SHERIDAN, WYOMING – April 16, 2025 - BMW Financial Services has played a pivotal role in the brand’s evolution in North America, driving customer loyalty and sales growth while weathering economic storms with strategic precision.
Investing in Customers to Fuel Brand Success
Access to credit is critical for consumers making high-value purchases—especially when buying premium vehicles like a BMW. While banks and third-party lenders are options, manufacturer-provided credit delivers unique advantages. That’s where BMW Financial Services enters the picture.
Founded in 1992, BMW Financial Services provided a dedicated, in-house financing arm that offered more than just loans—it helped build long-term relationships. As Charles Silva, former IT manager at BMW Financial Services, explains, “We brought two key factors: One, getting financing for customers, so they’re not exploring it with other banks… Two, creating loyalty.”
Building from the Ground Up
The early '90s were turbulent times for BMW in the U.S., with sales dropping nearly 45% between 1986 and 1991. Regaining momentum meant rethinking operations. With Toyota’s Lexus brand rising quickly—bolstered by Toyota Motor Credit’s strong financing support—BMW had to act fast. That action took shape in the form of BMW Financial Services.
The division was legally separate from BMW of North America but functionally intertwined, headquartered in Woodcliff Lake, New Jersey, and operating daily out of Hilliard, Ohio. “Ohio made sense for the workforce,” said Neal Crouch, Chief Risk Officer at BMW Financial Services. “There are multiple colleges nearby, there’s a young workforce, and it’s very affordable where cost of living is concerned.”
From scratch, the team built systems and processes in a shifting digital landscape. “We pretty much needed to build everything,” Silva recalled. Assembling a new team, creating original code, and establishing operations demanded dedication and visionary leadership.
Innovating Beyond the Standard
Once established, BMW Financial Services set itself apart. Beyond traditional new-car loans and leases, the division introduced “Full Circle,” a groundbreaking end-of-lease process designed to reduce losses on pre-owned sales while preserving vehicle value.
“If we could bring down losses on the sale of used cars, it benefits both the sales company and Financial Services,” said Crouch. That led to another innovation: BMW became the first manufacturer to offer a Certified Pre-Owned (CPO) program. This provided consumers with premium used vehicles backed by factory warranties, further boosting confidence and value.
A Key Driver of Sales and Dealer Partnerships
The advantages extended beyond customers. Dealers also benefited from BMW Financial Services’ holistic approach. The division offered floorplan financing and mortgages for dealership facilities, helping partners manage inventory and operations more efficiently.
“A lease is on the books for three years, and we have tools to help dealers manage that off-coming volume,” Crouch said. “It’s like an annuity that always brings customers back.”
Silva added, “When they have a return-to-market event in three years… If they’re a 3 Series customer, maybe their life events allow them to go into a 5 Series. It’s a loyalty driver for the group.”
Resilience Through Economic Turbulence
BMW Financial Services proved its value during the 2008–2009 financial crisis. While domestic automakers struggled—some requiring government bailouts—BMW remained resilient. “Financial Services wanted to make sure we had liquidity… when a lot of banks weren’t providing auto loans,” said Crouch.
As a result, BMW’s U.S. sales dropped only 32%, compared to a staggering 54% industry-wide decline.
Strategic Alignment and Continued Growth
To better align financial services and vehicle sales, BMW implemented “Strategy 2017” under the leadership of BMW NA CEO Bernhard Kuhnt and BMW Financial Services CEO Ian Smith. This move strengthened collaboration while preserving necessary legal separation.
“I think it was a critical turning point,” Silva noted. “The two companies are working much more closely together… and that’s what powered us through some of these challenging times,” including the COVID-19 pandemic.
A Modern Powerhouse of Automotive Financing
Today, BMW Financial Services, under the leadership of Birgit Boehm, operates in the U.S., Canada, Mexico, and Brazil. With over $45 billion in assets and more than 1.3 million customers in the U.S. alone, the division employs more than 1,000 professionals and continues to support both new and existing BMW customers.
The company also reaches out to younger and underserved demographics with tailored loan programs for recent college graduates and military personnel. “Our employees care about the calls that come in, and they have a lot of empathy for our customers,” Crouch shared.
A Seamless Experience From Dealership to Driveway
As BMW Financial Services continues to innovate, its commitment remains unchanged: support customers through every step of the ownership journey—from financing and leasing to loyalty and upgrade opportunities.
To learn more about BMW Financial Services and explore current offers, visit www.bmwusa.com.