BMW Financial’s lease penetration normalizes post-EV tax credit

BMW Financial Services’ lease penetration has normalized following the elimination of the federal electric vehicle tax credit, says Ole Jensen, chief executive and president of the captive in North America.

“We [have] slightly higher penetration when it comes to [battery EVs] in terms of leasing, because a lot of people [are] maybe uncertain about if they like the car, if they like the technology. They want to have the option of returning the car,” he says, adding that battery life concerns remain even as 3-year-old EVs come back to the manufacturer with 95% of battery life remaining.

The captive’s finance penetration sits at about 50% lease and 50% loan, Jensen says during a special episode of “The Roadmap Podcast.”

“I would predict that we see a further normalization ... because you will always have people who want to lease [and] you always have people who want to own the car,” he says.

Globally, the share of new BMW Group vehicles leased or financed through its financial services segment rose to 51.6% in the first quarter compared with 43% a year prior, according to the OEM’s quarterly statement published May 6.

Leasing penetration also varies regionally, Jensen says.

“We see very high lease shares on the East and on the West Coast, naturally,” he says. “Since the West Coast is so dominant in the BEV market still, with a higher leasing, that might be also driving currently our higher leasing penetration on BEV.”

Despite lease volume normalizing, BMW Financial Services, along with parent company BMW Group, are investing in EVs. In fact, the manufacturer recently completed an expansion of its Plant Spartanburg in Greer, S.C., where it will assemble the next-generation BMW X5 line, which includes fully electric and hydrogen-powered versions.

BMW Financial Services was the 12th-largest auto lender by outstandings at yearend 2025 with a portfolio of $43.1 billion, according to the latest Big Wheels ranking data.

In this episode of “The Roadmap,” Auto Finance News editor Amanda Harris and Jensen discuss the electric vehicle landscape along with affordability, ancillary product demand, floorplan financing trends and technology investments.