# Buying with BMW Select



## sid369 (Dec 22, 2011)

Hi guys,

Went to to local dealer to find out about lease but he gave me these options, 


Base without Nav and some other stuff, but had bluetooth, heated seats front and back for 

MSRP $42,295
Price $41,795
Term 48 mo
Rate 4.5
Cash down - $2500
Taxes and fees - $1800

Payment - $554

Balloon $20301


2nd option 

loaded, nav, heated seats front back, fold down blue tooth, xenon, heads up display etc

MSRP $47,295
Price $46,295
Term 60 mo
Rate 4.5
Cash down - $2500
Taxes and fees - $1960

Payment - $568

Balloon $19,390


Does this look right, I am trying to push him down to under $500 a month, but say the max he will be able to do is get it down by $10 or $20 a month.

What do you guys think? Good deal


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## SARAFIL (Feb 19, 2003)

Negotiating on payment is a bad idea. Those selling prices aren't much of a deal with either "option".


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## JustinTJ (Jun 1, 2011)

SARAFIL said:


> Negotiating on payment is a bad idea. Those selling prices aren't much of a deal with either "option".


Yep, see your post in F30 for my response.


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## scottyt24 (Nov 7, 2008)

I'm telling ya, make use of bmwconfig.com Figure out the invoice of your car and as Justin said in the F30 post, go up from there with your offer.


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## SARAFIL (Feb 19, 2003)

Let me elaborate on my post... Payment is important for most people due to budgets, I get that. But going in and saying "I want to pay 500" is a bad idea because there are too many variables they can play with to screw you... i.e. changing the term, the balloon/residual, etc. Knowing your budget up front, you should run your own numbers before you even go in so that you know "if I get this car for xxx over invoice, it should come in at 500 with about xxxx out of pocket" and then go in to negotiate for that selling price.


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## sid369 (Dec 22, 2011)

Thanks for your responses, but I still have a question on the program itself. Is the BMW Select a good program to go with or should I lease?

With the BMW Select, am I stuck with BMW if I don't want to buy the car or don't want another BMW for some reason, like it was not reliable, want to drive some other car etc.

Just want to know if people have used this and were happy with it.


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## SARAFIL (Feb 19, 2003)

sid369 said:


> Thanks for your responses, but I still have a question on the program itself. Is the BMW Select a good program to go with or should I lease?
> 
> With the BMW Select, am I stuck with BMW if I don't want to buy the car or don't want another BMW for some reason, like it was not reliable, want to drive some other car etc.
> 
> Just want to know if people have used this and were happy with it.


With a select, you have to make that final balloon payment or you have to hope the car is worth that much if you want to sell/trade when you get to that point. Personally, I'd never do it. I'd either buy/finance or just lease it.


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## need4speed (May 26, 2006)

Invoice + around $ 1000 dealer profit, and use that to start, but I would not go over that ammount. N4S


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## S197 (May 28, 2012)

need4speed said:


> Invoice + around $ 1000 dealer profit, and use that to start, but I would not go over that ammount. N4S


Does anyone else have opinions on these figures? I'm currently working a deal on a 2012 328 and we're down to ~$700 over invoice doing the BMW select plan.

$44.5K MSRP $41.8k Selling Price
total taxes $2.3k
total fees $700
$4500 down
Rate 4.5
60 months ~$480
Balloon = $18.2k


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## neve1064 (Mar 16, 2012)

I have BMW select on a 2011 328 conv with a sport package nicely equiped. I pay a little extra each month over my payment amount due to make certain I'm not upside down when the time comes for the balloon to be paid. So far, according to kbb.com, my car is worth exactly what I owe on it for the condition, mileage and option packages my car has. I'm not certain if I will sell the car before the balloon payment is due. I like the car a lot. I feel pretty confident that the car will sell because I made sure the color and interior option looks hot to OTHER people. Don't get a color combo that is esoteric because its harder to sell. If I choose to keep it, I'll refinance the balloon. 
For BMW, its a good way to make money without having to take the car back at the end... In other words, little risk to them on their financial books. Would I do it again? It depends on my financial situation and what kind of deal I can get on a lease. Knowing what I know now from ridewithg.com, I'd have to run the numbers and see if my $500 payment is good or bad... If you can lease cheaper than BMW select purchase, do the lease instead... Just my opinion... 

Sent from a HTC EVO


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## S197 (May 28, 2012)

The BMW select is within $5 of the lease plan they've come up with. I have concern that the balloon payment they suggest is to high.

Do you mind sharing how much extra you pay a month that keeps you even with kbb? And do you mean private party or trade in value? Thank you


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## neve1064 (Mar 16, 2012)

I started paying over the monthly amount due just 5 months ago... I have paid about 500$ over in total... I think I put $5k down originally. 
Private party. 
Sent from a HTC EVO


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## S197 (May 28, 2012)

Thanks for the info. I did some numbers and doubt the car would be worth the owed amount after 3 years so we're going to save an additional $4G to make up the difference.


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## [email protected] BMW (Aug 2, 2010)

Sounds like you have a lot of reservations with select.. I would advise you to do a lease then consider a little cap reduction or msd's to get payment down to $500


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## Ace535i (Jan 28, 2012)

Is BMW Select more advantageous on a M3 vs its 3-series sibling?


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## Bunky (Nov 21, 2008)

sid369 said:


> Hi guys,
> 
> Went to to local dealer to find out about lease but he gave me these options,
> 
> ...


I've never heard of BMW Select. What is it sid369? But when I look at both of these deals, I get REALLY nauseated. What year and car is this on? A 3 series? 2015 or 2016? $1000 off MSRP?!? Isn't there more money off on them to begin with than $1000 before this dealer discounts? I'd get those shoes of yours walking right out the door.


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## tturedraider (Nov 11, 2005)

_"Quote:
Originally Posted by Ace535i View Post
Would you know how interest is calculated on a balloon finance? How does one end up pay several thousand more than a lease or pure financing?

Is the balloon amount fixed, and does a unique finance rate apply different than leasing or pure financing?"_

On a balloon note you're paying interest on the balloon balance for the entire term of the loan . But, you're doing that on a lease, too.


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## Ninong (May 20, 2014)

Bunky said:


> I've never heard of BMW Select.


If you haven't heard of it that means you live in a normal state like most of us. In other words, you don't need BMW Select, or whatever name they're calling it now.

Some states treat leases horribly when it comes to taxes. In those states, BMWFS comes up with alternatives that amount to a balloon loan. The balloon at the end works similar to the guaranteed residual on a lease in that with most of those offers you have the option to turn the car back instead of paying the balloon payment or you can refinance the balloon amount. People who qualify for one of those contracts need to read up on them to see how they are structured.

If you never heard of it, it means you not only don't need it, you don't qualify for it because it's not offered in your state. 

By the way, the interest on a balloon loan is calculated similar to the rental charge on a lease. On a lease your rental charge (interest) is calculated on the sum of the net cap cost and the residual. Think of the residual on the lease as being the same as the balloon payment on the BMW Select finance contract.

On leases, BMWFS sometimes offers nice pull-ahead programs. Also, on leases it quite common that at the end of the lease, you can purchase the car for a lower price than the guaranteed residual shown on the lease agreement. Both of those options are unavailable to people who do one of those balloon finance contracts (by whatever name they're called at the moment).


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