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  #1  
Old 03-20-2020, 12:22 PM
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Jon Shafer Jon Shafer is offline
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BMW of North America COVID-19 ANNOUNCEMENT **Important**




Never in my wildest dreams could I ever imagine what is playing out right now before my very eyes.

BMW of North America is one of the truly great Corporations of the World, and they/we are committed to to seeing customers through the COVID-19 crisis.

While the factories of Europe are shutting down, the Spartanburg South Carolina plant remains open, at least for the time being. In many areas, BMW dealerships will remain open for business, albeit on a limited capacity for essential services.

I am still working with customers, taking orders. Much to my surprise there has been somewhat of a buying frenzy this week. Hopefully, when we get past the initial surge some semblance of normalcy will return.

In the meantime, I pray for everyone's health and personal safety.

On the retail front, and in recognition of the challenges that current BMWFS lease customers are facing, BMWFS will be offering courtesy lease extensions to those who are home-bound and whose leases are imminently maturing. Simply contact Customer Relations (800)578-5000 and our representatives will set up an extension for you.

For new car buyers, BMWFS is extended the first payment due date to 90 days. Hopefully an extra 60 days will see us all returning to work and back to business as usual. This applies to traditional/conventional retail finance contracts only, there is no provision as such for lease customers.


As always, I am committed to serving the Bimmerfest community. Godspeed to you and your families in this harrowing period.


Warmest Regards,
~Jonathan Shafer, Bimmerfest Founder



P.S. If I can personally assist anyone with anything, or if you just need support, please email me [email protected].



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  #2  
Old 03-20-2020, 12:54 PM
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Forgot to mention the full details, as what’s hiding in the trunk, an extra $1,000 for the customer

“Relief package

For March, dealers will receive a $1,000 payout on every new vehicle sold and a $500 bonus for every loaner retailed. The CPO sales bonus is also guaranteed for this month.

Through June 20, retailers will receive the 5 percent Added Value Program bonus related to meeting training, sales loyalty and service effectiveness goals.

Dealer payments, including principal and interest, on floorplans, capital loans, mortgages and other commercial borrowing will be deferred for 90 days, if requested by the dealer.”

Only a mater of time before the 7% ED discount returns, as this is just the beginning of incentives.
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  #3  
Old 03-20-2020, 12:55 PM
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Quote:
Originally Posted by Ibiza View Post
Forgot to mention the full details, as what’s hiding in the trunk, an extra $1,000 for the customer

“Relief package

For March, dealers will receive a $1,000 payout on every new vehicle sold and a $500 bonus for every loaner retailed. The CPO sales bonus is also guaranteed for this month.

Through June 20, retailers will receive the 5 percent Added Value Program bonus related to meeting training, sales loyalty and service effectiveness goals.

Dealer payments, including principal and interest, on floorplans, capital loans, mortgages and other commercial borrowing will be deferred for 90 days, if requested by the dealer.”

Only a mater of time before the 7% ED discount returns, as this is just the beginning of incentives.

That wasn't really intended a part of my message.


More focused on assistance rather than marketing.


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Old 03-20-2020, 04:02 PM
DougDogs DougDogs is offline
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Spartenburg shutting down on 4/3 (no more motors??) ramping down starts this weekend.

Same with all the Michelin plants all over the SC upstate.
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  #5  
Old 03-20-2020, 04:39 PM
bottlecap bottlecap is offline
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Quote:
Originally Posted by Ibiza View Post
Forgot to mention the full details, as what’s hiding in the trunk, an extra $1,000 for the customer

“Relief package

For March, dealers will receive a $1,000 payout on every new vehicle sold and a $500 bonus for every loaner retailed. The CPO sales bonus is also guaranteed for this month.

Through June 20, retailers will receive the 5 percent Added Value Program bonus related to meeting training, sales loyalty and service effectiveness goals.

