BMW SALES PLAYBOOK JANUARY 2016 Inside this edition, you will find information on: 2016 Promotional Calendar 2016 Sales Support Calendar BMW of North America, LLC Automotive Sales Department January 2016 The Ultimate Driving Machine January/February Programs BMW i Spotlight Upgrade Your BMW BMW Loyalty Program Retail Offer Performance Bonus January Wholesale Support NEW Extended Test Drive Program Updates Advertised Payment Updates Profiles in Achievement for 2016 Corporate Fleet Program CPO Sales Event
2016 PROMOTIONAL CALENDAR. PLAN YOUR DEALERSHIP S PROMOTIONS ACCORDINGLY TO CAPITALIZE ON NATIONAL THEMES AND MESSAGING. JAN FEB MAR SALES PROMOTIONS CPO / CPO ELITE MARCH MADNESS LOYALTY PROGRAMS TIER 1 NATIONAL ADVERTISING CRM TACTICAL MESSAGING PRODUCT FOCUS AND COMMUNICATION PRIORITIES TWO PAYMENT WAIVERS (BMW FS Loyalty) 7 SERIES (G12) LAUNCH UPGRADE (4 Series Gran Coupe) AND EXTENDED TEST DRIVE (i8, 7 Series) 2 Series and 4 Series X4 xdrivem40i 330e Sedan 3 Series -> 4 Series Gran Coupe and 5 Series -> 6 Series Gran Coupe i3, i8 EVENT ACTIVATION CONS. ELEC. SHOW 24 HOURS OF DAYTONA
2016 SALES SUPPORT CALENDAR. WITH BMW S 100 TH ANNIVERSARY THIS YEAR, WE FORMALIZE A QUARTERLY FOCUS ON BMW LOYALTY, AND WITH THE NEW YEAR, WE RESET THE PRICE LADDERS AMONG THE MODEL SERIES, FACILITATING MY2015 SELLDOWN AND THE RAMP UP OF MY2016 SALES SUPPORT. As promised in October, lease support continues to wind down on MY2015 models, ultimately shifting to dollarbased residuals in May (X3, X4, Z4 go to dollar-based residuals in March), but cash allowances will stay in place to provide attractive APR and cash offers for a limited time. Take advantage of the Buildout Allowance message and make use of all available funds to bring in the bargain shoppers in the First Quarter! MY2012-2013 MY2014 JAN FEB MAR APR CPO PROGRAMS CPO ELITE PROGRAMS MY2015 FINAL BUILDOUT (X3, X4, Z4) CPO ELITE PROGRAMS MY2015 MY2016 REDUCED BUILDOUT (2, 3, 4, 5, 6, 7, X1, X5, X6, i3, i8) NEW PROGRAMS (ALL MODELS) FINAL BUILDOUT (2, 3, 4, 5, 6, 7, X1, X5, X6, i3, i8)
JANUARY/FEBRUARY PROGRAMS FOR MY2015. MY2015 Residual Values (36-mo) Buildout Allowance NON-LOCKABLE 2 Series 54% $500 3 Series 53%-55% $3,000 4 Series Coupe 54% $1,500 4 Series Convertible 54% $2,500 4 Series Gran Coupe 56% $1,000 5 Series 54%-55% $3,000 6 Series 47% $6,500 7 Series 59% (24-mo) $6,500 Z4 Roadster 56% $2,500 X1 56% $1,000 X5, X6 51% $2,000 i3 50% $9,500 (incl. $7,500 Lease Credit) i8 Coupe 53% $2,465 (Lease Credit) JANUARY BEGINS A 60-DAY FOCUS ON RESETTING THE PRICE LADDER: Most MY2015 vehicles see reduced residual values but steady cash allowances from December Allows better APR offers while keeping lease payments slightly below their MY2016 counterparts MY2015 BMW i8: Increased residual value results in a lease payment reduction of over $100/mo!
JANUARY/FEBRUARY PROGRAMS FOR MY2015. BMW i3 SPOTLIGHT BEST PRACTICES FOR WINTER SALES. Customer Feedback: Great Snow Traction THE BMW i3 IN WINTER Insulated batteries with heater make the driving range more stable during winter. Pre-Conditioning for more convenience Heat pump: Especially in winter, the innovative heat pump system not only ensures a warm atmosphere inside the BMW i3, but also increases the range by up to 30%. Exclusively designed Winter Tires for the i3. Two models available: Bridgestone Blizzak LM-500 & Nokian Hakkapeliitta R2. FUN FACTS: World Rally Championship race cars also have narrow tires, like those on the BMW i3, to increase weight per square inch of tire tread, creating a higher-grip contact patch. This also increases the tire s ability to cut through snow and get to pavement, as opposed to wider tires, which tend to ride on top of snow rather than cut through it. The rear-mounted motor and rearwheel drive also contribute to better acceleration in slippery conditions, as the weight transfer increases traction at the drive wheels.
