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BMW Select means you buy the car. The balloon HAS to be paid and you can't return the car. You might be able to trade it in but you'd be better off selling it through private party. The loan is based off how much you want to take out like any other loan. It is the SAME as any other car loan except how interest/payments are calculated.
The % is negotiable to be lower and is most likely off MSRP. There is a limit to how much you can defer to a balloon so that you don't end up upside down when you have to make the balloon. It makes sure that your car value and balloon payment matches closely in case you have to sell the car to make the balloon payment. I believe the % are the same as lease residuals so for 60 months its like 35-38% for most cars.
You can always negotiate a lower % but not higher because of the risk. So you can't defer like $35,000 to a balloon. Also you cannot pay off the balloon until you pay off all of the first loan. It's BMW's way of making money. They treat it as one loan I believe and the balloon is the last value you can touch.
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