BMW Group delays agency sales

author: FutureCar Staff    

BMW has decided to delay its plans to implement agency sales in the UK for at least six months. The company wants to observe how the transition goes for its competitors before proceeding. Initially, BMW had informed dealers that agency sales would begin in 2026, starting with Mini in the following year. However, sources now reveal that the introduction of agency sales for Mini has been postponed to 2025.

A dealer stated, "Mini had informed dealers that agency sales would begin on October 1, 2024, but now it won't happen until at least March 2025." The decision to delay was reportedly influenced by the challenges faced by rival companies, such as Mercedes, during their transition to agency sales. Mercedes' market share has suffered in 2023, causing concerns among BMW dealers about the success of the switch to agency sales.

While Mercedes claimed that their move to haggle-free car sales was successful, they have been aggressively offering heavily subsidized new car deals to boost demand. This weekend, they will launch a series of 0% finance deals on their range as part of a "Cyber Weekend" sales event. BMW did not comment on the reason for the delay at Mini but stated that they would introduce the new direct sales model with Mini in Italy, Poland, and Sweden from January 1, 2024.

BMW emphasized their focus on ensuring a smooth transition without compromising the quality and stability of the customer experience. They intend to remain flexible as they implement their new direct sales model, and their retail partners fully support this approach. It's worth noting that BMW is not the only manufacturer to postpone its transition to agency sales. VW Group blamed "internal systems" for delaying its rollout until at least 2024, and Stellantis has also postponed its move to agency sales. Ford is planning a similar transition in the near future, with the assistance of Daksh Gupta, former CEO of Marshall Motor Group.

A research conducted by Car Dealer in July revealed that 18 car manufacturers have either already moved or will soon move to fixed-price, no-haggle agency sales agreements with their partners. Within the next six months, Mini, Skoda, Smart, and Genesis are among the brands that will adopt agency sales. When asked about their plans to transition to agency sales, only eight car manufacturers definitively ruled out the move, while 21 either failed to comment or chose not to issue a statement.

FutureCar Staff