[Wynn]

The manager of the soon-to-open MINI Center in San Antonio told me something stunning yesterday.

I live in Houston, but our family shared Thanksgiving at my brother's house in San Antonio this year. In keeping with recent tradition, we visited BMW Center there after the feastivities, and I was excited to see my salesperson, Cara Thirsk.

Since I had a dreadful experience with Momentum MINI in Houston, which withdrew an offer to sell me a car without mark-ups or add-on packages before finally apologizing and making the offer again, I wanted to talk about the experience with MINI Center and be sure they still plan to sell cars at just the MSRP. They have always promised to do that, and for a year have always been warm, polite, and sincere, and I am looking forward to buying from them.

Cara introduced me to the manager, who reaffirmed MINI Center's philosophy of not adding ANYTHING to the car, beyond what each buyer specifies. And then he shocked me with this revelation: Momentum MINI in Houston had recently called him, and all the other MINI dealerships in the region, to attempt to coordinate thousands of dollars in dealer-required add-on packages across the region, to strip consumers of any alternative and compell the purchase of these expensive requisite markups.

That's ILLEGAL. It is a blatant abuse of antitrust law, and beyond that, it is abhorrent. I've expressed my outrage to MINI USA, and will report their response when I hear from them. It is not, of course, MINI's responsibility, nor do they have control over such dealership practices, but they can choose to not do business with dealerships acting in violation of law.

There IS a very bright silver lining to this dark story, and it is MINI Center in San Antonio. They have declined to embrace Momentum's scheme, and it will be interesting to see whether the other regional dealerships adopt Momentum's mark-ups. Regardless, I am wholly impressed with everyone I have met at MINI Center, not merely for offering reasonable policies, but for simply seeming to genuinely care, and put people ahead of dollars. It's a philosophy that is likely to be good for their business as a natural consequence, and I look forward to supporting them with my loyalty and purchase when they open in January.

I will update you all when I learn more.

-wynn

[Sejanus]

Ah, auto sales is such a charming industry. It seems to me I remember a rumor of one of the Bay Area dealerships trying this something like this as well. I'll be curious to see MINIUSA's reaction, but this kind of thing is so hard to prove that I doubt much will come of it.

[jadcox]

I live in Houston but I bought my MINI in Louisiana. I picked up my MINI at Brian Harris MINI in Baton Rouge around the first week of October. While there I spoke with the manager about all of the negative things I had read on this board about Momentum in Houston. I told him how much Iappreciated them selling me my MINI at MSRP without any mandatory add on packages.
He said that the manager of Momentum had called him and told him that they had been friends a long time and that he couldn't understand why they (Brian Harris MINI) wanted to sell their MINI's so cheap.
I was as stunned as you when I heard this. It sounded to me like Momentum was trying to bully Brian Harris MINI into adding a bunch of mandatory packages. I don't know how illegal this is, but I do know it's not moral.
As for Brian Harris MINI, I would and I will buy from them again in the future. Their great people to work with.

I do think however, Momentum in Houston needs a new business plan.

[BillK]

Hard to prove indeed. What you have here is hearsay evidence form a source that can be declared biased (MINI Center stands to gain sales if Momentum looses sales). I am NOT saying MINI Center IS biased, I am saying a defense will claim they are.

If I wanted to pursue this I would make a complaint to the dealer licensing authority in Texas. They may be more interested in an investigation then the FTC.

Let us know how things go. Of course, we already know Momentum reads these forums.

[Wynn]

Wow-- that's two, unrelated reports from different sources making the same claim, regarding Momentum's calls to attempt coordinated mark-ups; that just blows my mind.

It's really not very important to me personally, but I do want MINI and everyone buying a car to know the truth, so that no one gets screwed.

Jadcox, would you like to show off your MINI, and/or meet some more MINI fans in Houston? You can't have too many MINI friends, but it's kind of fun to try.

wynn@zenx.net

[Wynn]

I am impressed at MINI USA's prompt and personal reply, where they might just have sent the classic "manufacturers are not responsible for dealership pricing" mail. They did offer that disclaimer as well, but have also passed along the allegations of illegal price fixing and anti-trust violations to their Market Team, "for review and action as they deem appropriate."

It will be interesting to see what Momentum looks like a year from now, but I'll bet it will be under new management, whether because of action taken by MINI USA or simply because the owners eventually recognize that the current management does them more harm than good. Lack of buyers is going to spell that message out very clearly for them in the coming months.

wynn

[bwk]

Ditto on jadcox's experience with Brian Harris Mini. I picked my S up on 12/7. They even offered to pick me up in New Orlean airport(approx 80 miles).

I did everything over the phone and did not see a person until I picked up the car.

I guess I will have to deal with Momentum when it is time for servicing the car. I hope the Service department is different than their Sales.

[tip]

Try buying your car by tender. Pick 5 dealers in and around Texas. Send them all a letter of what you want have them all respond by a certain date. The dealer that offers you the best deal wins. Make sure that a list of dealers are included in your request. This way each dealer understands what they are up against. I have bought a truck this way it works great.


Good Luck

Charles.

[Yeagy]

the best price you can find right now on a MINI is mrsp...