IN A MOVE to counter private UK imports and kick-start business within its dealer network, BMW Ireland will begin importing hundreds of barely-used cars from its British parent company.
The cars are being pre-registered in the UK this year, technically making them second-hand, but will have as few as 10km on the clock. Dealers anticipate selling them for at least 10 per cent less than the current Irish price.
At the moment it is estimated that 30 per cent of used cars are coming from the UK. In a normal year, that would represent between 3,500 and 4,000 BMWs and about 700 Minis.
BMW began importing used cars for dealers on a trial basis in 2008. That has been extended to register new cars in the UK. They are held there before sale through the Irish network.
“The new car business is dying in this country – this is a way of reaching out to customers,” says Michael Nugent, BMW’s sales and marketing director.
Customers will treated in the same manner as new car customers for trade-in purposes and will be provided with a full two-year warranty and three-year breakdown cover, he says.
“We hope the move will help dealers compete with the challenges they face. . . We see this as a short-term measure to generate sales,” he adds.
The company is also expanding its range of older imported second-hands. Because BMW Ireland is a subsidiary of BMW in the UK, it is sourcing second-hands through company fleets and dealerships in Britain.
The initiative covers all BMW and Mini cars. One BMW dealer describes it as “a lifeline”.
“I intend to make it very unattractive for anyone to go to the UK – I can sell them a car for almost the same price and give them service, a 200 point BMW check and a two-year guarantee,” says Raymond Conlon of Rathangan, Co Kildare.
Not everyone in the industry will be happy with the initiative, especially BMW competitors.
“Some hold the view that imports are evil and damage business here – we take the view that we live in an open market in Europe that has benefited us in many ways,” says Nugent.
There are two important things to note about the scheme. One is that BMW cannot nominate second-hand prices – this is up to the dealer.
The other is that BMW imports from the UK have mph not km/h speedometers, except the 7 Series. It will cost between €500 and €800 to change them.