# Owners Choice Question.



## CD-55 (Dec 19, 2001)

Here is my Data:

2002 330i
SP, Moonroof, Heated Seats, PDC, Xenon, & NAV
MSRP: $40,895
$0 down, $0 trade in, 15,000 miles per year, 36-Months.

I was surprised to see that Owners Choice was priced so much less than leasing. What’s the catch? If you want to return the car at the end of the Owners Choice term, do you have to buy another BMW?

Lease: $777/month
Owners Choice: $698/month


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## Jon Shafer (Dec 15, 2001)

You know, out here in CA, we don't have these programs,
so I'm not a total expert with OC.

Did you see this in the New Section?

http://www.bimmerfest.com/news-story.php?news_id=15

The way that "balloon payment retail finance contracts" 
(e.g. "Owner's Choice") normally work, it's basically
the same thing as a lease. There is a "fixed-value amount"
(equivalent to residual value in leasing terms) that, at maturity,
the buyer can pay off to complete the acquisition. That
balance can then be refinanced at that time, or, the
buyer can simply "walk away"... This is different from the
new "BMW Select" program.

These payment programs were originally invented
to circumvent the problem of leasing in Personal
Property Tax States.

When I used to run Chrysler/Plymouth/Jeep/Eagle
store we had the Chrysler Financial "Gold Key Plus"
(balloon note) contracts, which were basically the 
same thing... They used them as a program
to get buyers with marginal credit done (with high interest).
Since the car would be coming back, risk was assumed
to be minimized.

What you will find with OC is that the payment looks great;
when you see the actual contract, you will be alarmed,
perhaps shocked at the very high amount in the "finance charges" box. This is part and parcel of the math here.



Anyway, I really have to run 
now. I am swamped.

Good luck and best regards,
--Jon


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## Jetfire (Jun 20, 2002)

When I was working w/ a sales rep at Sterling for my order, I was informed that Owner's Choice was either changing or disappearing entirely in VA. You may want to check with your salesman and ask for the terms.


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