GMAC is gone and GE is gone. Ford Credit is in trouble and many dealers are in need of government backing for their finance – but BMW’s finance operation says the future is looking great.

BMW Financial Services Australia is celebrating its 20th anniversary  and says it is in a strong position and has a positive outlook.

“We are here to stay and to grow even stronger,” says Alan Crookes, managing director of BMW Financial Services Australia and also BMW head of financial services Asia Pacific, Africa, East Europe Region

“Our commitment to the Australian market is underlined by two decades of consistent growth, driven by the increasing sales of BMW, and latterly MINI, with a stable and high penetration rate,” he says.

The company has offered a suite of financial services for BMW Group customers as well as multi-make (non-BMW) customers through its Alphera Financial Services brand, since its inception here in 2001.

BMW Financial Services currently funds around half of all new BMW sales, and 60% of used BMW sales from BMW dealers.

It also offers an insurance programme, access to an exclusive BMW gold card by American Express® and an all-makes finance and insurance product for non BMW customers.

It is part of BMW Financial Services, which has 70 billion Euro in outstandings, and echoes the strength of the BMW Group. In Australia, growth has been underpinned by nurturing a team of financial services experts and working closely with the BMW dealer network.

“Customer loyalty and repeat business are the cornerstones of our business, but driving our success is undoubtedly the strong support of our BMW and Alphera dealers.

“This is driven by excellent relationship management and customer experiences. Our customers have confidence in us and our solid position in the market,” Crookes says.

“We are well entrenched in the Australian market and looking forward to our next 20 years of doing business here.

“Our long term forecast for the Australian market is very positive. BMW Financial Services is one of the largest captive finance companies in Australia, with the best new car penetration of any captive nationally, and the best dealer coverage of any captive in Australia” he says.

Stavros Yallouridis, managing director of BMW Group Australia, reinforces how important a good financial presence is to the company.

“Acceptance by BMW dealers, sales penetration and customer loyalty rates make it clear that BMW Financial Services enhances the appeal of the vehicles. Our owners understand BMW Financial Services makes the whole-of-life cost as efficient as possible.

“That the variety of products available is so well subscribed indicates the Australian market understands both the value and convenience BMW Financial Services brings to the ownership experience,” Stavros says.

Crookes noted the company’s retention figures.

“Our loyalty rates are extremely high – up to 80% in some cases - and we currently have a total lending book of almost AUD$5 billion. This makes us one of the largest car manufacturer finance companies of our type in Australia, and certainly one of the most enduring and successful – if not the most.

“During the next 20 years we are certain that BMW Financial Services Australia will continue to provide finance for BMW Group Australia’s customers as well as for non-BMW brand customers through Alphera,” Crookes says.

SOURCE: Autofile