BMW 1-Series Forum (F20) 135i - 1Addicts.com > BIMMERPOST Universal Forums > General BMW News and Cars Discussion > BMW wipes out dealerships in Europe
Post Reply
 
Thread Tools Search this Thread
      05-31-2022, 04:37 AM   #1
cheveux
Second Lieutenant
402
Rep
205
Posts

Drives: 2014 M4
Join Date: May 2018
Location: Portugal

iTrader: (0)

BMW wipes out dealerships in Europe

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?
Appreciate 2
      05-31-2022, 06:50 AM   #2
Tuxedo
Bowties r cool ▶:◀
Tuxedo's Avatar
United_States
1409
Rep
796
Posts

Drives: 09' 128i MT e88, 24'G05 X5 50e
Join Date: Apr 2014
Location: Chicago

iTrader: (0)

Garage List
have you heard of Amazon and the way you buy everything nowadays... knew my BMW sales job was dead the moment Silicon Valley startups have apps to replace me. Franchise rights keeps me around for now.

When automated cars come it's subscription based world so owning a car is obsolete too, I think it's a good thing with more freedom, with car costs more like a utility bill.
Appreciate 1
      05-31-2022, 07:13 AM   #3
BMWCCA1
BMW Owner Since 1971
2257
Rep
1,407
Posts

Drives: 1964 700 Sport Cabriolet
Join Date: Apr 2014
Location: Central Virginia

iTrader: (2)

Garage List
2013 BMW 128i  [10.00]
Plenty here will applaud this development—until they see it in action and try to order a car, or get one fixed!

I grew up visiting a BMW dealership on my bicycle before I was old enough to drive. The owner was a German who sold Porsche and BMW before they really had a US dealer network. When Porsche/VW came to him to discuss taking on their Audi line and dumping BMW, he dumped Porsche instead. Few here will be able to remember when dealerships were owned by the operators who were local to the store and lived in the vicinity. I'd show up on my Schwinn and the owner would take me for rides in the 2002ti he'd just imported, or take me into the shop to see how they worked on the cars and what they looked like from inside and underneath. It was the enthusiasm for the product and the open, friendly nature of the owner that instilled my life-long love for BMW. The only thing similar today is the few BMW motorcycle dealerships under local ownership with the owner in the store. You can't replicate this in an on-line experience. But then there's really nothing left worth replicating in the current BMW Car Dealership model, with very few exceptions. More of the Wal-Marting of America. We will get what we deserve!!
Appreciate 21
Tuxedo1409.00
DocL1930.00
cheveux401.50
Glen e197.50
zx10guy5149.50
M8Bimmer1266.50
Cos270608.50
snareman9050.50
tigermack474.50
Mani5913478.50
Limegrntaln13430.50
Vivek.1366.00
racerbruce3853.50
Altra265.50
M4Tejas773.00
F32Fleet3570.00
P111569.00
      05-31-2022, 07:19 AM   #4
Yeineken
Colonel
Yeineken's Avatar
United_States
1301
Rep
2,093
Posts

Drives: '11 135i M Sport
Join Date: Dec 2013
Location: Delmarva Peninsula

iTrader: (3)

Garage List
'11 135i  [8.20]
'16 Ford Hatchback  [0.00]
'15 X5  [10.00]
IMO this a win for the consumer as we won't have to deal with ridiculous dealer markups and dealers who only order cars with every single option ticked to bring in a higher price tag. Majority of people who care about cars usually custom order their cars and deal with the wait time regardless, so i see no issues with the "Tesla" method.
__________________
Appreciate 9
      05-31-2022, 08:36 AM   #5
DocL
Captain
DocL's Avatar
United_States
1930
Rep
869
Posts

Drives: 2018 M3
Join Date: Jan 2019
Location: Delray Beach

iTrader: (2)

So no more hard sales pitch from the salesperson about the paint protection plan for $900 that they already put on the car? I loved calling them out on that BS.
__________________
2018 F80 M3. YMB/BLK. ZCP. Three Pedals.
"Education will never be as expensive as ignorance."
Appreciate 15
chris7197334.00
Conissah1576.00
M8Bimmer1266.50
BigHunk269.50
Germanauto9701.00
BIGW0RM3150.00
snareman9050.50
Vervain397.50
Mani5913478.50
IM2C2066.50
      05-31-2022, 08:45 AM   #6
Mavus
Colonel
Mavus's Avatar
2028
Rep
2,672
Posts

Drives: E90 335i, F80 zcp
Join Date: Sep 2011
Location: PA

iTrader: (9)

not surprising considering they are using common designs and parts more than ever and decreasing manufacturing cost. High vol high margins by controlling supply and assembly cost. Then they will sell options thru subscription service like heated seats or ambient lighting as an example.

