The BMW i8 is a shining example of bait and switch car launch sales hype

"Battery Tender Unnecessary" (carac)
12/07/2015 at 13:55 • Filed to: BMW i8

Or why you should never trust the words “rare or limited” when spoken by a car maker.

I bought my BMW i8 in Oct 2014. By mid-April 2015 I had sold it back to the dealership in an attempt to get ahead of what I thought I saw coming. Eight months later that decision is vindicated. People ask why I sold my i8 when I did in April 2015 after 6 months of ownership, I can now summarize my reasons in two pictures.

Here is the first i8 to arrive at my dealership in Oct. 2014

Here is one of the five i8s currently at the same dealership right now

During the six year period from the “Vision Efficient Dynamics” concept, the fall 2014 launch of the i8, and the current state of the i8 market (one third of all i8s produced for the US are unsold), the i8 has been many things. An evolving concept laying out BMW’s vision for future “eco” sports cars, a pruported limited-production halo car to rival the M1 in the importance and just slightly more common, to a relatively high volume sports car that they are making twice as fast as they can sell.

Here is a what a difference a year can make:

October 2014

Crazy markups over MSRP including some trading hands for $50k-75k over MSRP

Sales managers requiring “Right of first offer” to buy back the car when owners decided to sell and some requiring $50k deposits to secure an order

Dealerships being told and telling prospective customers that BMW is only making enough for dealerships (regardless of size) to get 1-2 a year or around 500 US cars a year

Cars are shipped to and between dealerships on covered/enclosed transports

BMW i8s occupy special areas in showrooms and access is limited to serious buyers and owners, some even rope them off

December 2015

Crazy markdowns of $10k-15k off MSRP

Sales managers have no problem allowing extended test drives

Dealerships are sitting on 5-10 i8s with no slow down in production, to date 2,164 i8s have been sold in the US and 705 are for sale. 5x what dealers were originally told to expect.

BMW i8s are occasionally transported on open trucks

BMW i8s are now parked on the grass out front next to long-term resident 2-series with more “out back if you’d like a different color”

What changed?

In March BMW decided to drastically increase i8 production, at least doubling the rate they had been producing. i8s and i3s are produced on the same line and share some components, so production was shifted from the lukewarm i3 to the red-hot i8. At some point between the unveiling of the production model at Frankfurt 2013 and March 2015, the decision was made (unknown to dealers and prospective buyers) that the i8 would become a volume sports car instead of a limited-production halo car. It’s now 3x harder to find a M6 GranCoupe for sale than an i8. There are actually fewer M6 Coupes in dealerships than i8s.

Now while almost no car is an investment, no one wants to learn their car is up for a completely avoidable and massive depreciation hit due to a hasty course correction by a car company. The i8 was and still is an extremely niche car with a very hot but limited (and I would say completely satisfied) customer demand. I consider myself lucky in that I bought my car for MSRP and was able to sell it back almost breaking even after 6 months and 5k miles, before the market was flooded with them. The number of available cars has been increasing by around 100 a month for the past few months thanks to BMW making sure supply easily exceeds demand.

The BMW i8 is a great car, one of the best I’ve ever owned. But now you can get into one for a LOT less thanks to BMW and their insatiable thirst for sales. I never expected the i8 to hold it’s value or appreciate, but I didn’t expect prices to drop so much, so soon. I also think I may have seen the writing on the wall even before my dealership, because they won’t return my emails about the M2. I’m pretty sure they’re not happy about getting 3-4 new i8s they weren’t expecting for 6-12 months just a month after they bought back mine for almost full price.

Bottom-line, never trust most of what a car maker says, especially when it comes to limiting sales and curating a “collector’s car”.

DISCUSSION (35)

JQJ213- Now With An Extra Cylinder! > Battery Tender Unnecessary
12/07/2015 at 13:59

Really funny you mention that. I just drove by my local dealer the other week and they had three just sitting right out front in the grass. They were flanked by an X3 and a 3 series on either side. Like it didn’t even matter anymore.

Yet when it first came out they had one inside, red velvet rope blocking anyone from touching it.

K-Roll-PorscheTamer > Battery Tender Unnecessary
12/07/2015 at 14:02

So the i8 has had a case of a certain strand of the “GT-R Syndrome”?

Klaus Schmoll > Battery Tender Unnecessary
12/07/2015 at 14:05

Would you buy another one if prices drop a little more? It’s still a fantastic piece of kit, after all, and if this trend continues, slightly used ones might soon hit the market at 60% of MSRP or so.

Chan - Mid-engine with cabin fever > Battery Tender Unnecessary
12/07/2015 at 14:06

Yikes, good job on unloading it!

