BMW U.S. July 2017 Sales Figures

[Jason]

BIMMERPOST NEWS

BMW U.S. July 2017 Sales Figures

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Woodcliff Lake, NJ – August 1, 2017… Sales of BMW brand vehicles decreased 14.8 percent in July for a total of 21,965 compared to 25,777 vehicles sold in July 2016. Year-to-date, the BMW brand is down 4.6 percent in the U.S. on sales of 171,051 vehicles compared to 179,213 sold in the first seven months of 2016.

Notable vehicle sales in July include the BMW 4 Series which increased 31.1 percent to 2,866 cars, the BMW 5 Series which increased 12.4 percent to 3,713 vehicles, and the BMW X5 which increased 8.8 percent to 2,986 vehicles.

“Sedans made something of a comeback in July even as the dog days and summer vacations had their effect on the pace of business,” said Bernhard Kuhnt, President and CEO, BMW of North America. “The new BMW 5 Series continues gaining as availability improves. The highly popular BMW X3 is now undergoing model changeover and we are looking forward to the market launch of the all-new model later this year.”

BMW Group Sales

In total, the BMW Group in the U.S. (BMW and MINI combined) reported July sales of 26,363 vehicles, a decrease of 13.7 percent from the 30,551 vehicles sold in the same month a year ago. Year-to-date, BMW Group sales are down 5.5 percent on sales of 197,654 vehicles in the first seven months of 2017 compared to 209,131 in the same period in 2016.

MINI Brand Sales

For July, MINI USA reported 4,398 automobiles sold, a decrease of 7.9 percent from the 4,774 sold in the same month a year ago. Year-to-date, MINI USA reported a total of 26,603 automobiles sold, a decrease of 11.1 percent from 29,918 automobiles sold in the first seven months of 2016.

BMW Pre-Owned Vehicles

In July, BMW Certified Pre-Owned sold 11,857 vehicles, a decrease of 0.2 percent from July 2017
Total BMW Pre-Owned sold 20,956 vehicles, a decrease of 7.8 percent from July 2016.
Total BMW Pre-Owned cars sold year-to-date were 140,607, a 15.7 percent increase from the first seven months of 2016.

MINI Pre-Owned Vehicles

In July, MINI Certified Pre-Owned sold 1,015 vehicles, a decrease of 15.2 percent from July 2016.
Total MINI Pre-Owned sold 2,656 vehicles in July 2017, an increase of 1.0 percent from July 2016.
Total MINI Pre-Owned sales year-to-date were 18,308, a 12.4 percent increase from the first seven months of 2016.

[mookie45]

C'mon BMW let's get some better Residual Values and MF plus incentives have been weak! Wake up BMW!

[CaliE90]

Originally Posted by mookie45

C'mon BMW let's get some better Residual Values and MF plus incentives have been weak! Wake up BMW!

Not sure reducing profit just for the sake of units is the best way to go. It's almost better in my opinion that BMW is not chasing a year-over-year unit goal but rather following an organic sales trend with acceptable incentives.

[firedown31]

Wow a 14.8% drop!. At least if BMW keeps this up then numbers in 2018 won't look as bad!

[mookie45]

Originally Posted by Jz

Not sure reducing profit just for the sake of units is the best way to go. It's almost better in my opinion that BMW is not chasing a year-over-year unit goal but rather following an organic sales trend with acceptable incentives.

Do you have data that indicates a larger profit margin on the fewer vehicles being sold and proof this route is growing the company organically?

[Law]

Looking forward to my monthly dosage of popcorn.

[wdeerfield]

while the 3er sales are down, im curious how many of the 4er sold are the GC. with the SAVs being built in SC, no wonder they are pushing those. cheaper than building in germany and shipping here.

[CaliE90]

Originally Posted by mookie45

Do you have data that indicates a larger profit margin on the fewer vehicles being sold and proof this route is growing the company organically?

Almost all manufacturers are reducing production instead of increasing incentives. It's a reality for the whole industry at the moment.

http://www.autonews.com/article/2017...nda-sales-fall

[InsideMan]

Originally Posted by mookie45

C'mon BMW let's get some better Residual Values and MF plus incentives have been weak! Wake up BMW!

