[STEALERHSIPS GONE SOON]

BMW USA is now making one more step in fattening up their stealership network (on our dime, again) by mentioning the so called "ADJUSTED MARKET VALUE" among the mandatory fees, on their webpage and therefore endorsing the stealership network in selling the vehicles at inflated prices = MSRP (plus fees) and adjusted market value.

I wonder for how long their abuse is going to still be fruitful. They already lost 66% of my business.

[Tejas1836]

Capitalism, supply and demand.
If it is not a good value for you, don't buy it, simple.

[SwissBeemer]

BMW Germany will be doing away with dealerships completely in the sense of the dealer not selling you a car anymore but instead it will be BMW themselves for fixed prices, and people are lamenting it in the German forum as well. Seems you can only go wrong as manufacturer here.

But as Tejas said it's the same as with the LCI design: If you don't like it don't buy it.

[LuvMyE92]

Originally Posted by SwissBeemer

BMW Germany will be doing away with dealerships completely in the sense of the dealer not selling you a car anymore but instead it will be BMW themselves for fixed prices, and people are lamenting it in the German forum as well. Seems you can only go wrong as manufacturer here.

But as Tejas said it's the same as with the LCI design: If you don't like it don't buy it.

Maybe in the EU, but here in the USA many states have laws preventing this. It's a massive conspiracy to keep the dealer owners rich.

Tesla ran into big problems when it tried to sell cars without dealers.

As to the OP's primary lament, and to echo Tejas, just say no.

You don't like ADM, etc.? Then go buy something else.

Me, if I can't get a decent deal locally, then I go out of state. It's not that difficult, and the savings easily pay for my travel expenses.

[SwissBeemer]

Originally Posted by LuvMyE92

Maybe in the EU, but here in the USA many states have laws preventing this. It's a massive conspiracy to keep the dealer owners rich.

That's what I was getting at. In Germany some are seeing a conspiracy to enrich the manufacturer by not having the dealer sell the car anymore, even though there's less mouths to feed then in-between.

Apparently in the US the opposite move is just to enrich the dealers.

I guess for some everything is a move to enrich someone else. (Some might even call this capitalism. )

[Guy Fleegman]

We'll see what happens when/if sales decline. Ultimately they need to sell cars and there are only so many rich people who will pay whatever.

[rmorin1249]

I think BMW is losing me and others because of style. Price is another issue for sure.

[Shareandenjoy]

This is already happening here (Italy) with Mercedes.

Mercedes will sell directly and dealers will only get a very small amount (hundreds of Euros) to received the car and deliver to end user. Some dealers are already cancelling their resell contract and only keep the after sale workshop as the offered fee was not enough to cover costs.

[GerryC]

I suspect this is just a reaction from BMW NA's legal department to clarify that BMW NA has no control over what price the dealers charge. Most state laws state that the dealer can sell at any price they want.

If the market for a car is tight and the dealer can get away with an ADM, that's up to them. As a buyer, you can go elsewhere. It's what I did with my last purchase. One dealer was being 'generous' in cutting his ADM to $5k. I went elsewhere.

[mnx5er]

I cannot think of a dealer that hasn't charged over MSRP the last few years thanks to fake add-ons and other crap. Wall Street Journal ran an article saying that car manufacturers are intentionally capping supply to keep prices up.

My guess is that supply/demand will eventually catch up and the dealers will be back trying to beg for business. BMW is hot right now, that won't last forever.

[MJBradley1967]

A blatant "market adjustment" of $10K turned me away from considering a Mercedes GLE 450 a year ago. I was leaning towards the BMW a bit anyway, but that sealed the deal.

At least building extra $$$ into the MSRP is less overt.

True, there are people that don't care about throwing another $10K at a vehicle for no reason other than dealer greed. I'm not one of those.

I had thought, several years ago, the US government was saying they would be keeping an eye on this type of price gouging by auto dealers. Apparently we can add that to the ever growing list of empty promises.

[trife.]

Originally Posted by Tejas1836

Capitalism, supply and demand.
If it is not a good value for you, don't buy it, simple.

I agree to a point. The problem is that the low supply isn’t organic at this point. BMW, along with every other car manufacturer, learned from the pandemic years that they could keep supply on lots extremely low and still have amazing profits. This is just a carryover from that and is precisely how things will be moving forward.

[X6ix GTA]

Originally Posted by trife.

