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Jon S, do dealers lease their loaners?

1585 Views 7 Replies 4 Participants Last post by  DougDogs

I remember you once commenting on how dealerships obtain their loaners, but I forgot (something on the lines that NA provides an allowance). Asides from dealerships who use rental car companies, do dealerships purchase them or lease them from BMW financial?

My curiousity was arouse when someone at .org pointed that the Bimmer he purchased had a prior history of being in a commercial lease.

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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...
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
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....
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