Can someone please breakdown how to calculate payments on the Select Program?????

[trendy26]

Ok, so I've gone to two different dealers, and both have come back with two different ways of calculating payments on the Select Program. I am baffled how some Finance Managers have no clue how to calculate it.

Can someone please clarify it for me. If possible, use the example of the car I have priced out:

MSRP: $65,025
Selling Price: $61,000
Tax: 6%
Term: 60 Months
Residual: 37%
Interest Rate: 2.9%

Any help will be greatly appreciated.

Thanks

[JW_BMW]

Originally Posted by trendy26

Ok, so I've gone to two different dealers, and both have come back with two different ways of calculating payments on the Select Program. I am baffled how some Finance Managers have no clue how to calculate it.

Can someone please clarify it for me. If possible, use the example of the car I have priced out:

MSRP: $65,025
Selling Price: $61,000
Tax: 6%
Term: 60 Months
Residual: 37%
Interest Rate: 2.9%

Any help will be greatly appreciated.

Thanks

37% of MSRP = your balloon payment

Your example = 24,059.25

[AMPowerJ]

It seems to be nearly impossible to figure out how the payment is calculated to the penny but this should get you in the ballpark.

Balloon will be ~ $23,000

Actual amount financed if you include taxes is $64,660

Assuming nothing down your monthly payment should be around $750 a month for 59 payments. I got this by subtracting the residual amount from the total cost and then figuring out the payment based on 2.9%.

Again this is not exact but should give you a good idea. How does this compare with the quotes you have already gotten?

[AMPowerJ]

Originally Posted by JW_BMW

37% of MSRP = your balloon payment

Your example = 24,059.25

Yeah that's right. I think the balloon is computed against MSRP and not the sales price so $24K is closer to being correct. You have to subtract the gas guzzler tax $1300 from the MSRP though so it is most likely between 23-24K.

[trendy26]

They've been getting a payment of around $802 with nothing down.... One dealer was about $20 less than that....

If the amount you're paying over the 5 years jsut a simple interest loan? if so, then I agree with the $750 figure you calculated...

[AMPowerJ]

I think there are some other hidden fees. Maybe gap insurance or something. Not sure but again I have never been able to figure out the exact payment amount.

[Technic]

Originally Posted by trendy26

Ok, so I've gone to two different dealers, and both have come back with two different ways of calculating payments on the Select Program. I am baffled how some Finance Managers have no clue how to calculate it.

Can someone please clarify it for me. If possible, use the example of the car I have priced out:

MSRP: $65,025
Selling Price: $61,000
Tax: 6%
Term: 60 Months
Residual: 37%
Interest Rate: 2.9%

Any help will be greatly appreciated.

Thanks

Call BMWFS at 1-800-578-5000 and ask them to explain how exactly this Select is supposed to be calculated. Then "educate" those dealers with your numbers...

[trendy26]

Originally Posted by Technic

Call BMWFS at 1-800-578-5000 and ask them to explain how exactly this Select is supposed to be calculated. Then "educate" those dealers with your numbers...

LOL, I seriously think this is my only solution.....!

BTW Technic - I think ur one of the few people who actually know how to calculate it correctly.... Thanks for the advice before!

[xkuizit]

You can't just subtract the residual and calculate a simple loan. The loan amount is still the full $64660. So you will need to pay interest against that value each month. Here is an online calculator that will break down the amortization schedule for you. Using the following values:

principal: 64660
payments: 12
rate: 2.9
# pymnt: 12
balloon: 24059.25
payment: <leave it blank>

Click calculate and you'll see it's closer to $800 for the payment.

[xkuizit]

guess i should include the link:
http://www.bretwhissel.net/cgi-bin/amortize

[trendy26]

Originally Posted by xkuizit

You can't just subtract the residual and calculate a simple loan. The loan amount is still the full $64660. So you will need to pay interest against that value each month. Here is an online calculator that will break down the amortization schedule for you. Using the following values:

principal: 64660
payments: 12
rate: 2.9
# pymnt: 12
balloon: 24059.25
payment: <leave it blank>

Click calculate and you'll see it's closer to $800 for the payment.

Makes perfect sense now. Thanks for finding this calculator, I greatly appreciate it!