I agree to a point. The problem is that the low supply isn’t organic at this point. BMW, along with every other car manufacturer, learned from the pandemic years that they could keep supply on lots extremely low and still have amazing profits. This is just a carryover from that and is precisely how things will be moving forward.

You nailed it. I don't remember the exact figures but despite lower sale volumes, BMW's bottom line increased by 2-3 times over last couple of years.

[TurtleBoy]

Originally Posted by trife.

I agree to a point. The problem is that the low supply isn’t organic at this point. BMW, along with every other car manufacturer, learned from the pandemic years that they could keep supply on lots extremely low and still have amazing profits. This is just a carryover from that and is precisely how things will be moving forward.

I think you are misunderstanding the dealer model and the ADMs. Those markups were put on by some dealers and in no way benefitted BMW. BMW's profits were increased due to the volume of vehicles they were selling, they set sales records, not the markup. The supply on lots was low because everything that came in sold not because manufactures were holding back on production.

[STEALERHSIPS GONE SOON]

Originally Posted by Tejas1836

Capitalism, supply and demand.
If it is not a good value for you, don't buy it, simple.

As I previously said - I did not renew two leases that were up this year so I stopped buying it. No need for redundant advice.

And I did not stopped consuming BMWs for a financial reason - I could easily afford the leases - but for BMW's and it's stealership network attitude.

I wonder how would they take a 66% or a 50% decrease in sales if other people like me would say "enough".
What do you think would happen with that supply if 50% of the demand would say bye-bye to them?

[STEALERHSIPS GONE SOON]

Originally Posted by TurtleBoy

I think you are misunderstanding the dealer model and the ADMs. Those markups were put on by some dealers and in no way benefitted BMW. BMW's profits were increased due to the volume of vehicles they were selling, they set sales records, not the markup. The supply on lots was low because everything that came in sold not because manufactures were holding back on production.

The actual situation is more complex. Let's not forget the prices hikes BMW is having every six months now. That is obviously benefiting BMW only and a major factor for increased profit.

[TurtleBoy]

Originally Posted by remeeno

The actual situation is more complex. Let's not forget the prices hikes BMW is having every six months now. That is obviously benefiting BMW only and a major factor for increased profit.

Definitely have been price increases but prices have risen on everything. I wouldn't think they contributed much to the profit compared to the increase in sales volume. Actually don't care either way, I want them to be profitable and healthy so like what they have been doing since it doesn't seem to be out of line with the rest of the market.

[STEALERHSIPS GONE SOON]

Originally Posted by TurtleBoy

Definitely have been price increases but prices have risen on everything. I wouldn't think they contributed much to the profit compared to the increase in sales volume. Actually don't care either way, I want them to be profitable and healthy so like what they have been doing since it doesn't seem to be out of line with the rest of the market.

BMW should send you a souvenir for that speech if they are not compensating you already.

I care for my own pockets not for the other's - especially not for mfgr's and stealerships who keep delivering worse product for increased prices - but nevertheless, to each their own.

[RNorb]

Originally Posted by remeeno

BMW should send you a souvenir for that speech if they are not compensating you already.

I care for my own pockets not for the other's - especially not for mfgr's and stealerships who keep delivering worse product for increased prices - but nevertheless, to each their own.

You guys sound like you think BMW is a charity. They are in the business of maximizing profits for their shareholders. They do that by producing a product that their customers want to buy at a price they are willing to pay. That's capitalism...the economic system that has lifted millions of people out of poverty and produced the highest standard of living for the most people in the history of the world.

[swainbmw]

Originally Posted by TurtleBoy

I think you are misunderstanding the dealer model and the ADMs. Those markups were put on by some dealers and in no way benefitted BMW. BMW's profits were increased due to the volume of vehicles they were selling, they set sales records, not the markup. The supply on lots was low because everything that came in sold not because manufactures were holding back on production.

My local dealer never marked anything up. They sold everything at sticker.

[SwissBeemer]

Originally Posted by remeeno

I wonder how would they take a 66% or a 50% decrease in sales if other people like me would say "enough".
What do you think would happen with that supply if 50% of the demand would say bye-bye to them?

Well they would reverse course but it seems this is not happening because apparently BMW is still delivering a product at the right price point for its demand & quality.

[The J-Man]

I used to be a three BMW household, now I have one, and that is likely to be zero soon. The dealership experience is the largest factor in that.