[fuddman]

With respect to pre paid maintenance, I don't know what it costs me. And until that is revealed, It's hard to conclude it's a gimmick. It's a hidden cost.
I hope they eventually offer it as an option so I can make an informed decision.

[dmboone25]

Originally Posted by fuddman

With respect to pre paid maintenance, I don't know what it costs me. And until that is revealed, It's hard to conclude it's a gimmick. It's a hidden cost.
I hope they eventually offer it as an option so I can make an informed decision.

That's what most of the other luxury manufacturers do - my guess is that if this is indeed the direction that BMW wants to go, they will offer different "levels" of inclusive maintenance. It will be interesting to see how this plays out...

[PackPride85]

Originally Posted by dmboone25

That's what most of the other luxury manufacturers do - my guess is that if this is indeed the direction that BMW wants to go, they will offer different "levels" of inclusive maintenance. It will be interesting to see how this plays out...

Sad part is that while its probably included in the price of a new BMW now (as a hidden cost) its not like the price of car will ever go down if they take it out and make it separate.

[dmboone25]

Originally Posted by PackPride85

Sad part is that while its probably included in the price of a new BMW now (as a hidden cost) its not like the price of car will ever go down if they take it out and make it separate.

nope - we were chatting about this on one of the previous pages - how much profit there really is there and who is going to see it...

As many others have pointed out, the maintenance has been a selling point for a long time - will be interesting to see how they position the change, in the event that it actually happens.

[Die ///M Rakete]

Originally Posted by alz0rz

What are the rumored changes to the BMW maintenance plan?

BMW is seriously considering eliminating or at the very least fundamentally altering the 4/50 pre-paid maintenance plan that's included with all new BMWs.

As you all know, the maintenance program used to follow the vehicle just like the like factory warranty did whether you were the original owner or a later owner . The writing first went on the wall when non-original BMW owners of vehicles with an in-service date after July 1, 2014 became no longer entitled to that privilege without first paying a "MP reinstatement fee". Many dealers typically cover that fee internally when selling pre-owned or certified BMWs still under factory warranty.

An acquaintance of mine heard it straight from the horse's mouth a few months back and BMW of North America Chief Ludwig Willisch's thought process on the subject reportedly goes something like this:

"We not only produce and sell the finest automobiles in the luxury segment and because of our pre-paid maintenance program we also have by far the best warranty in the luxury segment....yet we consistently rank only in the middle of the yearly J.D. Power U.S. Customer Service Index (CSI) Study. What is the half a billion dollars or so we spend on this pre-paid maintenance really getting us?!!"

I can see Ludwig's point, however as I stated earlier, I believe this would be a major strategic blunder on behalf of BMW NA but then again...what do I know

[hans007]

Originally Posted by BlackJetE90

It was for me with the two Audi's I had owned. Never paid for any service/maintenance for 50k miles. Brought the car in and picked it up, simple as that. Just like I do now with my BMW. It was fun, twice I got an A8 loaner.

i had an A4 and paid for the prepaid maintenance.

its basically the same thing . i think the only difference was it didn't cover replacement of brake pads or rotors and i remember when i got it was $850 (this was in 2010 so maybe its gone up)

I mean mercedes has a similar program. I don't think "free maintenance" with a BMW is that compelling a point, when BMWs do cost a little bit more comparably equipped than an audi (bmws in my opinion just plain are more fun to drive, but if thats not a huge concern for the driver and for many it really isnt then it doesnt make a difference right?). you could just buy the audi and pay $1000 or whatever for maintenance. you can even choose to not buy it until the first service if you want to see if you can find a mechanic to do your service for less or whatever.

[tke743]

Originally Posted by hans007

i had an A4 and paid for the prepaid maintenance.

its basically the same thing . i think the only difference was it didn't cover replacement of brake pads or rotors and i remember when i got it was $850 (this was in 2010 so maybe its gone up)

I mean mercedes has a similar program. I don't think "free maintenance" with a BMW is that compelling a point, when BMWs do cost a little bit more comparably equipped than an audi (bmws in my opinion just plain are more fun to drive, but if thats not a huge concern for the driver and for many it really isnt then it doesnt make a difference right?). you could just buy the audi and pay $1000 or whatever for maintenance. you can even choose to not buy it until the first service if you want to see if you can find a mechanic to do your service for less or whatever.

