Quote:
Originally Posted by shoptb
Can you explain the BMW Select program a little more? Isn't there a larger balloon payment at the end before you have positive equity, aka, the payoff in the middle is higher so you might be negative before the balloon payment?
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I believe you negotiate your payment, and the balloon is whatever is left. So you can pay enough so ensure positive equity if you want. Or you can bury yourself and refinance a mountain of negative equity at the end. I was at a dealership once when some dude tried to trade in a car with a balloon payment due on it, was pretty hilarious the fit he threw when they explained his situation to him.
The big downside compared to a lease, is that you pay interest on the entire car vs only on the depreciation.