Jon S, do dealers lease their loaners?

Re: Service Loaners

Hey Dave,

Basically, dealers finance the service loaner cars directly through BMWFS at a very low rate, and are subsidized in part by BMWNA.
The financing plan is called a "monthly curtailment", and the subsidization lasts only a limited period of time. It is in everybody's interest to keep the service loaner fleet turning over regularly. More new BMWs get reported sold, customers get BMWs to drive while theirs are in the shop, and then, we get to retail them a second time as CPO's...

Sounds a lot like Chrysler's DRAC program. (Dealer Rental Allowance Car)


Jon, I have a question to add. When these service loaners are sold;

1. Are customer's able to lease these vechiles, at favaorable rates, or are the concidered second owner??

2. Are prices "workable" or is a CPO "fixed price" attached
:dunno:

Re: Re: Service Loaners

Jon Shafer said:

and the subsidization lasts only a limited period of time.

Click to expand...

Thanks Jon. I guess it is worse than my tax money going to a farm subsidy

DougDogs said:

Sounds a lot like Chrysler's DRAC program. (Dealer Rental Allowance Car)

Jon, I have a question to add. When these service loaners are sold;

1. Are customer's able to lease these vechiles, at favaorable rates, or are the concidered second owner??

2. Are prices "workable" or is a CPO "fixed price" attached
:dunno:

Click to expand...

Hey Doug,

A long time ago I was the GSM at a Chry/Ply/Jeep/Eagle store, so I am very familiar with the DRAC program. It is similar, but the BMW program is much better.

Anyway, when we pull these cars out of loaner service we usually CPO them, and then retail them - just like any other car deal. They are considered "used cars", but the CPO certification and finance/lease program options make them highly desireable....

Jon Shafer said:

Hey Doug,

A long time ago I was the GSM at a Chry/Ply/Jeep/Eagle store, so I am very familiar with the DRAC program. It is similar, but the BMW program is much better.

Anyway, when we pull these cars out of loaner service we usually CPO them, and then retail them - just like any other car deal. They are considered "used cars", but the CPO certification and finance/lease program options make them highly desireable....

Click to expand...

I was a SM at a Dodge dealer in NJ in the late 80's / early 90's.. I'm sure Chrysler program has changed since then. (maybe MB has had some influence)

I'm looking now for a deal on an X5...Wife's blazer comes off lease soon:thumb:

I would hate to buy a loaner, many drive the hell out of it, rough, etc :thumbdwn:

CCs328Ci said:

I would hate to buy a loaner, many drive the hell out of it, rough, etc :thumbdwn:

Click to expand...

I've only been rough on OLD loaners. My Audi dealer would sometimes give me a 5-6 year old VW Golf or Jetta, then I would take out a little on the drive train. When they gave me new A4 or new Passat, I would traet it like my own.

When ever I am given a nice car to drive, I treat it right. I would like to think that most other people act about the same way.

RENTAL cars, however, that's a whole other story :lmao:

I remember hearing some guy at a bar, talking about the good deal he got on a car with 22K miles on it. He said he bought it from Avis:lmao: :lmao: