Advantages of Owner\'s Choice?

[OldenburgerM3]

How high is the balloon? Can somebody throw a number or % out there for me please? I've run the BMW calculator several times (i'm in TX) to become familiar with the numbers but I still don't have a clue what kind of balloon I'd have to finance at the end...

[esquire]

Originally Posted by Technic

Stop the repeated misinformation, please.

You do not pay interest in the balloon... that's the whole point of the Select Program and therefore "lower" payments than regular financing.

My M3 is financed thru the Select Program and the total amount of interest to be paid after 60 months is a whopping $1200 at .9% interest rate. If the balloon payment were also financed I would be paying more than $5000 total in interest and my payment would be more than $60 higher, which it is not obviously.

Look at your contract and try to understand the numbers printed. Several members have posted before that dealers also added the balloon to the interest rate calculation and that's not correct... not to say a blatant sucker punch.

Unfortunately for all of us who are on select financing (including myself), this is just not true. The fact of the matter is that BMW SELECT financing (Not owner's choice) does in fact charge interest on the balloon, and adds that interest into your payment on a monthly basis. I've confirmed this information with my CA and BMW FS several times over. I've also double checked the amortization math myself - the balloon DOES accrue interest.

There's no such thing as a free lunch.

Originally Posted by tukluc

I think you got lucky....call BMWFS and they will tell you that for SELECT financing (not the same as Owners Financing as the OP is talking about), you DO pay interest on the balloon.

BMW is not going to give you a a free down payment which is essentially what this would be if they didn't charge you interest on it.

^exactly.

[Technic]

Stand corrected.

[DCC]

Originally Posted by OldenburgerM3

How high is the balloon? Can somebody throw a number or % out there for me please? I've run the BMW calculator several times (i'm in TX) to become familiar with the numbers but I still don't have a clue what kind of balloon I'd have to finance at the end...

The balloon is the same residual % based on a lease residual schedule.

[OldenburgerM3]

Thanks. More saving required... sigh.

[Fuerza]

Can anyone confirm if owners choice is only offered at 36 months with 60% residual? Today I tried to go and build my dream M3 and work numbers at my local BMW dealership. I was being charged MSRP 68.9k + fees with an interest rate of 5.74% My payment was 1180 for 36 months plus 42k balloon. I asked them if they could do better, lower payment longer term and I was told no flat out. Is this really as good as it gets?

[Fuerza]

Originally Posted by Fuerza

Can anyone confirm if owners choice is only offered at 36 months with 60% residual? Today I tried to go and build my dream M3 and work numbers at my local BMW dealership. I was being charged MSRP 68.9k + fees with an interest rate of 5.74% My payment was 1180 for 36 months plus 42k balloon. I asked them if they could do better, lower payment longer term and I was told no flat out. Is this really as good as it gets?

Anyone??

[008]

I'm not sure about the residuals and term but I think the residuals matched the equivalent lease offerings and I was only interested in 36 months. The rate for OC was 4.25% a few months ago, not sure what it is now. It is more than the lease rates though. Where you're really getting screwed is on the price. Most dealers will do near invoice on ordered cars. You need to talk to another dealer.

[abugiacomo]

Originally Posted by michaelw9

Sorry, but it's not misinformation. I'm doing the Select program for my M3 through BMW financial services myself.

Here's my entire amortization schedule. Perhaps you have another program or you just got lucky.

2011 M3 Coupe
FS Account #
Many BMW Financial Services customer request their Amortization schedule to assist them in their financial management and planning. By clicking below, you can view both your Actual and Projected Amortization schedule. We hope you find this information both valuable and convenient.

View Actual Amortization
View Projected Amortization Projected Amortization
Payment Number Payment Date Payment Amount Interest Portion Principal Portion Principal Balance
1 12/9/2010 $838.81 $169.45 $669.36 $71,653.22
2 1/9/2011 $838.81 $115.61 $723.20 $70,930.02
3 2/9/2011 $838.81 $114.44 $724.37 $70,205.66
4 3/9/2011 $838.81 $102.31 $736.50 $69,469.15
5 4/9/2011 $838.81 $112.09 $726.72 $68,742.43
6 5/9/2011 $838.81 $107.33 $731.48 $68,010.96
7 6/9/2011 $838.81 $109.73 $729.08 $67,281.88
8 7/9/2011 $838.81 $105.05 $733.76 $66,548.13
9 8/9/2011 $838.81 $107.37 $731.44 $65,816.69
10 9/9/2011 $838.81 $106.19 $732.62 $65,084.07
11 10/9/2011 $838.81 $101.62 $737.19 $64,346.89
12 11/9/2011 $838.81 $103.82 $734.99 $63,611.90
13 12/9/2011 $838.81 $99.32 $739.49 $62,872.41
14 1/9/2012 $838.81 $101.44 $737.37 $62,135.05
15 2/9/2012 $838.81 $100.25 $738.56 $61,396.49
16 3/9/2012 $838.81 $92.67 $746.14 $60,650.35
17 4/9/2012 $838.81 $97.86 $740.95 $59,909.40
18 5/9/2012 $838.81 $93.54 $745.27 $59,164.13
19 6/9/2012 $838.81 $95.46 $743.35 $58,420.78
20 7/9/2012 $838.81 $91.22 $747.59 $57,673.19
21 8/9/2012 $838.81 $93.05 $745.76 $56,927.43
22 9/9/2012 $838.81 $91.85 $746.96 $56,180.47
23 10/9/2012 $838.81 $87.72 $751.09 $55,429.38
24 11/9/2012 $838.81 $89.43 $749.38 $54,680.01
25 12/9/2012 $838.81 $85.38 $753.43 $53,926.58
26 1/9/2013 $838.81 $87.01 $751.80 $53,174.78
27 2/9/2013 $838.81 $85.80 $753.01 $52,421.76
28 3/9/2013 $838.81 $76.39 $762.42 $51,659.34
29 4/9/2013 $838.81 $83.35 $755.46 $50,903.88
30 5/9/2013 $838.81 $79.48 $759.33 $50,144.56
31 6/9/2013 $838.81 $80.91 $757.90 $49,386.65
32 7/9/2013 $838.81 $77.11 $761.70 $48,624.96
33 8/9/2013 $838.81 $78.46 $760.35 $47,864.60
34 9/9/2013 $838.81 $77.23 $761.58 $47,103.02
35 10/9/2013 $838.81 $73.55 $765.26 $46,337.76
36 11/9/2013 $838.81 $74.77 $764.04 $45,573.71
37 12/9/2013 $838.81 $71.16 $767.65 $44,806.06
38 1/9/2014 $838.81 $72.29 $766.52 $44,039.55
39 2/9/2014 $838.81 $71.06 $767.75 $43,271.79
40 3/9/2014 $838.81 $63.06 $775.75 $42,496.04
41 4/9/2014 $838.81 $68.57 $770.24 $41,725.80
42 5/9/2014 $838.81 $65.15 $773.66 $40,952.14
43 6/9/2014 $838.81 $66.08 $772.73 $40,179.40
44 7/9/2014 $838.81 $62.74 $776.07 $39,403.33
45 8/9/2014 $838.81 $63.58 $775.23 $38,628.10
46 9/9/2014 $838.81 $62.33 $776.48 $37,851.61
47 10/9/2014 $838.81 $59.10 $779.71 $37,071.90
48 11/9/2014 $838.81 $59.82 $778.99 $36,292.91
49 12/9/2014 $838.81 $56.67 $782.14 $35,510.77
50 1/9/2015 $838.81 $57.30 $781.51 $34,729.25
51 2/9/2015 $838.81 $56.04 $782.77 $33,946.48
52 3/9/2015 $838.81 $49.47 $789.34 $33,157.13
53 4/9/2015 $838.81 $53.50 $785.31 $32,371.82
54 5/9/2015 $838.81 $50.55 $788.26 $31,583.56
55 6/9/2015 $838.81 $50.96 $787.85 $30,795.71
56 7/9/2015 $838.81 $48.08 $790.73 $30,004.98
57 8/9/2015 $838.81 $48.41 $790.40 $29,214.59
58 9/9/2015 $838.81 $47.14 $791.67 $28,422.91
59 10/9/2015 $838.81 $44.38 $794.43 $27,628.48
60 11/9/2015 $838.81 $44.58 $794.23 $26,834.25
Totals: - $50,328.60 $4,840.27 $45,488.33 -


You can see that on each month, the interest is calculated on the remaining balance -- which includes the balloon.

so your balloon = $26,834.25?

mind if i ask the msrp and final sale price on your car?