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.

It's all about $$$ grab.
Appreciate 2
M8Bimmer1266.50
Cos270608.50
      05-31-2022, 09:23 AM   #7
nerdogray
Captain
1297
Rep
651
Posts

Drives: 2023 M5 Competition
Join Date: Jul 2018
Location: TN

iTrader: (0)

Anything that hurts Sonic Automotive gets a big thumbs up from me.. even at my own expense.
Appreciate 3
chris7197334.00
F32Fleet3570.00
      05-31-2022, 09:40 AM   #8
happyjack
Captain
happyjack's Avatar
United_States
1657
Rep
922
Posts

Drives: '21 F87 M2C 6MT
Join Date: Nov 2017
Location: old line state

iTrader: (0)

Garage List
Quote:
Originally Posted by Tuxedo View Post
have you heard of Amazon and the way you buy everything nowadays... knew my BMW sales job was dead the moment Silicon Valley startups have apps to replace me. Franchise rights keeps me around for now.

When automated cars come it's subscription based world so owning a car is obsolete too, I think it's a good thing with more freedom, with car costs more like a utility bill.
what about CPO though? half of the bimmers i've owned were CPO, and it's my understanding that dealerships and sales staff make much more per transaction on CPO / used. seems like a win for both sides to simplify the lower margin, new car transactions...especially for high volume models?
__________________

my garage: '23 G05 xDrive40i m-sport; '21 F87 M2C, 6MT; '17 F25 x-drive28i SAV; '15 F55 mini hatch 5-door
retired: '87 E30 MT 'vert; '92 E36 sedan; '99 E36 MT 'vert; '06 E90 x-drive sedan; '07 E83 x-drive30 SAV; '09 E91 x-drive wagon; '12 E89 Z4 MT M-sport; '15 F22 sport line
Appreciate 1
      05-31-2022, 09:58 AM   #9
shawnhayes
Major
1830
Rep
1,315
Posts

Drives: 22M5 CS,23X5E,24M3 CS,24 i4
Join Date: Aug 2015
Location: Virginia

iTrader: (0)

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
Appreciate 1
      05-31-2022, 10:13 AM   #10
wtwo3
Major General
wtwo3's Avatar
17969
Rep
5,484
Posts

Drives: 23 X7 40i; 23 M3; 24 cooper s
Join Date: Aug 2019
Location: IL

iTrader: (0)

Garage List
Quote:
Originally Posted by cheveux View Post
Will this at least translate into lower prices?
No.

In fact, during times when the market is stable, this will result in HIGHER prices for savvy shoppers since this effectively eliminates any sort of negotiating power for the consumer.
__________________
2023 BMW X7 xDrive40i
2023 BMW M3 6MT
2024 Mini Cooper S Convertible

'20 BMW m340i... '20 BMW X5 40i... '16 Infiniti Q50 RS 400... '10 Lexus RX 350... '08 Lexus IS 350... '00 Nissan Maxima... '93 Nissan Maxima
Appreciate 5
M8Bimmer1266.50
Cos270608.50
David701567.00
      05-31-2022, 10:31 AM   #11
skyline408
Major
skyline408's Avatar
1574
Rep
1,251
Posts

Drives: 2023 G80 M3 2022 F95 X5M
Join Date: May 2013
Location: Silicon Valley, CA

iTrader: (1)

I'm all for it.
Appreciate 0
      05-31-2022, 11:02 AM   #12
SteveinArizona
Brigadier General
United_States
3086
Rep
4,210
Posts

Drives: BMW 530e
Join Date: Jul 2016
Location: Greater Phoenix

iTrader: (0)

I have mixed feelings. I have a deposit down on a Lucid Air Pure but I have a good relationship with my local BMW dealership (which is only a couple of miles away) and view that as a BMW advantage. I actually have the IX 50 as my second current choice behind the Lucid (which needs to get its software act together). Now if BMW could only get rid of the ugly (and now obviously useless) front grille.............

