"Lee's Not-So-Deal of the Week - BMW X3" Edmunds Daily

Lee's Not-So-Deal of the Week - BMW X3

Each Thursday I post my deal of the week, a vehicle that represents a great value for the consumer. In order to get my nod as a deal of the week, it must have a great finance or lease rate or perhaps has a large amount of cash incentives. Today, though, I want to make note of a vehicle that is just the opposite.

The BMW X3 has had mixed reviews, and sales success, ever since it was introduced for the 2004 model year. Much has been written about the too harsh of a ride, less than premium interior and exterior and a price that can take off like a rocket when you add some desirable options. Almost from the start, the X3 was incentivized with low lease and finance rates, and the occasional dealer cash. Those incentives, and a buying public that generally drools over anything with the blue and white roundel, have helped keep the X3 relevant in the marketplace.

However, the current X3 is reaching the sunset of its model run, with an all-new X3 coming out next year. Most automakers, when faced with a vehicle an impending redesign, will pile on incentives on the current model to help clear out the old, in order to make way for the new. Manufacturers also tend to add incentives to older models since they often have to compete with newer models, from other manufacturers, that have been introduced since that model's introduction. The current X3 is now facing new competition from the likes of the Audi Q5, Volvo XC60, all-new Lexus RX350 and the upcoming Cadillac SRX. Not to mention existing models such as the Acura RDX, Infiniti EX35 and Land Rover LR2. Much to the dismay of BMW, several of these new vehicles have starting prices that are as much as $6000 less than the X3.

Faced with this new competition, what has BMW decided to do? Offer a great lease rate? No. Offer cut-rate financing? No. Offer loads of cash incentives? No. Instead, they are cutting production in an effort to keep inventories from becoming bloated due to slow sales.

From a bottom-line business standpoint, it makes sense. BMW doesn't have to spend money incentivizing a model that is going to be replaced. But from a consumer standpoint, low inventories and no significant incentives means that the X3 will continue to be an expensive alternative to the newer, more modern and lower priced competition.

If the X3 still interests you, click here for more model info.