BMW and Mini will sell you their cars at a fixed price

Posted on

Today we could buy (almost) anything with a device (computer, mobile, tablet…) and an internet connection: also a car, but with nuances because some of the few brands that offer this option include a mandatory visit to the dealership . And it is that the purchase of a vehicle passes, still and irremediably, through them: depending on the establishment we choose, we can pay more or less for the same vehicle. BMW wants to change that and, together with Mini, it won’t take long to sell you a car at a fixed price.

The Bavarian group is planning a radical change in the way it sells new vehicles on the European continent: will present a direct sales model in the coming years which includes the same figure for all customers and a commission for each sale for its distributors. This has been explained by Pieter Nota, head of sales and marketing at BMW, in Automotive News Europe.

The process of buying a new BMW or a new Mini will be more transparent and easier for the client because the brands will bill directly with them: they will get the same prices everywhere the new sales model operates. The dealers, for their part, will receive a fixed fee for each sale: Mercedes has set a commission of 6.5% initially and 6% later, but its German rivals have not wanted to rule, yet, on this point.

Read:  With 400 liters of trunk and for 129 euros per month, this SUV wants to have the best space-price ratio

Why?

BMW explains that its customers switch from the online world to the off-line world frequently: he starts searching the internet, sets up a car, and then wants to see the selected model at the dealership. This is currently creating a systemic bankruptcy that they want to eliminate: “Our actions on the web and distributors are not yet linked. In the future, we will introduce a uniform system.”

What will the direct sale of BMW be like?

The Bavarian brand ensures that, with this step, distributors will not be overlooked. As we said before, all models will have a fixed price and the dealer will take a commission for each transaction that is closed. They believe that with direct sales will benefit all three parties involved in the new car buying process: “We will improve the customer experience, have direct access to them and provide an attractive business model for our agents. Those are the three most important aspects in our plans.”

Read:  Strict emission regulations have already turned the Mercedes-AMG One into a unicorn

When will BMW direct sales arrive?

This logical step, as defined by the BMW sales manager, already has a start date: it will be in 2024 by Mini, coinciding with the launch of the new Mini Aceman. Direct sales will come to BMW a couple of years later: in 2026.

They do want to make it clear that the British brand “will not be a guinea pig for nothing that we do at BMW two years later because the development of this model is very advanced. From our point of view, it makes more sense to start with Mini and then continue with BMW.”

Where will direct sales be available?

The direct sales model of BMW and Mini will only apply to European markets And they will do it gradually: it will not be available in all countries on January 1, 2024, but will be carried out in three phases. Germany’s turn, for example, will come in the first half of the year. Where they have ruled it out is in the United States because it would not be compatible with their general conditions.

Read:  What is OPC? The Opel subsidiary that is in charge of improving sports cars and high performance