BVRLA RVR FORUM. BMW i APPROVED USED CARS DIRECT SALES
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1 February 2015 BVRLA RVR FORUM. BMW i APPROVED USED CARS DIRECT SALES 18 FEBRUARY 2015
2 THE BMW i3 AND i8. BMW i3 - Launched November Available as BEV or REX - Starting price 30,980 (excluding PICG) retail volume 1400 units - Retail/Corporate split 56/44 BMW i8 - Launched July Low volume exclusive car - Halo - Hybrid sports car with electric drive - 3 cylinder petrol - Starting price 104,590 (excluding PICG) Page 2
3 NEW CAR - New BMW i vehicles are sold using the Direct Sales process - Exclusive network, only 53 Dealers training and infrastructure - BMW retain ownership of vehicle till sold to customer - Dealer receives a handling fee - Ordering process for the customer remains the same as BMW Classic Page 3
4 USED CAR DIRECT SALES PROGRAMME. - Benefits and standards are closely aligned to BMW Classic - Mixture of Direct (ex BMW internal use) and Wholesale Stock (Dealer purchased) - Majority of Direct Stock is between 12 and 18 months old - Direct Stock is sourced from internal fleets - Ex BMW Financial Services vehicles sold via the auction channel - Dealer purchased vehicles (direct Dealer trade in)
5 WHERE ARE WE? - Started selling used vehicles in Q BMW Financial Services supported offer in place for the sale of used cars - 45 vehicles sold to date - BMW Used Car updated shortly to include the i3 - BMW Used Car Marketing collateral to follow - Vehicles offered to Dealers on Sale or Return
6 Page 6
7 Customer enquiry handled by Customer Interaction Centre Page 7
8 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Page 8
9 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Page 9
10 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Page 10
11 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Vehicle placed into Dealer s stock and removed from Page 11
12 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Vehicle placed into Dealer s stock and removed from Vehicle dispatch arranged along with V5 Page 12
13 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Vehicle placed into Dealer s stock and removed from Vehicle dispatch arranged along with V5 Dealer creates sales order form for customer Page 13
14 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Vehicle placed into Dealer s stock and removed from Vehicle dispatch arranged along with V5 Dealer creates sales order form for customer BMW checks order form and invoices car to Dealer Page 14
15 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Vehicle placed into Dealer s stock and removed from Vehicle dispatch arranged along with V5 Dealer creates sales order form for customer BMW checks order form and invoices car to Dealer Dealer invoices customer and collects payment Page 15
16 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Vehicle placed into Dealer s stock and removed from Vehicle dispatch arranged along with V5 Dealer creates sales order form for customer BMW checks order form and invoices car to Dealer Dealer invoices customer and collects payment Dealer receives handling fee for sale Page 16
17 Customer enquiry handled by Customer Interaction Centre Lead sent to nominated Dealer Lead qualified, test drive arranged in new car demo vehicle Dealer informs BMW of successful sale Vehicle placed into Dealer s stock and removed from Vehicle dispatch arranged along with V5 Dealer creates sales order form for customer BMW checks order form and invoices car to Dealer Dealer invoices customer and collects payment Dealer receives handling fee for sale If no sale is agreed, the vehicle is returned Page 17
18 i3 DIRECT SALES STOCK strong Dealer network with three i3s each - 10 Light sites with two i3s each launching Q i3s on internal fleets such as Press, Product etc. - BMW i3 used sales 2015 = 309 Page 18
19 BMW i3 STOCK MANAGEMENT Production 2015 Production - Majority of Direct Sales stock produced in Q Ensured vehicles were available for launch - Used car supply needs to be more evenly spread - Some early stock will be 18 months old when sold Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20 DIRECT SALES BENEFITS. - Allows us to manage the stock of YUC entering the market - No distressing prices or RVs - Allows us to promote vehicles centrally - Gives us the ability to set a monthly Financial Service rate - Greater customer choice due to centrally managed used car stock - Enquiry management by our Customer Interaction Centre
21 HOW WELL IS IT WORKING? - RV range from 86% 93% with an average of 91% (Ex PICG) - Age range is 9 14 months with an average of 10.8 months - Mileage range is 1,600-10,200 miles with an average of 5,500 miles -Next steps pushing live and run central Marketing activity
22 THANK YOU FOR YOUR TIME. Page 22
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