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2019+ BMW 3 AND 4-SERIES FORUMS (G2x Generation) Ordering / Pricing / Order Tracking Forum BMW Select Deal

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      10-06-2020, 03:13 AM   #1
drezy
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BMW Select Deal

In contact with a dealer on a 2020 M340 that is pretty well optioned. This is his first deal presented to me. He is pushing the BMW Select finance program. Thoughts?
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      10-06-2020, 10:25 AM   #2
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Don't know much about the select finance program, but the discount is pretty light at a little over 5%. May have to get a few more dealers involved to push that discount up closer to 10%.
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      10-09-2020, 06:39 PM   #3
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IIRC, Select is a balloon financing program. You finance at close to a lease rate for a typical lease term like 36 months, and then when that is over you owe the remaining balance on the car, after you pay that off you own the car.

Generally I would consider this a bad financial choice but I'll let those much better versed in automotive finance take over from here.
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      10-10-2020, 06:44 PM   #4
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Thanks guys. Still working the deal. Probably going to purchase rather then lease or select.
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      10-15-2020, 05:44 PM   #5
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Quote:
Originally Posted by -EndOfAnEra- View Post
IIRC, Select is a balloon financing program. You finance at close to a lease rate for a typical lease term like 36 months, and then when that is over you owe the remaining balance on the car, after you pay that off you own the car.

Generally I would consider this a bad financial choice but I'll let those much better versed in automotive finance take over from here.
It is much worse because interest is paid on the entire amount financed, including the balloon, as opposed to leasing where the interest is only paid on the depreciation (I think).

This is a horrible deal.
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      10-15-2020, 08:05 PM   #6
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Quote:
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Thanks guys. Still working the deal. Probably going to purchase rather then lease or select.
My car was $62.5k MSRP. After negotiating through 4 dealers, I purchased the car out the door at $53K in January. I'm quite sure you will get that type of deal now but this gives you some perspective how far you can go.
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      11-03-2020, 09:18 AM   #7
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Do not do the Select financing, it is horrible. Also get your MSRP discount to at least 10% BEFORE any rebates. Find a good rate at your bank or credit union and BMW will beat it with their financing. I was able to get them down 2% APR this way where they would not budge before showing them my other finance offer.
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      11-03-2020, 02:18 PM   #8
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From personal experience, you can get them down to about 10% off MSRP right now. You should be able to get another $2000 + $500 for corporate or loyalty or something.

I'd expect to see something more like $54,893 after MSRP discount and rebates. Average discount without having to work too hard was somewhere between 7-9%. One dealer went to 10% and the others balked at that, but it is out there.
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      11-03-2020, 04:08 PM   #9
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Lease and Select are one in the same. Only that Select mandates purchase at term end. However, you can then transfer it to a finance. Also, a common misconception is that you're not paying the financing on the balance of the car when you lease. Actually, you are. If you don't know that, you're not reading your lease contracts well enough. They're not going to lend you out a 90k car and only make you pay for interest on the leased amount. LOL

All that being said, it doesn't really make sense seeing as you can get this same exact deal on a 2021 lease in terms of the monthly payment. In fact, I just priced one out today.
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      11-08-2020, 04:42 PM   #10
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Select is a balloon finance contract, you own the cehicle, the title is in your name, and there is no mileage component. A 5yr select will have a similar monthly to a 3yr lease. The balloon is based on the residual of a 60mo 15k mi lease, but IIRC, you can also choose a lower residual. The balloon is what it is regardless of your mileage or market value. If you have to finance the balloon at the end, you may want to reconsider. A 3yr loan on top of a 5yr Select, on a car that will then be out of warranty?
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