BMW Financial Services Simplifies the Buying Process for Customers and Dealers

Launch of eContracting for BMW Financial Services Sets Industry-First with Fully Functional Solution-- Breeding Dealer Profits and Stronger Relationships

Woodcliff Lake, NJ, June 14, 2010 -- BMW Group Financial Services has topped industry-wide standards with the launch of the company’s eContracting Initiative, a fully functional solution for electronic contract validation within its dealerships.  As the first captive organization to utilize one single process for the sale of retail, lease, and pre-owned (including certified pre-owned) vehicles, BMW Financial Service’s eContracting extends the brand’s overall value proposition to include customer convenience as well as building upon a greener, paperless process for the dealers.

While taking efficiencies to the next level can bring dealers more profit, those same efficiencies can also extend customer loyalty.  According to Shaun Bugbee, Vice President of Sales and Marketing for BMW Group Financial Services, products like eContracting can save dealers and customers as much as 30 percent in time during the credit application and contracting process, as well as provide significant cost savings from ongoing overnight shipping fees per transaction.  The evolution of eContracting within BMW Financial Services over the past four years has contributed to the brand’s overall efficiency, consistent high rankings in dealer satisfaction scores and the company’s environmental sensitivity.

“The genesis of eContracting brings our dealers an additional bonus,” said Bugbee.  “Overall, it’s a premium process for a premium brand. This has been a multimillion dollar infrastructure investment on our part completely, at no charge to our dealers – and it saves them even further – with legally expediting the process for the consumer, while providing the dealers the ability to submit the fully calculated contract for funding on the very same day.”

BMW Group Financial Services has agreed to partner with Open Dealer Exchange, LLC (ODE) for contract data integration services, including credit application data.  All interaction will allow BMW dealers to fully complete an accurate and electronic contract by interfacing directly through their own dealer management system rather than going through a third-party portal.

The eContracting initiative began rolling out for BMW dealers in five states earlier this year, including Illinois, Maryland, New Jersey, New York and Pennsylvania.  Texas and Michigan area BMW dealers will begin using the new system as of today, with those in California and Florida scheduled for use by September 2010.  BMW Financial Services has additionally targeted dealers in a total of 17 states for e-Contracting by the close of 2011. 

Overall benefits of the e-Contracting program include:
* Reduces F/I time for customer and dealer, increasing dealer satisfaction scores
* Helping dealers head toward a paperless environment
* Provides a “checks and balance” so any errors can be corrected before customer signs
* No more shipping/overnight charges with funding packages
* No more ordering of contracts

Bugbee noted that while the process of eContracting within BMW Financial Service is not entirely new to the brand, its progression has conquered new ground.  “Our top priority remains creating better efficiencies for our dealers, furthering our partnership.  By bringing the most advanced technology and time-efficient means to the point-of-sale mix, we can extend our relationship with both dealers and consumers to an even higher level.”

About BMW Group Financial Services

BMW Group Financial Services was established in the U.S. in 1992 to support the sales and marketing efforts of BMW of North America.   Since then, the group has expanded to provide service to markets in multiple countries and continues to evolve beyond its role as a captive finance unit. 

BMW Group Financial Services offers a wide range of leasing, retail and commercial financing and banking products tailored to meet the needs of the BMW customer. The group also provides financing to BMW dealers for expanding dealership capabilities and enhancing overall operations. With more than $30 billion in serviced assets and 850,000 automotive lending customers, BMW Group Financial Services finances about half of the BMWs sold or leased in the United States.  

BMW Group Financial Services employs nearly 1,000 people, including consultants and temporary workers, most of whom are located in the Hilliard, Ohio Customer Service Center.

In 2001, the MINI Financial Services division was established to provide support for the brand’s dealer and customer networks by offering various financing and leasing options.    Alphera Financial Services was established in 2006 to provide financial services to dealers who are not part of the BMW and MINI networks.

BMW Group Financial Services also offers credit card products through its subsidiary, the BMW Bank of North America.  up2drive.com is a division of BMW Bank of North America, a wholly-owned subsidiary of BMW Financial Services NA, LLC.  BMW Insurance Agency, Inc., a property and casualty producer, is also part of BMW Group Financial Services.

Information about BMW Group products is available to consumers via the Internet at:

www.bmwgroupna.com 
www.bmwusa.com 
www.bmwmotorradusa.com
www.miniusa.com
www.rolls-roycemotorcars.com

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