BMW targeting Lexus in showrooms
#1
BMW targeting Lexus in showrooms
Here is a pic I took at the local BMW dealer a few days ago. Interesting to say the least. It was on top of the new X5, and X3.
While free maintenance is great... I’m sure consumers realize where the money to pay for this comes from.
Im also surprised that they are targeting potential BMW customers that way. I mean, lets be realistic, what’s $1K, or $2K over the 3 years, or 50K miles to a person that just purchased a 50-70K car. Money is money no doubt, but free maintenance wouldn’t pursue me to jump ship.
Nothing against BMW at all, just surprised they are targeting the Lexus brand so obviously as opposed to other competitors out there. Never seen them advertise themselves as a "value" brand before either.
Here are the pics:
Oh yeah, lets keep this civil please.
While free maintenance is great... I’m sure consumers realize where the money to pay for this comes from.
Im also surprised that they are targeting potential BMW customers that way. I mean, lets be realistic, what’s $1K, or $2K over the 3 years, or 50K miles to a person that just purchased a 50-70K car. Money is money no doubt, but free maintenance wouldn’t pursue me to jump ship.
Nothing against BMW at all, just surprised they are targeting the Lexus brand so obviously as opposed to other competitors out there. Never seen them advertise themselves as a "value" brand before either.
Here are the pics:
Oh yeah, lets keep this civil please.
#3
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Posts: n/a
Well clearly the 2 are cross shopped. I have a business week article on BMW where they are very aware of Lexus and frightened of their possiblities.
BMW needs that maintenance covered to attract buyers who are well aware of their quality problems. Lexus doesn't NEED it, period. Heck, I am sure many skip scheduled maintenenace and just change the oil and the Lexus runs fine.
Of course there are bad Lexus apples but as a whole, we are talking about 18 years of being #1 or in the top 5 for quality and reliability vs average quality of BMW.
Of course on the internet, people will say their Lexus was the worst reliable car they had and their BMW was perfect. The numbers speak very differently.
So free maintenance, the highest incentives of any luxury brand, and subsidized leases is what they offer. You begin to question how desireable the cars really are, since they have to use these methods to sell them.
Funny thing is before BANGLE, they didn't NEED such ways to get customers.
BMW needs that maintenance covered to attract buyers who are well aware of their quality problems. Lexus doesn't NEED it, period. Heck, I am sure many skip scheduled maintenenace and just change the oil and the Lexus runs fine.
Of course there are bad Lexus apples but as a whole, we are talking about 18 years of being #1 or in the top 5 for quality and reliability vs average quality of BMW.
Of course on the internet, people will say their Lexus was the worst reliable car they had and their BMW was perfect. The numbers speak very differently.
So free maintenance, the highest incentives of any luxury brand, and subsidized leases is what they offer. You begin to question how desireable the cars really are, since they have to use these methods to sell them.
Funny thing is before BANGLE, they didn't NEED such ways to get customers.
#4
Have you guys seen the Chevy commercial turned to patriotic theme lately... "My Chevy... my Country" If you don't buy a Chevy... you are not a patriotic...
Today market is so competitive and they will do almost anything to get a sale.
Today market is so competitive and they will do almost anything to get a sale.
#6
I think the keyword/phrase here is "No surprise".
$0 for 4 yr/50K mile is 0$ 4 yr/50K mile. Every BMW dealer treats it the same way.
Now, here's an example with Lexus that's similar with my experience. I scheduled a 10K mile service, basically just oil change. I forgot the exact amount the service rep wrote up, but let's say $109.99 (no flame please, I don't have the exact # with me). It's kind of high for an oil change, so I asked them what's included in this service and if I could just go for the oil change. The service rep says it's including the compartment filter, tire rotation, wiper insert change, general inspection, and of course, the oil change. I have my own jack and I just put a set of snow tires on by myself so I don't need tire rotation and the wipers are still fine, so I asked the rep to take out those couple items and see how much I can save. You know what he told me? He said since I am going to pick it as "a la carte" the total will be higher than the package. I was like, what kind of logic is it? Oh, and did I mention that different dealers will have different packages and charge differently? Shouldn't it be universal, just follow the recommended maintenance schedule from Toyota? This is what I meant by "surprise". From that time on for regular maintenance I just took the Lexus to the Toyota dealer, with better service, people, attitude, etc.
$0 for 4 yr/50K mile is 0$ 4 yr/50K mile. Every BMW dealer treats it the same way.
Now, here's an example with Lexus that's similar with my experience. I scheduled a 10K mile service, basically just oil change. I forgot the exact amount the service rep wrote up, but let's say $109.99 (no flame please, I don't have the exact # with me). It's kind of high for an oil change, so I asked them what's included in this service and if I could just go for the oil change. The service rep says it's including the compartment filter, tire rotation, wiper insert change, general inspection, and of course, the oil change. I have my own jack and I just put a set of snow tires on by myself so I don't need tire rotation and the wipers are still fine, so I asked the rep to take out those couple items and see how much I can save. You know what he told me? He said since I am going to pick it as "a la carte" the total will be higher than the package. I was like, what kind of logic is it? Oh, and did I mention that different dealers will have different packages and charge differently? Shouldn't it be universal, just follow the recommended maintenance schedule from Toyota? This is what I meant by "surprise". From that time on for regular maintenance I just took the Lexus to the Toyota dealer, with better service, people, attitude, etc.
Last edited by JZA80MHU38; 04-12-07 at 03:46 PM.
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#8
How does offering free maintenance make BMW "arrogant" and "no class", and why does it make Lexus "rather humble"? May you please elaborate?
#10
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Posts: n/a
I'm thinking too, BMW simply is making a killing with leases. I wonder what percentage of their cars are leased? Think of this
1. Best lease rates in the industry. + 2. No maintenance for the lease!!
You basically put gas in your car and you "might" have to change tires during the lease.
Very attractive.
1. Best lease rates in the industry. + 2. No maintenance for the lease!!
You basically put gas in your car and you "might" have to change tires during the lease.
Very attractive.
#11
Hahahah if you are smart enough..you're going to buy the Lexus..
I DON'T want to pay for dealer maintenance...and If you're smart enough you know that you are paying for that service
I DON'T want to pay for dealer maintenance...and If you're smart enough you know that you are paying for that service
#12
Lexus Champion
It's been a long 18 years for Lexus to be consider as a real competitor. From the launch in 1989 and being laugh at,now the top German car maker such as BMW considering them as a top competitor.
BMW is still my favorite car especially the M.
#14
Hehe, funny advertising tactic, very BMW-like.
Actually this is sort of an acknowledgment that Lexus is their biggest competition...but to have a picture of a Lexus mug on top of a BMW in your showroom, albeit next to a BMW mug, is kinda funny.
And maybe a bit too obvious.
Yes, free maintenance is a BMW offering, Lexus does not do that. Although you pay more upfront for a BMW oftentimes, and the reliability is not as good for most models. But that's what the free maintenance kicks in for, I guess.
Actually this is sort of an acknowledgment that Lexus is their biggest competition...but to have a picture of a Lexus mug on top of a BMW in your showroom, albeit next to a BMW mug, is kinda funny.
And maybe a bit too obvious.
Yes, free maintenance is a BMW offering, Lexus does not do that. Although you pay more upfront for a BMW oftentimes, and the reliability is not as good for most models. But that's what the free maintenance kicks in for, I guess.