Anytime anything goes wrong with my BMW they always say come right in and they have a loaner for me.
Appreciate 0
      05-31-2022, 11:03 AM   #13
KMP259
Enlisted Member
United_States
38
Rep
33
Posts

Drives: 2017 BMW M6 Competition
Join Date: Apr 2021
Location: Gurnee, IL.

iTrader: (0)

Germans don’t believe in sales people....they only like engineers..
Appreciate 2
Cos270608.50
      05-31-2022, 11:11 AM   #14
Efthreeoh
General
United_States
17281
Rep
18,722
Posts

Drives: The E90 + Z4 Coupe & Z3 R'ster
Join Date: May 2012
Location: Virginia

iTrader: (0)

Quote:
Originally Posted by BMWCCA1 View Post
Plenty here will applaud this development—until they see it in action and try to order a car, or get one fixed!

I grew up visiting a BMW dealership on my bicycle before I was old enough to drive. The owner was a German who sold Porsche and BMW before they really had a US dealer network. When Porsche/VW came to him to discuss taking on their Audi line and dumping BMW, he dumped Porsche instead. Few here will be able to remember when dealerships were owned by the operators who were local to the store and lived in the vicinity. I'd show up on my Schwinn and the owner would take me for rides in the 2002ti he'd just imported, or take me into the shop to see how they worked on the cars and what they looked like from inside and underneath. It was the enthusiasm for the product and the open, friendly nature of the owner that instilled my life-long love for BMW. The only thing similar today is the few BMW motorcycle dealerships under local ownership with the owner in the store. You can't replicate this in an on-line experience. But then there's really nothing left worth replicating in the current BMW Car Dealership model, with very few exceptions. More of the Wal-Marting of America. We will get what we deserve!!
100% agree. The Tesla sales model does not scale to an operating vehicle fleet the size that the legacy domestic and foreign manufacturers have in the USA. Dealership are critical to the logistics of supporting the tens of millions of cars each manufacturer has on the roads.
Appreciate 1
      05-31-2022, 11:15 AM   #15
nerdogray
Captain
1297
Rep
651
Posts

Drives: 2023 M5 Competition
Join Date: Jul 2018
Location: TN

iTrader: (0)

I had an SA at the local Sonic-owned BMW handing off information about my M5 to a local wrap installer who had done $5k in damage to a brand new car... and did a horrible job on the wrap after having it over a month. He was supposed to encapsulate everything but ended up just doing cutouts.. and he even installed those horribly on top of deforming the front speakers, leaving door panels hanging off, not reinstalling the rear bumper and leaving it jutting out, etc. Complete con artist that had a network of reach-arounds going with other service providers (like tint). Anyway, let's call my SA "Drew." I managed to pull off my front bumper cover due to a piece of rebar from a curb while backing out of a spot. Took it in to get fixed and suddenly this wrap installer... let's call him "Vinny..." seizes on this opportunity and tries to tell the bank I was the one that caused all the damage (I had to open a dispute to force him to make it right). So how did he find out... and how did he find out so fast? My SA looking out for my best interests... yea. Local dealer is great for service. Service manager even went to bat for me and wrote a letter and signed it stating the wrap installer did the damage. But tack on to that all of the ego and complete unwillingness to follow through or even contact me about getting another M5 or an M8? Yea, no. Drew and friends need to learn some humility and grow a moral backbone. Bank ended up siding with me on the dispute, but these chuckleheads made my new M5 experience a real stressor. And Sonic has a stranglehold on all exotics locally... well ones I can afford anyway. Also had to file a BBB complaint to get my money back for canceled maintenance.

TMI. TL;DR. Sonic sucks and made me hate dealers.
Appreciate 1
Cos270608.50
      05-31-2022, 11:17 AM   #16
unfoundnemo
Colonel
unfoundnemo's Avatar
1909
Rep
2,007
Posts

Drives: 2022 i4 M50
Join Date: Oct 2017
Location: Pennsylvania

iTrader: (0)

Garage List
2022 BMW i4 M50  [0.00]
2022 BMW X7  [0.00]
If we didn't know more about the cars than a vast majority of the CAs out there, I might feel bad...

I'm sure there are more, but I know of maybe 5 good CAs in the US. 2 of which are enthusiasts you could talk to about any generation, and the others actually put in the effort to know some real information.

