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      05-10-2022, 11:58 AM   #1
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BMW Estimates 25 Percent Of Sales Will Be Made Online By 2025

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Adobe is helping the automaker with data management.



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May 10, 2022 at 4:08am ET

By: Angel Sergeev

The used car market has been dominated by online sales for years and it makes sense for this trend to also invade the new car scene. It’s obviously a very different environment with its own specifics, but many automakers are already investing in digitalizing their sales. As part of its business transformation, BMW is also looking at achieving a larger portion of online sales from its total new car sales.

More precisely, the Bavarian automaker wants to sell 25 percent of all its new cars online by the middle of this decade. A new article by Forbes shines more light on BMW’s plans, which include using help from Adobe for data management. The tech company will also support the automaker’s efforts in the personalized digital customer experiences, including online sales of new vehicles.

“A third of all buyers can very clearly imagine to buy a car online,” Jens Thiemer, BMW Vice President, explained during on TechFirst podcast. “And we have to prepare ourselves together with our retail partners to make that possible.” This unified online experience could even expand to include virtual test drives, but switching entirely to online sales won’t happen anytime soon.

Thiemer believes BMW’s retail partners are “the main interface to our brand” and they are resources the company is not ready to lose. He also pointed out that “brands in the automotive sector which are totally based on a digital purchase journey” are now looking to expand their businesses with physical locations. Just because, “for a perfect customer journey,” they need those selling points.

Moving at least a quarter of its sales to online platforms would require a change in the way cars are sold at BMW. For example, new car prices need to be fixed as it is very difficult to recreate negotiations in the digital world. Also, BMW needs help from Adobe to create more advanced applications where the customers can configure their own cars as opposed to selecting from pre-built cars.
motor: BMW Estimates 25 Percent Of Sales Will Be Made Online By 2025
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      05-10-2022, 12:19 PM   #2
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I don't entirely understand this article... so will it be online sales thru a dealership?

Or just online sales with pickup at the dealer?

Neither option is really true online sales.
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      05-10-2022, 12:30 PM   #3
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some guy who doesn't want to lose his job in BMW internet sales released an article that is nothing new, yet sounds innovative

/endthread
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      05-10-2022, 12:31 PM   #4
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Quote:
Originally Posted by ASAP View Post
I don't entirely understand this article... so will it be online sales thru a dealership?

Or just online sales with pickup at the dealer?

Neither option is really true online sales.
It's not clear if they'll use a dealership in some part of the process such as vehicle pickup or delivery, but they do mention they are looking at 'fixed pricing' instead of the typical dealer haggling. They also mention they are working with Adobe on creating an app that would allow customers to configure the car they want instead of buying a preconfigured car sitting on a dealer lot. They rely heavily on dealerships for vehicle service so it'll be interesting to see how this plays out.
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      05-10-2022, 01:11 PM   #5
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Man, that would be sweet if BMW did fixed pricing and online ordering.

I really enjoyed my Tesla shopping experience because of this.

1. I ordered the car on my phone.
2. I got notice of delivery date and confirmed time/location.
3. I went to my bank and got a cashiers check for the full amount.
4. I showed up at my scheduled time, looked over the car, gave the check to the attendant, and drove off.

No talking with anyone, no upsells, no haggling and no time wasted. I loved it.
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      05-10-2022, 02:50 PM   #6
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A customer can already purchase a car with no haggling. Just pay MSRP and stop asking for discounts.

You can already buy a car online/over the phone without going into a dealership. I bought the last 3 of the 6 cars currently in my garage this way. R8 came from PA, X5M from CA, and X5 M50i from LA. All handled by wire. All showed up at my house, never left home.

It's really all just an awareness advertisement for what already exists.

What is "true online sales?" When you order most things online they come from a "dealer" not from the manufacturer, most of whom have no provisions to complete a retail transaction. Amazon is a dealer.

Many people seem to forget that "you ain't buyin a loaf of bread." Buying a car is much more like buying a house than any other item. Maybe you could compare a gun in that they are registered to your name, typically require hard signatures and identification verification, etc etc. Each state has unique vehicle inspection requirements, and so on. Maybe some individuals can be trusted to pay in full and register their car properly and pay the taxes, etc on their own but 99% of the population can't or won't. Even Tesla has brick and mortar stores and of course service centers.

Let them make things more convenient and weed out the plaid jackets but "getting rid of the dealer" as a generality is as stupid sounding as "defunding the police."
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      05-10-2022, 03:08 PM   #7
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Quote:
Originally Posted by Higgs Boson View Post
A customer can already purchase a car with no haggling. Just pay MSRP and stop asking for discounts.

