M&G closing down

[JohnH]

I was sorry to see tonight that M&G is closing down following the loss of its BMW franchise.

They’ve been a part of the BMW landscape in Ireland for years and it’s a sorry day to see them close.

http://www.murphygunnbmw.ie/web/Notice/

[kdevitt]

Its a shame - not quite sure who I'll use now. Slightly surprised to be honest, as I didn't think dealers made that great a margin on new cars sales - thought all the cash was in parts and servicing.

[Big H]

Slightly surprised to be honest, as I didn't think dealers made that great a margin on new cars sales - thought all the cash was in parts and servicing.

Rumoured that some dealers may be in some trouble as the PCP cars have begun to return this year and due to the flood of UK imports meaning that their Guaranteed Future Minimum Values may have been over-estimated. In essence, they will have forecourts full of overpriced 3yo cars.....

[kdevitt]

Rumoured that some dealers may be in some trouble as the PCP cars have begun to return this year and due to the flood of UK imports meaning that their Guaranteed Future Minimum Values may have been over-estimated. In essence, they will have forecourts full of overpriced 3yo cars.....

BMW Finance are on the hook for any losses on PCP cars, the dealers are free to offer whatever trade in value they want, so that's unlikely. Have found that out first hand!

[Big H]

BMW Finance are on the hook for any losses on PCP cars, the dealers are free to offer whatever trade in value they want, so that's unlikely. Have found that out first hand!

Sorry - I should have been clearer, I didn't necessarily mean BMW dealers.....

[kdevitt]

Sorry - I should have been clearer, I didn't necessarily mean BMW dealers.....

They're already undercutting the price of the Irish sold cars with the UK ones they're importing themselves, obviously this screws over those who bought through PCP. To make matters worse, they then went and cut 9% off all new car prices, furthermore screwing those on PCP's. APR on the PCP plans had jumped up too - mine was at 2.9% or so, refinancing was at 4.9%, and that's if you can get them to offer a PCP - any garage I spoke to is now heavily pushing traditional HP plans.

I think the writing is on the wall for PCP packages as a whole - BMW Finance will take the hit on the current plans - a lot of people have their full equity wiped out so the keys will be handed back and another PCP plan will be the very last thing they want. Central Bank will have to regulate the product sooner rather than later too.

[JohnH]

Its a shame - not quite sure who I'll use now. Slightly surprised to be honest, as I didn't think dealers made that great a margin on new cars sales - thought all the cash was in parts and servicing.

I think it just became a case of a self fulfilling prophecy, as people began to wonder if they would close bad customers went down the road to Frank Keane. I have to get the X5 serviced soon on the service plan, not sure where to go. Probably FK Blackrock to be honest.

[kdevitt]

I think it just became a case of a self fulfilling prophecy, as people began to wonder if they would close bad customers went down the road to Frank Keane. I have to get the X5 serviced soon on the service plan, not sure where to go. Probably FK Blackrock to be honest.

Sounds about right - once the momentum wings against a business its hard to turn round. Think I'll need to use FK's on the Naas Rd, still reluctant to use the service guys at Joe Duffys.

[JohnH]

Sounds about right - once the momentum wings against a business its hard to turn round. Think I'll need to use FK's on the Naas Rd, still reluctant to use the service guys at Joe Duffys.

Yeah, nothing worse than a death spiral. Most of the time there’s no way out.

I’ll try Blackrock and will let you know how it goes, it’s handy enough for getting back to the office

[kdevitt]

I’ll try Blackrock and will let you know how it goes, it’s handy enough for getting back to the office

Yeah do, although the 1er actually won't need another service before the keys get handed back come to think of it. Service inclusive - another scam!