BMW Defends Its U.S. Sales Crown by Paying Dealers to Buy Loaners
- Company says practice reflects customer-service expectations
- Other carmakers use similar strategy but not as aggressively
New BMW cars are displayed for sale at the Crevier BMW dealership in Santa Ana, California, U.S., on Monday, June 2, 2014.
Photographer: Patrick T. Fallon/BloombergBMW wielded an unlikely tool to hold onto its crown in the U.S. luxury-car market last year: the loaner.
The German automaker narrowly outsold Mercedes-Benz and Lexus, and its success hinged partly on some deal-making in the showroom. Its strategy: Pay dealers to buy BMWs for their fleets of loaner vehicles, showing off the latest models to service customers and boosting sales.