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      04-17-2009, 09:46 AM   #1
trendy26
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Can someone please breakdown how to calculate payments on the Select Program?????

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
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      04-17-2009, 12:46 PM   #2
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Quote:
Originally Posted by trendy26 View Post
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
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      04-17-2009, 12:54 PM   #3
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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?
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      04-17-2009, 12:57 PM   #4
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Quote:
Originally Posted by JW_BMW View Post
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.
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      04-17-2009, 01:08 PM   #5
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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...
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      04-17-2009, 01:35 PM   #6
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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.
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      04-17-2009, 01:52 PM   #7
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Quote:
Originally Posted by trendy26 View Post
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...
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      04-17-2009, 02:21 PM   #8
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Originally Posted by Technic View Post
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!
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      04-18-2009, 11:32 AM   #9
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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.
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      04-18-2009, 11:36 AM   #10
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guess i should include the link:
http://www.bretwhissel.net/cgi-bin/amortize
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      04-18-2009, 11:58 AM   #11
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Quote:
Originally Posted by xkuizit View Post
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!
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