BMW Financial predicts off-lease vehicle volume to drop by a third in 2011

Article by Christian A., on November 24, 2010

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]

If you liked the article, share on:

Topics: bmw, sales

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries