BMW wipes out dealerships in Europe

[banrek]

As others have stated previously this will most likely bump up their profits and not trickle down to a reduction in price for the consumer.

Cutting out the middleman will impact the industry since this has been the way to purchase a car for so long but I guess this is what we're heading towards, to everything being purchasable directly from the manufacturer, and pretty much everything online.

Maybe they'll throw us a bone and keep the same prices but as trends show, everything is on the rise so that's not so promising.

[LOW4LYF]

The greedy dealerships put a very bad light on most manufacturers.

Can't wait till all people will treated the same way, all price for all no matter of time and negotiation skills.

It works everywhere else, why not with cars?

Imagine seeing the iPhone for $999 on the Apple Page but the local store try charge you premium because they put some fancy stickers on.

Dealerships are so overdue for a change.

[xlover]

Originally Posted by LOW4LYF

The greedy dealerships put a very bad light on most manufacturers.

Can't wait till all people will treated the same way, all price for all no matter of time and negotiation skills.

It works everywhere else, why not with cars?

Imagine seeing the iPhone for $999 on the Apple Page but the local store try charge you premium because they put some fancy stickers on.

Dealerships are so overdue for a change.

Or imagine your local apple store having a legally protected monopoly on any other apple stores being even located in the local geographic area AND no other retailer can sell apple products to consumers INCLUDING apple itself. And whenever they run low on stock they leverage this monopoly which constrains consumer supply and competition and charge more than the item is worth. (Then say something that insults every one's intelligence like "it's just supply and demand bro")

…is that the type of industry we might be interested in doing business with??? Lol

I am not someone saying let's kill all dealers, but let's let them actually compete including with direct sales from the brand and let the quality dealers rise to the to the challenge and prove their model is worth more to the customer by winning, let the shit ones die.

I am not even going to get into what the franchise model does for allocations and "ordering"

[c1pher]

If the auto industry is going to a subscription model, I guess I’ve just bought my final cars. I’m fine with that choice. I don’t want to make monthly payments for CarPlay, better stereo, or to have the HUD work….or to simply be able to start the car itself.

[yuvimalik74]

Prices will stay strong until supply and demand are in balance again. Dealerships will need to quickly adjust their model to design center for customers to select options. Service centers may be separate and run by manufacturers.

[snareman]

Originally Posted by DocL

I've taken out the wheel/tire insurance on a leased car and it's always paid off in the first year. I've never damaged a wheel, but I have gotten flats and needed new tires. This happened the first week I had my 2017 NSX.

I also buy the roadside tire coverage because once again, a few weeks ago I got new fronts for my M3 at BMW and got a nail in the sidewall. They Replaced it for free.

I suppose it's one of those YMMV sorts of things. Until the cost of repairs keeps exceeding what I would have paid for the insurance personally I'm going to keep skipping it. Thankfully the most tire damage I've had to pay for is $40 to get a nail out of my tire that I just took to the local tire shop.

[TurtleBoy]

Originally Posted by wtwo3

To add to this:

https://www.caranddriver.com/news/a4...o-negotiation/

Ford announcing they're going 100% online and fixed pricing for EVs.

...

They walked that back quick enough, the potential of lawsuits must have sunk in.

https://www.caranddriver.com/news/a4...sales-details/

[DocL]

Originally Posted by snareman

I suppose it's one of those YMMV sorts of things. Until the cost of repairs keeps exceeding what I would have paid for the insurance personally I'm going to keep skipping it. Thankfully the most tire damage I've had to pay for is $40 to get a nail out of my tire that I just took to the local tire shop.

I have only bought those insurance plans on leased cars with super expensive tires and wheels. It has paid for itself with the tires. I have never damaged a wheel fortunately. No I bet I just jinxed myself lol.

[Westside Guy]

Originally Posted by DocL

I have only bought those insurance plans on leased cars with super expensive tires and wheels. It has paid for itself with the tires. I have never damaged a wheel fortunately. No I bet I just jinxed myself lol.

My wife had wheel and tire protection on her old Mini Cooper and drove through a huge pothole that damaged one of the front wheels and the run flat tire as well.

[Limegrntaln]

I just went with my girl, the other day, to order a Model Y Performance. Honestly, the process was extremely seamless. Every model (Except the Plaid models) we're available to test drive. The Tesla Representative was on hand to answer questions, but, ultimately, the cars already had key cards, velcroed onto the center console and you just get in the car, and go.

When we returned from the drive, we ordered her a car. It was seamless, no BS. The representative assisted us with ordering, and what's better about going in, and ordering is, the rep will contact us, if someone cancels with the same spec, we can jump the line, and get the car earlier. The Performance models, don't have much of a lead time, so, she will get it in August, anyway, provided there aren't any unforeseen circumstances.

As far as BMW going to this business model, it's a rough one, for CAs. Tesla started like this, and it's working for them. But for a standard dealership, whos been using the sales model, I dont think its a good idea.

[omasou]

In my area two of the dealers were purchased by large automotive companies, not sure what to call them. They own multiple brands and multiple dealerships of each brand.

I don't bother w/them b/c, prior ownerships had horrible sales and service. I'd only imagine the new owners being large impersonal and formulaic in what they can and cannot do.

So perhaps a good thing dealing w/BMW directly?

Really, hoping hydrogen becomes a reality as I'm not a fan of EVs.

