A new program from BMW Financial Services aims to pay dealers more quickly.
The new “self-serve funding system” lets BMW FS pay dealers before the paperwork is completed — usually within one business day.
“We are now able to reduce the average waiting time for payment on a contract from two days to none,” says Bob Divine, managing director of BMW FS in the United States. “That means improved cash flow for dealers, which in turn, means savings.”
Mr. Devine estimates that the average dealer, using the new system for half of all transactions, would save more than $7,000 per year in interest.
Using expanded computer technology, the “self-serve funding system” allows dealers to electronically input all transaction data, and eliminates the wait for getting BMW documents before payment is made.
“This is one more step in our efforts to provide our dealers with world class service,” Mr. Devine adds.
BMW's self-serve funding system has been in place for leased vehicles for nearly a year, and about 20% of all leasing transactions are now being completed electronically.
With the expansion of the new system to include retail sales, Mr. Devine anticipates nearly 40% of all transactions — sales and leasing — to be completed this way by the end of the year. As more dealers are trained in using the self-serve funding system, usage is expected to climb.