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Lifetime BMW CCA Member
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Discussion Starter #1
I have a general question:

So how do dealers plan on getting rid of their remaining 2008's?
Anyone in the dealer community want to shed some light on their opinions?

Without BMWFS support, are they going to take a huge bath on their remaining 2008's (even though there are not as many around?)

Or are there alternative methods to place these cars, like use them for service loaners, etc.

This is based on the assumption that the 2008 car buyers passed on the already good deals and that dealers will be hard pressed to match the previous two month deals w/o BMWFS support.

I'm just throwing this question out there since I'm curious.

Love to hear everyone's thoughts.
 

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to be honest, its pretty much out there and not a secret. It started october, i got my E92 M3 fully loaded with 5 down for 864 a month .. that was a killer deal.. now theyre even cheaper, but u cant get picky like i was!

789 a month for a convertible m3 with 18s, no distance, and no sat radio.. almost loaded! 3000 down...

stick shift m6 loaded, 888 a month, 1130 smg.. but u gotta get lucky to find the left over 08's.... theyre pretty much all gone.

its insane!
 

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Lifetime BMW CCA Member
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Discussion Starter #3
I think there was a misunderstanding about my post.

I am not in the market for a new car, I'm more curious how dealers plan on unloading their remaining 2008's.

Anyone want to speculate on how they plan on accomplishing this?

Or are there alternative means for using up the remaining 2008 as service loaners, etc.
 

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Lifetime BMW CCA Member
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Discussion Starter #5
Adrian

Isn't that a given. :rofl:
 

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Sell them to the highest bidder? :dunno::D:angel:
That is an idea. Maybe have an auction on BF? You could also hold an auction on eBay with a thread that points to the eBay auction.
 

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That seems a bit extreme.... At a minimum, the '08s could be run through the service dept. as loaners. Then at the appropriate point, they could be run as CPOs when BMWFS puts out incentive rates for the '08 CPOs.

But I like Adrian's idea of an auction.
 

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'festing and lovin' it
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Adrian

Isn't that a given. :rofl:
I don't think it is. How often have you seen dealer's selling their car's below the dealer cost (all incentives considered)?

I for one thinks that BMW needs to LOWER the prices of their cars by 5% ACROSS the board AND KEEP the current incentives($1000-$3000).
In ADDITION to lowering the MONEY FACTOR's to between 1% and 2%.

Want to stimulate BMW sales? That will get BMW's out the door QUICK. :dunno:

To me, it's absolute LUNACY to keep and raise prices in an economy such as this. You need to adjust to the times if you want your product to be consumed.

Mercedes Benz was offering tremendous incentives such as $6000 OFF the E-Series. Why can't BMW do the same? :tsk:
 

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To me, it's absolute LUNACY to keep and raise prices in an economy such as this. You need to adjust to the times if you want your product to be consumed.

Mercedes Benz was offering tremendous incentives such as $6000 OFF the E-Series. Why can't BMW do the same? :tsk:
Perhaps BMW wants its dealers to have full lots of unsold cars? The Volvo dealer I have done business with since 1995 has 10 new cars on his lot. Before the recession, they were moving 150+ new Volvos a month....

Mercedes was offering up to $13,000 in factory cash on the CLK550s as recently as January.

I guess BMW knows something we mere mortals don't.
 

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That was my point. :p I probably should've said lowest bidder.

It'll be ugly though.
Why lowest bidder? I could bid a dollar; I doubt you would accept my bid....
 

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... 'cause I would bid $2!
And someone else would bid $3. Then you and I would have to decide whether we wanted to bid $4. At some point, the true value of the car would be established....:)
 

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'festing and lovin' it
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That was my point. :p I probably should've said lowest bidder.

It'll be ugly though.
Yes, there will be carnage that the DEALERS will have to ABSORB. Why not have the headquarters step in and offer $5,000-$10,000 OFF ACROSS THE BOARD. In addition to lowering the money factor to 0.9%. This way the dealer will not have to suffer and the bottom will be established by BMW. Which can deal with a loss in a single year considering how successful the company has been.

Sounds like a win-win situation. BMW gets to sell it's cars, all be it at a lower mark up then before. Customer's get a great deal in a very bad economy.

BMW also gets great press for 'trying to help people'. People are extremely happy with their BMW at a substantial discount.

Am I missing anything?
 

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Yes, there will be carnage that the DEALERS will have to ABSORB. Why not have the headquarters step in and offer $5,000-$10,000 OFF ACROSS THE BOARD. In addition to lowering the money factor to 0.9%. This way the dealer will not have to suffer and the bottom will be established by BMW. Which can deal with a loss in a single year considering how successful the company has been.
I doubt you will see BMW doing anything along the lines you propose - they would not be a profitable company for very long. The dealers will be the ones who take the hit, which is unfortunate; but that is life in the auto business.
 

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'festing and lovin' it
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I doubt you will see BMW doing anything along the lines you propose - they would not be a profitable company for very long. The dealers will be the ones who take the hit, which is unfortunate; but that is life in the auto business.
Hopefully the economy will be not where it is today for very long. This would be a short term program, that will be (or will not be) renewed on a monthly basis until the economy and the auto market strengthens.
 

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Hopefully the economy will be not where it is today for very long. This would be a short term program, that will be (or will not be) renewed on a monthly basis until the economy and the auto market strengthens.
Marketing cash from the factory is an issue that gets people's shorts all in a tangle. The people who bought at retail hate it because they could have got a better deal by waiting. The factory hates it because that is profits they won't make. Low interest financing is probably the best of a selection of bad options. The factory has to contribute the difference between market and the low interest rate; but it is usually less than other incentives (especially now during a recession when rates are already low relatively speaking). I do agree with making the program available only on a month-to-month basis. That creates its own pressure to decide (otherwise you may lose the 0.9% rate...), which is what needs to happen - cars need to be sold.
 

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Flying monkey herder
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Hopefully the economy will be not where it is today for very long. This would be a short term program, that will be (or will not be) renewed on a monthly basis until the economy and the auto market strengthens.
the problem is, the buying public would be addicted to the incentives and rebates. remove that and no one will buy.

the big 3 screwed themselves by offering incentives, employee pricing, etc pretty much all the time since 9/11. there was no way the public would pay full MSRP after that.

you also kill residual values and dilute the brand.
 

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the problem is, the buying public would be addicted to the incentives and rebates. remove that and no one will buy.

the big 3 screwed themselves by offering incentives, employee pricing, etc pretty much all the time since 9/11. there was no way the public would pay full MSRP after that.

you also kill residual values and dilute the brand.
The challenge is to work out the current over-supply condition. The Big 3 were addicted to selling trucks at volume.... Anything they could do to keep up the volume of trucks was done. At one point, Ford had $20 Billion in its cash account... all from truck sales (I am including SUVs as trucks). Now the business has changed. It will be a smaller business for quite some time. And a much different product mix too.

BMW has less of a challenge in its over-supply condition, but it is not immune. The fact that there are still 2008s that are not sold is proof of the over-supply condition.
 
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