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Discussion Starter #1
BMW Cars off 37.5% YOY;
BMW SAVs off 55.1% YOY; and
MINI is off 17.2% YOY.

Things are not good in BMW land. I wonder what BMW will put out in the way of incentives? The current package of 'incentives' doesn't seem to be doing the trick.
 

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January YOY was bad for all of the manufacturers, too. Even if BMW offers stellar incentives, consumers have to be willing to buy. More importantly, the banks need to be willing to loosen the purse strings. The latter seems the bigger hurdle because I think most people in the market realize how good the current deals are.
 

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BMW Cars off 37.5% YOY;
BMW SAVs off 55.1% YOY; and
MINI is off 17.2% YOY.

Things are not good in BMW land. I wonder what BMW will put out in the way of incentives? The current package of 'incentives' doesn't seem to be doing the trick.
Lets see them post some decent lease numbers, I'll contribute to lowering that YOY.
 

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Discussion Starter #4
January YOY was bad for all of the manufacturers, too. Even if BMW offers stellar incentives, consumers have to be willing to buy. More importantly, the banks need to be willing to loosen the purse strings. The latter seems the bigger hurdle because I think most people in the market realize how good the current deals are.
BMWFS is a bank. Notwithstanding the surge of the last 2 days of February, February's sales tanked. The consumer is de-leveraging themselves at the moment. The same-old, same-old won't work this time around.
 

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Incentives

How will incentives help when so many people are not in a fun mood with so many
friends and relatives hurting.
BMW is wise in not over-building at a time like this giving out incentives just to get stuff on the road.

Would incentives not hurt the used market ?

It is one thing I like about BMW, they are a higher value product and hopefully they keep it that way.
 

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Discussion Starter #6
Well, if you want to preserve value image, just shut down all production until demand returns. However, market capitalization will fall like a stone. At the end of the day, a manufacturer makes earnings (profits) by selling enough cars at a low enough cost of goods sold while controlling the administration and marketing costs. I don't know how long BMW can sustain monthly sales declines, but until they do something to get sales moving northward, even BMW will have to face economic reality.
 

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How will incentives help when so many people are not in a fun mood with so many
friends and relatives hurting.
BMW is wise in not over-building at a time like this giving out incentives just to get stuff on the road.

Would incentives not hurt the used market ?

It is one thing I like about BMW, they are a higher value product and hopefully they keep it that way.
But what is BMW, and the dealerships, to do with cars already made and sitting on the lot. Raise the prices to keep the "higher value product" image and wait it out?? Unlike the housing market where a home being one year older is pretty irrelevant, not selling a 2009 model in 2009 is a big problem. Time marches on and the new models will become a year out of data in a matter of months.

I suspect that the last thing BMW is worried about, with unsold new cars at the dealerships, is "hurting the used market." Which is why you see incentives on CPO's as well as new vehicles. When something isn't selling, about the only option is to lower the price.
 

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Discussion Starter #8
i suspect that the last thing bmw is worried about, with unsold new cars at the dealerships, is "hurting the used market." which is why you see incentives on cpo's as well as new vehicles. When something isn't selling, about the only option is to lower the price.
+1.
 

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But what is BMW, and the dealerships, to do with cars already made and sitting on the lot. Raise the prices to keep the "higher value product" image and wait it out?? Unlike the housing market where a home being one year older is pretty irrelevant, not selling a 2009 model in 2009 is a big problem. Time marches on and the new models will become a year out of data in a matter of months.

I suspect that the last thing BMW is worried about, with unsold new cars at the dealerships, is "hurting the used market." Which is why you see incentives on CPO's as well as new vehicles. When something isn't selling, about the only option is to lower the price.
From what I read, it seems as though more people are inclined to buy used. Incentives are not moving the new cars.

So perhaps BMW can shift more focus from new cars to CPOs. If you whack on an extended maintenance and warranty on a good CPO, it becomes quite an attractive offering, and it helps dealerships make up for the loss in new car sales.

However, this may lead to more problems down the road - folks then come to realise that buying used is really not that bad - so when the economy picks up, they still buy used, instead of switching back to buying new.
 

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Lets see them post some decent lease numbers, I'll contribute to lowering that YOY.
I'm with you on that. They don't need to do much more than already available to get my order.

$1500 cap reductions incentive on a car delivered later than 3/31 and .0015 or better on the MF for a 335i sedan.

I still maintain that they make more money off a US sale than other countries since the average 3er in Europe is purchased with a 4 banger or small diesel. They have more wiggle room yet to keep the factories ticking over while still making some profit.

Otherwise, i'll be stopping the extensions on my current BMWFS lease, handing it back and defecting to another cheap make for a few years - I'll take the savings and feel comfortable that i'm not overstretching myself.
 

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Discussion Starter #11
How are the dealers to handle the cost of flooring the new cars that haven't sold after the 90 day hold-back period expires? At that point, the car becomes a hard cost to the dealer. There isn't that much profit in the CPO business.
 