You can already buy a car online/over the phone without going into a dealership. I bought the last 3 of the 6 cars currently in my garage this way. R8 came from PA, X5M from CA, and X5 M50i from LA. All handled by wire. All showed up at my house, never left home.

It's really all just an awareness advertisement for what already exists.

What is "true online sales?" When you order most things online they come from a "dealer" not from the manufacturer, most of whom have no provisions to complete a retail transaction. Amazon is a dealer.

Many people seem to forget that "you ain't buyin a loaf of bread." Buying a car is much more like buying a house than any other item. Maybe you could compare a gun in that they are registered to your name, typically require hard signatures and identification verification, etc etc. Each state has unique vehicle inspection requirements, and so on. Maybe some individuals can be trusted to pay in full and register their car properly and pay the taxes, etc on their own but 99% of the population can't or won't. Even Tesla has brick and mortar stores and of course service centers.

Let them make things more convenient and weed out the plaid jackets but "getting rid of the dealer" as a generality is as stupid sounding as "defunding the police."
Why pay MSRP which includes profit for the dealership when you can pay a fixed price from BMW and cut out the middleman?

Go online, build a car exactly how I want it, complete all paperwork and purchase it without having anyone slow the process down or try to upsell me things I don't want; that's a win IMO. It's not like dealerships are going away, you can still pay MSRP if you want.
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      05-10-2022, 03:45 PM   #8
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Quote:
Originally Posted by Tag View Post
Why pay MSRP which includes profit for the dealership when you can pay a fixed price from BMW and cut out the middleman?

Go online, build a car exactly how I want it, complete all paperwork and purchase it without having anyone slow the process down or try to upsell me things I don't want; that's a win IMO. It's not like dealerships are going away, you can still pay MSRP if you want.
Exactly... I don't get it. Can't we already configure a car online? The only thing they would have to do is add a "buy now" or "order now" button at the end.... which they haven't, because they can't. Why all the hand-wringing and press releases?
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      05-10-2022, 08:53 PM   #9
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Quote:
Originally Posted by Tag View Post
Why pay MSRP which includes profit for the dealership when you can pay a fixed price from BMW and cut out the middleman?

Go online, build a car exactly how I want it, complete all paperwork and purchase it without having anyone slow the process down or try to upsell me things I don't want; that's a win IMO. It's not like dealerships are going away, you can still pay MSRP if you want.
lol

you realize what MSRP stands for right? the factory is going to slurp that extra profit right up.

not to mention you cut out the "middleman" and the manufacturer loses all benefits of having franchises.

the MSRP will go up and your car will be more expensive.

cutting out the middleman is a delusion.
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      05-11-2022, 09:26 AM   #10
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Quote:
Originally Posted by Higgs Boson View Post
A customer can already purchase a car with no haggling. Just pay MSRP and stop asking for discounts.

You can already buy a car online/over the phone without going into a dealership. I bought the last 3 of the 6 cars currently in my garage this way. R8 came from PA, X5M from CA, and X5 M50i from LA. All handled by wire. All showed up at my house, never left home.

It's really all just an awareness advertisement for what already exists.

What is "true online sales?" When you order most things online they come from a "dealer" not from the manufacturer, most of whom have no provisions to complete a retail transaction. Amazon is a dealer.

Many people seem to forget that "you ain't buyin a loaf of bread." Buying a car is much more like buying a house than any other item. Maybe you could compare a gun in that they are registered to your name, typically require hard signatures and identification verification, etc etc. Each state has unique vehicle inspection requirements, and so on. Maybe some individuals can be trusted to pay in full and register their car properly and pay the taxes, etc on their own but 99% of the population can't or won't. Even Tesla has brick and mortar stores and of course service centers.

Let them make things more convenient and weed out the plaid jackets but "getting rid of the dealer" as a generality is as stupid sounding as "defunding the police."
I completely disagree. Maybe for you folks in different tax brackets paying cash for vehicles this is true, but that is NOT my experience. I was trying to buy my wife a Mazda CX5, had my 2 local dealers refuse to sell me one at MSRP b/c they wanted to tack on their stupid addendums, told me to my face they wouldn't sell at MSRP. Their exact words were "For every 1 customer like you who wants it at sticker, we have 10 who will pay with the tint and stuff installed." Same thing with an SRT Durango I had, local dealer refused to sell at MSRP. In both of those instances I had to drive 2+ hours to a different dealer to get one for sticker.

