BMW GROUP Financial Services will be launching a new business model following an 18 month investment and research project.
This model will be rolled out across its UK 147 BMW dealers and 143 MINI retailers.
The new “customer-centric” approach will result in retailers being rewarded and incentivised in a new way – the terms for their finance products will also be updated.
New BMW and MINI finance package, low fees and retailer bonus
The across-the-board finance package will be implemented throughout the whole network, focusing on customers benefitting from a capped rate of 10.9% and bringing “add-on” fees down to practically nothing.
Dealers will also have the chance to receive a performance related bonus based on how well they deliver “excellent customer outcomes.”
General Manager of Group Brands at BMW GROUP Financial Services, Spencer Halil, said: “The world of retail is constantly evolving, with customers having better access to information, be it online or through peer channels, before they even enter a BMW or MINI centre.
“As a result, it is important that we tailor our business to suit our customers’ needs so that our retailer network can continue to deliver a fair and transparent service, while focusing on long-term loyalty and retention.”
Already there are some retailers who have adopted the new system; however, the full network change is scheduled to take place 1st January 2015.
Spencer Halil concludes:“The primary objective of this transition is to meet the changing demands and expectations of our customers.
“We are putting them at the heart of everything we do by providing simple, transparent, fair products that meet their needs.
“We’ve done this because it is the right business decision, but it can’t go unnoticed that this approach is also in line with the aims of the Financial Conduct Authority as well.
“While we recognise the dealer network may experience some short-term adjustments through the transition, we fully believe that this approach will deliver genuine business growth through 2015 and beyond.”