There are quite a few good SAs out there, though.
__________________
Current: 2022 i4 M50 | 2022 G07 X7
Gone: 2020 F92 M8 | 2020 G07 X7 | 2018 F80 M3 | 2017 F15 X5 | 2016 F16 X6 | 2015 F36 4 series GC
Appreciate 0
      05-31-2022, 11:44 AM   #17
Glen e
Retired from BMWNA
198
Rep
184
Posts

Drives: ‘21 X2 m35i
Join Date: Nov 2020
Location: Fort Lauderdale

iTrader: (0)

Just realize:
There will be no negotiating
You will pay what is on the website
There won’t be anybody to talk to about the product
And did I mention there will be no negotiating?
__________________
Glen
Ft Lauderdale
'23 228i GC
Appreciate 6
wtwo317968.50
cheveux401.50
Limegrntaln13430.50
      05-31-2022, 11:45 AM   #18
p0p
Ninja
152
Rep
136
Posts

Drives: N54 & B58
Join Date: Jan 2022
Location: NOVA

iTrader: (0)

Garage List
Sad but it's already like this. What you see online is what you're going to pay.
Even CPO cars. When I picked up my f30 last October; I paid what was listed, but had to fight just to get $500 off because of BMW Loyalty program (done at financing)

A dealer in PA would not even give me $100 off, even though I would've had to drive 4hrs to pick the car up.

The good old days of getting $10+K off sticker is gone.
When I got the X1 (2018) for the wife they gave me 12k off sticker.
I live in the DMV and there are like 7 dealership within a 50miles radius. So they all fight to keep customers and offer good deals like that. But now no more with this new way.
Appreciate 0
      05-31-2022, 11:55 AM   #19
ScullyD
Senior 1Addict
ScullyD's Avatar
No_Country
5161
Rep
2,426
Posts

Drives: BMW iX, Porsche GT4 RS
Join Date: Jan 2008
Location: NJ

iTrader: (0)

Garage List
2022 M5 CS  [0.00]
2022 BMW iX  [0.00]
Quote:
Originally Posted by cheveux View Post
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?
The dealership model is extremely archaic, and I don't think you need human interaction to close a car deal. The trust i have is in BMW as a brand.

Now some of the sales people i work with are amazing ambassadors of that brand and I think BMW needs to recognize those people and make them part of the corporate model. Those people do a great job of bringing people into the brand and keeping them there.

There are also BMW sales people who just look at people as a transaction, and they aren't great ambassadors of the brand at all.
Appreciate 4
chris7197334.00
Cos270608.50
ntg442888.50
tigermack474.50
      05-31-2022, 11:57 AM   #20
ScullyD
Senior 1Addict
ScullyD's Avatar
No_Country
5161
Rep
2,426
Posts

Drives: BMW iX, Porsche GT4 RS
Join Date: Jan 2008
Location: NJ

iTrader: (0)

Garage List
2022 M5 CS  [0.00]
2022 BMW iX  [0.00]
Quote:
Originally Posted by Glen e View Post
Just realize:
There will be no negotiating
You will pay what is on the website
There won’t be anybody to talk to about the product
And did I mention there will be no negotiating?
When have you negotiated in the past 5-10 years for anything thats actually worth what its list price says? Cars worth buying have always gone for MSRP. Cars that get $10k discounts are actually worth even less than that $10k discount in the end.

The model of getting a discount on a car is gone, but hopefully that also leads to more products that people want to pay for/own as opposed to things dealers discount cause no one really wants.
Appreciate 5
RM72892.50
chris7197334.00
Cos270608.50
tigermack474.50
OUGrad05525.00
      05-31-2022, 12:15 PM   #21
E_R_S_M4_Comp
Second Lieutenant
170
Rep
234
Posts

Drives: 2018 M3
Join Date: Oct 2019
Location: Huntsville, Alabama

iTrader: (0)

Quote:
Originally Posted by cheveux View Post
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?
Given my recent experiences with the local dealership, I would welcome not having to deal with their sales people.
__________________
-2022 G82 M4 Comp Xdrive: Portimao Blue, Fjord Int., P.A.P, Exec.Pkg, Laser lts., Carbon Fiber Ext., M Performance Rear Spoiler
-2018 F80 M3 Fully Loaded
-2011 F10 550i M-Sport
-2006 Saleen S281 Supercharged
Appreciate 4
nerdogray1296.50
BigHunk269.50
chris7197334.00
      05-31-2022, 12:34 PM   #22
M8Bimmer
Not a good Canadian sheep!
M8Bimmer's Avatar
1267
Rep
1,104
Posts

Drives: BMW M8 Competition
Join Date: Dec 2021
Location: Ontario Canada

iTrader: (0)

I like the human touch. I can always walk away if they are jerks. My first and only BMW purchase went quite well. I saved $8k with a Salesman.
Yes some are assholes but those are the ones you DON'T give the sale too.
I guess I'm just on the fence on this somewhat but lean towards live interaction.
old school way I guess.
I bet BMW wants to go direct....greedy SOB's
Appreciate 0
Post Reply

Bookmarks


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 04:46 AM.




1addicts
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST