Photo Credit: BMW
In a bold move to invigorate sales, BMW dealers across the United States are offering a substantial discount on the high-performance hybrid SUV, the BMW XM. The vehicle, which boasts a 4.4-liter twin-turbocharged V8 engine, is now available with a $17,500 lease credit, making it an enticing option for luxury car enthusiasts.
The XM, which commands a starting price of $159,995, has not been the commercial success BMW had hoped for. Despite its impressive power output of 644 hp and 590 lb-ft of torque, the sales figures have been modest. In the previous year, only 1,906 units were sold in the U.S., and the first quarter of 2024 saw just 541 sales.
This isn’t the first time BMW has introduced discounts to stimulate interest in the XM. Last November, a $9,900 loan credit was offered to buyers financing through BMW Financial. The current promotion, which includes a $15,000 discount for outright purchases or financing, is set to expire on July 1, 2024.
The XM’s allure Isn’t just in its raw power. The XM Label Red variant ups the ante with 738 hp and 738 lb-ft of torque. However, the sales split between the standard XM and the Label Red remains undisclosed. Internationally, the XM is also available as the 50e model, which replaces the V8 with a 3.0-liter inline-six petrol engine and an electric motor, delivering 469 hp and 516 lb-ft of torque.
BMW’s strategy reflects a broader trend in the automotive industry, where manufacturers offer significant incentives to clear inventory ahead of new model releases or updates. For BMW, this means making the XM more accessible to a wider audience, potentially paving the way for future models or technological advancements.
Prospective buyers now have a unique opportunity to own a piece of BMW’s luxury hybrid technology at a more affordable price. With the added benefit of combining the discount with competitive financing options, the XM’s proposition becomes even more attractive. However, customers should be aware that such deals are often time-sensitive and subject to specific terms and conditions.
This move by BMW underscores the challenges faced by luxury carmakers in a market that is increasingly competitive and price-sensitive. It remains to be seen whether this aggressive pricing strategy will translate into a significant uptick in XM sales. For now, BMW is betting on the allure of a good deal to drive customers to dealerships and into the driver’s seat of one of their most ambitious models.
