Help with BMW Select / Financing Offer

zsx_m · 09-19-2012, 08:00 PM

Hey All, I'm hoping someone can help me determine whether the deal I am being offered on the BMW Select program makes sense or not. I am not one to really haggle prices, I just wanted to be sure everything here looks accurate and not outrageous. I showed this information to my accountant briefly and he was having a hard time understanding how the sales tax was being calculated.

So, here's my offer with BMW Select and order as it stands (not yet placed):

$10,000 Down Payment

$766/MO for 60 Months

$27,961 Balloon Payment at end of 60 month term

positiveions · 09-19-2012, 08:34 PM

Don't! I was just explaining to one of the members about the select financing. It is an awful deal.
If you really have 10k, go with the lease, and put some of that down into security deposits. 7 is the maximum allowable deposits. Then pay for the drive off and tax. Your payment should be around 750 (ball figure) with 12k miles. Those security deposits are yours to keep at the end of the lease.

PhillyNate · 09-19-2012, 08:37 PM

The deals just suck right now. If that's what you have to do to get into THIS car then it's fine. Not great but OK. I bought in 2011 when they were throwing in the kitchen sink but this economy stinks. 2 things I don't care for right off the bat, the term and the balloon amount. The payment is acceptable for a $71k car but if your gonna have this car 5 years and still owe $28k, well that's just not ideal. Again, I understand this to be the best one can probably do right now. It's unfortunate. As long as your comfortable.

6spdg37s · 09-19-2012, 08:40 PM

I think the select is a ripoff personally.. your better off leasing for 3 years then financing a buyout on the lease if you want it or leasing a new one

zsx_m · 09-19-2012, 09:02 PM

I actually think the price sucks, especially considering some of the deals I'm seeing some of the other members on the forum getting. I'm just not sure how to negotiate it, as the dealer makes it seem as if there's no room, they're making nothing, etc.

I know the select program is hit or miss for a lot of people, but I usually keep my cars for a very long time, and as a small business owner I like to have the smallest payments possible, which is why I'm considering the BMW Select program.

M3 Esq · 09-20-2012, 05:59 AM

It's hard to comment without knowing the final selling price and the interest rate. BMWFS is offering 3.79 right now. Is that what you are getting?

I agree I am not crazy about owing $27K after five years of payments but the monthly payment is low. Since you are a small business owner wouldn't it make more sense to lease? Can't you deduct some of the expenses through the business?

gatorfast · 09-20-2012, 08:42 AM

Seems like a terrible deal. You would be paying about $84k for that car.

No offense, but you seem a little naive if you need to ask your accountant how car financing works and dont want to haggle for a better price (likely saving thousands of $).

6spdg37s · 09-20-2012, 08:58 AM

PM sent

spdy330 · 09-20-2012, 09:12 AM

I did the BMW select as it made sense to me. My payment is $258.00 with a 26k buyout at the end. My interest rate is 1.9% as well. I personally could not resist this deal. Just note I put down a lot more than 10k to get to my price point.

I think 700+ for any car is high but if you can afford it and feel comfortable do what you think is right.

NoM3ForMe · 09-20-2012, 11:08 AM

DO NOT use BMW Select. As was stated earlier in the thread, go with a lease instead and use MSD's to buy-down your money factor. If at the end of the lease, you still want the car, then just finance the balance. The economy stinks right now in general so, it seems to me that banks are getting more-and-more aggressive with financing rates to offset their profit deficits.

zsx_m · 09-20-2012, 02:13 PM

Quote:

Originally Posted by M3 Esq.

It's hard to comment without knowing the final selling price and the interest rate. BMWFS is offering 3.79 right now. Is that what you are getting?

I agree I am not crazy about owing $27K after five years of payments but the monthly payment is low. Since you are a small business owner wouldn't it make more sense to lease? Can't you deduct some of the expenses through the business?

The offer is at 3.79%

I can't lease the vehicle through my business for a few reasons that would bore everyone.

Quote:

Originally Posted by gatorfast

Seems like a terrible deal. You would be paying about $84k for that car.

No offense, but you seem a little naive if you need to ask your accountant how car financing works and dont want to haggle for a better price (likely saving thousands of $).

I realize that I seem naive, although I understand how car financing works I was still trying to get my head around the BMW Select program as it was just introduced to me.

