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-   -   Finance vs. Lease vs. BMW Select (https://xoutpost.com/bmw-sav-forums/x-m-forum/87108-finance-vs-lease-vs-bmw-select.html)

iMpower 04-24-2012 08:23 AM

Finance vs. Lease vs. BMW Select
I just wanted to see what the X5M owners have gone in terms of financial planning with their vehicle purchase.

Please chime in on your choice and why did you go with it.

I haven't seen the BMW Select before and was curious if anyone had done that route.:dunno:
Here is what the BMW North America says about it:

BMW Select is an innovative retail balloon financing product that combines the low monthly payments of leasing and the security of ownership. You make low monthly payments for your selected term then reach a decision point:

1. You can refinance the balloon payment amount; or
2. You can complete your purchase by making the balloon payment.
BMW Select is a good alternative if you prefer the benefits of ownership and a low monthly payment.


jspdr 04-24-2012 10:12 AM

Depends on your situation. If you can afford higher monthly payments, and if you intend to keep the car for more than 5 years then, in my opinion you should do a purchase contract, if especially they offer a special financing. When we purchase, we pay finance charges, like 3,6% or whatever. when we lease the car we pay what they call a money factor, just to confuse consumers more, those money factor you can convert to % in conventional financing, and i'm almost certain it will turn out much higher compare to purchasing. Good luck

younghno50 04-24-2012 10:45 AM

Money is so cheap to borrow now its beneficial to buy. With enough down and low interest payments i'm guessing even after 3 years, ownership is still cheaper than financing. That and no one can predict how cheap money will be to borrow 3 years later and resale value tend to be strong for BMW cars. In my case, I got financing for 2.5% from PNC Bank with a new program they are promoting called "blank check". BMWNA financing rates weren't as good (3.9% for 2013 builds, 2.9% for 2012's if you can find the exact car you want somewhere) and the dealer had a lower credit score for me and they couldn't match what I have already. My purchase was a good deal, wasn't great but I got almost $4k off list and ordered 2013 x5 35i SAV with: HUD, Convenience Package, Cold Weather Package, Running boards, BMW APPS and the extended maintenance plan. My barganing skills aren't as good as others, but I still paid less than MSRP, and worked out to $1k over invoice. Oh, and I'm working out scheduling for Performance Center Delivery!!!! Good luck on the M version. Its a beast!!

iMpower 04-24-2012 06:59 PM

Thanks for the replies.

I was trying to calculate how much interest you'd have to pay over 60 months if you finance the car (buy it) and the amount that turns out is not that terrible. You literally pay 80-130$/month in interest depending on the interest rate.

So, I guess, it's probably more beneficial just to buy the car and not be in a rush to pay it off since the interest rates are pretty low nowadays.

lakers89052 04-27-2012 10:18 PM

Do you really want to keep a car this sophisticated for over the term of the warranty? If so, then buy. If not, lease. I am always concerned about the cost factor of keeping a vehicle like this beyond warranty periods.

Plus, I am spoiled by the fact that I like to have a new vehicle every few years....

iMpower 04-27-2012 10:35 PM

Well, I will definitely not keep this type of caliber of the car past the warranty.

!ouch: the repair cost after warranty would probably be astronomical, so that's a concern.

stlcity 04-30-2012 05:10 PM


Originally Posted by lakers89052 (Post 875942)
Do you really want to keep a car this sophisticated for over the term of the warranty? If so, then buy. If not, lease. I am always concerned about the cost factor of keeping a vehicle like this beyond warranty periods.

Plus, I am spoiled by the fact that I like to have a new vehicle every few years....

My thoughts exactly. If u are not going to keep the car beyond the 4yr/50K warranty then leasing I guess is the best option. Go that route if u can. Also I guess leasing over the first few years of the life of the car does cover the max depreciation that it encounters....

LI-X5 05-02-2012 12:40 PM

As of now in the last mo , im up to about 25k in warr' work !

turbo's , headers , cats , mid sec , muff's , new seat , new steering wheeel

past warrrr fuuuukkkkk tat !!


iMpower 05-02-2012 12:53 PM

So, from what I am gathering, everyone is on the same page regarding not keeping the car past the warranty be it 4yrs/50K or 6yrs/100K.

I certainly agree with that and not plan on keeping it past extended warranty.

Am I accurate in assuming that majority of owners are leasing the car?

For the longest time I've always believed in buying and owning cars, but then again, I've not owned such an expensive caliber of a car. The repairs on my 2005 Honda Accord (that is out of warranty) would never come anywhere close to the repair costs of out of warranty X5M!

Now I'm a bit confused and start having a shift in the paradigm of my thinking.

Maybe I should lease afterall...? (an idea that seemed to be so foreign to me just until recently)

iMpower 05-02-2012 10:34 PM

I am still researching the topic and looking at the pros and cons of leasing vs. financing.

Will have to go to the dealer and talk to their financial department.

Looking at the payment difference:

Lease for 36mo at 15,000 mi - $1,704/month

Finance for 60mo at 3.9% - $1,890/month

BMW Select for 36mo - $1,684/month

BMW Select for 60mo - $1,391/month

I'm still not quite sold on the BMW Select idea and will have to talk to the dealer about it.

Looking at the payment difference for the lease vs. finance it's roughly $200 difference a month, so I don't really think it's a valid reason/excuse to lease the car to "save some money". Anybody who can pay $1,700/month can certainly pay $1,900/month, and I don't think it'd be a deciding factor for them.

I'm definitely still undecided on the route to go, as I can't see a clear advantage of one over the other.:dunno:

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