Dealer payments, including principal and interest, on floorplans, capital loans, mortgages and other commercial borrowing will be deferred for 90 days, if requested by the dealer.”

Only a mater of time before the 7% ED discount returns, as this is just the beginning of incentives.
Doesn't feel right to go after that trunk money when you hear on Reddit of dealers having to let people go during this time.
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Old 03-20-2020, 04:59 PM
1968BMW2800 1968BMW2800 is offline
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Doesn't feel right to go after that trunk money when you hear on Reddit of dealers having to let people go during this time.
How about this?

My mantra is: The customer gives the dealer an opportunity to sell a car. What the dealer does with that opportunity is up to the dealer, with a willing buyer and a willing selling free to do whatever they feel is right to make a deal.

We believe that the 5% AVP is there for each deal, plus the $1K extra. On a $60K BMW, that's $4K. Not a lot, but if flooring costs are reduced/eliminated and the car comes out of dealer inventory, that's some benefit for the dealer. Also, we don't know what additional stair steps or other incentives might be in play for the dealer. They aren't telling us everything, nor should they. Thus, if it matters to a customer, the only way a customer can discover the bottom is to test it. Good times or bad. That's the marketplace.

On my last deal the Sales Manager told me straight up it would be $500 over invoice minus incentives on an ordered car. He said volume was lower than it was three years ago when I received a more aggressive deal. The dealer just didn't have as many deals to use to make up for the skinny margin on my deal. Incentives took me nicely back of invoice, the service and delivery were outstanding and I'm pleased with the car and the deal.

Each situation is unique. And, after grinding out a great deal, there is nothing to prevent a grateful customer from slipping a $100 gift card to a helpful CA. My wife has done this many times to atone for the blood on her husband's greedy hands.
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Old 03-20-2020, 05:06 PM
1968BMW2800 1968BMW2800 is offline
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And, after grinding out a great deal, there is nothing to prevent a grateful customer from slipping a $100 gift card to a helpful CA. My wife has done this many times to atone for the blood on her husband's greedy hands.
Oh, and I'm washing those greedy hands a lot more frequently these days. Hope everyone else is as well. Flatten the Curve!!!
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  #8  
Old 03-20-2020, 05:46 PM
bottlecap bottlecap is offline
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Originally Posted by 1968BMW2800 View Post
How about this?

My mantra is: The customer gives the dealer an opportunity to sell a car. What the dealer does with that opportunity is up to the dealer, with a willing buyer and a willing selling free to do whatever they feel is right to make a deal.

We believe that the 5% AVP is there for each deal, plus the $1K extra. On a $60K BMW, that's $4K. Not a lot, but if flooring costs are reduced/eliminated and the car comes out of dealer inventory, that's some benefit for the dealer. Also, we don't know what additional stair steps or other incentives might be in play for the dealer. They aren't telling us everything, nor should they. Thus, if it matters to a customer, the only way a customer can discover the bottom is to test it. Good times or bad. That's the marketplace.

On my last deal the Sales Manager told me straight up it would be $500 over invoice minus incentives on an ordered car. He said volume was lower than it was three years ago when I received a more aggressive deal. The dealer just didn't have as many deals to use to make up for the skinny margin on my deal. Incentives took me nicely back of invoice, the service and delivery were outstanding and I'm pleased with the car and the deal.

Each situation is unique. And, after grinding out a great deal, there is nothing to prevent a grateful customer from slipping a $100 gift card to a helpful CA. My wife has done this many times to atone for the blood on her husband's greedy hands.
Ok, i'm with you on this, every deal is unique.
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  #9  
Old 03-20-2020, 05:50 PM
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Jon Shafer Jon Shafer is offline
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Originally Posted by bottlecap View Post
Doesn't feel right to go after that trunk money when you hear on Reddit of dealers having to let people go during this time.

The purpose of it is an extreme action in effort to prevent large numbers of dealers from GOING BROKE.

It was not presented as a consumer incentive..

Car buyers need to consider who is going to be around to take care of them after the sale..