I should have been more clear with my initial post, I am not planning to pay MSRP on the car, I'm just making sure the numbers are lining up on the BMW Select program, beyond the overall purchase price.

gatorfast · 09-20-2012, 02:58 PM

Quote:

Originally Posted by zsx_m

The offer is at 3.79%
I realize that I seem naive, although I understand how car financing works I was still trying to get my head around the BMW Select program as it was just introduced to me.

I should have been more clear with my initial post, I am not planning to pay MSRP on the car, I'm just making sure the numbers are lining up on the BMW Select program, beyond the overall purchase price.

Got it. Well in that case you have the answer...dont do select!

racsos · 10-08-2012, 11:16 PM

if you were to lease and buyout at the end of the lease dont you pay taxes twice? First when you lease it and then when you buy it again? I am trying to understand it myself but i am being told that in IL it is like this and the bmw select does not sound so bad. that way you dont have to pay taxes twice.

someone please correct me if i am wrong please.

i am in IL and want to take over a leased car that is in new jersey and i really dont want to pay taxes twice.

heartcolorgrey · 11-19-2012, 08:48 PM

Quote:

Originally Posted by racsos

if you were to lease and buyout at the end of the lease dont you pay taxes twice? First when you lease it and then when you buy it again? I am trying to understand it myself but i am being told that in IL it is like this and the bmw select does not sound so bad. that way you dont have to pay taxes twice.

someone please correct me if i am wrong please.

i am in IL and want to take over a leased car that is in new jersey and i really dont want to pay taxes twice.

This is correct,
I just started negotiating a deal for a '13 m3 coupe.

I was initially going to do the lease, but then found out you pay tax at the end of the lease on the buyout.

With select, yeah, you have a 25k balloon, but it was explained that with select you own title to the car, as with financing.

Lease you cant modify your car in anyway, Select you can.

So many $$ opinions though, its hard to choose between pros/cons, even for myself.

6spdg37s · 11-19-2012, 08:58 PM

Quote:

Originally Posted by heartcolorgrey

This is correct,
I just started negotiating a deal for a '13 m3 coupe.

I was initially going to do the lease, but then found out you pay tax at the end of the lease on the buyout.

With select, yeah, you have a 25k balloon, but it was explained that with select you own title to the car, as with financing.

Lease you cant modify your car in anyway, Select you can.

So many $$ opinions though, its hard to choose between pros/cons, even for myself.

you can modify the car if you want and then return it to stock... technically your not supposed to do that but i have seen many people do i t

09-19-2012, 08:00 PM	#1
zsx_m Rasp Addict 97 Rep 281 Posts Drives: Moonstone M4 Join Date: Jun 2009 Location: Connecticut iTrader: (2)	Help with BMW Select / Financing Offer Hey All, I'm hoping someone can help me determine whether the deal I am being offered on the BMW Select program makes sense or not. I am not one to really haggle prices, I just wanted to be sure everything here looks accurate and not outrageous. I showed this information to my accountant briefly and he was having a hard time understanding how the sales tax was being calculated. So, here's my offer with BMW Select and order as it stands (not yet placed): $10,000 Down Payment $766/MO for 60 Months $27,961 Balloon Payment at end of 60 month term
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09-19-2012, 08:34 PM	#2
positiveions Lieutenant General 961 Rep 11,722 Posts Drives: 19 Tacoma, 16 Golf wagon Join Date: Sep 2007 Location: Upland, CA iTrader: (2) Garage List 2019 Toyota Tacoma [0.00] 2016 VW Golf Sports ... [0.00] 1998 BMW M3 [0.00] 1990 BMW 325is [0.00]	Don't! I was just explaining to one of the members about the select financing. It is an awful deal. If you really have 10k, go with the lease, and put some of that down into security deposits. 7 is the maximum allowable deposits. Then pay for the drive off and tax. Your payment should be around 750 (ball figure) with 12k miles. Those security deposits are yours to keep at the end of the lease.
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09-19-2012, 08:37 PM	#3
PhillyNate ENTHUSIAST 135 Rep 2,097 Posts Drives: 2010 Porsche Cayman Join Date: Apr 2011 Location: Philadelphia iTrader: (0) Garage List 2010 Porsche Cayman [0.00]	The deals just suck right now. If that's what you have to do to get into THIS car then it's fine. Not great but OK. I bought in 2011 when they were throwing in the kitchen sink but this economy stinks. 2 things I don't care for right off the bat, the term and the balloon amount. The payment is acceptable for a $71k car but if your gonna have this car 5 years and still owe $28k, well that's just not ideal. Again, I understand this to be the best one can probably do right now. It's unfortunate. As long as your comfortable. __________________ "what I'm driving here...is an ending." Jeremy Clarkson 2010 Carrara White Porsche Cayman 6mt 2014 Whiteout Toyota GT-86 6mt(Sold 05/23/15) 2011 Alpine White BMW M3 6mt ZCP Coupe(forced retirement 06/06/14) 2008 Alpine White BMW 328i 6mt Coupe(retired 06/21/11)
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09-19-2012, 08:40 PM	#4
6spdg37s Captain 70 Rep 753 Posts Drives: none Join Date: Aug 2012 Location: dirty jerz iTrader: (3)	I think the select is a ripoff personally.. your better off leasing for 3 years then financing a buyout on the lease if you want it or leasing a new one
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09-19-2012, 09:02 PM	#5
zsx_m Rasp Addict 97 Rep 281 Posts Drives: Moonstone M4 Join Date: Jun 2009 Location: Connecticut iTrader: (2)	I actually think the price sucks, especially considering some of the deals I'm seeing some of the other members on the forum getting. I'm just not sure how to negotiate it, as the dealer makes it seem as if there's no room, they're making nothing, etc. I know the select program is hit or miss for a lot of people, but I usually keep my cars for a very long time, and as a small business owner I like to have the smallest payments possible, which is why I'm considering the BMW Select program.
	Appreciate 0 Quote

