if this is the case.
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Why do bigger engines cost so much more? - Zero
