Christian Kalinke appointed as
temporary chief executive.
Go deeper with GlobalData
The UK arm of BMW Financial Services (BMW
FS) has reported a solid performance for the first quarter of 2010,
Motor Finance has learned.
Year-on-year, the first quarter of 2010 saw a rise
of 16% in the number of finance applications, including cars,
motorbikes, Mini and Rolls Royce, for both used and new
vehicles.
Also, volumes in March 2010 were 18% higher than
during the equivalent month in 2009.
The company attributed the success to the
continuing trend of relatively high interest rates among high
street lenders on personal loans.
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By GlobalDataLoans are now harder to obtain, BMW FS said, and
have become a “less attractive option” to potential car buyers.
It also highlighted the smaller presence of other
car finance providers, as companies reduce their business or
withdraw from the market altogether.
This has meant customers have fewer places to turn
and have therefore become more likely to use BMW FS.
Demand increases
The company also said the demand for personal
contract purchase (PCP) has increased this year.
Indeed, BMW Select, the company’s PCP offering, is
its most successful product, making up more than 60% of
business.
Its recently launched insured warranty offering has
also been successful, the company said.
BMW FS general marketing manager Joe Pattinson
said: “We have worked closely with BMW UK to ensure that there have
been some very competitive offers in the market for new customers
and existing customers buying another BMW or Mini.
“We have also ensured we have set competitive and
realistic guaranteed future values which will benefit BMW owners in
the future.
“Used cars have been selling very well this quarter
too which has helped increase our business volumes.”
BMW FS also recently appointed Christian Kalinke as
UK chief executive, taking over from Keith Dye on a temporary
basis.
Dye returned to his home in South Africa, having
been at the helm of the UK operation for four-and-a-half years.
Kalinke’s role came into effect from 1 March, and
he is to oversee the UK financial services operation until a
permanent replacement for Dye can be found.
New initiatives
A number of new initiatives have also been
launched, including an ‘online finance calculator’ for used cars,
allowing customers to view quotes on used vehicles. They can adjust
term, mileage and deposit to find out what the car would cost on a
PCP or hire purchase agreement.
The company, which continues to work only with
dealerships, will also be offering a 20% insurance discount via its
website in May.
Insurance products include car, home, travel,
shortfall, income protection, insured emergency service and insured
warranty.
BMW has also recently extended its insured warranty
services, allowing all BMW owners to take up protection.
They will be offered three levels of cover to
guard against the cost of repairs and replacement parts.
