NEW YORK -- BMW of North America's captive finance company expects its off-lease vehicle volume to drop by about a third next year.
Tim Sturm, BMW Group Financial Services general manager for vehicle sales, said 2009 and 2010 were the peak years for lease maturities at BMW Financial, with volumes reaching about 140,000. He said the company expects that to drop by about 35 percent in 2011 compared with 2010.
Like other finance companies, BMW Financial scaled back on leasing in 2008 during the credit crunch.
"Our CPO sales in 2010 will most likely be flat with 2009," Sturm said at the National Auto Auction Association convention this month. "But from a total pre-owned basis, we'll finish the year up 8 to 10 percent."
BMW and BMW Financial are working to include noncertified used cars and trucks. Starting in the fourth quarter, off-lease BMWs that dealers declined to buy when the vehicles were turned in to their stores at the end of the lease will be mechanically reconditioned and offered again in auctions open to BMW dealers only, Sturm said. He said the reconditioning of the vehicles is a pilot program.
Noncertified used vehicles "provide another entry point for consumers into the brand," Sturm said.
The company also now allows BMW dealers to post all used vehicles on BMWusa.com, a move that is boosting used-vehicle sales. Previously, only certified used vehicles were posted on the site.