.
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Old 03-20-2020, 06:26 PM
1968BMW2800 1968BMW2800 is offline
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Originally Posted by Jon Shafer View Post
The purpose of it is an extreme action in effort to prevent large numbers of dealers from GOING BROKE.

It was not presented as a consumer incentive..

Car buyers need to consider who is going to be around to take care of them after the sale..




.
Right.

In these challenging times our entire nation (and most of the world) is undergoing a stress test the likes of which we have not seen in our lifetimes. Paradigms will shift.

One reflects upon all the capital that was used for stock buybacks and dividend increases and executive compensation boosts over the past few years and is moved to muse about how different things might be if there were more reserves. But that's not how our economy functions. We will find out how solid things are, or aren't. Just as Katrina revealed the large numbers of people who had absolutely zero resources, we will soon learn just how many people, and businesses, operate month-to-month on the thinnest of margins.

We know most of the EU is living on funny money, with the European Central Bank having kept many economies on life support for years. Perhaps the US Fed has been playing the same game.

Turns out the entire world has been enjoying the equivalent of subvented leases, wherein price and value are wildly disconnected.

It's gonna get weird. And those lower on the food chain are gonna get hit really, really hard.

Last edited by 1968BMW2800; 03-20-2020 at 06:27 PM.
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  #11  
Old 03-21-2020, 06:52 AM
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Quote:
Originally Posted by Jon Shafer View Post
The purpose of it is an extreme action in effort to prevent large numbers of dealers from GOING BROKE.

It was not presented as a consumer incentive..

Car buyers need to consider who is going to be around to take care of them after the sale..




.
A majority of the dealerships are owned by large corporations who have devalued customer service. This will be a wake up call aka slap in the face. Servicing the car after the sale is BMW's problem. Maybe there are too many Centers as Darwin selection pressure force the closure of the weaker performing Centers?

It's a sad situation, but I have foreseen a significant correction occurring as financial markets have been way overvalued for quit some.

BMW cutting back customer programs such as ED, fleet discount, etc., will shift the paradigm back to the customer.
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Last edited by Ibiza; 03-21-2020 at 06:56 AM.
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  #12  
Old 03-21-2020, 07:07 AM
SteveinArizona SteveinArizona is online now
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Quote:
Originally Posted by Jon Shafer View Post
The purpose of it is an extreme action in effort to prevent large numbers of dealers from GOING BROKE.

It was not presented as a consumer incentive..

Car buyers need to consider who is going to be around to take care of them after the sale..




.
I completely agree. I don't try to wring the last dollar out of my deals. I just want to be treated fairly and to treat others fairly.
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Old 03-21-2020, 12:31 PM
ctorrey ctorrey is online now
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Interesting stuff! I have a 3 series coming off lease at the end of May. Plan was to order an X3 M40i, but if the plant is shutting down in April, no chance of ordering one for a late May delivery. Assuming BMWFS will allow lease extensions for this scenario, right?
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  #14  
Old 03-21-2020, 12:55 PM
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Originally Posted by ctorrey View Post
Interesting stuff! I have a 3 series coming off lease at the end of May. Plan was to order an X3 M40i, but if the plant is shutting down in April, no chance of ordering one for a late May delivery. Assuming BMWFS will allow lease extensions for this scenario, right?
Sounds right. I will encourage you to contact BMWFS customer service now to establish a dialog. (800) 578-5000.
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Old 05-08-2020, 11:51 AM
BHC BHC is offline
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Datapoint...my lease is expiring mid May. I just called BMW and they said they can only offer 1 month extension at 50% discount. I thought people were reporting a free 1 month extension?

