BMW’s auto lending program is making some cars more expensive
By Tom Bissell | October 3, 2018 2:03pmEDTKATRICE, Idaho — BMW’s automobile lending program, which has been going on since December, has helped drive prices of cars up to the point that many people are paying more for them than they used to.
As of October 2, the automaker said that it had collected $4.4 billion in auto loans, up from $2.5 billion in December.
It said it would spend $1.2 billion to increase loan rates for the next three years.
That comes on top of $500 million in cash and stock it will spend to improve its loan portfolio.
The increased interest rates on cars are due to a new law passed last year by the Idaho legislature.
It limits how much an auto loan can be refinanced.
That means it takes more money to pay off a car loan than it would if it was made by a traditional lender.
The law was aimed at encouraging people to save money by purchasing cars.
That’s something that the automakers, who sell more than $3 trillion worth of cars each year, are hoping will encourage people to buy more of their cars and keep more of the money they earn on them.
The automaker’s loan programs have been working as expected.
Its auto lending business grew by 4.7% year-over-year last year, according to data compiled by Bloomberg.
But it said the increase in the volume of auto loans may not have been enough to offset the price hikes for cars in the market.
For a car that is sold in about 50% of U.S. states, that’s not a huge amount, but it’s still a significant increase.
The industry has been growing rapidly in recent years.
The market for cars has doubled in the past five years, according the Consumer Federation of America, which represents auto dealers.BMW is expected to post an adjusted profit for the year ending in March of $1 billion, which is up from a loss of $5.5 million a year ago.
The company expects to post another profit in 2018, which would be about $2 billion.