JANUARY/FEBRUARY PROGRAMS FOR MY2015. BMW i3 SPOTLIGHT AVAILABLE CREATIVE ASSETS FOR JANUARY. Digital Banners Logos Email Signatures & Templates Photography TV Website Assets Radio Spots Social Media And more! Get directly to Marketing Central by clicking here
JANUARY/FEBRUARY PROGRAMS FOR MY2015. BMW i3 SPOTLIGHT CURRENT BULLETINS. BMW i3 Shadow Sport BMW i8 Test Drive Digital Toolkit POS: Circuitree No cost charging for eligible BMW i3 drivers: ChargeNow DC Fast Expansion BMW a Founding Member of ROEV, for Network Interoperability BMW and Nissan Partner to Deploy DC Fast Chargers Across the U.S.
JANUARY/FEBRUARY PROGRAMS FOR MY2016. MY2016 SALES SUPPORT FOCUSES ON THE THEME OF UPGRADING; WE AIM FOR 3 SERIES DRIVERS TO CONSIDER A 4 SERIES, AND FOR 5 SERIES DRIVERS TO CONSIDER A 6 SERIES. MY2016 Option Allowance LOCKABLE 2 Series, 3 Series, 5 Series $1,000 4 Series $1,250 6 Series $4,000 Z4 Roadster $750 X3, X4 $1,000 X5, X6 $1,500 December s base level Option Allowance carries over into January for most MY2016 vehicles 2 Series, 4 Series, and 6 Series get a stronger cash orientation to provide a better position relative to 3 Series and 5 Series The 39-month lease offers revert to 36-month offers in January
JANUARY/FEBRUARY PROGRAMS FOR MY2016. MY2016 SALES SUPPORT FOCUSES ON THE THEME OF UPGRADING; WE AIM FOR 3 SERIES DRIVERS TO CONSIDER A 4 SERIES, AND FOR 5 SERIES DRIVERS TO CONSIDER A 6 SERIES. MY2016 Average Lease Payment Payment Change from December Payment Index to 328i Sedan 320i Sedan $439 +$25/mo 82% 228i Coupe $500 No change 94% 328i Sedan $534 +$27/mo 100% 428i Gran Coupe $602 No change 113% 528i Sedan $681 +$30/mo 128% 4 Series Gran Coupe will be featured in various BMW owner communications from CRM during the First Quarter, leveraging its position as a new alternative to the traditional sedan segment Sales Support is planned accordingly, as shown above, keeping the Gran Coupe essentially flat from December into January. MY2013 Maturity Payments (1Q 2016) 328i Sedan $478 335i Sedan $596 528i Sedan $605
JANUARY/FEBRUARY PROGRAMS FOR MY2016. WHAT DOES ONE GET FOR AN ADDITIONAL $70 PER MONTH? 4 Series Gran Coupe SELLING POINTS COMPARED TO THE 3 SERIES SEDAN (F30), THE 4 SERIES GRAN COUPE (F36) HAS: 3 Series Sedan Shorter and lighter frameless doors than 3 Series or 4 Series Coupe for easier entry/exit in tight spots The same trunk space at 17 cu.ft., but now more easily accessible with the standard power rear hatch Wider body and track by 0.6-0.8 for more roominess and undeniable presence Only 1.4 less rear legroom than 3 Series Sedan, which is virtually indistinguishable and still plenty of room for occasional use Only 0.5 less rear headroom than 3 Series, but 1.1 more than 4 Series Coupe
