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BMW response to the financial crisis: 0.9% finance rates

Pricing | October 12th, 2008 by 7

This past Friday, BMW has released new lease and finance rates for all of their 2008 models. The economical crisis that we are going through, …

This past Friday, BMW has released new lease and finance rates for all of their 2008 models. The economical crisis that we are going through, associated with lower than expected sales, has pushed BMW to change their strategy again. We’re not sure if this is a short term plan and we won’t be speculating since we’re not finance majors, hopefully we will hear more soon. 

In the mean time, all of the 2008 bimmers, with the exception of the X6, can be purchased with a 0.9% finance rate. Additionally, money factors have been reduced on all models, except the 1 Series and X6.

I looked at my BMW 335i’s lease numbers(I purchased the car back in January), and I realized the new rates would have saved me almost $50/month or a total of $1800 over three years. Not bad, but hey, you can’t always predict the market.

  • Gragop

    Are they still having that much difficultly unloading the 2008′s? I figured most dealers would be getting low in their allocations of those and would be gearing up for 2009 – despite the economy.

    I can’t say I’m surprised this happened though. BMW, like everyone, began to implement corrective measures on leases and loans a little too late and as a result cannot begin the “pull rather than push” product strategy. Wait until the spring – it’ll change.

    Oddly, this is how my buddy got $10k off his M Coupe. The car he ended up with sat on a Miami lot for 6 months before being snapped up during all of the marketing support for the Z cars late last year. Maybe we’ll see some of that?

  • http://www.bmwblog.com Horatiu B.

    @Gragop: Apparently the sales were very slow, so they had to do something drastic, despite what we kept hearing for the past few months. Here is what our friend Jonathan said:

    “BMW’s announced shift to a “pull” strategy was a bit premature as it
    apparently didn’t take into consideration what is going on in the rest of
    the world. It should have been clear to most, for example, that China’s
    economic miracle was not sustainable given the questionable underlying
    manufacturing processes that have come to light in recent months (tainted
    milk is just the latest). And China was one of the markets to which BMW
    apparently intended to shift allocations.

    Unfortunately, when the United States sneezes, much of the world can catch
    cold.

    BMW’s shift in allocations was predicated upon the fact that it could sell
    the cars in other markets at a greater profit. Clearly they didn´t take
    the world´s temperature when planning this move.

  • mr. 7

    what will the interest rates be after 3/2/09?

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  • ayaz ahmad

    Although the economy still has challenges, most experts agree that conditions are improving. Unfortunately, this does not mean that getting conventional business financing will be easier. The sad truth is that many lending institutions are still licking their wounds from the excesses of the subprime credit bubble and few are willing to lend to companies – unless they have substantial collateral.commercial factoring

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