The fourth-gen BMW 1 Series is here. If you want to upgrade to a brand-new Bavarian hatchback, you should be aware of a couple of interesting details about the pricing strategy. Here's what the Brits and those living in Continental Europe can expect to see when speccing their new 1 Series. Spoiler alert: it's not good.
This time around, BMW moved fast and updated the configurator for most European markets. Australians, however, have to wait, while those living in North America who have been hoping for a premium compact car remain stuck in Limbo Land.
Although the German marque gave us a few details that hinted at a possible launch in the US and Canada, nothing concrete has happened – for now, at least. We remain hopeful.
First and foremost, let's look at what Germans have to deal with. People living in the "Land of Diversity" and interested in buying the all-new 1 Series have the following options:
118d – €38,200 ($41,499) or €41,600 ($45,193);
120d – €40,500 ($43,998) or €43,900 ($47,691);
120 – €37,900 ($41,173) or €41,300 ($44,867);
M135 xDrive – €56,200 ($61,053).
The more expensive 118d, 120d, and 120 come with the Steptronic Sport seven-speed automatic transmission with paddle shifters installed on the steering column. Also, keep in mind that all the above figures include the value-added tax of 19 percent. That tariff is something nearly anyone who is buying a new car in Europe has to pay and is the main reason why vehicles are generally cheaper in the US, where you only have to deal with sales tax, registration, and annoying dealer markups or useless add-ons.
Photo: BMW
To put that better into perspective, the US-bound 2017 BMW 5 Series had an MSRP of about $52,000 (€47,824), freight included.
Rewinding
Seven years ago (my oh my, how time flies), the all-new 5 Series G30 debuted in Germany with a starting price of around €52,000 ($56,500) for the rear-wheel-drive 520d model.
The 520d xDrive with the Steptronic Sport transmission (similar to the one found in the M135 xDrive) had an initial cost of about €57,000 ($61,936) – only €800 ($869) less than what the 2025 M135 xDrive costs today. Both models are equipped with a four-pot, all-wheel drive, and flappy paddles.
The only difference is the type of dead dinosaur juice that goes in the tank. The M135 xDrive uses gasoline, while the G30 discreetly gulps diesel.
Photo: BMW
However, it's worth noting that spending €57,000 in 2017 would be like parting with €71,160 ($77,335) in 2024. The 2025 BMW M135 xDrive (F70) may cost serious money in Germany, but we must take into account that prices have generally risen by about 25% in the last seven years in the European country.
Besides that, the auto industry went through a couple of serious challenges in 2019 and 2020. Those left a mark. Remember when a base Tesla Model S was a six-figure sedan?
Brands like BMW are also investing in sustainability, the circular economy, and the advancement of their rides. These investments cost money, and the automaker must see a return to satisfy shareholders. Ultimately, BMW is a for-profit company.
But how much money is enough money?
That being said, in 2017, German customers could have bought a rear-wheel-drive BMW 116i (F20 LCI) for around €25,000 ($27,218). Today, the most affordable front-wheel-drive 1 Series starts from €37,900. That's an almost 52 percent increase with no change in engine displacement.
Photo: BMW
We spent the time and configured a fully loaded 2025 M135 xDrive, which some say looks too much like a Ford Fiesta or Kia Ceed. With all the bells and whistles on (including the panoramic roof and the Service Inclusive Plus pack), the hot hatch will set German buyers back €74,399 ($80,998). Wild.
That's more than what Lucid wants for its posh Air Touring or Porsche for its Macan S in the US. The same sum can buy you three used Tesla Model 3 EVs, which is the epitome of a fun commuting appliance.
Second, here's how things look in the UK. In the realm ruled by King Charles III, prospective 2025 BMW 1 Series buyers are faced with the following starting costs:
120 Sport – £31,065 (€36,500 / $39,700);
120 M Sport – £33,065 (€38,849 / $42,256);
M135 xDrive – £43,000 (€50,486 / $54,958).
The Brits don't get to buy a diesel-powered 1 Series (F70).
Photo: BMW
The numbers tell the truth
In 2017, an entry-level, diesel-powered, rear-wheel-drive, right-hand-drive BMW 5 Series had a starting price of £36,025 ($45,989) – only £2,960 ($3,779) more than what the front-wheel-drive 120 M Sport costs today and £6,975 (€8,194 / $8,903) less than the new M135 with xDrive.
As before, £36,025 is £46,519 (€54,652 / $59,393) in today's money, which means the best 2025 BMW 1 Series would be £3,519 (€4,135 / $4,492) cheaper than the luxurious sedan introduced on the market seven years ago.
At the same time, the 2017 BMW 1 Series 5 Door had a starting price of £23,010 (€27,030 / $29,378), which is £8,055 (€9,462 / $10,281) less than what the German marque is asking now for the 120 Sport.
There's no doubt that the new 1 Series has more safety equipment as standard, features some clever new tech (such as in-car gaming), has cleaner engines, and can be more reliable than its predecessor. However, these prices seem too steep. There's quite a considerable jump here, and it makes us wonder if the hatchback will ever land stateside.
Photo: BMW
Such a big price tag will reroute most buyers to more affordable versions that may also come with more equipment, more room, and more power.
No, BMW is not greedy
It remains to be seen whether BMW will incentivize customers to choose the new 1 Series and if those discounts will work. Right now, you'd have to be a die-hard 1 Series fan to choose it.
But you know what's worse? Nobody can even blame the Bavarians for introducing these prices. In the UK, there are six cool hatchback options for new car buyers. Their starting costs are as follows:
Mazda Mazda 3 – £23,955 (€28,139 / $30,589); [in desperate need of a renewal]
VW Golf – £27,035 (€31,759 / $34,517); [just renewed for its eighth generation]
Audi A3 Sportback – £29,515 (€34,672 / $37,683); [recently facelifted]
Toyota Corolla Hatchback – £30,505 (€35,839 / $38,947);
Mercedes-Benz A-Class – £30,720 (€36,093 / $39,222). [updated last year]
The all-new 1 Series fits right in with its on-the-road price of £31,065. Granted, it sits at the top of the ranking. But at least it doesn't have, as some might believe, an outrageous cost. It is expensive, but not absurdly so.
Next time when you look at the classifieds (used car market) and can't understand why the ride of your choice isn't becoming cheaper, just remember how pricey the basic hatchback has become.
Finally, I can't help but wonder: What type of car market does Europe currently have? Neither buyers nor sellers seem to be happy about the situation.
US car buyers, rejoice! Despite the general feeling of gloom, you (still) have it good!
Say to the new BMW 1 Series.
Enlighten the joy of driving with a totally new look.
Mandatory information according to german law ’Pkw-EnVKV’ based on WLTP: energy consumption combined: 6,0-5,3 l/100 km; CO₂ emissions combined: 135-121… pic.twitter.com/OkpLHNwDpE
Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one. Full profile
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