BMW deploys a finance program as part of its plan to increase brand loyalty in US

News | September 23rd, 2010 by 3
BMW

AutoNews comes up with an interesting report on how BMW intends to increase brand loyalty across US through a finance program. BMW will deploy at …

AutoNews comes up with an interesting report on how BMW intends to increase brand loyalty across US through a finance program. BMW will deploy at national level a program targeting current BMW retail loan customers who have equity in their vehicles, as customers for new BMWs.

The first step of BMW’s program is to identify to BMW dealers all current BMW retail loan customers whose cars have a market value higher that what is owed by the customer. The next step is to present those customers with offers to swap their old car with a new one, within the same monthly installment range, or one chosen by the dealer.

According to AutoNews who quotes Tim Sturm, BMW Group Financial Services General Manager of vehicle sale, BMW Financial retail owner loyalty is currently around 18%, and BMW intends to increase it to almost 36% until the end of 2012. A pilot program has been deployed at the beginning of the year, and apparently the 12 dealers involved in the pilot found the tool very useful, and managed to measure the results in terms of additional revenues gained because of it.

BMW deploys a finance program as part of its plan to increase brand loyalty in US

Here’s an example to show what the program means for the customer: an owner of a 2007 3 series with a monthly payment of $650 has swapped his car with a 2011 3 series equipped with a navigation system and satellite radio that his previous car didn’t have.

The customer is paying for the new car $632 a month on a 60-month contract.

The report indicates September 21 as a roll-out date for the new national program.

[Source: AutoNews]

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  • http://ebrake.blogpsot.com Andrew

    I actually got one of these emails the other day and hopefully its working. The first thing I did was contact a local dealership about it.

  • Wooo hoo.

    They don’t need to do this…. If you can AFFORD it you’ll stick with the brand anyway. If you can’t…. go get a honda..we don’t want your kind

    • BIMMER1

      I agree with you in general, but the idea is to stimulate new car sales by having clients trade in their existing car for a brand new long before they pay off their existing car with no penalty, and sometimes even a lower monthly payment.

      On another note, 18% loyalty for a brand that is considered to have one of the most loyal followings out there seems very low. Is it possible that with the dilution and “softening” of their newer models that they are pushing the BMW faithful away? Perhaps to the likes of Porsche? I would say that might be the case. It seems like every model that has come out since the e60 5 series (maybe with the exception of the 3) has missed the mark in most of the loyal owners opinions. I believe in an effort to capture more sales from the likes of Lexus/Acura/Mercedes owners they have comprimised their core value too much, making too many performance sacrifices to appease the masses. The problem being, BMW never used to care what the masses thought. And that’s what made them such a unique manufaturer with a die hard following. Now they are turning into every other car company just looking to grab up the $$$ anywhere they can even if it means sacrificing their identity to do it. Boo.

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