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Drive a BMW via AUB’s hassle-free leasing

Drive a BMW via AUB’s hassle-free leasing
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Asia United Leasing & Finance Corp. (AULFC), a subsidiary of Asia United Bank (AUB), the newest publicly listed universal bank in the country, offers car leasing that lets you upgrade your BMW at any time without added cost—no payment for registration, insurance, and maintenance ever.

First in the country

AULFC offers the country’s first full-maintenance operating lease of its kind for luxury vehicles. The full maintenance lease on BMW was made possible through an exclusive partnership between AUB and Asia Carmakers Corp. (ACC), exclusive distributor of the bestselling luxury German marque in the Philippines.

While leasing has already become a popular and practical choice in the United States, it has yet to gain wider acceptance among Filipinos who tend to have an emotional attachment with the cars they own, said Aristides S. Armas, president of AULFC. However, the resurgent Philippine economy has paved the way for the influx of more luxury car brands in the market.

“Executives and professionals such as doctors have begun to appreciate the benefits and security of full maintenance leasing,” Mr. Armas added. “Since the vehicle will remain registered with us, it also offers a certain level of security for high net worth individuals who wish to remain discreet.”

Owning versus leasing

Can’t decide between owning and leasing a BMW? The first step is to compare the costs.

While owning the ultimate driving machine is already a significant accomplishment, maintaining ownership is a different feat altogether. Consider a midrange BMW sedan that costs P4 million to acquire. One needs to plunk in P20,000 for registration, P80,000 annual insurance, and maintenance that’s double the cost of the usual midpriced sedan. You can do away with all these costs with full maintenance leasing,  said Mr. Armas.

A typical full maintenance lease on the popular BMW 318D luxury sedan can go for as low as P58,730 a month under the BMW Flexilease arrangement with AULFC. Just walk into a BMW ACC dealership, make a deposit of 10 percent on the vehicle cost, fill out and sign the lease documents, and drive away with the latest BMW on display once the credit is approved. The deal is cancellable at any time so units can be swapped for the latest models as they come, the AULFC Leasing head explained.

From a company perspective, executive car plans coursed through leasing also makes good business sense. The Bureau of Internal Revenue (BIR) has ruled that only one vehicle for land transport is allowed for use of an official or employee, the value of which should not exceed P2.4 million, which is way below the selling price of most high-end brands. Operating lease is an off-balance sheet  transaction and allows companies to treat the monthly rental as an expense.

“As an expense, the monthly lease also carries value-added tax (VAT), which companies use as input VAT,” Mr. Armas added.

Since AULFC started the program under an exclusive partnership with ACC in the middle of last year, more than 200 units of BMW luxury vehicles have cruised Manila’s streets under BMW’s Flexilease program.

“Business is brisk and we hope to track BMW’s projected sales growth in the Philippines,” said Mr. Armas.

Driving a BMW is known to send one’s pulse racing. But leasing is one that puts it at ease.

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