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The team reviewed customer-protection documentation, a BMW stop-sale, new X5 demand, allocation strategy, and operational follow-ups. The central message was to protect deals through documentation and pre-selling while keeping inventory moving.

Customer declines require signed proof

A customer canceled a tow to bring in a vehicle for a tire repair after being told the requested coverage was not in place. The discussion suggested she may have tried to have the dealership cover a cost after declining the product, though that was not confirmed.

The group stressed that a signed decline is the key protection when a customer refuses coverage. This is especially important on cash deals. The normal printed decline no longer appears after changes to the process, so staff have been marking an “X” and obtaining a signature. Customers generally sign the card even when they decline coverage.

Examples were raised of customers later regretting declining tire-and-wheel protection after repeated flats or tire damage. One customer had paid for seven tires and blamed her husband for making her decline the coverage. Another drove on a damaged tire until little remained around the rim. The group described tire-and-wheel coverage as valuable to customers who later receive covered tire replacements, even though they paid for the policy up front.

BMW stop-sale appears tied to a retrofit

The team questioned whether the stop-sale could remain in place until the 24th. The view expressed was that this was unlikely. If it did happen, customers could be re-signed.

The leading explanation was that BMW stopped sales because something needs to be retrofitted, not because vehicles are being held until the 24th. BMW may have identified the issue during PDIs and wants to prevent deliveries before correcting it. The priority is not to deliver a vehicle and later acknowledge a mistake.

The issue may affect every series, though the team must review the list by vehicle. BMW uses model codes tied to specific vehicles. X5 was cited as an example. G65 was described as the code for the 2027 model.

X5 demand, allocation, and pre-selling strategy

The dealership had a decent start to the month. Used-car performance was considered too early to judge by trend. Pay sheets had been sent to some employees, and the group viewed the result as better than the prior period even if the prior month had been particularly strong.

The forecast for the quarter was highly positive. New-body-style X5 buyers were expected to purchase products more often because they were viewed as wealthier customers. Those vehicles also qualify for accelerated depreciation. The dealership expects it could sell out of X5s in December.

• Allocation: The dealership had 46 allocated X5s that would move up, with additional December units possible. A two-week shutdown will push much of the production into January, as usual.
• Contracting: If a vehicle has a production or VIN number, the team believed it can be contracted for the customer’s tax purposes. Delivery would use the actual delivery date.
• Lead handling: Staff were told to keep taking deposits even when no allocation is available. They should not tell customers there is no allocation, because those buyers may find another dealer and the dealership could lose the sale.
• Timing: Once production begins rolling, vehicles were expected to arrive in roughly three or four weeks if allocation remains available. Without allocation, they will not arrive.
• Sales discipline: Managers urged staff to ask for gross but not become greedy. The instruction was to make the deal and sell the vehicle. “It’s only iron” if it does not sell.

The group said it outperforms New Orleans because of its turn rate, despite New Orleans having 18 units each. Pre-selling pipeline vehicles means they are sold upon arrival. That reduces days in inventory and should earn the dealership more allocation from the Southern Region pool.

The team contrasted this with a prior X7 period. The dealership initially had no allocation, while Galleria had 20 vehicles on the ground. The dealership kept customer lists, took deposits, and refused to send its customers to other BMW dealers. After escalating the allocation issue, it began receiving vehicles. The account was offered as evidence that selling out of pipeline can build inventory and allocation over time.

Team culture and staffing changes

Management described the current workforce as largely new. Only about 25% of the staff from the earlier period may remain. Client advisors, the service manager, service team, bank staff, and used-car personnel were described as mostly new.

The current team was praised for cooperation rather than working against one another. One example involved David finding that Zia had worked a customer seven days earlier without making contact. David brought Zia in and gave Zia the deal instead of splitting it. Zia sold the customer a vehicle. The incident was presented as the behavior the dealership wants to reinforce.

Management said the dealership will not add people to the sales floor or flood the floor during this key earning period. The team was urged to keep momentum, stay energized, and make every possible deal. The X5 remains the dealership’s top seller, and the dealership has a good allocation of about 48 vehicles. The group also mentioned the possibility of exceeding 119 calls this month.

Sign renewal remains unsigned

Austin asked to meet about the renewal. Management said there would be no meeting until the agreement is signed.

Lance said Austin had received the finalized document the same day it was sent. Austin said he was printing it. The document normally takes about a week, but two weeks had passed. Lance emailed Austin again during the discussion to ask for an update. The signed renewal was still outstanding.

Used-car visibility board

A board will be placed on the back wall of the office for Used Car to update daily. It will show vehicles being worked for delivery and scheduled appointments. The purpose is to let management see the day’s activity at a glance. The group settled on calling it the “Coach’s Board.”

Safeguard versus LDS coverage remains open

A question was raised about when to offer Safeguard coverage rather than LDS. The guidance heard so far was “85,000 miles,” though the speaker wanted clearer rules on mileage, vehicle age, and the differences in coverage.

Safeguard was described as costing slightly more than LDS in one example. The concern was exposure: Safeguard may leave the dealership without exposure, while LDS may carry exposure. Management said Coach and Dan need to decide which exposure they are willing to accept.

LDS was chosen for a Tacoma because it was considered a safer vehicle. The discussion suggested Safeguard may be more appropriate for higher-risk used luxury vehicles, such as older Audi, Mercedes, or Infiniti models. A 2017 Audi and a vehicle with 150,000 miles were used as examples of riskier coverage decisions. No final policy was set.

Honda diagnosis for the nuns’ vehicle

The nuns’ vehicle was sent to Honda for diagnosis. A brake light had come on, and the dealership’s codes pointed to several possible causes.

The speaker said the warning was not caused by pads and rotors. Those items were sold as work the vehicle would eventually need, effectively prepaid maintenance. The complaint was that a prior repair facility fixed the wrong thing. Honda will diagnose the underlying issue.

Call-review roster is the blocker

The call-review system still lacks a setting or roster arrangement that identifies the salesperson. Lance said the issue is waiting on him. He needs to provide a full, updated copy of the roster and manually enter the information.

Action Items

@Lance

• [ ] Provide the full updated roster and manually enter it in the call-review system so salespeople can be identified, today.

@Used Car

• [ ] Update the Coach’s Board every day with vehicles being worked for delivery and scheduled appointments.