BMW Set To Change Rules As Buying A Car Will Soon Follow The New Model

The BMW Group is transitioning from the traditional dealer sales system to an agency sales model. With its Mini brand, it has already started: from 2024, Mini models will be sold directly.

The trial period began at the beginning of the year in Italy, Poland, Sweden, Norway and Finland; other markets, including Germany, followed in October last year. It seems that the trial periods were successful enough for BMW to decide to apply the new model to its main brand, BMW, writes Fenix ​​magazine.

BMW is switching to an agency model in 2027

In 2027, BMW will adopt an agency model for its passenger car sales, delayed by a year from the original plan. Jochen Gohler, a board member responsible for sales, confirmed this decision, highlighting increased confidence in the agency’s approach based on positive experiences. Christian Ach, head of BMW’s German market, stated that 2025 and 2026 will be used to prepare for this transition.

In the agency model, partner companies no longer act as classic traders, but only as intermediaries – agents – between the producer and the buyer. They do not create their own vehicle pool. The goal is to simplify sales, which not only achieves financial savings for the concern but also reduces the need for large showrooms.

Advantages for the manufacturer: retains control over final prices, and agents receive lower commissions. However, the manufacturer also takes on the risks that the dealer previously had – for example, financing exhibition and test vehicles.

Mercedes follows the same path, Volkswagen gives up

Currently, there is no clear trend for or against the agency model in the automotive industry, and access to brands varies. In June 2023, Mercedes adopted an agency model for selling cars and vans in Germany, eliminating traditional price lists. Former board member Brittanna Zeger provided a positive review of this change, although the reaction from agents was mixed.

In contrast, VW performed poorly. In the fall of 2024, the brand announced that it would discontinue the agency model on January 1, 2026. This model was introduced in 2020 with the launch of the electric ID model. However, the entire process was marred by problems, including the cancellation of the contract with the dealers at the time. In practice, the expected savings were not realized, and sales of ID models stagnated, and the financial burden due to vehicle pre-financing was high.

BMW: everyone should profit

BMW now believes that the time is right for direct sales. “We see the future of sales in Europe in the agency model and we are confident that our customers, our partners and we as a manufacturer will benefit from it,” said Jochen Gohler in a corporate statement in the summer of 2024.

Customers will benefit from greater price transparency and a digitized purchasing process. The manufacturer claims that it has the support of its previous sales partners – according to the German BMW Dealers Association, the cooperation was based on partnership and constructive.

From 2027, BMW will introduce an agency sales model – dealers become agents and do not sell directly, but mediate between the buyer and the manufacturer. Mini has already switched to this model, Mercedes uses it, while VW gave up after a negative experience. BMW believes that customers, agents and the company will benefit from this change.

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