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05-10-2022, 11:58 AM | #1 | |
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BMW Estimates 25 Percent Of Sales Will Be Made Online By 2025
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05-10-2022, 12:19 PM | #2 |
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I don't entirely understand this article... so will it be online sales thru a dealership?
Or just online sales with pickup at the dealer? Neither option is really true online sales.
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05-10-2022, 12:30 PM | #3 |
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some guy who doesn't want to lose his job in BMW internet sales released an article that is nothing new, yet sounds innovative
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05-10-2022, 12:31 PM | #4 |
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It's not clear if they'll use a dealership in some part of the process such as vehicle pickup or delivery, but they do mention they are looking at 'fixed pricing' instead of the typical dealer haggling. They also mention they are working with Adobe on creating an app that would allow customers to configure the car they want instead of buying a preconfigured car sitting on a dealer lot. They rely heavily on dealerships for vehicle service so it'll be interesting to see how this plays out.
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05-10-2022, 01:11 PM | #5 |
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Man, that would be sweet if BMW did fixed pricing and online ordering.
I really enjoyed my Tesla shopping experience because of this. 1. I ordered the car on my phone. 2. I got notice of delivery date and confirmed time/location. 3. I went to my bank and got a cashiers check for the full amount. 4. I showed up at my scheduled time, looked over the car, gave the check to the attendant, and drove off. No talking with anyone, no upsells, no haggling and no time wasted. I loved it. |
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05-10-2022, 02:50 PM | #6 |
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A customer can already purchase a car with no haggling. Just pay MSRP and stop asking for discounts.
You can already buy a car online/over the phone without going into a dealership. I bought the last 3 of the 6 cars currently in my garage this way. R8 came from PA, X5M from CA, and X5 M50i from LA. All handled by wire. All showed up at my house, never left home. It's really all just an awareness advertisement for what already exists. What is "true online sales?" When you order most things online they come from a "dealer" not from the manufacturer, most of whom have no provisions to complete a retail transaction. Amazon is a dealer. Many people seem to forget that "you ain't buyin a loaf of bread." Buying a car is much more like buying a house than any other item. Maybe you could compare a gun in that they are registered to your name, typically require hard signatures and identification verification, etc etc. Each state has unique vehicle inspection requirements, and so on. Maybe some individuals can be trusted to pay in full and register their car properly and pay the taxes, etc on their own but 99% of the population can't or won't. Even Tesla has brick and mortar stores and of course service centers. Let them make things more convenient and weed out the plaid jackets but "getting rid of the dealer" as a generality is as stupid sounding as "defunding the police." |
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05-10-2022, 03:08 PM | #7 | |
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Go online, build a car exactly how I want it, complete all paperwork and purchase it without having anyone slow the process down or try to upsell me things I don't want; that's a win IMO. It's not like dealerships are going away, you can still pay MSRP if you want. |
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05-10-2022, 03:45 PM | #8 | |
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05-10-2022, 08:53 PM | #9 | |
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you realize what MSRP stands for right? the factory is going to slurp that extra profit right up. not to mention you cut out the "middleman" and the manufacturer loses all benefits of having franchises. the MSRP will go up and your car will be more expensive. cutting out the middleman is a delusion. |
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05-11-2022, 09:26 AM | #10 | |
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Dealerships are a scam and absolutely should not exist. Leave the service departments obviously, but LIKE ANY OTHER GOOD I should be able to pay the list price. I would MUCH PREFER to buy a car online and not have to talk to some 16 year old jackass who memorized half the spec sheet. |
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05-11-2022, 10:07 AM | #11 |
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An alternate approach:
Buying a car online prevents you from getting up-charged for things you don't want/need. Buying online also guarantees everyone pays a fixed rate for the same car, meaning there aren't any discounts either, which is great for the manufacturer. Haggling is an astronomically-large turn-off for a lot of people. If you could guarantee a sale price that matches exactly what a person wants... A fixed price with an easy, haggle-free check out practically guarantees new buyers. I'm all for spec'ing online, choosing my favorite stealership, paying through BMW FS online, picking up at aforementioned dealership, and having my services and work done at said dealership. Screw the middleman trying to sell me tint and 'interior ceramic leather coating'. If it wasn't obvious, the parts, service, and warranty departments outperform the new car sales departments every. single. year. Moving to this hybrid system (where 75% of sales are still on the lot and 25% are online) simply means that more people buy BMWs and more dealerships make more money on $600 fuel injector cleanings. Last edited by Equilibrandt; 05-11-2022 at 10:16 AM.. |
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05-11-2022, 10:37 AM | #12 |
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Adobe is infamous for an all-time data fuckup, strange they’d be trusted as a partner.
