BMW owner's choice

xjusticex · 10-26-2008, 03:09 PM

So finally i have decided to go with the 135i
but there are some things i still want to figure out.
I was wondering how BMW's owner;s choice finance works?
I know its kinda like leasing, where you make monthly payments and there is a bubble amount you would have to pay at the end. But how do u calculate your bubble amount? When i used the build your own option on BMW it tells me i have to pay 877 with tax and freight & PDI per month but it does not tell me my bubble amount.
And would leasing be a better option? lease rate right now at my local dealer is 6.9 and 5.9 for finance. With a little bit of reading of a few posts, people were stating the amount you pay cash up front and the amount you add up with lease and finance it would be pretty much the same? is that true? Cause i spoke to a CA and the price she quoted me were totally different from the ones i saw on the site.

And the is the ideal specs i want on my 09'135i
leatherette
Alpine white
Sports package
Comfort package
Navi package
rear park assistance
Automatic w/ m shift paddles

Thank You

Cooldaddygroove · 10-26-2008, 03:41 PM

I did an in depth financial analysis (Total cost of ownership over the term) and Leasing and Owner's Choice worked out to be about the same. At the time, Owner's choise had a lower interest rate, which gave it about a $1000 advantage over leasing.

What some people miss when doing the comparison is that the buyout at the end of the lease needs to include all the taxes associated with purchasing the car as if it were new (In Canada that's PST and GST) whereas with the Owners Choice, you don't need to add any taxes to the "Baloon Payment" at the end of the term.

More info on Owner's Choice can be found on BMW Canada's Website here: http://www.bmw.ca/com/en/index_highend.html

The balloon payment amount is a fixed % of the price you negotiated for the car. I can't recall, but its something along the lines of 25% at the end of 4 years, 30% at the end of 3 years, and 35% at the end of 4 years.

The % are fixed and your BMW Financial rep can't change them.

TIP: When using the BMW web site to calculate payments, there are a couple of tricks.

One: Make sure you click "Include Freight & PDI" in the payment calculator.
Two: Payments on the site will not include Battery tax, Air Conditioning tax, documentation fee, finance/lease fee etc, These can add up to a grand or more to the purchase price of the vehicle.

jmexx · 10-27-2008, 10:19 PM

I believe, for me, it's about 36-37% for my 135i.

I chose this option because at the end of it I can at least sell the car and maybe make a bit over that $19,000 that I will owe them.

If I want to buy it, the price is a lot more reasonable then after a lease. In the end, I chose this option because it gives me a better choice at the end of the term then a lease or finance.

jmexx · 10-29-2008, 01:13 PM

Indeed.

By the way, for Canadians, owners choice (maybe financing as well?) dropped to 4.9% from 5.9%

It was a nice little bonus when I got that call.

xjusticex · 10-29-2008, 03:35 PM

good thing i didn;t buy the car last week, the CA kept calling me....
i hope they are struggling for sales, since the economy isn;t so bright, so i can get my car cheaper.. LOL
i;m too evil =P

10-26-2008, 03:09 PM	#1
xjusticex New Member 1 Rep 5 Posts Drives: Join Date: Oct 2008 iTrader: (0)	BMW owner's choice So finally i have decided to go with the 135i but there are some things i still want to figure out. I was wondering how BMW's owner;s choice finance works? I know its kinda like leasing, where you make monthly payments and there is a bubble amount you would have to pay at the end. But how do u calculate your bubble amount? When i used the build your own option on BMW it tells me i have to pay 877 with tax and freight & PDI per month but it does not tell me my bubble amount. And would leasing be a better option? lease rate right now at my local dealer is 6.9 and 5.9 for finance. With a little bit of reading of a few posts, people were stating the amount you pay cash up front and the amount you add up with lease and finance it would be pretty much the same? is that true? Cause i spoke to a CA and the price she quoted me were totally different from the ones i saw on the site. And the is the ideal specs i want on my 09'135i leatherette Alpine white Sports package Comfort package Navi package rear park assistance Automatic w/ m shift paddles Thank You
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10-26-2008, 03:41 PM	#2
Cooldaddygroove First Lieutenant 12 Rep 308 Posts Drives: Join Date: Sep 2008 iTrader: (0)	I did an in depth financial analysis (Total cost of ownership over the term) and Leasing and Owner's Choice worked out to be about the same. At the time, Owner's choise had a lower interest rate, which gave it about a $1000 advantage over leasing. What some people miss when doing the comparison is that the buyout at the end of the lease needs to include all the taxes associated with purchasing the car as if it were new (In Canada that's PST and GST) whereas with the Owners Choice, you don't need to add any taxes to the "Baloon Payment" at the end of the term. More info on Owner's Choice can be found on BMW Canada's Website here: http://www.bmw.ca/com/en/index_highend.html The balloon payment amount is a fixed % of the price you negotiated for the car. I can't recall, but its something along the lines of 25% at the end of 4 years, 30% at the end of 3 years, and 35% at the end of 4 years. The % are fixed and your BMW Financial rep can't change them. TIP: When using the BMW web site to calculate payments, there are a couple of tricks. One: Make sure you click "Include Freight & PDI" in the payment calculator. Two: Payments on the site will not include Battery tax, Air Conditioning tax, documentation fee, finance/lease fee etc, These can add up to a grand or more to the purchase price of the vehicle.
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10-27-2008, 10:19 PM	#3
jmexx Private First Class 3 Rep 110 Posts Drives: Join Date: Oct 2008 iTrader: (0)	I believe, for me, it's about 36-37% for my 135i. I chose this option because at the end of it I can at least sell the car and maybe make a bit over that $19,000 that I will owe them. If I want to buy it, the price is a lot more reasonable then after a lease. In the end, I chose this option because it gives me a better choice at the end of the term then a lease or finance.
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10-29-2008, 01:13 PM	#4
jmexx Private First Class 3 Rep 110 Posts Drives: Join Date: Oct 2008 iTrader: (0)	Indeed. By the way, for Canadians, owners choice (maybe financing as well?) dropped to 4.9% from 5.9% It was a nice little bonus when I got that call.
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10-29-2008, 03:35 PM	#5
xjusticex New Member 1 Rep 5 Posts Drives: Join Date: Oct 2008 iTrader: (0)	good thing i didn;t buy the car last week, the CA kept calling me.... i hope they are struggling for sales, since the economy isn;t so bright, so i can get my car cheaper.. LOL i;m too evil =P
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