The problem is I don't even want the car. It's been sitting parked for 2 months and I've had to keep paying insurance on a car that I don't need. However, there is no dealer in Southern California that is willing to take the lease return unless it's an exchange to get into a new car. I understand the pandemic situation sucks for everyone but my contractual obligation is completed with the lease. I'm basically "penalized" by having to pay 50% of a lease payment + continued insurance on a fulfilled lease contract. Any ideas?
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Old 05-08-2020, 12:01 PM
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Quote:
Originally Posted by BHC View Post
Datapoint...my lease is expiring mid May. I just called BMW and they said they can only offer 1 month extension at 50% discount. I thought people were reporting a free 1 month extension?

The problem is I don't even want the car. It's been sitting parked for 2 months and I've had to keep paying insurance on a car that I don't need. However, there is no dealer in Southern California that is willing to take the lease return unless it's an exchange to get into a new car. I understand the pandemic situation sucks for everyone but my contractual obligation is completed with the lease. I'm basically "penalized" by having to pay 50% of a lease payment + continued insurance on a fulfilled lease contract. Any ideas?

It has been discussed in this thread: https://www.bimmerfest.com/forums/sh....php?t=1378889

The 1st month has been at 50% due to the closure of the auction sites and dealership lots filling up. Did you attempt to return to the originating dealership? Contract terminates at the end lease agreement, as BMWFS can't impose additional terms to extend the lease. I can smell a class action law suit in the future.
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Old 05-08-2020, 12:31 PM
BHC BHC is offline
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Originally Posted by Ibiza View Post
It has been discussed in this thread: https://www.bimmerfest.com/forums/sh....php?t=1378889

The 1st month has been at 50% due to the closure of the auction sites and dealership lots filling up. Did you attempt to return to the originating dealership? Contract terminates at the end lease agreement, as BMWFS can't impose additional terms to extend the lease. I can smell a class action law suit in the future.
Yea, originating dealer said they can only take the return right now if exchanging for a new vehicle due to capacity. They are hoping to be back to normal at end of May. BMWFS kept saying there's nothing they can do about it. The best BMWFS can do is to escalate the issue to a representative to contact the dealer...turnaround time for a response is 7 days...which puts me over my lease termination date.
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Old 05-08-2020, 12:44 PM
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Ibiza Ibiza is offline
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Originally Posted by BHC View Post
Yea, originating dealer said they can only take the return right now if exchanging for a new vehicle due to capacity. They are hoping to be back to normal at end of May. BMWFS kept saying there's nothing they can do about it. The best BMWFS can do is to escalate the issue to a representative to contact the dealer...turnaround time for a response is 7 days...which puts me over my lease termination date.
Personally, I would do the following:

1. Park car in dealership lot
2. Perform a video end of lease inspection, including tire threads measurement.
3. FedEx both keys and a USB of the video to BMWFS in Ohio and tell them said vehicle is at XX dealership.
4. Report BMWFS to the Ohio Attorney General for unfair business practices.
5. Report local dealership to California BBB.
6. Do not answer any phone calls from BMWFS or dealership, make sure everything is in writing.
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2011 X3 35i M PCD 6/11- Rtd
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Old 05-08-2020, 02:37 PM
ard ard is offline
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Quote:
Originally Posted by Ibiza View Post
Personally, I would do the following:

1. Park car in dealership lot
2. Perform a video end of lease inspection, including tire threads measurement.
3. FedEx both keys and a USB of the video to BMWFS in Ohio and tell them said vehicle is at XX dealership.
4. Report BMWFS to the Ohio Attorney General for unfair business practices.
5. Report local dealership to California BBB.
6. Do not answer any phone calls from BMWFS or dealership, make sure everything is in writing.
Sounds like my advice in that other thread. Like the cut of your jib....

Only thing I'd add is an immediate certified letter telling them of their obligations in the lease, and that they have failed to 'provide you with the return locatioon' on X separate times. And summarize those attempts. Tell them in advance when at to whom you will return the car (it should be the selling dealership on the lease document)

GL
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Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
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Old 05-08-2020, 02:50 PM
1968BMW2800 1968BMW2800 is offline
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3 strategies:

1. Call BMWFS and ask them where they would like you to return the car. When they try to give the problem back to you, politely say, "Thank you but that's not what I'm asking and that's not what I need. I have satisfied all of my obligations except turning the car in. That's what I want to do now, without further inconvenience. To whom at BMW should I speak to get this resolved now, without further inconvenience?" Stay on the call and let them know it is your intention to get this resolved with that one call.