Dealerships are a scam and absolutely should not exist. Leave the service departments obviously, but LIKE ANY OTHER GOOD I should be able to pay the list price. I would MUCH PREFER to buy a car online and not have to talk to some 16 year old jackass who memorized half the spec sheet.
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      05-11-2022, 10:07 AM   #11
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An alternate approach:

Buying a car online prevents you from getting up-charged for things you don't want/need.
Buying online also guarantees everyone pays a fixed rate for the same car, meaning there aren't any discounts either, which is great for the manufacturer.

Haggling is an astronomically-large turn-off for a lot of people. If you could guarantee a sale price that matches exactly what a person wants...

A fixed price with an easy, haggle-free check out practically guarantees new buyers.

I'm all for spec'ing online, choosing my favorite stealership, paying through BMW FS online, picking up at aforementioned dealership, and having my services and work done at said dealership. Screw the middleman trying to sell me tint and 'interior ceramic leather coating'.

If it wasn't obvious, the parts, service, and warranty departments outperform the new car sales departments every. single. year. Moving to this hybrid system (where 75% of sales are still on the lot and 25% are online) simply means that more people buy BMWs and more dealerships make more money on $600 fuel injector cleanings.

Last edited by Equilibrandt; 05-11-2022 at 10:16 AM..
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      05-11-2022, 10:37 AM   #12
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Adobe is infamous for an all-time data fuckup, strange they’d be trusted as a partner.

For the fellow nerds this is hilarious:
https://nakedsecurity.sophos.com/201...c-blunder/amp/
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      05-11-2022, 10:40 AM   #13
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Quote:
Originally Posted by Conissah View Post
I completely disagree. Maybe for you folks in different tax brackets paying cash for vehicles this is true, but that is NOT my experience. I was trying to buy my wife a Mazda CX5, had my 2 local dealers refuse to sell me one at MSRP b/c they wanted to tack on their stupid addendums, told me to my face they wouldn't sell at MSRP. Their exact words were "For every 1 customer like you who wants it at sticker, we have 10 who will pay with the tint and stuff installed." Same thing with an SRT Durango I had, local dealer refused to sell at MSRP. In both of those instances I had to drive 2+ hours to a different dealer to get one for sticker.

Dealerships are a scam and absolutely should not exist. Leave the service departments obviously, but LIKE ANY OTHER GOOD I should be able to pay the list price. I would MUCH PREFER to buy a car online and not have to talk to some 16 year old jackass who memorized half the spec sheet.
In this unique and temporary market that is correct. My "just pay MSRP" comment is developed and delivered in reference to a normal market. If supply is extremely limited for any product with high demand you can expect the price to increase up to the point of equilibrium.

If a company has a break even point of 10,000 dollars a month normally sells 500 widgets a month with a $30 profit and makes $5,000 in gross (minus fixed expenses) now they can only sell 100 due to supply limitations but 1000 people per month now want to buy a widget, how much should they charge per widget? It's going to be more.

Or maybe The Great Dealership Scam is responsible for expensive milk, gasoline, etc etc also. Everything is subject to supply and demand, inflation, etc. Basic economics is not a scam.

Also, I did pay over sticker for my last three new cars, if you want a car right now, this is just how it is. But don't worry, it won't be too long and we can all go back to getting 10 grand off MSRP and I can guarantee you won't still be saying you should still be able to pay MSRP.
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      05-11-2022, 11:35 AM   #14
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I highly doubt people will be spending $50k without first checking out the car in person but taking out the dealer middle man is a great idea
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      05-11-2022, 11:36 AM   #15
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Quote:
Originally Posted by Higgs Boson View Post
Also, I did pay over sticker for my last three new cars, if you want a car right now, this is just how it is. But don't worry, it won't be too long and we can all go back to getting 10 grand off MSRP and I can guarantee you won't still be saying you should still be able to pay MSRP.
That's exactly the point - buying online means you can't haggle down and you can't get haggled up.

Online sales mean you pay exactly what you see. That doesn't mean it's a good deal; buying online means you probably forfeit any discounts but won't get charged extra for add-ons.
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      05-11-2022, 11:38 AM   #16
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Quote:
Originally Posted by skyline408 View Post
Man, that would be sweet if BMW did fixed pricing and online ordering.

I really enjoyed my Tesla shopping experience because of this.

1. I ordered the car on my phone.
2. I got notice of delivery date and confirmed time/location.
3. I went to my bank and got a cashiers check for the full amount.
4. I showed up at my scheduled time, looked over the car, gave the check to the attendant, and drove off.

