A new direct-sales model is changing how dealerships operate, slashing distribution costs and reshaping the car-buying experience in Europe
Big changes are on the horizon for BMW in Europe. After successfully introducing an agency sales model for Mini, the BMW brand will also adopt the same approach, overhauling the way it sells cars across the continent. The German company says the shift will streamline operations, cut costs, and ultimately improve the buying experience for customers.
Read: A BMW Dealer Tried Charging $1,200 For A Cabin Filter And Oil Change
BMW had intended to switch to a direct-sales model at the start of 2026, though that timeline has now been pushed back. The brand still intends to roll it out, with the sequence for each market to be confirmed later. Mini was the first to make the transition last year, launching in Italy, Poland, and Sweden before expanding to 20 additional markets.
What the new setup means
Speaking with the head of customer, brands and sales at the BMW Group, Jochen Goller, Auto News was told that the feedback to the new model has been “extremely positive.”
“We’re honestly even more convinced than before that that is the right approach,” he said. “By now, the end-to-end process is working, all the way from lead generation to handover, and the feedback is extremely positive.”
Under the new agency direct-sales model, dealerships will no longer own the inventory and won’t have the ability to negotiate their own pricing. Instead, dealers will act as an intermediary service provider while the carmaker itself owns the inventory and finances the marketing and sales campaigns. Dealers then receive a share of the vehicle purchase via a fixed fee.
The benefits for manufacturers
Industry estimates suggest the agency approach can cut distribution costs by ten percent or more. Just as importantly, it gives brands a direct line of communication with customers throughout the purchase process and tighter control over pricing, something that was previously diluted by individual dealer negotiations.
BMW has not yet provided a firm date as to when the switch will happen. In a statement issued about the delay, a BMW spokesperson said the firm “has been revising the ramp-up and go-to-market sequence for BMW, making minor adjustments to the overall timeline to ensure both rapid implementation and a benchmark level of operational excellence.”
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