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From what I read, it seems as though more people are inclined to buy used. Incentives are not moving the new cars.
Well, BMW has two options. 1. Improve the incentives. 2. Sit tight and take the losses. Only their financial analysts and senior management can determine which is better for the company. Each has its advantages and disadvantages.

Personally, I'm 'somewhat' in the market for a convertible this spring. 'Somewhat' means if the deal is right. I could end up with a new car, a used car, or none. So I'm closely watching what happens too :thumbup:
 

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BMW Cars off 37.5% YOY;
BMW SAVs off 55.1% YOY; and
MINI is off 17.2% YOY.

Things are not good in BMW land. I wonder what BMW will put out in the way of incentives? The current package of 'incentives' doesn't seem to be doing the trick.
Where did you get that data and how does Audi and mercedes compare?

It's no wonder BMW USA is taking their time to come up with the March program.

I have always heard the 5th of the month is the latest when they release the new programs - they'll need the time to figure this one out:yikes:
 

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Discussion Starter #14
Personally, I'm 'somewhat' in the market for a convertible this spring. 'Somewhat' means if the deal is right. I could end up with a new car, a used car, or none. So I'm closely watching what happens too :thumbup:
I suspect a number of potential buyers are in the same circumstance.... They don't require a car at the moment; but if the right deal came along, they could pull the trigger. I fit that profile. 0.00205 money factor (0.00156 with MSDs) for an E92 is bordering on an insult.
 

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Where did you get that data and how does Audi and mercedes compare?
http://www.autospies.com/news/BMW-S...op-of-37-5-In-February-Mini-Drops-17-2-41613/

I personally am not interested in Audi or Mercedes, so don't follow their sales.

It's no wonder BMW USA is taking their time to come up with the March program.

I have always heard the 5th of the month is the latest when they release the new programs - they'll need the time to figure this one out:yikes:
If memory serves, the February program seeped out on February 2nd. There was a clarification released on the 5th and 6th.
 

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I suspect a number of potential buyers are in the same circumstance.... They don't require a car at the moment; but if the right deal came along, they could pull the trigger. I fit that profile. 0.00205 money factor (0.00156 with MSDs) for an E92 is bordering on an insult.
I think BMW finally realized there is no way for them to make money with the old residual's ... just look at the price you would pay 2 yrs ago for an 07 335i and how much the car is being sold for at the end of the lease ... you can see BMW was losing money on it.

I'll give you my deal ... I have an 07 335i MSRP was $49k and the dealer was taking $2k off the price giving me a total of $47k plus tax.

I leased the car for $575 a month for 24 months and they are now offering it to me for $31.5 and forgiving 3 months of the lease with that price.

$575 x 21 months = $12,075.
Buy out = $31,500. (and that is with a $1000 dealer profit built into it)
I forgot the exact amount of the bank fee but even at $700
if you total all the numbers it works out to $44,275.

BMW has taken a big hit on my car.
 

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BMW Cars off 37.5% YOY;
BMW SAVs off 55.1% YOY; and
MINI is off 17.2% YOY.

Things are not good in BMW land. I wonder what BMW will put out in the way of incentives? The current package of 'incentives' doesn't seem to be doing the trick.
On the contrary, actually not bad considering the current climate. Plus, pre-owned was up 24%. I'm a glass half full kind of guy, not a glass half empty fella.

All in all, I say we're blessed and confident.

Whatever programs come out will help with sales regardless. I'm just excited for a new month.
 

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http://www.autospies.com/news/BMW-S...op-of-37-5-In-February-Mini-Drops-17-2-41613/

I personally am not interested in Audi or Mercedes, so don't follow their sales.

If memory serves, the February program seeped out on February 2nd. There was a clarification released on the 5th and 6th.
Thanks for the link - knowing how sales compared to MB and Audi will have a major bearing on BMW's strategy. We may not care about it on this forum, but the majority of BMW prospects can easily switch between these brands.
 

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On the contrary, actually not bad considering the current climate. Plus, pre-owned was up 24%. I'm a glass half full kind of guy, not a glass half empty fella.

All in all, I say we're blessed and confident.

Whatever programs come out will help with sales regardless. I'm just excited for a new month.
I'm glad to hear that you're shop is moving with the times, and view this as an opportunity! Those are the folks who will be left standing after this mess.
 

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Things are not good in BMW land. I wonder what BMW will put out in the way of incentives? The current package of 'incentives' doesn't seem to be doing the trick.
Agreed. I was ready to lease an X5 4.8 about a month ago until I found out I didn't qualify for the loyalty program (even though this would be my 3rd BMW in 4 years) since I had not previously financed through BMWFS. I ended up buying a 2007 MB GL450 last weekend. Even though I really wanted an X5, the incentives from BMW were not enough to make me pull the trigger. I'll miss my X5, but fortunately I still have a 335i as my daily driver. But if BMW is losing customers like me with their lack of incentives, things can't be looking good. I didn't see myself ever buying a non-BMW after my last two purchases and always assumed I would replace 2004 X5 with a new one.
 
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