Irish finance arm of BMW reached the profit of 41.5 per cent
Growth of BMW Group can be observed worldwide as its finance subsidiary in Ireland recorded an increase of 41.5 per cent in 2014. For the year ended on December 31, 2014, account book of BMW Financial Services Ireland shows a profit of €9.12 million which was €6.4 million in 2013.
The growth in personal contract plans, i.e. hire-purchase deals led to a revenue increase of €4.2 million from 2013 to 2014 which were €18.4 million and €22.6 million respectively. As a result of this, last year hire-purchase contract of the arm increased from €13.2 million to €16.5 million. Their finance leases represented €4.17 million in 2014, which is €570 thousand more as compared to year before that.
BMW Financial Services offers finance and leasing deals to BMW and Mini customers. Another brand of BMW Finance Services, Alphera offers finance to customers of other car firms in Ireland.
Last year ended with loan booking of €291.06 million. As a result of that, the hire-purchase business grew by 18 per cent with loans of €228.5 million. Its wholesale funding and stocking loans to BMW dealers rose to €52.3 million in 2014, which was €20.9 million more than the year 2013.
The firm receives all its new funding from BMW Malta Finance Ltd. It is supported by BMW AG. It has loans due to the Maltese arm of €273.3 million. With payroll costs of €982,000, it employed 15 staff in 2014.
Managing Director of BMW Financial Services, Brian Merrigan said that business has grown 20 per cent year-on-year and in July they were up 40 per cent on last year. According to him, the firm expects to finance 3,500 BMWs and Minis this year.
This year, new car sales reached 109,960. It is the first time that they have crossed 100 thousand since 2008. Registration figures for July show 27,633 new cars were registered, up 47.68 per cent on the same month last year.
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