BMW: no more discounts

Tuesday, December 04, 2007

“ BMW attempts to keep prices high
“ Dealers not allowed to sell through brokers
“ Now discounts to be cut, too - dealers angry

BMW dealers are no longer allowed to sell through brokers or to offer substantial discounts

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BMW is attempting to drastically reduce the size of discounts its dealers will be able to offer customers.

Currently, discounts have been as high as 15% or more on selected models, but under the company's new rules these could be limited to a maximum of 10%.

BMW is hoping to enforce these rules by threatening to not renew dealers' franchise agreements, and penalise those who sell cars via brokers.

Last week, whatcar.com reported that BMW is attempting to stop the sale of its cars through brokers and websites.

What Car? understands that the majority of franchised dealers have their contract up for renewal at the end of the year, and that some dealers will be stripped of their agreements on January 1 if they fail to agree to the new rules.

However, dealers are fighting back - informers within the motor trade have told What Car? that many BMW dealers are against these rules, because it will restrict the number of cars they will be able to sell.

There are rumours that BMW is to hold crisis talks this week with its dealers to try to resolve the conflict.

Although BMW's plan will effectively allow them to fix the prices of their cars in the UK, the company is within the law - Block Exemption Regulations don't stop a car manufacturer setting terms and conditions with their dealers as part of a contract.

What Car? mystery shoppers will carry on haggling with BMW dealers across the country to find out Target Prices - the most you should pay for a new car.