For those in the automotive industry, especially within the BMW family, understanding the nuances between contractor and employee status is crucial, particularly when it comes to vehicle programs. It’s important to clarify upfront: contractors at BMW do not receive the same employee benefits, including access to exclusive lease programs designed for BMW staff. These programs, often significantly more advantageous than standard consumer offers, are a perk for those directly employed by BMW.
BMW provides several distinct lease programs tailored to different categories of employees:
- Job Assigned/Lease Program (JA/L): This program is structured for BMW corporate employees whose roles necessitate a company vehicle. This typically includes positions like area managers and dealer auditors, as well as managerial roles.
- All Employee Lease (AEL): As the name suggests, the All Employee Lease program is available to all BMW corporate employees, offering a broad spectrum of staff the opportunity to lease BMW vehicles under favorable terms.
- Center Employee Lease (CEL): The Center Employee Lease program is specifically designed for employees of BMW dealerships. This allows dealership staff to also benefit from leasing BMW vehicles, often under conditions that reflect their integral role within the BMW network.
A significant advantage of both the JA/L and AEL programs is the inclusion of insurance within the lease agreement. Historically, these programs also featured unlimited mileage and the opportunity to upgrade to a new vehicle frequently, around every 9,000 to 11,000 miles (based on information from early 2019). The pricing under these programs is notably attractive. For example, under the JA/L program, a BMW 750 X Drive could be leased for approximately $550 per month, inclusive of insurance. Furthermore, employees in higher pay grades (PG8-12) could receive additional monthly discounts ranging from $210 to $550, making luxury models like the M550 ($500/month) and even high-performance vehicles like the X6 M ($775/month) surprisingly accessible.
The AEL program, while slightly more expensive than JA/L, still offered substantial value. Models like the M550 and X6 M were available for lease at around $650 and $999 per month respectively, with the i8 also listed at $999 per month – again, all prices including insurance.
The CEL program operates more like a conventional lease but incorporates a substantial pre-negotiated discount. Anecdotal evidence from 2016 suggests that through the CEL program, one could lease an M3 for under $600 per month with minimal upfront costs. This program is particularly beneficial for M series cars and other models that typically have less aggressive discounts and maintain higher residual values.
In contrast, the contractor discount, while available, is often comparable to or even less competitive than deals obtainable through independent car brokers. While contractor discounts might have been more appealing several years ago, the rise of numerous brokers offering highly competitive deals has diminished their attractiveness. In fact, the contractor discount is often only marginally better than standard supplier discounts, making it less compelling in today’s market. For those eligible for contractor discounts, exploring options with a broker to potentially secure discounts in the range of 11-13% off the vehicle price is advisable, as this often surpasses the benefits of the contractor program.