For the fellow nerds this is hilarious: https://nakedsecurity.sophos.com/201...c-blunder/amp/
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05-11-2022, 10:40 AM | #13 | |
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If a company has a break even point of 10,000 dollars a month normally sells 500 widgets a month with a $30 profit and makes $5,000 in gross (minus fixed expenses) now they can only sell 100 due to supply limitations but 1000 people per month now want to buy a widget, how much should they charge per widget? It's going to be more. Or maybe The Great Dealership Scam is responsible for expensive milk, gasoline, etc etc also. Everything is subject to supply and demand, inflation, etc. Basic economics is not a scam. Also, I did pay over sticker for my last three new cars, if you want a car right now, this is just how it is. But don't worry, it won't be too long and we can all go back to getting 10 grand off MSRP and I can guarantee you won't still be saying you should still be able to pay MSRP. |
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05-11-2022, 11:35 AM | #14 |
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I highly doubt people will be spending $50k without first checking out the car in person but taking out the dealer middle man is a great idea
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05-11-2022, 11:36 AM | #15 | |
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Online sales mean you pay exactly what you see. That doesn't mean it's a good deal; buying online means you probably forfeit any discounts but won't get charged extra for add-ons. |
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05-11-2022, 11:38 AM | #16 | |
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05-11-2022, 11:39 AM | #17 |
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Missing from this article, but a quote from elsewhere. He mentions paying a subscription for ACC and other items, this is terrible, if I purchase a vehicle with an option, I shouldn't have to pay a monthly fee to use said option.
https://bimmerlife.com/2022/05/09/bm...tm_name=member
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05-11-2022, 11:43 AM | #18 | |
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2. Even if they manage to eliminate the dealers...do you honestly think that the prices will come down? The answer is: no. The overhead has to be paid for somewhere, and that will be in the form of "no haggle pricing". So, yes, this model is more convenient. No, it will not lead to lower prices. If anything, it will lead to an overall increase in prices. |
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05-11-2022, 12:00 PM | #19 | |
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Sometimes I think the loudest naysayers either work at stealerships or have a vested interest with them. |
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05-11-2022, 12:05 PM | #20 | |
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Speak for yourself. M5 CS delivered in February - actually got $1K OFF MSRP X5M ordered for my wife, currently in production, paying MSRP X6M ordered for my dad, currently waiting an allocation, paying MSRP If you have the right mindset and do your homework, there's no reason you should ever pay MSRP. |
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05-11-2022, 12:28 PM | #21 | |
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Regardless, not sure the point of your argument, you just said you're paying MSRP for 2 of 3 cars then said there's no reason you should ever pay MSRP....? lol. On these cars I didn't mind paying MSRP + a little because there were almost no M50s available and I needed a car for my wife in like 1 day because I sold her car (paid sticker for the M50) the X5M I paid 3 over because there were about 8 in the country and they all wanted 10+ over. The R8 was a 232 sticker and there was 1 other one for sale in the country and they wanted 100k over. A bunch of rear drive cars were in the pipeline for 40k over, R8 V10 is a dead man walking, I gladly gave 5 over to keep one of the last NA V10s in the garage. Next up, C8Z for last NA V8, a GT3 for NA 6, then I will have to figure out an NA V12 but I'll have to save up a while for that one.... They will either all be priceless or worthless, I guess we will see, haha. Regardless, the few grand over sticker won't matter in 5 years, or 20. |
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05-11-2022, 12:30 PM | #22 |
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All very noble but almost impossible to execute for legacy car makers.
Unwinding 70+ years of process, people, technology and layering in varying state and local and federal government regulations, is almost impossible to do. Digital car buying will continue to be basic browse online but a visit to the dealer showroom. The metaverse cannot replicate a full driving experience, period. Tesla did it, with a shitload of pain, because they were greenfield, unencumbered by the debts of the past. Super fascinating to see where this all lands.
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