BMW has launched an automotive finance company after receiving regulatory approval for the venture.

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The firm will offer financing for retail and wholesale purchases of BMW vehicles, as well as leasing services, BMW said in a statement.

Financing options for car purchases lag far behind developed markets and the vast majority of Chinese consumers pay cash for new cars.

The finance company, BMW Automotive Finance (China) is a joint venture between BMW and BMW Brilliance Automotive which is a joint venture between BMW and Brilliance China Automotive Holdings.

BMW Brilliance Automotive assembles BMWs for sale in China.

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