View Full Version : Would you buy a BMW from Costco?
BHR4CE1
12-02-2008, 09:41 AM
SOURCE: BMW BLOG
http://www.bmwblog.com/wp-content/uploads/screen-capture-732.jpg
Could it be? You better believe it. The guys at Autospies spotted a few bimmers right outside a San Diego Costco. Many of us associate the name Costco with price discounts and of course, the BMW brand name stands for expensive, luxury, high-end cars, so along with the fellows at Autospies, we cannot wonder if this is the right image that BMW would want to project.
Is this the right partnership for BMW? I have to admit, I was a little bit shocked by the ad placed on a 2009 BMW 335i, which advertises a discount of $2,775 for Costco members. After some more digging, I found out that many local dealerships have agreements with the Costco chain, this includes Audi, Lexus and Volvo. The Costco Auto Program has been proven to be very successful for the Sweedish manufacturer and offered great value on Volvo’s C70 hardtop convertible and popular S80 sedan.
http://www.bmwblog.com/wp-content/uploads/screen-capture-734.jpg
Now, playing the devil’s advocate here, I have to say that in these tough times, whichever company thinks outside the box and find innovative ways to sell their products, will have higher chances at succeeding and make it through the depression.
But in the same time, I have a question for you. Please see poll above.
boxboss
12-02-2008, 09:47 AM
BMW did this, in a fashion, with N-M, but for only 50 M6's. Maybe this will generate a few more sales. One question...will these have "Costco" on the door sills like the N-M editions?
BTW, that discount is a little over 5% and you should be able to do better in the current market.
ZCP///M3
12-02-2008, 10:00 AM
For some people, I could see it hurting BMW's image of luxury and status, however I don't think that it would take away from the luxury, status, and performance as long as BMW continues to maintain it. At the end of the day, sure you save a few bucks, but the 335 is still a $45K car be it from a BMW dealership or from Costco. Costco sells a lot of "luxury" items including Cartier watches, Christian Dior sunglasses, Seven jeans, Prada handbags, etc! They make no more than 15% margin at Costco and make their money from memberships. If I were in the market for a new car and could get a better price at Costco, I definitely would buy a BMW from Costco. But would want to test drive the car and learn about it at the dealership...
D!Tailed
12-02-2008, 12:56 PM
Only if I could get an entire case!
:greenlaff:
InsidiousSpeed
12-02-2008, 03:47 PM
This is the dumbest thing I have seen! They should stop it. It can't possibly be a new car. BMW spends so much on brand development and brand image. This is utter nonsense.
InsidiousSpeed
12-02-2008, 04:05 PM
It's about a business relationship with your dealer and BMW when you buy a new car. Most of us would want to go back to the same dealer. We get looked after well. You go to Costco/whatever to buy totally different products. To think it is an equivalent BMW buying/leasing experience with your toilet paper and your pet dog's dinner, that's absurd.
boxboss
12-02-2008, 04:16 PM
It's about a business relationship with your dealer and BMW when you buy a new car. Most of us would want to go back to the same dealer. We get looked after well. You go to Costco/whatever to buy totally different products. To think it is an equivalent BMW buying/leasing experience with your toilet paper and your pet dog's dinner, that's absurd.
I agree with you Oz. There are certain things about having a relationship with your dealer. For example, they make sure I always get a BMW loaner. My MB dealer will not give you a loaner at all if you didn't buy a car from them - but that's MB and another story. I can email my SA at any time with questions that range from "I know it's Thursday, but can I come in for service Saturday at 8AM?" to "What are those little holes in the wheels for?"
Basically, there's a lot to be said for the buyer-dealer relationship. Can you email the greeter at WalMart for a service appointment?
D!Tailed
12-02-2008, 06:32 PM
I agree with you Oz. There are certain things about having a relationship with your dealer. For example, they make sure I always get a BMW loaner. My MB dealer will not give you a loaner at all if you didn't buy a car from them - but that's MB and another story. I can email my SA at any time with questions that range from "I know it's Thursday, but can I come in for service Saturday at 8AM?" to "What are those little holes in the wheels for?"
Basically, there's a lot to be said for the buyer-dealer relationship. Can you email the greeter at WalMart for a service appointment?
I can agree with all you said here, but it's not just a BMW experience. I have the same deal at my VW dealership. That's because I built the relationship in part, but it's there.
And I do agree, you lose the personal relationship of a dealer, but then again, if you know exactly what you want, then get it at Costco. I know that many times all Costco does is contract with a certain dealership. Your pricing may be through Costco, but I believe you deal with a dealership to pick it up.
D!
boxboss
12-02-2008, 06:57 PM
I can agree with all you said here, but it's not just a BMW experience. I have the same deal at my VW dealership. That's because I built the relationship in part, but it's there.
And I do agree, you lose the personal relationship of a dealer, but then again, if you know exactly what you want, then get it at Costco. I know that many times all Costco does is contract with a certain dealership. Your pricing may be through Costco, but I believe you deal with a dealership to pick it up.
D!
We agree on the personal aspects of the dealer relationship. I'd be willing to wager that if you approached your dealer with the Costco deal (5% off sticker) and asked him to match or beat the offer, he would. In the current market, you can bet you'd get a better deal than 5% off. Is that a reflection of the dealer-buyer relationship you (we) have or the current market conditions? :dunno: I'd like to think that my dealer (and I have every confidence that this is true) would match or beat any deal I could find elsewhere, regardless of the "market" conditions.
InsidiousSpeed
12-02-2008, 07:12 PM
We agree on the personal aspects of the dealer relationship. I'd be willing to wager that if you approached your dealer with the Costco deal (5% off sticker) and asked him to match or beat the offer, he would. In the current market, you can bet you'd get a better deal than 5% off. Is that a reflection of the dealer-buyer relationship you (we) have or the current market conditions? :dunno: I'd like to think that my dealer (and I have every confidence that this is true) would match or beat any deal I could find elsewhere, regardless of the "market" conditions.
Right now it would be more a reflection of market conditions.
I'll tell you what is priceless: I can ring up my dealer now and ask him when the next BMW M Drive Day is, and say I want a spot (for free of course), and he will book it in for me. I'll reserve that trigger for early next year, which is when the next event is. The point is, this is the relationship level I am at with my dealer and this is what I value.
D!Tailed
12-02-2008, 07:13 PM
We agree on the personal aspects of the dealer relationship. I'd be willing to wager that if you approached your dealer with the Costco deal (5% off sticker) and asked him to match or beat the offer, he would. In the current market, you can bet you'd get a better deal than 5% off. Is that a reflection of the dealer-buyer relationship you (we) have or the current market conditions? :dunno: I'd like to think that my dealer (and I have every confidence that this is true) would match or beat any deal I could find elsewhere, regardless of the "market" conditions.
Agreed. What I am saying is that I think that what you do in the Costco scenario is buy it all through Costco, but the delivery is done at the local dealership that has partnered with Costco. I completely agree that you could get a better deal probably going straight to the dealer, but at least in this scenario you probably get an introduction to your dealer
boxboss
12-02-2008, 07:16 PM
Right now it would be more a reflection of market conditions.
I'll tell you what is priceless: I can ring up my dealer now and ask him when the next BMW M Drive Day is, and say I want a spot (for free of course), and he will book it in for me. I'll reserve that trigger for early next year, which is when the next event is. The point is, this is the relationship level I am at with my dealer and this is what I value.
Exactly what I'm talking about in the buyer-dealer relationship! And you will not find this in the Costco deal.
BHR4CE1
12-02-2008, 09:31 PM
Exactly what I'm talking about in the buyer-dealer relationship! And you will not find this in the Costco deal.
That may be true, but I bet the BMW dealer won't have the 5 lb bag of peanut M&Ms!!!
AusBmw
12-02-2008, 09:43 PM
It's hardly bmw's fault were there cars get sold, it's mostly likely a marketing drones idea in the first place, once some sucker comes along and buys it, they will go back to selling GM with a million miles on them:scared:
Imagine being asked were you got it from:greenlaff::shitfan:
InsidiousSpeed
12-03-2008, 12:48 AM
Would you guys buy a wedding/engagement ring for your lady at Costco's? :jackit: