BMW Has Inventory Glut, Planning To Move Units — WHICH BMW Would YOU Get If You Got The Deal YOU Wanted?

It seems to us that there are a couple companies doing what it takes to capture the automotive sales crown in their respective segments. One of them is Volkswagen, and the other is BMW.

This game is always a risky one for an automotive manufacturer and there's a simple reason why: To keep moving units ant a steady, increasing pace it requires great incentives, a mega amount of advertising and an excellent product. Selling a cheap widget isn't going to just win you sales in today's climate.

Of course another key component is keeping dealers equipped with an excellent amount of inventory. But, how do you do that when there's a slew of options and colors? The correct answer is "very carefully" however, that doesn't always result in success.

BMW is finding this out now as it has an inventory build up. That said, BMW is working to shift this inventory out of lots ASAP.

While discussing business with a friend of AutoSpies — who sells BMWs — this weekend, he said that certain cars are getting blown out of the showroom floors. An example of that would be the i3. The Northeast region has so many 2015 model year i3 vehicles that it's leasing them for only $209/month.

Assuming that the company wants to shift units and it starts discounting vehicles across the board, which all-new BMW would YOU want to get if a deal was to be had?

BMW will likely spend the rest of the first half of this year liquidating inventories in the U.S. as it attempts to reduce a heavy stock overhang stemming from the end of last year, when it edged out Mercedes-Benz and Lexus for the U.S. luxury sales crown.

Comments from BMW executives confirm bearish remarks made by major dealership groups that said cars such as the 3 series were sitting on showroom lots, declining in value with each day...

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MDarringer - 5/9/2016 8:24:01 AM

+2 Boost

I've heard of the "keep the key" trick, but I did not believe it actually happened. At our dealerships, if a customer plans a trade in, we take the key to evaluate the car and then we wash it. The key is returned to the customer as soon as thr car is finished being washed. We wash the car as a PR move so that if the customer leaves without making a deal, he knows we treated his car with respect.

TomM - 5/9/2016 11:10:49 AM

+2 Boost

When I bought my first Mercedes - I had the CASH in my pocket - but I had to go to four dealers - because the first three would not even show one to me. I actually had a long term MB dealer tell me "Wouldn't it be nice if you could afford to buy one of these!" I still prefer dealer owned and run shops - no more than two dealerships. WE still have a few of these in NJ - and while their facilities are not as opulent as the big chains - I always feel I get treated better - I normally get a better deal - and I actually get to talk to the owner. My brother had a high ranked Lincoln/Mercury dealership - for years - and HE(The owner) was the service manager. He had the best service ratings in the area - and that is what I would look for if I was not able to fix my own. I really don't care what kind of coffee they serve(I am a tea drinker anyway) - or if the waiting room has real leather couches(Somehow I am paying for that) - IF my car needs service - and I know that it is likely to happen - I want a service department where the mechanics have been there for more than 3 weeks.

MDarringer - 5/9/2016 8:29:55 PM

+1 Boost

@runbuh, lease a Ghibli. It's a good car (Chrysler 300 underneath) with a reliable engine (Chrysler) at liquidation pricing.

mre30 - 5/9/2016 12:10:43 PM

+1 Boost

I would give the 740iL Xdrive a try. 5 digits of Cash on the hood plus good trade for my 2012 S550 might do it.

I respect the new S550's but the looks and really the interior do not appeal to me. I'm 47 yrs old, but I think the 7-series interior is more visually appealing. I don't like the MB's two spoke steering wheel or the Jumbo-Tron stretching across the interior.

However, I'd be really curious to see what the 2017 S550 mid-cycle refresh coming this fall will have in store for us! I might like it an get an MB or else the deals on the 7-series would just get better!

GermanNut - 5/9/2016 4:36:10 PM

+2 Boost

BMW has an oversupply of inventory because its cars are falling out of favor with buyers. The interiors are cheap and no match for Mercedes-Benz's newest interiors from the S-class all the way down to the C-Class. The exteriors have no emotion to them and are the same boring design used for the past 6 years and the company continues to churn out SUVs that sell poorly like the X4.

BMW better watch out because Audi clearly has momentum in the U.S. and it's just about to launch a new A8 that will be the first vehicle to showcase its new aggressive and differentiated design strategy. That design philosophy will spread down to the A7 and A6. Audi is also rapidly expanding its SUV lineup with the Q6 and Q8.

BMW is at a critical point and if it doesn't change its strategy, there is a very high chance that it will find itself sitting in 3rd place in global sales behind Mercedes-Benz and BMW.

iamdabest1 - 5/10/2016 12:20:40 AM

+2 Boost

i currently have an m4, after recently driving an i8 i can honestly say if i could have any bmw for a price i could afford it would be an i8.