BMW Group Financial Services saw a 1.7% year-over-year rise in total worldwide loan and lease originations — to 468,603 contracts — during the second quarter ended June 30, but signaled an easing of its lease penetration.
Lease originations dipped 6.8% year over year during the quarter while loan originations grew by 6.1%, the company reported in its second-quarter earnings. In total, leasing accounted for 31.1% of new business year-to-date, as compared to 34.2% from the prior six-month period ended Dec. 31, 2016.
BMW Financial does not breakout North American originations numbers, but the captive originated $20.4 billion in loans and leases at yearend 2016 in North America, according to Big Wheels Auto Finance 2017, and the earnings report said volumes were similar to the previous financial year — up 0.2%.
BMW Financial has seen a more dramatic increase in its portfolio for the full six-month period ending June 30. Retail contracts ticked up 6.9% year over year — to 934,237 contracts.
Also of note, U.S. sales fell 8.1% year over year in 2Q to 89,616 units, marking the largest decline in one of the company’s major markets.
Additionally, the number of new insurance contracts signed during the first half of the year increased by 5.6% to 662,633 contracts, with a total of 3,529,645 brokered insurance contracts as of June 30. BMW Financial Services grew its workforce by 2.4% in the last six months, which comprised 8,593 people worldwide as of June 30.
