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      12-23-2019, 02:30 PM   #1
Laki021
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SEC Investigating BMW Over Sales Practices

SEC Investigating BMW Over Sales Practices


https://www.wsj.com/articles/sec-inv...es-11577131042


The Securities and Exchange Commission is investigating German auto maker BMW, a company spokesman said. The probe is focusing on sales practices, according to a person familiar with the matter.


Really interested to hear what is behind...
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      12-23-2019, 04:14 PM   #2
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https://www.cnbc.com/2019/12/23/bmw-...r-comment.html

Sales punching.

Having Dealers buy cars as loaners to inflate numbers and then re-selling with low mileage in an attempt to prop up Quarterly and Annual Sales Numbers.
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      12-23-2019, 04:28 PM   #3
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Interesting. I know a dealer that is No.1 in sales, and a loaner is always available when having car serviced (warranty or CP). Stocked very deep in loaners.
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      12-23-2019, 04:30 PM   #4
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Not sure this is the same, but both our dealers take new cars and put them into service as service loaners with registration. They then run up about 4,000 miles on them and then resell them with CPO warranties with a discount. I suppose if they count the original in service as a loaner as a new car sale then that might be what they are talking about.
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      12-23-2019, 05:48 PM   #5
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Loaners are never titled so they shouldn’t count as sales, that would definitely be shady.
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      12-23-2019, 06:36 PM   #6
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If ‘punching’ cars is against the rules, there’s a bunch more automakers that they should be investigating...
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      12-23-2019, 08:27 PM   #7
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Damn!

https://www.cnn.com/2019/12/23/inves...obe/index.html
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      12-23-2019, 08:29 PM   #8
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A local M-B salesman told me their dealership punches cars. I’m surprised he was so open about it if it is against the rules.
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      12-23-2019, 08:34 PM   #9
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Quote:
Originally Posted by billnchristy View Post
Loaners are never titled so they shouldn't count as sales, that would definitely be shady.
Of course they count, otherwise they would miss 50% of the cars in their data.

Nothing wrong with that.
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      12-23-2019, 08:46 PM   #10
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Quote:
Originally Posted by billnchristy View Post
Loaners are never titled so they shouldn’t count as sales, that would definitely be shady.
Not true in Washington. All loaners are titled as dealer owned cars. Every six months they sell them and replace with newer BMWs.
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      12-23-2019, 09:01 PM   #11
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Yup, saw this earlier today on Bloomberg.
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      12-23-2019, 09:13 PM   #12
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Quote:
Originally Posted by chassis View Post
A local M-B salesman told me their dealership punches cars. I’m surprised he was so open about it if it is against the rules.
Against the automaker's rules or against the law? Big difference.

What laws might be violated with such a practice?
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      12-23-2019, 11:02 PM   #13
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Interesting
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      12-24-2019, 12:05 AM   #14
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There go our loaners.
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      12-24-2019, 12:22 AM   #15
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Love the loaners. Keep up the work BMW.
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      12-24-2019, 02:23 AM   #16
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So I wonder if this relates to the practice of moving cars from "new inventory" to executive "demo" status. Some of the dealers where I live seem like they do it a lot.
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      12-24-2019, 04:17 AM   #17
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Germany has been ignoring the US over a Russia to Europe gas pipeline the US has been trying so hard to get stopped. Be surprised if this is not just taking a poke at Germany.

The US even signed in a bill the other day where the company ship laying the pipe had to bail out else they were going to get hit with US sanctions.
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      12-24-2019, 09:19 AM   #18
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No biggie.
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      12-24-2019, 09:23 AM   #19
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Quote:
Originally Posted by LexProf View Post
So I wonder if this relates to the practice of moving cars from "new inventory" to executive "demo" status. Some of the dealers where I live seem like they do it a lot.
I would say so.
They always have very low mileage loaners.
Then once it hit 4000-6000 miles, it got moved into demo or ex-loaner vehicle.
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      12-24-2019, 11:17 AM   #20
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Whatever happens, I hope this doesn’t somehow screw up the great loaners BMW provides!
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      12-24-2019, 01:15 PM   #21
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Quote:
Originally Posted by BeEmVe View Post
Against the automaker's rules or against the law? Big difference.

What laws might be violated with such a practice?
i can see the SEC's angle. punching cars inflates sales numbers and therefore financial/income statements. investors may see this and invest in/inflate the stock price, acting on false information.

maybe it's a reach, but as someone with more experience than i would ever wish with federal regulators, i can say that they have no problem stretching their remit like this.
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      12-24-2019, 02:11 PM   #22
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At the dealers around here, they seem to move cars to exec demo status even when they have never been driven. Apparently, it enables them to more deeply discount them. They might have like 30-40 cars in exec "demo" status at any given time. And when you go to look at those cars, for many of them, they still only have like under 20 miles. One of the dealers in my state moved most of their unsold i3s to exec demo status, where they sat until they were sold to the public.
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