BigBlock440 > Battery Tender Unnecessary
12/07/2015 at 14:07

If you really liked it, are planning on buying another now that prices are low?

Mr. Ontop, No Strokes, No Smokes...Goes Fast. > Battery Tender Unnecessary
12/07/2015 at 14:14

It is one of the few BMW’s that actually catch my attention when I see it. Despite their performance, i consider the other cars from that brand kind of boring to look at. I really like the i8, and in the future after that bitch, Depreciation, has her way with it, I may consider getting one.... but I see all of the points you made about it. Still, from a styling point of view, it’s beautiful. Here’s a potato pic of one I saw just last night.....

Kinja'd!!!

CCC (formerly CyclistCarCoexist) > Battery Tender Unnecessary
12/07/2015 at 14:14

Pretty soon, it’ll be in the Tavarish article for how cheap it is.

wiffleballtony > Battery Tender Unnecessary
12/07/2015 at 14:19

“BMW i8s are now parked on the grass”

Sounds pretty eco.

Battery Tender Unnecessary > BigBlock440
12/07/2015 at 14:21

A good number of them were leased, so I’m keeping an eye out when they start coming up. Prices should take another hit when the Spyder comes out next year (a model they said would never happen because of engineering problems but those got magically solved when sales began to tank).

Battery Tender Unnecessary > Klaus Schmoll
12/07/2015 at 14:23

I would jump on one at those prices. It’s still a great car, BMW is just doing everything in their power to kill resale values. The “cancelled due to impossible engineering challenges” spyder version just get re-greenlit to help with sales.

Slant6 > Battery Tender Unnecessary
12/07/2015 at 14:31

http://www.bmw.com/com/en/newvehi…

Scroll down to the i8 on social media part of the page and notice how BMW is advertising that it has had 0 Facebook, Twitter, YouTube, or Instagram hits in the last 30 days.

FSI - alcohol enthusiast with a car problem > Battery Tender Unnecessary
12/07/2015 at 14:46

It certainly looks stunning. Especially in blue. But I still want them to put a proper engine in it.

Spasoje > Battery Tender Unnecessary
12/07/2015 at 14:49

How did you find out they were ramping up production (in March)?

Battery Tender Unnecessary > Spasoje
12/07/2015 at 14:55

http://www.carscoops.com/2015/03/bmw-do…

http://www.greencarreports.com/news/1097564_b…

http://insideevs.com/bmw-may-increa…

etc.

Chan - Mid-engine with cabin fever > K-Roll-PorscheTamer
12/07/2015 at 15:01

But Nissan keeps raising the price of the GT-R, to the tune of $10k/year. That trick is getting old, and so is the car. At $70k it was a steal. $110k, not so much.

FazeRacer > Battery Tender Unnecessary
12/07/2015 at 15:16

Maybe BMW doesn’t want this to be some rare car. They probably want to push it to get their hybrid tech out there.

Mthew_M > Battery Tender Unnecessary
12/07/2015 at 15:21

Oh wow, I had no idea of that. Glad we leased ours! Went by the dealer to check out a 535d this weekend (think I’d rather have a Chevy SS) and they had another blue one out front - they still have the dark grey ‘Pure Impulse World’ we originally ordered that took 5 months to come in roped off in the showroom.

On a related note, I’m not at all sad about more of them being out-and-about. Maybe I can actually go to the grocery store without getting the dreaded ‘WhatIsThatHowMuchIsItHowFastDoesItGoWhatDoYouDo????!!!1!!11!!’.

Battery Tender Unnecessary > Mthew_M
12/07/2015 at 15:25

Yeah, it’s a great car and this is mostly a “problem” for the guys that were paying $200-250k for theirs in SoCal late last year. But if you’re willing to blow that kind of cash unnecessarily, I’m guessing you care less about losing it. My biggest gripe was always the attention. Hopefully with more floating about people won’t act as crazy when they see one.

In a Mini; let them mock me as My Mini Countryman is higher than you > Chan - Mid-engine with cabin fever
12/07/2015 at 15:31

Yeah, but they kept adding power and fine tuning handling. Now Nissam says they’ve reached the “Golden Ratio” with the R35

dogisbadob > Battery Tender Unnecessary
12/07/2015 at 15:33

i8 when they do that!

RyanFrew > Battery Tender Unnecessary
12/07/2015 at 15:42

This should be on the FP.