09-20-2012, 05:59 AM	#6
M3 Esq Automobilist 395 Rep 2,632 Posts Drives: E70 X5, 911 GT3 Join Date: Aug 2007 Location: CT iTrader: (12)	It's hard to comment without knowing the final selling price and the interest rate. BMWFS is offering 3.79 right now. Is that what you are getting? I agree I am not crazy about owing $27K after five years of payments but the monthly payment is low. Since you are a small business owner wouldn't it make more sense to lease? Can't you deduct some of the expenses through the business?
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09-20-2012, 08:42 AM	#7
gatorfast Major General 4992 Rep 6,860 Posts Drives: 718 Cayman Join Date: Jan 2008 Location: SoFla iTrader: (4)	Seems like a terrible deal. You would be paying about $84k for that car. No offense, but you seem a little naive if you need to ask your accountant how car financing works and dont want to haggle for a better price (likely saving thousands of $).
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09-20-2012, 08:58 AM	#8
6spdg37s Captain 70 Rep 753 Posts Drives: none Join Date: Aug 2012 Location: dirty jerz iTrader: (3)	PM sent
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09-20-2012, 09:12 AM	#9
spdy330 Major General 530 Rep 6,149 Posts Drives: 05 Tundra, 15 FIT, 17 CRV Join Date: Dec 2009 Location: Chino Hills, CA iTrader: (163)	I did the BMW select as it made sense to me. My payment is $258.00 with a 26k buyout at the end. My interest rate is 1.9% as well. I personally could not resist this deal. Just note I put down a lot more than 10k to get to my price point. I think 700+ for any car is high but if you can afford it and feel comfortable do what you think is right. __________________ If you will be purchasing ANY AT&T services online or in store could you mention that you were referred by me? My Employee Referral ID is eo4489. This would be a great help and it costs you nothing, thank you!
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09-20-2012, 11:08 AM	#10
NoM3ForMe Major 37 Rep 1,440 Posts Drives: '10 Legacy, '07 Kia Sorrento Join Date: Aug 2008 Location: ...location, location? iTrader: (0)	DO NOT use BMW Select. As was stated earlier in the thread, go with a lease instead and use MSD's to buy-down your money factor. If at the end of the lease, you still want the car, then just finance the balance. The economy stinks right now in general so, it seems to me that banks are getting more-and-more aggressive with financing rates to offset their profit deficits. __________________ try { Life.Live(); } catch (Experience exp) { Console.WriteLine(exp.ToString(); } finally { Brian.Dispose(); } "There are only 10 kinds of people in the world; those that read binary, and those that don't."
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10-08-2012, 11:16 PM	#13
racsos Second Lieutenant 72 Rep 230 Posts Drives: bmw m3 Join Date: Feb 2012 Location: chicago, il iTrader: (0)	if you were to lease and buyout at the end of the lease dont you pay taxes twice? First when you lease it and then when you buy it again? I am trying to understand it myself but i am being told that in IL it is like this and the bmw select does not sound so bad. that way you dont have to pay taxes twice. someone please correct me if i am wrong please. i am in IL and want to take over a leased car that is in new jersey and i really dont want to pay taxes twice.
	Appreciate 0 Quote