No talking with anyone, no upsells, no haggling and no time wasted. I loved it.
I ordered my Tesla using the infotainment screen in my brother's Tesla while riding down the highway with him.
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      05-11-2022, 11:39 AM   #17
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Missing from this article, but a quote from elsewhere. He mentions paying a subscription for ACC and other items, this is terrible, if I purchase a vehicle with an option, I shouldn't have to pay a monthly fee to use said option.

https://bimmerlife.com/2022/05/09/bm...tm_name=member
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      05-11-2022, 11:43 AM   #18
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Quote:
Originally Posted by Tag View Post
Why pay MSRP which includes profit for the dealership when you can pay a fixed price from BMW and cut out the middleman?
1. You still need to go through a franchise dealer (in the US)
2. Even if they manage to eliminate the dealers...do you honestly think that the prices will come down? The answer is: no. The overhead has to be paid for somewhere, and that will be in the form of "no haggle pricing".

So, yes, this model is more convenient.
No, it will not lead to lower prices. If anything, it will lead to an overall increase in prices.
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      05-11-2022, 12:00 PM   #19
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Quote:
Originally Posted by tgrundke View Post
1. You still need to go through a franchise dealer (in the US)
2. Even if they manage to eliminate the dealers...do you honestly think that the prices will come down? The answer is: no. The overhead has to be paid for somewhere, and that will be in the form of "no haggle pricing".

So, yes, this model is more convenient.
No, it will not lead to lower prices. If anything, it will lead to an overall increase in prices.
It doesn't make any sense for BMW to offer a fixed price if dealer MSRP is less. And yes, I do think if you cut out the middle man with their money-grubbing hands out of the purchase process you won't pay as much. Does that mean I think you'll be paying invoice? No, but I also don't believe for a second you'll be paying MSRP either. It'll probably fall somewhere in the middle.

Sometimes I think the loudest naysayers either work at stealerships or have a vested interest with them.
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      05-11-2022, 12:05 PM   #20
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Quote:
Originally Posted by Higgs Boson View Post
Also, I did pay over sticker for my last three new cars, if you want a car right now, this is just how it is. But don't worry, it won't be too long and we can all go back to getting 10 grand off MSRP and I can guarantee you won't still be saying you should still be able to pay MSRP.

Speak for yourself.

M5 CS delivered in February - actually got $1K OFF MSRP
X5M ordered for my wife, currently in production, paying MSRP
X6M ordered for my dad, currently waiting an allocation, paying MSRP

If you have the right mindset and do your homework, there's no reason you should ever pay MSRP.
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      05-11-2022, 12:28 PM   #21
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Quote:
Originally Posted by boost3dx View Post
Speak for yourself.

M5 CS delivered in February - actually got $1K OFF MSRP
X5M ordered for my wife, currently in production, paying MSRP
X6M ordered for my dad, currently waiting an allocation, paying MSRP

If you have the right mindset and do your homework, there's no reason you should ever pay MSRP.
I think we all "speak for ourselves" at the end of the day.

Regardless, not sure the point of your argument, you just said you're paying MSRP for 2 of 3 cars then said there's no reason you should ever pay MSRP....? lol.

On these cars I didn't mind paying MSRP + a little because there were almost no M50s available and I needed a car for my wife in like 1 day because I sold her car (paid sticker for the M50)

the X5M I paid 3 over because there were about 8 in the country and they all wanted 10+ over.

The R8 was a 232 sticker and there was 1 other one for sale in the country and they wanted 100k over. A bunch of rear drive cars were in the pipeline for 40k over, R8 V10 is a dead man walking, I gladly gave 5 over to keep one of the last NA V10s in the garage.

Next up, C8Z for last NA V8, a GT3 for NA 6, then I will have to figure out an NA V12 but I'll have to save up a while for that one....

They will either all be priceless or worthless, I guess we will see, haha. Regardless, the few grand over sticker won't matter in 5 years, or 20.
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      05-11-2022, 12:30 PM   #22
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All very noble but almost impossible to execute for legacy car makers.

Unwinding 70+ years of process, people, technology and layering in varying state and local and federal government regulations, is almost impossible to do.

Digital car buying will continue to be basic browse online but a visit to the dealer showroom. The metaverse cannot replicate a full driving experience, period.

Tesla did it, with a shitload of pain, because they were greenfield, unencumbered by the debts of the past.

Super fascinating to see where this all lands.
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