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Old 11-30-2013, 03:18 PM   #1
DrXenon
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New BMW dealership in Kingston



Does anyone know who is building the new BMW dealership in Kingston, on Bath Road? Is it the Hammer group?

Now Kingston will have Benz, Lexus, Subaru, Volvo, Acura and BMW. I don't see how they can all be profitable given the population of ~100k non-students.
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Old 12-01-2013, 11:34 AM   #2
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Forgot about Audi! We have them too.
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Old 06-24-2014, 11:49 AM   #3
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Any more news on this? I have seen some work done and I also saw a BMW sign although it's gone now.
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Old 07-13-2014, 12:05 AM   #4
DrXenon
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I drove by on Friday and there is no more BMW sign. I wonder if it is going ahead after all.

I have a feeling if they do build a dealership, they are mainly going to sell used.
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Old 08-03-2014, 07:31 AM   #5
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That would be cool if it went through.
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Old 08-04-2014, 05:09 AM   #6
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Quote:
Originally Posted by DrXenon View Post
I drove by on Friday and there is no more BMW sign. I wonder if it is going ahead after all.

I have a feeling if they do build a dealership, they are mainly going to sell used.
Why is that?
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Old 08-22-2014, 09:43 PM   #7
DrXenon
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Ivan, I think there are very few people in Kingston who can afford a new BMW. If you look at the KEDCO website, you can see a breakdown of income. I think they would mainly sell used product, and maybe lease some 3 series or X1/X3.
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Old 09-06-2014, 01:17 PM   #8
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They are aiming to open Spring 2015...should see activity on the site soon.

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Originally Posted by DrXenon View Post
Ivan, I think there are very few people in Kingston who can afford a new BMW. If you look at the KEDCO website, you can see a breakdown of income. I think they would mainly sell used product, and maybe lease some 3 series or X1/X3.
Actually, given the number of hospitals, post-secondary institutions, and other government jobs, Kingston is actually a rather well-to-do town. However, it is also pretty conservative, so you won't necessarily see that wealth reflected in the cars on the road (at least not as much as TO, Montreal, etc.).

Last edited by MFT; 09-06-2014 at 01:20 PM.
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Old 09-07-2014, 07:18 PM   #9
DrXenon
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They are aiming to open Spring 2015...should see activity on the site soon.
Who is "they"? Is it the Hammer group?

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Actually, given the number of hospitals, post-secondary institutions, and other government jobs, Kingston is actually a rather well-to-do town. However, it is also pretty conservative, so you won't necessarily see that wealth reflected in the cars on the road (at least not as much as TO, Montreal, etc.).
As of 2012, according to Statistics Canada, there were 6 290 households with greater than $125k pretax income in the Kingston Census Metropolitan Area. If you assume these are relatively well to do people who buy new cars every 4 years, that implies a potential luxury vehicle market of about 1572 cars per year.

But, as you say, not everybody with a household income of $125k is rolling around in a Benz or Bimmer. Actually, among my friends almost nobody does because they are grossly overeducated in STEM fields and know enough not to buy a $75k car that is going to be worth $35k in 4 years. At best, they are going to sell us used cars. Certainly, to the 96.8% of households here who make less than $125k, they are going to be selling used cars or leasing the low end product.
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Old 09-07-2014, 08:51 PM   #10
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Originally Posted by DrXenon View Post
Who is "they"? Is it the Hammer group?



As of 2012, according to Statistics Canada, there were 6 290 households with greater than $125k pretax income in the Kingston Census Metropolitan Area. If you assume these are relatively well to do people who buy new cars every 4 years, that implies a potential luxury vehicle market of about 1572 cars per year.

But, as you say, not everybody with a household income of $125k is rolling around in a Benz or Bimmer. Actually, among my friends almost nobody does because they are grossly overeducated in STEM fields and know enough not to buy a $75k car that is going to be worth $35k in 4 years. At best, they are going to sell us used cars. Certainly, to the 96.8% of households here who make less than $125k, they are going to be selling used cars or leasing the low end product.
The dealership is going to be operated by Zanchin Automotive Group.

As to the viability of the dealership, my understanding is that a significant chunk of BMWs on the road are leased (more affordable than buying, thus opening up the door to lower household income groups). So, I think it is realistic to expect that there will be a lot of 1/2-series, 3/4-series, and X1/X3s that would go out the door. If Audi, Benz, Lexus, and Acura can all make a go of it in Kingston, I don't see why a BMW dealer can't, particularly given that it seems they are historically cheaper to lease than the equivalent Audi, Benz, etc. (better residuals, etc.).

My understanding is that it costs $12M+ to open a new BMW dealership, so I would expect that the proponent would have done their research before moving forward.

Last edited by MFT; 09-07-2014 at 08:54 PM.
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Old 09-07-2014, 09:33 PM   #11
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If Audi, Benz, Lexus, and Acura can all make a go of it in Kingston, I don't see why a BMW dealer can't
The Benz dealership has been for sale for 10 years. All the potential buyers know they can't make money unless Benz relaxes its rule about the percentage of off-brand cars on the lot. Benz corporate refuses to budge, so they all walk away.

He also owns a Volvo store. That brand has been a disaster since the financial crisis, things are only starting to turn around now.

All this to say that I'm not sure these stores are really "making a go of it." I think it is more likely that BMW is setting up here because everybody else is here too and they don't want to lose mind share.

For sure it is going to be used product and leases of the low end models, I don't think we disagree about that. The thing is, they will have to make up the underperformance by screwing owners on service. I'm not sure there is anybody independent in Kingston who is really qualified to work on BMWs these days - the only one I can think of last worked on BMWs 25 years ago before they started being stuffed to the sunroof with computers.
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Old 09-07-2014, 09:38 PM   #12
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For sure it is going to be used product and leases of the low end models, I don't think we disagree about that. The thing is, they will have to make up the underperformance by screwing owners on service. I'm not sure there is anybody independent in Kingston who is really qualified to work on BMWs these days - the only one I can think of last worked on BMWs 25 years ago before they started being stuffed to the sunroof with computers.
I think I know who you're talking about, and I agree that they may be challenged in finding quality techs. But, I sure hope they can up the service game in Kingston...not too impressed with the competition so far.
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Old 03-03-2015, 01:05 AM   #13
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yes the Zanchin group

Yes the BMW kingston dealership is own by Zanchin group now
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