Off-lease vehicle volume is expected to fall by about a third in 2011, according to BMW of North America's captive finance company. Tim Sturm, BMW Group Financial Services general manager for vehicle sales, said that 2009 and 2010 were the peak years for lease maturities at BMW Financial, with volumes totaling to about 140,000.
The company anticipates that this figure will decrease by about 35% in 2011 compared with 2010. Similar to how other finance companies acted during the credit crunch, BMW Financial scaled back on leasing in 2008.
At the National Auto Auction Association convention this month, Sturm said that in 2010, its CPO sales will “most likely be flat with 2009." He also said that from a total pre-owned basis, the company expects to finish the year up 8 to 10%.
BMW and BMW Financial are working to include noncertified used cars and trucks. Sturm said that beginning in the fourth quarter, off-lease BMWs that dealers refused to purchase when the vehicles were turned in to their stores at the end of the lease will be mechanically reconditioned.
These will again be offered in auctions open to BMW dealers only. He said that the reconditioning of the vehicles is a pilot program. Sturm added that noncertified used vehicles represent another entry point for consumers into the brand. [via autonews - sub. required]