BMW Promotes Custom-Order Car Shopping

BMW X3 rolls off the production line

When most Americans go to buy a car, they typically choose a model already on the lot with features that more or less meet their needs. Many end up sacrificing a specific color or feature to get a car then and there, but if BMW has its way, this inefficient practice would become a thing of the past.

According to Forbes and BMW itself, the automaker is a forefront player in the build-to-order market. The automaker’s plant in Spartanburg, S.C. – which builds the new 2011 BMW X3, X5 and X6 – is ground zero for custom-built BMWs in the U.S. For any BMW X model, you can pick the exact features, exterior and interior appearance you want with your local dealer. Within a few weeks, your car will be ready.

Today, only 15% of Americans custom-order their cars, Forbes says. Typically, luxurious cars like Maybach and popular niche vehicles like the Mini Copper and Fiat 500 are pre-ordered. Anticipation for the electric car has created 18,600 per-orders for the Nissan Leaf, and GM has seen high demand for its upcoming Chevrolet Volt. BMW hopes that 40% of its car shoppers will pre-order by 2015.

The uniqueness of getting the exact car you want has been proven to be a more satisfying purchase, according J.D. Power & Associates. For automakers, build-to-order can mean fatter profits: Folks who custom-order typically equip their vehicles to the gills. Keeping cars on a lot is also expensive, and it often leads to big incentives. Custom orders could create a just-in-time supply chain similar to the renowned system that Dell uses for its computers.

However, if you are a car shopper who is simply looking for the best deal, custom-built orders are not going to help you – fewer unwanted cars on dealer lots could mean fewer deals. If you’re impatient, do you really want to wait four to eight weeks for your new car?

BMW's Push for Made-to-Order Cars (Forbes)

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By Colin Bird | September 17, 2010 | Comments (4)

Comments 

Rockaby

I actually live within 20 minutes of the BMW plant and took a tour. They said that they do not build their BMWs until either a customer or a dealership buys it. So on the production line there is a mix of X5s and X6s in the order that they were bought, not something like "100 X5s then 100 X6s"

AManApart

Isn't it more expensive that way?

Rockaby

I would've thought so, but I suppose they can take that bit of a hit when they charge $50,000 for their SUVs.

bob

they should rent the site order cars at www.ordercars.com

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