BMW Select

Bimmerdriver17 · 04-07-2009, 07:46 PM

Good evening;

Wondering if the experts can help me out here.

I am getting a 2009 335i coupe 6mt w/:

Space Gray with Coral Red leather
cold weather package
premium package
sport package
aluminium trim
park distance control (rear)
navigation
HD radio
iPod/USB Adaptor
smart phone intregration

MSRP of $51,675 for $48000 ($200 under invoice).

Is this a good deal or is the dealer still holding back here. I will be taking advantage of the low rates of financing @ 0.9% with the BMW Select program. The numbers i been quoted are as follows:

$5k down
$563 x 48 mos
$21,730 residual balloon payment

First off, is $48 + TTL a good price for the above car. And 2nd, is there something that I am missing of the BMW select program or is it a total rip off??

Please advise as I have never used this program b4, I have only leased and financed cars.

Thanks in advance.

ken

darkcloud · 04-07-2009, 07:51 PM

I have no real info for you, sorry.

Although I've been interested as to how BMW Select Financing actually works. Very curious.

BMW F22 · 04-07-2009, 07:53 PM

That's kind of weird. If you add up all the payments + down payment they come out to $53,754. If you purchased the car at $48k+ttl it should come out to about $52,xxx. If you have to pay tax on that balloon payment then you're out even more money. My $.02.

TMNT · 04-07-2009, 08:22 PM

Do you plan to have $21,730 laying around after 48 months to pay off the car? Because if not, you'll have to refinance the remainder of the loan ($21,730).....would you be able to lock in the .09% financing then as well? That's the big question...I'd ask the dealer how that works at the end.

-Good luck

Bimmerdriver17 · 04-07-2009, 08:50 PM

Quote:

Originally Posted by BMW E90

That's kind of weird. If you add up all the payments + down payment they come out to $53,754. If you purchased the car at $48k+ttl it should come out to about $52,xxx. If you have to pay tax on that balloon payment then you're out even more money. My $.02.

I believe the remainder amt that is unaccounted for is the .9% finance charge over the 5 years. Just a guess...

Bimmerdriver17 · 04-07-2009, 08:53 PM

Quote:

Originally Posted by TMNT

Do you plan to have $21,730 laying around after 48 months to pay off the car? Because if not, you'll have to refinance the remainder of the loan ($21,730).....would you be able to lock in the .09% financing then as well? That's the big question...I'd ask the dealer how that works at the end.

-Good luck

I doubt that I would be able to lock in the .9% finance rate for the ballon payment, though I plan to either refi (if I want to keep the car), or make extra monthly payments towards the balloon. (Permitting I can do that, make prepayments to the balloon). Lastly I can always sell the car at that time.

4 year old E92 should at least bring in 20k, no?

Thx for your input though.

Hyper psi-atic · 04-07-2009, 09:19 PM

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!

Hyper psi-atic · 04-07-2009, 09:23 PM

Ohh also BTW...I was told i could lock in the Balloon Payment at the end for 0.9% Financing. I would never take the car to 60 months tho. Prolly end up better if you sell before hitting 60K miles (assuming 10Kmiles/year) residuals go down considerably when you hit 60K and 80K. I think based alot on Service Costs etc.

04-07-2009, 07:46 PM	#1
Bimmerdriver17 Major 36 Rep 1,361 Posts Drives: F10 535i xDrive Join Date: Mar 2009 Location: NY iTrader: (4)	BMW Select - Good deal?? Good evening; Wondering if the experts can help me out here. I am getting a 2009 335i coupe 6mt w/: Space Gray with Coral Red leather cold weather package premium package sport package aluminium trim park distance control (rear) navigation HD radio iPod/USB Adaptor smart phone intregration MSRP of $51,675 for $48000 ($200 under invoice). Is this a good deal or is the dealer still holding back here. I will be taking advantage of the low rates of financing @ 0.9% with the BMW Select program. The numbers i been quoted are as follows: $5k down $563 x 48 mos $21,730 residual balloon payment First off, is $48 + TTL a good price for the above car. And 2nd, is there something that I am missing of the BMW select program or is it a total rip off?? Please advise as I have never used this program b4, I have only leased and financed cars. Thanks in advance. ken
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04-07-2009, 07:51 PM	#2
darkcloud Colonel 335 Rep 2,385 Posts Drives: 09 VW JSW Join Date: Aug 2006 Location: cleveland, oh iTrader: (2) Garage List 2006 325i [0.00]	I have no real info for you, sorry. Although I've been interested as to how BMW Select Financing actually works. Very curious. __________________ retired 06 E90 325i New: 09 VW Platinum Grey Jetta Sportwagen 2.0T SEL w/DSG, panoramic sunroof and Ipod adapter
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04-07-2009, 07:53 PM	#3
BMW F22 Major General 3566 Rep 9,788 Posts Drives: ///M235i Join Date: Nov 2005 Location: Bay Area iTrader: (8)	That's kind of weird. If you add up all the payments + down payment they come out to $53,754. If you purchased the car at $48k+ttl it should come out to about $52,xxx. If you have to pay tax on that balloon payment then you're out even more money. My $.02.
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04-07-2009, 08:22 PM	#4
TMNT Captain 176 Rep 872 Posts Drives: 330ci ZHP Join Date: Jan 2007 Location: VA iTrader: (0)	Do you plan to have $21,730 laying around after 48 months to pay off the car? Because if not, you'll have to refinance the remainder of the loan ($21,730).....would you be able to lock in the .09% financing then as well? That's the big question...I'd ask the dealer how that works at the end. -Good luck
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04-07-2009, 09:19 PM	#7
Hyper psi-atic Lieutenant 30 Rep 428 Posts Drives: E92 335i M-Sport, 6MT, AW/CR Join Date: Apr 2009 Location: NoVA iTrader: (3)	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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04-07-2009, 09:23 PM	#8
Hyper psi-atic Lieutenant 30 Rep 428 Posts Drives: E92 335i M-Sport, 6MT, AW/CR Join Date: Apr 2009 Location: NoVA iTrader: (3)	Ohh also BTW...I was told i could lock in the Balloon Payment at the end for 0.9% Financing. I would never take the car to 60 months tho. Prolly end up better if you sell before hitting 60K miles (assuming 10Kmiles/year) residuals go down considerably when you hit 60K and 80K. I think based alot on Service Costs etc.
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