Compared to what?

[mookie45]

Originally Posted by Jz

Almost all manufacturers are reducing production instead of increasing incentives. It's a reality for the whole industry at the moment.

http://www.autonews.com/article/2017...nda-sales-fall

Yes, the article outlines a slumping sales trend across the board, but where does it show recommendation about profits increasing while sales decreasing?

The GM sales operator stated, "We are working hard to protect the residual values of our new products and growing quality retail and commercial sales..." That makes sense and goes back to my original point of BMW needing to archive better RV's for their vehicles.

[Tallicia]

The move to electric/hybrid and better autonomous driving has many waiting for manufacturers to catch up to this demand.

[mookie45]

Originally Posted by InsideMan

Compared to what?

Compared to previous years for sure. Also, this year has been pretty lousy for lease deals to say the least.

[R3dliner]

Higher lease prices on the 17's with no multiple security deposits and lower residuals, obviously sales will tank. I hope BMW recognizes this and go back.

[InsideMan]

Originally Posted by mookie45

Compared to previous years for sure. Also, this year has been pretty lousy for lease deals to say the least.

Give specific examples. A general "they are worse" doesn't mean anything. Reference specific years and months.

A lease "deal" is comprised of BMW rates, residuals, incentives AND dealer participation. Because you can't get the "deal" you are looking for, doesn't mean that deals can't be made.

[InsideMan]

Originally Posted by R3dliner

Higher lease prices on the 17's with no multiple security deposits and lower residuals, obviously sales will tank. I hope BMW recognizes this and go back.

Less than 1% of deals were made with MSDs.

What residuals are you referring to? Can you give specific examples?

[JayPichardo]

The new X3 and 3 series cant arrive soon enough

[bimmer456]

It looks like cars sell better than SAVs

[mookie45]

Originally Posted by InsideMan

Give specific examples. A general "they are worse" doesn't mean anything. Reference specific years and months.

A lease "deal" is comprised of BMW rates, residuals, incentives AND dealer participation. Because you can't get the "deal" you are looking for, doesn't mean that deals can't be made.

Here are comparables of the last 3 years for the most popular BMW, a 3 series, for a 3yr 30K mile lease (didn't have time to look at past 5 years for full analysis).

July 2015
MF = .0013
RV = 65%

July 2016
MF = .00137
RV = 66%

July 2017
MF = .00151
RV = 62%

Clearly BMW rates have worsened, RV plummeted this year, and incentives/dealer participation is dwindling. BMW isn't Porsche. It needs to sell more cars.

[R3dliner]

Originally Posted by InsideMan

Less than 1% of deals were made with MSDs.

What residuals are you referring to? Can you give specific examples?

July 2015
MF = .0013
RV = 65%

July 2016
MF = .00137
RV = 66%

July 2017
MF = .00151
RV = 62%

Clearly BMW rates have worsened, RV plummeted this year, and incentives/dealer participation is dwindling. BMW isn't Porsche. It needs to sell more cars.[/QUOTE]

Bam there you go.
Also my 16 228xi vert has a much better RV than 17 and payments are $150 less.

[R N M]

Besides lower residuals they completely eliminated incentives like Loyalty, UDE, Corporate Fleet etc

[JRobUSC]

Originally Posted by mookie45

C'mon BMW let's get some better Residual Values and MF plus incentives have been weak! Wake up BMW!

Buying sales through inflated residuals and subvented money factors is not sustainable.

Clearly BMW rates have worsened, RV plummeted this year, and incentives/dealer participation is dwindling. BMW isn't Porsche. It needs to sell more cars.

No, they need to sell the right number of cars. Artificially creating sales by lowering transaction prices lowers the resale, especially when the market is flooded with them three years later. It's like getting hit twice.

What you are seeing now is a market correction. And I'm glad it's happening. It's better for the brand long term, even if it means certain buyers jump ship because they can't steal the cars anymore. I'd like to see BMW go back to focusing on building the best cars, not the most cars.

[R N M]

^
That's funny.

Considering they are rolling out a bunch of FWD based models like X1, X2, 1 and 2series etc.

Its all about units no longer being the best.....