In a move it says is designed to further enhance service to its nationwide network of retailers, BMW Financial Services (BMW FS) has launched a new program to expedite retailers' financing of retail auto sales.
Self-serve funding enables BMW FS to provide retailers with payment on their sold vehicles before the paperwork is completed (received for processing) - usually within one business day, according to Bob Devine, managing director of BMW FS in the United States. "We have reduced the average waiting time for payment on a contract from two days to none," Devine said. "That means improved cash flow for retailers, which in turn, means savings for them."
Devine estimated that a BMW retailer, using the new system for half of all transactions, could save more than $7,000 per year in interest.
Using expanded computer technology, self-serve funding allows retailers to electronically input all transaction data, and eliminates the two to three day wait for receipt of documents by BMW FS before payment is made. "This is one more step in our efforts to provide our retailers with world class service," Devine said.
BMW's self-serve funding system has been in place for leased vehicles for nearly a year, and about 20 percent of all leasing transactions are now being completed electronically. With the expansion of the new system to include retail sales, Devine predicted that in December nearly 40 percent of all transactions - sales and leasing - will be completed this way. As more retailers are trained in using the self-serve funding system, usage is expected to climb even further.
About BMW Financial Services
BMW Financial Services North America was established in 1992 as a captive finance company to support the North and Latin American sales and marketing efforts of the BMW Group.
With more than $11 billion in managed assets and more than 364,000 customers, BMW FS leases or finances more than half of the new BMW vehicles sold in the U.S.
BMW FS employs about 400 people, most of whom are located in the Dublin, Ohio, Customer Service Center. BMW FS also services the Canadian market and recently opened a new Financial Services company in Brazil.
BMW Financial Services provides a range of leasing, retail, commercial, banking and insurance products for BMW customers and dealers. All lease servicing, including credit underwriting, funding, customer service, title administration, lease-end and collections are handled at the Dublin customer service center. A growing portfolio of banking, credit card and insurance offerings are also available through the BMW Bank of North America.
BMW Group in America
BMW of North America has been present in the United States since 1975. Since then, the BMW Group in the United States has grown to include marketing, sales and financial service organizations for the BMW, BMW Motorcycles and MINI brands; a South Carolina manufacturing operation; DESIGNWORKS/USA, an industrial design firm in California; a technology office in Silicon Valley and various other operations throughout the country.
The BMW Group is represented in the U.S. through a network of 341 car, 321 sports activity vehicle and 153 motorcycle retailers. BMW US Holding Corp., the group's headquarters for North, Central and South America, is located in Woodcliff Lake, N.J.
Information about BMW Group products is available to consumers on the BMW homepage at www.bmwusa.com, www.bmwmotorcycles.com and www.miniusa.com.