I think you hit the nail on the head for the people on this board. I bought my BMW's for the reasons you note. But others (like our family members, or in my case my wife) see this differently.

I would buy the best driving car even if it had no warrantee at all. My wife puts this maintenance plan as a very high priority. She had too many of the "it's a girl, lets pull one over on her" maintenance issues in the past. This eliminates this entirely. If she thinks there is an issue, she brings it in. No arguments, no discussion and she never has to feel like they might be trying to pull something.

That peace of mind for a decent % of the BMW buying population is worth it's weight in gold.

[LinkF1]

Originally Posted by fuddman

This makes no sense.
Particularly, from a numbers standpoint.
Example: 2015 M4 7% ED discount to the customer is $4,530 per car .
There is no way 3 (or 6 or 12, etc.) weeks (which, I guess you're suggesting) will yield that much money in interest on a car with an dealer invoice value (principle) of $60,670.
Perhaps I'm missing some numbers.

You're right the interest isn't the only number.

Dealers get bonuses from NA based on volume of cars they sell. They also get additional allocations in the future based on that volume. They don't risk a bad score on their customer satisfaction survey for an ED car. Finally, for the CAs that price ED aggressively over the internet, they get sales that they would never be in the market for otherwise.

[fuddman]

Originally Posted by Die ///M Rakete

BMW is seriously considering eliminating or at the very least fundamentally altering the 4/50 pre-paid maintenance plan that's included with all new BMWs.

....BMW of North America Chief Ludwig Willisch's thought process on the subject reportedly goes something like this:

"We not only produce and sell the finest automobiles in the luxury segment and because of our pre-paid maintenance program we also have by far the best warranty in the luxury segment....yet we consistently rank only in the middle of the yearly J.D. Power U.S. Customer Service Index (CSI) Study. What is the half a billion dollars or so we spend on this pre-paid maintenance really getting us?!!"

I don't see the logic you use which takes you from Ludwig's comment to your conclusion that the Ludwig is "seriously considering" eliminating the PPM program.
To me, what he's saying is the PPM program is supposed to generate goodwill among BMW customers. And, dealers, through their direct relationship with their customers, are to see to it goodwill is, in fact, created. The CSI measures how well the dealers are achieving that goal.
Ludwig is not, therefore, saying let's get rid of the program. What he is saying is: "Hey, dealers, I'm spending big money so you can create goodwill and the the CSI says you aren't doing it! Get with the program!"

[PackPride85]

Coming a conclusion that they are looking to eliminate maintenance plans based on word of mouth and one comment is absurd. I've even heard reports that the ED discount decrease itself isn't 100% accurate.

[LinkF1]

Originally Posted by PackPride85

I've even heard reports that the ED discount decrease itself isn't 100% accurate.

It was originally posted and subsequently confirmed by several separate dealer representatives on Bimmerfest. Good discussion over there on exactly what the change affects from the customer perspective.

[hyperzulu]

Originally Posted by LinkF1

It was originally posted and subsequently confirmed by several separate dealer representatives on Bimmerfest. Good discussion over there on exactly what the change affects from the customer perspective.

+1
If Jon Shafer confirmed it, then that's about as official as it gets, IMO.

[Wormiez]

Has anyone in Canada placed a deposit and sign-ed up for European delivery?

My rep did not mention about any discounts for ED. He only mentioned about having the standard tour and free week of insurance...

Looking to see what other dealers are doing to incentive on ED.

[hyperzulu]

Originally Posted by Wormiez

Has anyone in Canada placed a deposit and sign-ed up for European delivery?

My rep did not mention about any discounts for ED. He only mentioned about having the standard tour and free week of insurance...

Looking to see what other dealers are doing to incentive on ED.

Your rep is right. Canada ED price is the same as standard invoice and msrp. You have to move down south to get a discount.