JANUARY/FEBRUARY PROGRAMS FOR MY2016. MY2016 SALES SUPPORT FOCUSES ON THE THEME OF UPGRADING; WE AIM FOR 3 SERIES DRIVERS TO CONSIDER A 4 SERIES, AND FOR 5 SERIES DRIVERS TO CONSIDER A 6 SERIES. MY2016 Average Lease Payment Payment Change from December Payment Index to 535i Sedan 535i Sedan $806 +$30/mo 100% 550i Sedan $974 +$30/mo 121% 640i Gran Coupe $1,110 +$9/mo 138% 740i Sedan $1,267 No change 157% 650i Gran Coupe $1,323 +$10/mo 164% 750i Sedan $1,462 No change 181% 6 Series Gran Coupe continues into its final 3 months of production with Decemberlevel support programs. In these segments, as you know, shoppers will pay what they feel is earned. Leverage M Sport Edition, BMW Individual, ALPINA, and all other product attributes to build value in what is actually the greatest grand touring car in the world. Compared to Aston Martin, Jaguar, Ferrari, Porsche Nothing else has the features, performance, styling, and value of the BMW 6 Series, all in one package. MY2013 Maturity Payments (1Q 2016) 535i Sedan $691 740i Sedan $989 750i Sedan $1,254 Note that for 7 Series, the MY2013 maturity payment and MY2016 average payment shown are 36-mo programs
JANUARY/FEBRUARY LEASE CREDITS. LEASE CREDITS ARE NOW AVAILABLE ON MY2015 i3 AND i8, AS WELL AS MY2016 X5 edrive AND MY2016 330e. Take advantage of these lease credits and be the first in your neighborhood to live in the 21 st century. With BMW edrive, enjoy the benefits of emissions-free driving at the right times, and suffer no range anxiety. MY2015 MY2016 Lease Credit LOCKABLE Lease Credit LOCKABLE Buildout Allowance NON-LOCKABLE Option Allowance LOCKABLE Total Credits Available For Lease Customers i3 Sedan $7,500 $2,000 $9,500 i8 Coupe $2,465 -- $2,465 Total Credits Available For Lease Customers 330e Sedan $2,000 $1,000 $3,000 X5 xdrive40e $3,000 $1,500 $4,500
APR OFFERS AS LOW AS 0.9% ON BMW i3. ALL OTHER MODELS AVAILABLE AS LOW AS 2.92% THRU 72 MONTHS. MY2015 i3 retains special APR offer of as low as 0.9% for up to 72 months Retail Finance contracts available through BMW Financial Services as low as 2.92% for up to 72 months on all other models Select contracts available through BMW Financial Services as low as 2.92% for up to 60 months on all models APR OFFERS for MY2015 i3 (all models) APR/SELECT OFFERS MY2015 and MY2016 (all other models) Up to 60 mo Up to 72 mo APR 0.9% Up to 72 mo APR 2.92% 2.92% Select 2.92% --
BMW LOYALTY RETAIL OFFER. FOR 2016, BMW OF NORTH AMERICA AND BMW FINANCIAL SERVICES WILL BE OFFERING QUARTERLY PROGRAMS TO RECOGNIZE BMW-LOYAL SHOPPERS WITH SPECIAL SALES BENEFITS. In the First Quarter, we announce TWO PAYMENT CREDITS on a new MY2016 BMW when shoppers provide proof of ownership of any BMW and lease or purchase a new BMW through BMW Financial Services with delivery by March 31, 2016. MY2016 BMW PURCHASED PAYMENT CREDITS 2 Series, 3 Series, 4 Series, 5 Series, Z4, X3, X4, X5, X6 6 Series Two payment credits, up to $500 each Two payment credits, up to $750 each Offer excludes X1, M2 Coupe, M4 GTS Coupe, and 7 Series. This program will be supported by a Performance Bonus for Client Advisors and Sales Managers who most effectively work through their books of business Bulletin to be published this week with full details. BEST PRACTICES: Use these payment waivers to generate the effect of a pull ahead program where one does not exist, or staple a Two Payment Credit postcard to each Service Repair Order every day!
