BMW's used car program now provides official certification

BMW, the first premium automaker to introduce a certified used car program to China, in 2006, has upgraded its 10-year-old business.

"The program was first created out of a sense of responsibility," said Michael Liu, president of BMW China Automotive Trading Ltd at the launch of the upgraded program, now called BMW/MINI Officially Certified Used Cars, on Oct 28 in Beijing.

"We have over 2.7 million BMW car owners in China, and they will change their cars sooner or later. So we feel obliged to offer them a high-quality and efficient solution."

Liu said the program is also designed to tap into the huge potential of the Chinese market.

"Every year hundreds of new models hit the market. However, all new cars will finally become used cars. And a brand's performance in the used car market will also affect its reputation, customer experience and dealers' performance."

Based on this context, BMW started its used car business in China 10 years ago. The automaker has been the top player among premium brands in the Chinese used car market since then.

BMW said that in the past five years, nearly 100,000 used cars have been traded through the program, with an annual growth rate of almost 30 percent.

Cars in the upgraded program are less than 6 years old, with mileages of no more than 120,000 kilometers, and have passed 360-degree certification, according to BMW.

In the past 10 years, 39 percent of BMW cars sold when they were less than 6 years old were certified via the program.

In the first three quarters of 2016, 36,000 used BMW and MINI cars were sold through the program in China, equal to around 10 percent of new car sales in the same period.

"We have been successful in the past decade and that has made us even more determined to strengthen our business," said Liu.

Choi Ne-hyun, head of Business Steering & Used Car Development at BMW Brilliance Automotive Ltd, said what has been achieved in the previous decade can be called phase one of BMW's used car business, while phase two starts with the launch of the upgraded program.

"People have many concerns about quality, trust, convenience and after-sales service when purchasing a used car. The upgraded strategy is to reassure our customers that they will be offered the most trustworthy, convenient and premium service."

Among other features, BMW provides a 12-month warranty with unlimited mileage for every certified used car.

"Let me point out here, warranty is not warranty. The scope of our warranty will be expanded to be almost identical with a new car. To my knowledge, this is a real highlight and is a benchmark in the used car market," said Choi.

A number of benefits are offered free-of-charge, including navigational map updates, the ConnectedDrive service package for 12 months and 24-hour roadside assistance for 12 months.

BMW also allows customers to return cars within seven days if they are not satisfied.

"Our promise is that a BMW Officially Certified Used Car will be just as exciting and attractive as a new car. What the value customers can find in our program are trust, convenience and premium services," said Choi.

Today, 352 BMW and 89 MINI authorized dealers are part of the used car program, accounting for almost 80 percent of all its dealers in the country. There are also nine used car centers across the nation.

The automaker said it will strive to include all its certified 4S and 5S dealers in the program within five years.

Online shift

Besides brick-and-mortar stores, online sales are becoming increasingly important for the program.

Choi said BMW launched a used car portal in 2015, which has attracted more than 13 million visitors so far and has more than 2,000 vehicles on display on a daily basis, far ahead of rival brands.

"All the cars on our website have the highest quality standards. Our online platform is the only one in the industry that supports online deposit payment and chatting with BMW dealers."

Choi said the company encourages online purchases. "Customers can choose the car they like with just one click. We will also offer a free maintenance opportunity for the first 4,000 online buyers during the coming weeks."

Despite China's relatively short history of used car business, Choi believes the turning point is around the corner and that BMW will have a head start in the race.

"The used car business, like any other business, is ultimately people's business. It is the quality of people that will make the real difference. BMW is proud that after 10 years of strong development, we have established a professional team across the country," Choi said.

lifusheng@chinadaily.com.cn

(China Daily 11/01/2016 page24)