BMW is reported to be introducing an incentive programme in the US market through the end of this month that lets lease owners waive some payments if they buy a new vehicle.
According to a Bloomberg report, citing a statement sent to dealers, BMW is mailing offers to current lease owners of most of the vehicles in its 2010 model-year lineup that allows them to avoid as many as three payments if they buy a new or certified-used model. The programme, through BMW Financial Services, runs through 31 October.
Viewed as a competitive strategy aimed at rivals such as Mercedes-Benz, eligible models for BMW’s lease pull-ahead programme include the 1 Series and 3 Series sedans, plus the 5 Series, 6 Series and 7 Series cars. The X3, X5 and X6 SUVs also qualify. Models not eligible include M versions and 3 Series coupes and convertibles.
According to Bloomberg, BMW Financial Services has introduced a lease pull-ahead programme three times this year and the latest initiative is similar to efforts BMW made last year.
BMW introduced Specialty Demo Allowance deals late in July offering total payments ranging from US$2,500 for some 2012 5 Series models to US$7,000 for the 2012 7 Series, according to a 31 July notice sent to dealers. The allowances, which also were available for the 2012 3 Series, were kept in place in August, according to a following 14 August e-mail to dealers.
According to Autodata Corp. figures, BMW has reduced incentives by 4.8% so far this year to US$3,418 a vehicle but is still spending 37% more per vehicle than the industry average on discounts and promotions. Mercedes-Benz surpassed BMW in incentive spending through the first three quarters of 2012, boosting discounts by 11% to US$3,582, or 44% more than the industry average.
The Bloomberg report notes that manufacturers of luxury vehicles previously have boosted incentives toward the end of a year. For example, in November 2011, Mercedes-Benz offered to pull current customers out of their leases as much as eight months early to get them into new vehicles.