JANUARY WHOLESALE SUPPORT. CONTINUITY TO SMOOTH OUT THE YEAR END, AND PROVIDE ASSISTANCE WITH CARRYOVER INVENTORY. Reach your Wholesale Target in January and receive flooring assistance for all units wholesaled in January for up to 90 days! Same terms from December apply to wholesales from January 1-31, 2016 Contact your Area Manager for further details
SERVICE LOANER AND EXTENDED TEST DRIVE PROGRAMS NOW INTEGRATED. NEW PROGRAM STRUCTURE ALLOWS MORE FREEDOM AND FLEXIBILITY WITH YOUR MOST VISIBLE LOANER UNITS. In December, the new Extended Test Drive program (ETD) was announced with Enrollment Allowances for specific vehicles. It may be beneficial to explain the new ETD program in the context of the Service Loaner program (AMP) dealers are already familiar with: Current AMP Fleet Max limits remain in place These can be increased through the existing process with your Area Team A certain number of 7 Series (G12) units are required in AMP to participate in the Ultimate Benefits program for 7 Series These can also be used interchangeably as ETD units The enhanced ETD program allows dealers to put other highline models into the AMP fleet and use them for either Service or Sales contacts, making it easier to achieve the target utilization
ADVERTISED LEASE PAYMENTS FOR 2016. UPDATED CALCULATIONS BASED ON DEALER FEEDBACK ALLOW MORE VALUE SELLING AND A BETTER STARTING POINT FOR NEGOTIATIONS. In the past, bmwusa.com has hosted a Special Offers page with sample lease payments using a hypothetical vehicle equipment level and an assumed amount of dealer participation. Dealer feedback shows this needs to change. Starting in January 2016, advertised lease payments will now use a base vehicle with near-0% dealer contribution: This lowers most advertised payments from December into January, smoothing out the retail program changes and keeping offers attractive from a shopper s perspective This aligns more closely with the Estimated Payment a shopper sees at the beginning of a Build Your Own experience, and will align with the FS Payment Estimator in 1Q 2016 This preserves dealer contribution, allowing more room to negotiate price Disclaimers for ads will now point out optional equipment shown December ad payment uses: Base MSRP + D&H: $35,845 Driver Assist Pkg: $950 Metallic Paint: $550 Tech Pkg: $1,950 Wheel Upgrade: $600 3.2% Dealer Contribution: $1,279 All Retail Incentives: $1,250 Cap Cost Reduction: $2,750 Posted Rate and Residual @ 10k miles $399/mo for 39 months January ad payment uses: Base MSRP + D&H: $35,845 0.6% Dealer Contribution: To Round to a $9 payment All Retail Incentives: $1,000 Cap Cost Reduction: $2,750 Posted Rate and Residual @ 10k miles $359/mo for 36 months
2016 PROFILES IN ACHIEVEMENT. THE NEW YEAR KICKS OFF WITH A NEW, ELITE RECOGNITION LEVEL FOR THE SELECT FEW THE BMW PRESIDENT S CLUB. THE BMW PRESIDENT S CLUB FOR 2016 RECOGNIZES THOSE ADVISORS AND MANAGERS WHO COMPRISE THE TOP 1% OF BMW SALES PROFESSIONALS IN THE USA. The President s Club recognition level will distinguish Client Advisors and Sales Managers who have achieved Platinum Level for five (5) or more consecutive years, establishing a new top echelon of performance and accomplishment, complete with its own exclusive benefits: A special gift from the president of BMW of North America, LLC, recognizing and appreciating your achievement Inclusion in exclusive gatherings and conferences, providing valuable insight and feedback on BMW NA programs and processes All other PIA achievement levels remain consistent with 2015, but with a few new enhancements: Eligible retail types will be updated to ensure New Sales credit is granted for vehicles with nearzero mileage and CPO Sales credit is granted for vehicles with mileage, and these retail types will be consistent for all Sales programs and contests New metrics for Sales Loyalty will be introduced on an informational basis for Sales Managers, and these will align with the same metrics on the dealer s Balanced Score Card
BMW CORPORATE FLEET EMPLOYEE PROGRAM. THIS SPECIAL INCENTIVE DELIVERS THE ULTIMATE FOR LESS. Now is the time to develop a strategy to engage your Corporate Fleet clients and offer them the benefit of a lower payment. Leverage the new 2016CY incentives to realize every opportunity and create a few more. Take advantage of a 0.00020mf reduction when leasing through BMW FS. Apply all Sales Support Programs available at time of purchase. You can now offer the experience of BMW performance and luxury at a lower CORPORATE FLEET ALLOWANCES / RETAIL TYPE G total cost of ownership. Model Year 2015 / 2016 / 2017 Customer Incentive off MSRP (Cash, FS Loan, FS Lease) BMW Cars 2, 3, 4, 5, 6, 7 Series and Z4 $1,500 BMW SAV X1, X3, X4, X5, X6 $1,000 BMW i i3 BEV, i3 REX, i8 $1,500
2016 OFF-LEASE MATURITY PROFILE. Volume starts picking up in February peaks in March and new normal level begins! Great loyalization and CPO sales opportunity. 20,000 140,000 vs 5 year average 95,000 15,000 10,000 5,000 - Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Q1 PURCHASE BONUS FINANCIAL SERVICES. You asked, we listened Q1 stair-step purchase bonus 2 tiers Tier 1: Will earn money back to car 1 Tier 2: Will earn additional money back to car 1 Eligible purchases include originating, non-originating, BMWGroupDirect.com Targets will be allocated by January 8 th This is a tactical incentive on top of Full Circle.
