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      08-07-2015, 12:39 PM   #23
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Quote:
Originally Posted by dmboone25 View Post
It's an interesting discussion - one has to think that the price of each BMW has the pre-paid maintenance already factored in - it makes me wonder if "dropping" this benefit will have any cumulative impact on prices.
You would think, right?

However it won't. No plans to decrease prices across the board if changes are implemented.
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      08-07-2015, 12:45 PM   #24
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Originally Posted by Die ///M Rakete View Post
You would think, right?

However it won't. No plans to decrease prices across the board if changes are implemented.
They could always address it over time with smaller than normal price increases - but you're right, no one buying a Bimmer is going to see those savings.

My guess is that this will end up being a nice source of additional profit for dealers - I am not sure how warranty service work is currently handled between a dealer and say BMW NA - but my guess would be that the dealer isn't reimbursed the same amount as if a customer off the street were paying.
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      08-07-2015, 12:55 PM   #25
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Quote:
Originally Posted by dmboone25 View Post
They could always address it over time with smaller than normal price increases - but you're right, no one buying a Bimmer is going to see those savings.

My guess is that this will end up being a nice source of additional profit for dealers - I am not sure how warranty service work is currently handled between a dealer and say BMW NA - but my guess would be that the dealer isn't reimbursed the same amount as if a customer off the street were paying.
It's an interesting thought, I would guess it's closer than you think. The dealerships have to pay the mechanics salaries somehow. They' can't do that if NA only reimbursed them at an invoice level. Not to mention that there has to be some element of profit baked in for the dealer. These guys aren't pro bono. I imagine there has been some sort of collective bargaining agreement between the dealers and NA. But what do I know?
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      08-07-2015, 12:58 PM   #26
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Originally Posted by Gibson6594 View Post
It's an interesting thought, I would guess it's closer than you think. The dealerships have to pay the mechanics salaries somehow. They' can't do that if NA only reimbursed them at an invoice level. Not to mention that there has to be some element of profit baked in for the dealer. These guys aren't pro bono. I imagine there has been some sort of collective bargaining agreement between the dealers and NA. But what do I know?
I am thinking you're right - and to that point, perhaps BMW pitched it to dealers as a way to recover whatever % is lost on pre-paid maintenance work.

Even if that % is pretty small...I am sure the dealers want it.
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      08-07-2015, 02:12 PM   #27
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Quote:
Originally Posted by dmboone25 View Post
I am thinking you're right - and to that point, perhaps BMW pitched it to dealers as a way to recover whatever % is lost on pre-paid maintenance work.

Even if that % is pretty small...I am sure the dealers want it.
But will it offset the the number of people who buy with the current plan and think "I don't have to worry about it". That is a main selling point to my wife for BMW, otherwise her preference is Audi. Her last 3 cars were BMW, and the MAIN reason they weren't all Audi was the service plan. (I can show you her list of pro's and con's.)

I buy cars for other reasons, but they can kiss a decent % of sales goodbye if they move off this.

(Also note that his plan makes BMW's appear cheaper for the initial cost of ownership under the JD Power, etc. They can kiss that goodbye too.)
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      08-07-2015, 02:40 PM   #28
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Quote:
Originally Posted by Die ///M Rakete View Post
If you all think this is upsetting just wait until you hear what BMW plans to do with the pre-paid maintenance on new cars...
Is this speculation or inside information?
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      08-07-2015, 03:18 PM   #29
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Is this speculation or inside information?
That Ludwig is pushing for it is a fact. That North American dealers are vehemently opposing it is also a fact.

However, nothing has happened yet and my guess is that if it does happen it won't be until next year.

Naturally, I'm crossing my fingers that it doesn't come to pass. That would be a major strategic blunder for BMW in my opinion.
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      08-07-2015, 03:20 PM   #30
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Originally Posted by tke743 View Post
I buy cars for other reasons, but they can kiss a decent % of sales goodbye if they move off this.
I agree with this. In large market areas, there are plenty of independent mechanics that I could choose. The dealerships wouldn't sacrifice their guaranteed service revenue for the sake of adding a small margin to their sales. That doesn't make sense to me.
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      08-07-2015, 03:25 PM   #31
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Originally Posted by dmboone25 View Post
My guess is that this will end up being a nice source of additional profit for dealers -
I can tell you from over a decade of personal experience that with Audi, Mercedes-Benz and Lexus offering semi-competitive alternatives to our line-up, it is often the pre-paid maintenance program that wins the day for BMW.

I fail to see how losing market share will result in additional profit for BMW dealers. Let's hope they decide against it.
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      08-07-2015, 06:21 PM   #32
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Originally Posted by LinkF1 View Post
My understanding is the first three weeks of that time BMW NA often gives the dealer a grace period where they are not charged interest.

With ED all of that nonsense (i.e. extra cost) is avoided and the customer already owns the car when BMW NA charges the dealer. This saves BMW NA thousands of dollars by not loaning money out for free to the dealerships,
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.
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      08-07-2015, 08:05 PM   #33
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Quote:
Originally Posted by Die ///M Rakete View Post
That Ludwig is pushing for it is a fact. That North American dealers are vehemently opposing it is also a fact.

Naturally, I'm crossing my fingers that it doesn't come to pass. That would be a major strategic blunder for BMW in my opinion.
Like I said, my wife prefers Audi, but she said "If I can't get the full 'everything but the tires' service plan, I want the BMW." That is a direct quote during the last round, where she selected a (loaded, built to order) 2015 328xit delivered in May. If it wasn't for the maintenance plan, this would be a Q5s. She even asked me to find a plan, that was like the BMW one, for the Q5s. We couldn't, and although her grading had the Q5s at about a 10% favorite we went BMW. I'm pro BMW, but this was THE deciding factor.

This is the same rational that has been applied for her last 3 vehicles. That is $150k in the last 5 years that would have been Audi instead of BMW. If the BMW marketing people that watch this site doubt me, they can feel free to contact me for proof. This rumored maintenance change is a bad idea for them.

Last edited by tke743; 08-07-2015 at 08:40 PM..
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      08-08-2015, 10:58 PM   #34
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Quote:
Originally Posted by tke743 View Post
Like I said, my wife prefers Audi, but she said "If I can't get the full 'everything but the tires' service plan, I want the BMW." That is a direct quote during the last round, where she selected a (loaded, built to order) 2015 328xit delivered in May. If it wasn't for the maintenance plan, this would be a Q5s. She even asked me to find a plan, that was like the BMW one, for the Q5s. We couldn't, and although her grading had the Q5s at about a 10% favorite we went BMW. I'm pro BMW, but this was THE deciding factor.

This is the same rational that has been applied for her last 3 vehicles. That is $150k in the last 5 years that would have been Audi instead of BMW. If the BMW marketing people that watch this site doubt me, they can feel free to contact me for proof. This rumored maintenance change is a bad idea for them.
This is exactly why my drives a 535I instead of an e class. She actually liked the e class a little more.
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      08-09-2015, 12:31 PM   #35
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You have the cheapest cars in the world (USA) so no problem
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      08-09-2015, 01:27 PM   #36
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Quote:
Originally Posted by tke743 View Post
Like I said, my wife prefers Audi, but she said "If I can't get the full 'everything but the tires' service plan, I want the BMW." That is a direct quote during the last round, where she selected a (loaded, built to order) 2015 328xit delivered in May. If it wasn't for the maintenance plan, this would be a Q5s. She even asked me to find a plan, that was like the BMW one, for the Q5s. We couldn't, and although her grading had the Q5s at about a 10% favorite we went BMW. I'm pro BMW, but this was THE deciding factor.
Could have told your wife about Audi Care prepaid maintenance, $829 for SQ5. Usually not hard to work it into Audi deal for free. You pay for BMW maintenance already, they just put it into price of the car.
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      08-09-2015, 03:09 PM   #37
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Originally Posted by BlackJetE90 View Post
Could have told your wife about Audi Care prepaid maintenance, $829 for SQ5. Usually not hard to work it into Audi deal for free. You pay for BMW maintenance already, they just put it into price of the car.
The Audi Care isn't close to the same thing.
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      08-09-2015, 04:01 PM   #38
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Quote:
Originally Posted by tke743 View Post
Like I said, my wife prefers Audi, but she said "If I can't get the full 'everything but the tires' service plan, I want the BMW." That is a direct quote during the last round, where she selected a (loaded, built to order) 2015 328xit delivered in May. If it wasn't for the maintenance plan, this would be a Q5s. She even asked me to find a plan, that was like the BMW one, for the Q5s. We couldn't, and although her grading had the Q5s at about a 10% favorite we went BMW. I'm pro BMW, but this was THE deciding factor.

This is the same rational that has been applied for her last 3 vehicles. That is $150k in the last 5 years that would have been Audi instead of BMW. If the BMW marketing people that watch this site doubt me, they can feel free to contact me for proof. This rumored maintenance change is a bad idea for them.
While there are other reasons, the "free" maintenance is one of the main reasons I have been getting on BMW's. I even told others about it which drove their interest toward BMW. If the plan goes away, I am sure many will jump ship as there is one less reason to stay with BMW. Audi and MB are making very attractive cars right now.
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      08-09-2015, 04:22 PM   #39
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Originally Posted by tke743 View Post
The Audi Care isn't close to the same thing.
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.
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      08-09-2015, 05:09 PM   #40
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Originally Posted by BlackJetE90 View Post
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.
So I heard that Audi's are not that reliable and the depreciate like crazy. Is that true? I do like the new cars style they have going on.
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      08-09-2015, 05:55 PM   #41
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Originally Posted by BlackJetE90 View Post
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.
How often did you stop in because things like "windshield wipers are streaking" good luck with that at Audi. This is the kind of coverage my wife needs.

Audi offers no equivalent premium service plan. If they did, we wouldn't be a consistently 2 BMW household. (Much to my displeasure.)

Last edited by tke743; 08-09-2015 at 06:00 PM..
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      08-09-2015, 07:06 PM   #42
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What are the rumored changes to the BMW maintenance plan?
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      08-09-2015, 07:47 PM   #43
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What are the rumored changes to the BMW maintenance plan?
What ever the change, it's no big deal. At least according to - http://jalopnik.com/here-s-why-free-...ick-1632578540
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      08-09-2015, 08:33 PM   #44
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What ever the change, it's no big deal. At least according to - http://jalopnik.com/here-s-why-free-...ick-1632578540
I agree with his statement, but the current plan is different. It is peace of mind for those that don't want to wrench it themselves. Also for people like my wife who know nothing about cars. They cover everything except the tires. That is easy to explain. The TotalCare plans with their certificates for oil changes, tire rotations and the like are not the same.

Marketing gimmick? Yes. A good one in this case? Yes to that too.
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