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Beginning in 2024, the BMW Group in Europe will progressively transition to an agency model. Initially, direct sales will only be available for MINI vehicles; the rest of the lineup will join in two years later. People may think the German luxury brand is skipping out on intermediaries, but that’s not the case. Even though BMW will send bills directly to purchasers, the dealership will still close the sale and receive the standard commission.
Pieter Nota, the automaker’s head of sales and marketing, guaranteed consumers they’ll pay the same price wherever they buy. The CEO revealed to Automobilwoche that the launch of the agency model will occur in three stages, with MINI serving as the vanguard in Germany during the first half of 2024.
In contrast to other automakers who have recently announced the implementation of direct sales, the BMW Group will not initially restrict the offer to electric vehicles. Therefore, starting in 2024 all MINIs will be available while all BMWs in 2026 via the agency model. According to Pieter Nota, a salesman may talk a customer into purchasing a gasoline or diesel vehicle instead of ordering an electric vehicle.
An executive said the agency model will extend to include almost-new low-mileage cars sold directly to customers. Pieter Nota say that the typical cutoff is between 6 months and 18 months. He dismissed the idea of incorporating after-sales services and spare parts into the scheme.
