BMW Group Financial Services will expand its e-contracting system to Mini dealers in four states -- New York, California, Texas and Virginia -- by the end of this year.
The system already is in use in the four states for BMW dealerships.
The expansion will happen during the next three to six months, Steve Swecker, general manager of sales analytics for BMW Financial, said during a presentation for Automotive News F&I Week.
The number of BMW dealerships using the company's e-contracting system is also growing, Swecker said, with more than 190 stores in 17 states now on board. That roster represents about 80 percent of the lender's business, he said.
"In a lot of cases, what I'm hearing from the finance managers is that it is so streamlined, and it is so clean for them, they have a little bit more time to talk about product as opposed to explaining what's on the contract," Swecker said.
The system is now rolling out to Mini dealerships. One pilot Mini store in New Jersey is e-contracting 98 percent of transactions, Swecker said. When the four states come online for Mini, about 30 Mini stores will gain access to the system.
In 2012, about 75 percent of eligible transactions at participating BMW dealerships were e-contracted, Swecker said. That translates to just more than 46,000 transactions. For 2013 year-to-date, just more than 28,000 deals have been e-contracted.
The captive continues to work to get additional forms, such as insurance forms, on the system and to work on adding mobile functionality on tablet computers.
A more detailed training process for dealership personnel has been set up compared to the early days. BMW Financial also now mandates that at least two or three people per store are trained.
Customers like the automated process, which cuts out paperwork and shaves 30 percent off the total contracting time, Swecker said. Customer satisfaction ratings for the captive's e-contracting system rose every month through the first four months of 2013.
"This gives the customer the opportunity to see a lot of the transaction taking place right there in front of them," Swecker said. "It is convenient for the customer, and it enhances customer loyalty."