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BMW switching focus to push financed purchases rather than leases
August 1, 2008
The world’s largest maker of luxury cars, BMW, is taking steps to reduce its industry-topping 60 percent of U.S. vehicle leases versus purchases. The automaker is evidently taking cues from the huge losses domestic automakers have been taking as a result of off-lease vehicles being valued at less than expected, although this was due mainly to them being gas-guzzling trucks and SUVs.
At the start of May, BMW raised lease price by an average of three percent and more recently introduced 0.9 percent financing on new car loans for as long as five years.
“We are offering a broader variety of purchasing options,”‘ BMW U.S.A. spokesperson Jan Ehlen said in a Bloomberg report on Wednesday, adding the automaker is trying to achieve a greater balance between financing and leasing.
BMW cited costs of $373 million in the first quarter as a direct result of the lower values of vehicles at the end of their leases.
[Source: LLN]
August 1, 2008
The world’s largest maker of luxury cars, BMW, is taking steps to reduce its industry-topping 60 percent of U.S. vehicle leases versus purchases. The automaker is evidently taking cues from the huge losses domestic automakers have been taking as a result of off-lease vehicles being valued at less than expected, although this was due mainly to them being gas-guzzling trucks and SUVs.
At the start of May, BMW raised lease price by an average of three percent and more recently introduced 0.9 percent financing on new car loans for as long as five years.
“We are offering a broader variety of purchasing options,”‘ BMW U.S.A. spokesperson Jan Ehlen said in a Bloomberg report on Wednesday, adding the automaker is trying to achieve a greater balance between financing and leasing.
BMW cited costs of $373 million in the first quarter as a direct result of the lower values of vehicles at the end of their leases.
[Source: LLN]