BTW, Ford is taking a direct to consumer approach w/EVs.

https://www.roadandtrack.com/news/a4...o-negotiation/

https://seekingalpha.com/article/451...egic-decisions

[TurtleBoy]

Originally Posted by omasou

Really, hoping hydrogen becomes a reality as I'm not a fan of EVs.

BTW, Ford is taking a direct to consumer approach w/EVs.

https://www.roadandtrack.com/news/a4...o-negotiation/

https://seekingalpha.com/article/451...egic-decisions

I agree but for clarity Hydrogen vehicles are a type of EV but use fuel cells to creat the electricity rather than batteries.

As noted earlier and in your links, the next day Ford walked back his direct to consumer remarks.

[Project_F87]

Originally Posted by cheveux

Aticle: https://observador.pt/2022/05/30/bmw...ios-na-europa/ (IN PORTUGUESE)

A friend of mine is responsible for the BMW website in Portugal had already warned me. BMW is moving towards changing the way it sells cars, to a model identical to Tesla. They are 100% online purchases without interaction with the seller.
What do you think about this? I personally find it ridiculous. I think an investment in a car, with high values, should always be a deal made with human connection, someone we can trust.

For bmw, dealers become agents and salespeople become "car specialists" who only deliver cars.

What do you think?
Will this at least translate into lower prices?

I completely support this model of selling cars. Sadly, a lot of dealerships mark up vehicles like crazy, so if they can sell directly to the customer at the price it is supposed to be at, I am all for it. Dealerships in the USA (especially here in California) have been price gouging for a while now, and it's unfair.

[omasou]

Originally Posted by TurtleBoy

I agree but for clarity Hydrogen vehicles are a type of EV but use fuel cells to creat the electricity rather than batteries.

As noted earlier and in your links, the next day Ford walked back his direct to consumer remarks.

Thanks for the clarifications.

I was thinking more of hydrogen internal combustion engines.

For EVs, I should have said batteries and the weight associated with them.

[10"]

what "human connection"?

the ones where people at dealers just play silly games that nobody wants to play? yeah total pass on that. Straight to consumer is definitely the way forward.

[OUGrad05]

Originally Posted by shawnhayes

I don't own a Tesla for just this reason. I also hate buying a car that doesn't have a local repair shop. So I don't do it unless I have to. For the kind of cars that I like, they're weird and esoteric enough that something goes wrong a lot.

Losing this won't be good.

Shawn

Tesla does have local service centers. BMW will still have local service centers.

[racerbruce]

The elimination of the "sales stealership" business model has already been invented and is available to all....think Carvana, CarMax, TrueCar, Costco, CarsDirect, CarSense, etc, etc, etc

[BMWCCA1]

Originally Posted by OUGrad05

Tesla does have local service centers. BMW will still have local service centers.

Tesla owns theirs. Who will own BMW's and will that still include the over 500 locations they currently have covered by franchised dealers?

[BMWCCA1]

Originally Posted by racerbruce

The elimination of the "sales stealership" business model has already been invented and is available to all....think Carvana, CarMax, TrueCar, Costco, CarsDirect, CarSense, etc, etc, etc

Not to put too fine a point on it, but all of those you mention are dealerships, not manufacturers, or require a dealer to provide the offered pricing. TrueCar makes money selling their services to dealers. Costco relies on agreements with dealers to meet their agreed pricing in exchange for leads generated by the "club". The Clubs simply offer this "service" to get their members to pay that annual fee. You can generally meet or beat those "club" buying offers yourself in a normal market. No dealer is offering any club discounts currently since Costco isn't paying the freight on any of that. Unlike the BMW military incentive which is paid for completely by the manufacturer as long as the dealer has the substantiating documents from ID.Me. TINSTAAFL

[TurtleBoy]

Originally Posted by BMWCCA1

Tesla owns theirs. Who will own BMW's and will that still include the over 500 locations they currently have covered by franchised dealers?

There are no changes being made to the dealership model in the US and likely won’t be until many of us are gone. It is currently not possible for them to sell directly to customers in many states and it will take a huge effort and a lot of time to get that changed. Besides that, dealers generate a great deal of their income from service and warranty work so losing sales may not effect whether a dealer would want to continue.

[willie55912]

Welcome to the rubber stamping of the line up. All the interiors will be the same.....etc. This is one thing that I do not like about my 8. It is an expensive car, and one does not feel special in it when a 2 has the same interior. BMW going to a separate entity for the deposition of trade ins?

[xlover]

Originally Posted by TurtleBoy

There are no changes being made to the dealership model in the US and likely won’t be until many of us are gone. It is currently not possible for them to sell directly to customers in many states and it will take a huge effort and a lot of time to get that changed. Besides that, dealers generate a great deal of their income from service and warranty work so losing sales may not effect whether a dealer would want to continue.

Agree it is going to be brutallly slow unless some kind of kick in the ass of consumers speeds it up.

I personally was surprised all the gouging during the shortages of the last few years didn't encourage consumers to press legislators to open up the markets and loosen the franchise monopolies and allow direct sales.

I think it just shows how little people understand of the actual business model of the car dealer industry and how culturally indoctrinated and resigned we are that a car dealer is an adversary out to screw you.

It will require a bit more of an eye opening kick, Tesla to the general market is still perceived as a niche "special" brand so that has not been enough to shed light on the business model. Maybe if ford follows through with trying to sell electrics differently it will inspire some action.