Report Says BMW Boosted Loaners To Dealers To Hold US Sales Lead Over Lexus

BMW wielded an unlikely tool to hold onto its crown in the U.S. luxury-car market last year: the loaner.

The German automaker narrowly outsold Mercedes-Benz and Lexus, and its success hinged partly on some deal-making in the showroom. Its strategy: Pay dealers to buy BMWs for their fleets of loaner vehicles, showing off the latest models to service customers and boosting sales.

Other carmakers have used similar tactics. But BMW has been unusually assertive, according to people familiar with the matter -- so much so, in fact, that it might have lost No. 1 bragging rights to Toyota Motor Corp.’s Lexus without the strategy.

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cidflekken - 2/18/2016 11:32:51 AM

+3 Boost

So, BMW offers incentives, but it still is not requiring or forcing dealers to buy them, correct? At least that's how I'm reading this.

And I don't see complaints from the dealers stating they have too many loaner cars clogging up their lots and the loaners put on the used car lots are just sitting unsold.

dumpsty - 2/18/2016 1:04:38 PM

+3 Boost

I kinda like that tactic.

The Infiniti dealership I frequented when getting my FX45 serviced always had a range of Infiniti loaners on-hand...even if I just wanted to leave my car for a car wash. Having the available loaners allowed me to have a "pressure-free" test drive of just about all the current vehicles in the lineup.

If I wanted to drop my car off late in the day, they'd just tell me to bring the loaner back the next morning. I was able to bring many of the cars home - in real-time traffic conditions - and see how I liked it.

PUGPROUD - 2/18/2016 3:12:31 PM

-3 Boost

A German automobile company that cheats...who knew!

MDarringer - 2/18/2016 8:00:38 PM

+1 Boost

Having a fleet of loner cars that are then sold as CPO is a brilliant strategy for premium brands.

carloslassiter - 2/19/2016 5:59:32 PM

+2 Boost

Seems like a brilliant strategy. Nothing annoys me more than having my BMW serviced and getting a Hyundai as a loaner; having a new BMW for a day is a chance to test drive as dumpsty said.

W208 - 2/20/2016 11:48:40 AM

+1 Boost

Mercedes isn't any better. You get a bottom-of-the-barrel Subaru Impreza with fewer amenities than you'd get at a rental car agency.

CarCrazedinCali - 2/19/2016 10:49:47 PM

+1 Boost

it's not like Lexus would be above this idea, and it's not cheating, convenient timing is all!