U.S. dealers welcome the used-car bonus program, said Michael Vadasz, chairman of the Mini National Dealer Council. But they also want more support from Mini on marketing used Minis to consumers, plus better wholesale pricing for off-lease vehicles.
"The crux of the issue, it's really more about the demand for the car," said Vadasz, general manager of Otto's Mini in Exton, Pa. "Demand through the first part of the year on the used side has not been as robust as everyone would have hoped."
Otto's Mini typically has a fairly good used-car business, selling 25 used cars for every 30 to 40 new cars sold monthly, he said. But so far in 2017, the dealership has failed to hit any of its monthly used-car sales targets.
About half the Mini dealers at a 20 group meeting Vadasz attended in early May also said they weren't hitting targets yet.
The targets set by Mini seem to be higher in the first half of the year, Vadasz said.
"The good news is" that they are cumulative, so dealerships can catch up with a good month or two if they miss a goal.
As Mini explains it, the monthly bonus program is for 2017 and will be paid out quarterly. If a target is missed in a given month, the bonus money will be escrowed and can still be earned if the annual target is achieved.
Missed months can be made up until year end.
Vadasz said, "I'm one of the dealers hoping to make it up in the last half of the year."