Saracen > CCC (formerly CyclistCarCoexist)
12/07/2015 at 15:43

“Why contribute to your 401(k), when for the same monthly payment you can get into this crazy cheap BMW plugin hybrid supercar!”

thebigbossyboss > Battery Tender Unnecessary
12/07/2015 at 15:50

Way to go man. Its kind of like anything though. Those who are able to forgo the latest and greatest of anything will later get bargains. How much is the one you sold back listed for if you don’t mind me asking?

thebigbossyboss > Slant6
12/07/2015 at 15:52

Lol. That was entertaining.

Battery Tender Unnecessary > thebigbossyboss
12/07/2015 at 16:09

Not sure about mine but a guy close to me with more miles has been trying to sell his since I sold mine, he’s only put 500 miles on it since April. His was a Pure Impulse like mine, so it sticker’d for $149k, he keep reducing it. He was trying to sell it for sticker then, now listed for $129k, he probably won’t get a bite until it drops below $125k

thebigbossyboss > Battery Tender Unnecessary
12/07/2015 at 16:11

Thanks for the info. The savings are pouring in now. Glad you got out when you did.

DrScientist > Battery Tender Unnecessary
12/07/2015 at 17:02

i really wish a possible reason for bmw going this route was that they’re cooking up something else that is REALLY going to be their ‘halo’ car.

unfortunately its probably some margin driven strategy cooked up by the bean counters trying to ensure share target prices.

Big Bubba Ray > Mr. Ontop, No Strokes, No Smokes...Goes Fast.
12/07/2015 at 22:15

They are stunning in white. There are a few of them droving around St. Louis. One in black, another charcoal grey. I saw a white i8 while at lunch with a friend last month and it was one of the most beautiful and polarizing cars that I’d seen in a while.

pip bip - choose Corrour > Slant6
12/08/2015 at 05:49

that’s sad.

rb1971 ARGQF+CayenneTurbo+E9+328GTS+R90S > Battery Tender Unnecessary
12/20/2015 at 12:59

I was never going to be part of the hype train or pay (much) over MSRP to be the first owner. But I just picked one up this week for well under MSRP, and agree that it’s a great car.

Never ride the hype train with a high volume manufacturer. I paid over MSRP for my 1M and just about broke even on that (accounting for storage, insurance, etc.), but when I read the original press about the i8 and especially the billions spent on the new production line I knew BMW wasn’t going to hold production way down on them.

By the way I still don’t really see them, and I live in SF where exotics are relatively common compared to other places. I see a lot more 458s.

rb1971 ARGQF+CayenneTurbo+E9+328GTS+R90S > Battery Tender Unnecessary
12/20/2015 at 13:01

The lease offers are right at 60% residual for 30 month leases so if you buy one then the prices will be really low.

I actually leased mine, since my view is that in 30 months the battery technology will be sufficiently more advanced that the same chassis car will be at least somewhat better.

rb1971 ARGQF+CayenneTurbo+E9+328GTS+R90S > Battery Tender Unnecessary
12/20/2015 at 13:03

Since you can get a brand new pure impulse world for around $137.5k or less as the EOY comes up right off a dealer lot with access to all of BMW’s new car financing rates, I’d be surprised if anyone would buy a used one for $125k.

Battery Tender Unnecessary > rb1971 ARGQF+CayenneTurbo+E9+328GTS+R90S
12/20/2015 at 13:15

Yeah, an issue I have with hybrid/electrics is that (at the moment) their packs and tech are so proprietary and niche that the prospect of long-term ownership/collecting is almost non-existent. I’ve got an E30 M3 and parts for it alone are hard enough to find...and most of its most niche parts don’t go bad just sitting on a parts warehouse shelf like a battery pack does. When the i8 is nearly 30 years old, BMW won’t be making new battery packs for the i8 (the shape, size, capacity, etc. are built around that car) and all of the original battery packs won’t hold a charge. So short term ownership, planned obsolescence, will become the norm. Everyone will have to buy new cars every 5-10 years, because their “gas tank” gets progressively smaller, every year.

rb1971 ARGQF+CayenneTurbo+E9+328GTS+R90S > Battery Tender Unnecessary
12/20/2015 at 13:22

It’s funny, when the Z8 came out BMW promised something like 50 years of parts so people wouldn’t feel bad about buying a limited production car. Not so much the i8 from everything I have heard.

Of course when they are at the bottom of their depreciation curve, the right move would be to remove the gas and electric motors, get a V8TT from a current generation M5, and do an “upgrade”. I think I read that some shop in the EU is working on that right now.

Battery Tender Unnecessary > rb1971 ARGQF+CayenneTurbo+E9+328GTS+R90S
12/20/2015 at 13:25

I think Alpina. That would be a keeper.