2. Call a local dealer. When they ask if you intend to get another car, say you would like to see what they have on offer for your next car. Go through all the steps, staring with the lease return protocol. When the lease return is complete and you've succeeded in getting the car signed back to BMW, look at your watch, say, too hip, gotta go, and you're done.

3. Make a service appointment. The Service Writer will do a quick walk around and note the presence or absence of any damage. Tell them to do the annual service and to please note the tred depth. Give the service writer a fob with both sets of keys on it. Call BMWFS and advise them, followed up in writing, that their car is at XYZ BMW. Do not accept return of the car.

As I've stated elsewhere, the gift we can give BMW is to give the lease return problem to them, where it belongs. Don't let them make it your problem, but don't give up until your name is signed off the vehicle. And be nice.
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Old 05-08-2020, 03:00 PM
ard ard is offline
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FWIW. Refs around leases. Was trying to see if there are rules around the return location...

http://thelemonlawcalifornia.com/con...ng-act/#2989.6
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Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
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  #22  
Old 05-08-2020, 06:55 PM
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Ibiza Ibiza is offline
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Originally Posted by ard View Post
Sounds like my advice in that other thread. Like the cut of your jib....
For the sake of time, I paraphrased your Cali process with my NY east coast "scorched earth" approach.
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  #23  
Old 05-09-2020, 03:19 PM
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quackbury quackbury is offline
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In my experience, BMWFS has historically allowed a 7 to 10 day "free" lease extension. All you have to do is ask politely. So no need to work yourself into a lather over what you perceive to be a deadline.

Other threads have discussed that BMWNA will allow you to extend your lease by up to 6 months, no fault, no foul, even without a new BMW on order, though you would continue paying your monthly lease cost. If they are now saying you ONLY get a 1 month extension - with a 50% discount - they have changed the rules pretty dramatically.
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  #24  
Old 05-09-2020, 09:04 PM
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Jon Shafer Jon Shafer is offline
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Quote:
Originally Posted by quackbury View Post
In my experience, BMWFS has historically allowed a 7 to 10 day "free" lease extension. All you have to do is ask politely. So no need to work yourself into a lather over what you perceive to be a deadline.

Other threads have discussed that BMWNA will allow you to extend your lease by up to 6 months, no fault, no foul, even without a new BMW on order, though you would continue paying your monthly lease cost. If they are now saying you ONLY get a 1 month extension - with a 50% discount - they have changed the rules pretty dramatically.
You have to keep in mind DMV. Most leases are 36 mos. You go over for a week, and you owe the entire 4th year's reg fees.
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  #25  
Old 05-10-2020, 09:20 AM
RangerWalker RangerWalker is offline
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Location: New Jersey
 
Join Date: Feb 2008
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Mein Auto: 2017 BMW 540i
Quote:
Originally Posted by quackbury View Post
In my experience, BMWFS has historically allowed a 7 to 10 day "free" lease extension. All you have to do is ask politely. So no need to work yourself into a lather over what you perceive to be a deadline.

Other threads have discussed that BMWNA will allow you to extend your lease by up to 6 months, no fault, no foul, even without a new BMW on order, though you would continue paying your monthly lease cost. If they are now saying you ONLY get a 1 month extension - with a 50% discount - they have changed the rules pretty dramatically.
My lease is up mid-June. I spoke to someone at BMWFS the other day. I can extend the lease up to 6 months at same payment. The 50% off for first month was being offered for April and May expirations and wasn’t being offered for June. As others have noted, I would need to re-register the car for another year (although DMV is closed at this time).
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