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BMW 3-Series (E90 E92) Forum
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BMW Select
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| 07-31-2013, 10:37 AM | #1 |
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BMW Select
Is anybody doing this? I'm curious on how it actually works and I want to see if people are actually signing up for it. It looks very good on paper but are there any disadvantages when compared to straight lease?
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| 07-31-2013, 11:58 AM | #2 | |
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| 07-31-2013, 12:05 PM | #3 | |
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| 07-31-2013, 12:18 PM | #4 |
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I think of it as an extended down payment plan. You pay X amount a month for 5 years, and at the end of the payment terms, you still owe BMW the balance of the car's purchase price.
As an example, I was looking at buying an X1. At $34,231, I'd pay $400/month for 5 years. I would still owe BMW $14,500 at the end of all my payments. I could refinance that amount, or sell it and pay off the balance. I think of it more as a way to get someone who can't really afford a BMW, but doesn't want to lease it, to buy one. |
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| 07-31-2013, 01:03 PM | #5 | |
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1. You finance a certain amount with a fixed monthly and a fixed term and the remaining balance would balloon out. 2. Unlike a lease you pay the taxes upfront, title is under your name and no mileage limitations. 3. The drawback...a gamble on equity, meaning you have might have to eat the negative equity on the car if you decide to trade it in or sell it back to BMW. The only thing that I'm confused about is the balloon, does the predetermine amount include interest and if you end up refinancing that residual, do you have to pay interest on that again? If the drawback is just that then I wouldn't have problem with since I lose money anyways when I lease...I'm on my third lease for cryin out loud. I learned to live car payments since I like a new car every 2-3 years anyways.
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Last edited by khaye1; 07-31-2013 at 01:26 PM.. |
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| 08-01-2013, 10:28 AM | #6 |
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A lot of states don't allow balloon payments.
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| 08-01-2013, 10:38 AM | #7 |
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Question is, are the payments higher or lower than lease?
Looks to be a mixture of a lease and buy.
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| 08-01-2013, 04:26 PM | #8 |
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With BMW select, you own the car and have no mileage restrictions. The payments are lower than traditional financing because of the balloon payment at the end of the loan term. Whether or not it is a better deal than a lease comes down to the numbers in both deals, interest rate, money factor, residual value etc. It can go either way.
Thinking of it as a midpoint between owning and leasing is probably pretty accurate. |
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| 08-01-2013, 05:23 PM | #9 |
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Wow interesting. When did this start?
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