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Ok here's the deal.
I have been researching this option as I may most likely be purchasing my E92using Select.
I was offered:
2009 335i Coupe 6MT Alpine White/Coral Red
M-Sport Package w/ 19" Type 225 Wheels
Premium Package
Navigation
Satellite
Logic 7 Stereo
Comfort Access
Heated Seats
USB/iPod
I havnt negotiated the price yet, but from a Dealer offer price of $51000
With the Select Plan I would be getting 0.9%, $2500 down which covers the tax, title and tags and like $300 additional. Payments were $570/month for 60 months. At the end of 60 months I would owe $17K.
Now, before I did the deal, I would also take advantage of the April Owner's Loyalty deal for $1000 rebate. (approx. another $20 off monthly payment) so that comes to like $550/month. If i get the car down to $49700 i can expect another $45 off so thats $510/month.
Select Plan's are basically the same as a Deferred Payment Balloon Mortgage on a house. It got a lot of people into trouble, because you cannot give the car back like a lease if your economic situation changes. The way I am going to try to make this work for me is that I will take the savings off of the standard Lease which for me (same car) is around $690/month at BMW's current offers to owner loyalty customers. Savings of Select over this plan is $150/month. I dont want to hold onto the cart for much longer than the warranty period, so instead I will take $150/month and put it into a high-yield savings and when i sell the car in 3-4 years....most likely i wont be able to get what i still owe on the car (3 years 540*36 = $19440 - $47200) $27760. These numbers are close to accurate but not exact. Basically even i still owe $32000 and can only sell the car for $26000, well with the $150/month i put into a savings account for 36 is now $5400 plus whatever interest. That savings will act as a buffer for me taking an upside-down equity hit and i kept my monthly payments low. YES i had to take 150/month out of available cash flow BUT it was still mine to do with what i want AND i earned interest on it and not BMW Financial Services. PLUS i have more options. I can keep the car, sell it whenever i want easier than a lease buyout, etc.
Hope this helps!
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