BMW CPO SALES EVENT PROGRAMS JAN/FEB. January / February CPO Sales Event Keep the great sales momentum going! Low APR (.9%/60 3/6/7) combined with free MPU (3/6/7)) *January only Rate Programs Buy-Rate by term Free MPU Spin Model Year Series 24 36 48 60 66 72 MY12/13 3 Series, 6 Series, 7 Series 0.9% 0.9% 0.9% 0.9% 1.9% 1.9% * MY12/13 All other models 0.9% 1.9% 1.9% 1.9% 2.9% 2.9% But wait, there s more CPO Leasing launched on MY12/13 (3 & 5 Series)! FS purchase bonus in addition to Full Circle. National pull-aheads are over, but discretionary pull-aheads return. CPO Elite support continues on all MY14/15/16 models. Sell strongly through inventory heading into March maturity spike.
BMW CPO SALES EVENT PROGRAMS JAN/FEB. CPO Programs Jan/Feb Sales Support APR MY12/13 3 Series, 6 Series, 7 Series APR: MY12/13 All other models SELECT & Owners Choice: MY12/13: 3 Series, 6 Series, 7 Series SELECT & Owners Choice: MY12/13: All other models Awardline: MY12/13 3, 6, 7 Series (Jan only) 0.9% up to 60 Months 1.9% at 72 PLUS free 1 year MPU 0.9% up to 24 Months 1.9% at 60, 2.9% at 72 SELECT: 0.9% up to 48 Months Owners Choice: 0.9%up to 36 Months SELECT: 1.9% up to 48 Months Owners Choice: 1.9%up to 36 Months $100 - $1,000 $50 Manager Override CPO Leasing MY12/13 3 Series & 5 Series Jan/Feb Sales Support 24, 27 or 36 month term 10,000 mile/year lease 35,000 or less inception miles
CPO LEASING IS BACK! Strong tactical tool for January/February sales event. Dollar based residuals supported. MY12/13 CPO 3 and 5 Sedans only 10,000 mile/year lease. 35,000 or less inception miles. 24, 27 or 36 month term Fits to used car customer sweet spot holding period (24-27 Mo) 24, 27 mo term ensures vehicles return with 1 year of CPO remaining. MY13 Target Monthly Payment 24 Month Term Down Payment 328i $349 per month $1,500 328i xdrive $349 per month $1,500 528i $475 per month $1,750 528i xdrive $475 per month $1,750
HIGHLY COMPELLING PAYMENT WALK. New MY16 528i Sedan CPO Elite AMP MY15 528i Sedan 2013 CPO 528i Sedan (24 mo) Visible Monthly Payment $681 $544 $475 New MY16 328i xdrive Sedan CPO Elite AMP MY15 328i xdrive Sedan 2013 CPO 328i xdrive Sedan (24 mo) Visible Monthly Payment $577 $398 $349
CPO ELITE PROGRAM SUPPORT JAN/FEB. MY14. APR/SELECT OFFERS MY2014 (all models except i Series) Up to 60 mo 61-72 mo APR 2.92% 2.92% Select 2.92% -- APR OFFERS MY2014 i3 & i3 Range Extender Up to 36 mo 37-60 mo 61-72 mo APR 0.9% 1.9% 2.92% APR OFFERS MY2014 i8 Up to 36 mo 37-60 mo 61-72 mo APR 2.92% 2.92% 2.92% Can be combined with build-out cash if applicable
CPO ELITE PROGRAM SUPPORT JAN/FEB. MY15/16. APR/SELECT OFFERS MY2015 (all models except i3 and i3 REX) Up to 60 mo 61-72 mo APR 2.92% 2.92% APR OFFERS MY2015 i3 & i3 Range Extender Up to 36 mo 37-60 mo 61-72 mo APR 0.9% 0.9% 0.9% SELECT OFFERS MY2015/MY2016 All models (except i Series) Up to 36 mo 37-60 mo Select 2.92% 2.92% APR/SELECT OFFERS MY2016 (all models) Up to 60 mo 61-72 mo APR 2.92% 2.92% Can be combined with build-out cash if applicable
FREE 1 YEAR MPU FOR JAN/FEB. Free 1 year MPU (12 MO/25K) on all BMW CPO 3, 6 & 7 Series for MY12/13. Benefits: Great value story/marketing hook that highlights our competitive maintenance advantage everything from oil to wipers blades to brakes! This is in addition to the attractive 0.9% APR. Strong position to upsell customer to a 2 year MPU to match 6/100 CPO warranty. Aftersales is offering an MPU Awardline of $25-$500 for every MPU upsold to a 2 or 3 year agreement. Target 100% upsell!
CPO MARKETING CREATIVE. Creative Assets: FMA Digital Banners Dealer Email Templates Radio Radio Digital Signage National Conquest Email CRM Follow up email after purchase MPU Thank You