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Inventory management 2

BMW regularly pays dealers to buy cars and keep them as demonstration models or lend them to customers who are having their vehicles serviced.

But several years ago, BMW created a category in its sales reporting system called Specialty 8, according to communications between BMW and its dealers. These vehicles are counted as sold for BMW's monthly total, but remain on the lot and continue to be offered as new cars, the dealers said. BMW typically pays the dealer $1,000 to $3,000 for each Specialty 8 car marked as sold.

On Thursday, the day before monthly sales are reported on Friday, BMW made a one-day offer to dealers to entice them to buy cars for loaner fleets. A BMW spokesman, Kenn Sparks, confirmed that Specialty 8 was a "subcategory" for sales of vehicles used as demonstrator models and test drives.

Previously: Self dealing car dealers make sales


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