BMW loaner plan provides steady flow of used cars

Automotive News reports that BMW’s service loaner program will serve a dual purpose for local dealerships. Aside from being able to provide a loaner vehicle to their customers while their cars are being serviced, this service loaner program will also increase BMW and MINI dealer’s inventory of used cars. The vehicles that will be part of this program are certified pre-owned (CPO). The dealer also gains the flexibility of selling these vehicles on the spot. Here’s an excerpt of their report:

The Aftersales Mobility Program is especially welcome when used vehicles are in short supply. The program “provides the dealer with a ready inventory of certified pre-owned vehicles. If a customer wants to buy an AMP vehicle, the dealer has that flexibility to sell it to them on the spot,” says Frank Peluso, manager of the Aftersales Mobility Program.

The Aftersales Mobility Program includes about 17,000 vehicles in the United States, nearly 63,000 units since the program began in 2009. According to the same magazine, about 75 percent are sold as certified used.

All but four of the automaker’s 438 North American BMW and MINI dealerships are enrolled in the service loaner program.

Since BMWNA retails the vehicles to dealers, the are considered new-unit sales. The parent company also covers about half of the dealership’s financing cost. The stipulation from BMW says that these loaner can be sold as used vehicles after being in service for three months.

Source: Automotive News