[Dabozo]

Originally Posted by hyperzulu

Your rep is right. Canada ED price is the same as standard invoice and msrp. You have to move down south to get a discount.

This sort of crap really pisses me off! Why the difference in programs? Do Canadians not make for good tourists

Maybe its the Canadians that are going over there just to pick up the car and dropping it off immediately ie. not spending money in za fatherland...

All kidding aside, maybe there is more to the ED program then just being something contrived by their tourism board, because i dont see why we would not get same treatment as USA....

[hyperzulu]

Originally Posted by Dabozo

This sort of crap really pisses me off! Why the difference in programs? Do Canadians not make for good tourists

Maybe its the Canadians that are going over there just to pick up the car and dropping it off immediately ie. not spending money in za fatherland...

All kidding aside, maybe there is more to the ED program then just being something contrived by their tourism board, because i dont see why we would not get same treatment as USA....

That's some myth. There is no shortage of tourists to Germany or Europe. No need to make an incentive for that. ED does promote a loyalty which BMW NA wants to tap into. They will reward that loyal fan base with a discount. I think the only reason it works here is because we buy a much larger number of BMWs. ED customers talk about it, blog about it, it's a great marketing tool.

[Dabozo]

yes, no denying the difference in sales volume...probably 10:1...

It would still be a great experience to do ED even without the discount, however, the stars would really have to align...ie, I were planning a trip to Germany one day anyways and oh, happened to be in the market for a new car AT THAT TIME. Otherwise, fogetaboutit.

[shivaswrath]

Originally Posted by fuddman

What ever the change, it's no big deal. At least according to - http://jalopnik.com/here-s-why-free-...ick-1632578540

The door fell off!!

[fuddman]

Originally Posted by Dabozo

This sort of crap really pisses me off! Why the difference in [US and Canadian ED] programs? Do Canadians not make for good tourists ?

The ED program is controlled by dealers. Not by BMW the corporation. ED is, first and foremost, a sales program (and only tangentially related to tourism). And, when it comes to sales, the dealer is regarded, in a manner of speaking, as the tip of the spear. Sales issues are deferred to them.
So, if in Canada you do not get an ED discount, then you can bet your mommas kitchen it's because that's the way the dealers want it.
Likewise, the reduction of the US ED discount from 7% to 5% is driven by the US dealers.
Note: the aforementioned comments do not apply to sales in which cars are sold at ED invoice.

[ixm3]

I think there will be negative downstream effects of ditching the "free maintenance plan". Used BMWs FS can normally be assured of having been maintained over their early life. That will be gone. Lease attractiveness (with respect to "all in" cost) including lease transfer may also be effected.

BMW has essentially killed independent repair shop exposure to new cars with the maintenance plan...and the dealers have seen all this volume. Lose the plan and the independents will start getting back this volume...at the expense of the dealers.

Maybe he's just playing with the press, but hopefully the CEO knows that there is more benefit to BMW from the included maintenance plan than just the development of goodwill.

[Die ///M Rakete]

Originally Posted by fuddman

I don't see the logic you use which takes you from Ludwig's comment to your conclusion that the Ludwig is "seriously considering" eliminating the PPM program.
To me, what he's saying is the PPM program is supposed to generate goodwill among BMW customers. And, dealers, through their direct relationship with their customers, are to see to it goodwill is, in fact, created. The CSI measures how well the dealers are achieving that goal.
Ludwig is not, therefore, saying let's get rid of the program. What he is saying is: "Hey, dealers, I'm spending big money so you can create goodwill and the the CSI says you aren't doing it! Get with the program!"

My logic is sound. You are entitled to your own interpretation...and of course I'm hoping that you are correct and that I'm completely mistaken. That said, let's wait a while and have this conversation again in the mid-term future.

[PackPride85]

Originally Posted by Die ///M Rakete

My logic is sound. You are entitled to your own interpretation...and of course I'm hoping that you are correct and that I'm completely mistaken. That said, let's wait a while and have this conversation again in the mid-term future.

It should at the very least be a perk for M owners.