BMW Group postpones agency sales

author: FutureCar Staff    

BMW has decided to delay its plans to implement agency sales in the UK, following the example of its rivals. Initially, BMW had informed dealers that agency sales would be introduced in 2026, starting with Mini in the following year. However, sources have revealed that the transition to agency sales for Mini has been postponed by at least six months, now scheduled for 2025.

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

While Mercedes' CEO, Gary Savage, previously claimed that the switch to haggle-free car sales was successful, the company has been aggressively pursuing sales through heavily subsidized new car deals. In fact, Mercedes is planning to launch a series of 0% finance deals during a 'Cyber Weekend' sales event.

A spokesperson for BMW did not provide specific reasons for the delay at Mini but stated, "As planned, the BMW Group will introduce its new direct sales model with Mini in Italy, Poland, and Sweden from January 1, 2024. The implementation of agency sales at Mini in other European countries, including the UK and Ireland, will follow in stages and will be communicated at a later date. Our focus is to ensure a smooth transition without compromising the quality and stability of our customer experience, and our retail partners fully support this approach."

BMW is not the only manufacturer to delay its transition to agency sales. VW Group, for example, attributed the delay to internal systems and pushed back its rollout until at least 2024. Stellantis has also postponed its move to an agency sales model, while Ford is planning a similar transition in the near future. Daksh Gupta, former CEO of Marshall Motor Group, revealed that he has been assisting Ford with its plans.

Car Dealer conducted research on agency sales in July and discovered that 18 car manufacturers have already adopted or are planning to adopt fixed-price, no-haggle agency sales agreements with their partners. Within the next six months, Mini, Skoda, Smart, and Genesis will all transition to agency sales. Out of the 47 car brands operating in the UK, only eight categorically ruled out moving to agency sales, while 21 either did not comment or chose not to issue a statement.

FutureCar Staff