[Bch53211]

Originally Posted by Delmoney335

Changes monthly and by mileage. 57% is the current residual for 10k miles. 56% for 12k.

Great info, how/where do you check this? Thank you

[Multimodal]

Originally Posted by Bch53211

Great info, how/where do you check this? Thank you

https://g80.bimmerpost.com/forums/sh....php?t=1772091

[Bch53211]

Originally Posted by Mr. Maboomba

https://g80.bimmerpost.com/forums/sh....php?t=1772091

Fantastic thank you

[josehb]

I will be averaging about 5000 miles a year, so buying is a no brainer over leasing and I'm willing to bet that this car in three years with only 15k miles or so will be worth at least 50 to 60k, my out the door price was 85K. After the 3 years I'm planning on a Macan GTS before they go Electric.

[Transfer]

BMW Select does sound quite good. Is it available in all states? I never hear about it in WA. It seems to me the only downside is being upside down on the loan for quite a long time but as mentioned, gap can alleviate this. You do also lose the benefit of a lease that is you don't own the car and get to turn it in free at the end. This is an advantage if there is an accident, negative carfax situation then you can walk away. Good luck selling/trading a negative equity car with a bad carfax.

[OSee]

Originally Posted by Transfer

BMW Select does sound quite good. Is it available in all states? I never hear about it in WA. It seems to me the only downside is being upside down on the loan for quite a long time but as mentioned, gap can alleviate this. You do also lose the benefit of a lease that is you don't own the car and get to turn it in free at the end. This is an advantage if there is an accident, negative carfax situation then you can walk away. Good luck selling/trading a negative equity car with a bad carfax.

There are BMW Select equivalents that include a walk away option. Pasadena Service Federal Credit Union calls theirs the ‘Auto Advantage Loan’. You have to be a member to take advantage of it. There are other credit unions out there that offer the same thing (using the same provider) but have branded it differently. PenFed announced their walk away option, PennySaver Plus but after COVID hit they scaled back rollout.

It’s as cheap as any other balloon style loan. Few hundred less than a typical lease. It’s main difference is that like a lease you pick allotted miles and pay .10 a mile overage. This is of course so they can better predict depreciation to even be able to offer the walk away option. And as long as the car is in one piece accidents don’t count against you. At the end you can just walk away, pay the car off, sell it or refinance.

[FITM3NT]

Has anyone looked into PenFed's payment saver program?

I called yesterday for more information on a 2021 BMW M3 comp to figure out what percentages they use to determine ballon payment. They couldn't tell me a specific % but here's what I was told for a price/total loan amount (100% value/MSRP)at $72,800:

36 month with ballon payment:
2.99% rate
$893/m
$46,918 ballon

48 month with ballon payment:
3.49%
$914/m
$37,564 ballon

I may go this route as I would put around 8k-6k miles a year and after either term, I could refi or trade in for something I really want.
I'm waiting on allocation and the only car that's in route that may be available is a frozen white comp with no carbon seats. Don't really like the paint due to maintenance and really want carbon seats.

Not many options here in Hawaii.

[Multimodal]

Is BMW Select available in Hawaii? I would never pay 3.49% for a 48 month PenFed Payment Saver loan when I could pay 0.9% for a 60 month BMW Select loan. But if BMW Select isn't available...

[FITM3NT]

Originally Posted by Mr. Maboomba

Is BMW Select available in Hawaii? I would never pay 3.49% for a 48 month PenFed Payment Saver loan when I could pay 0.9% for a 60 month BMW Select loan. But if BMW Select isn't available...

It doesn't look like it, I selected the BMW Select program with a Honolulu zip code and it shows 3.9% with no ability to modify it lower.

[Multimodal]

Everything is more expensive in Hawaii, eh?

[JDUNITNOW]

Originally Posted by Koncdead

It doesn't look like it, I selected the BMW Select program with a Honolulu zip code and it shows 3.9% with no ability to modify it lower.

I live in Virginia and it says 3.9 also. I have never seen 0.9 when building a car and I would consider the select program. I initially considered putting 20k down and finance.

[barryc365]

Originally Posted by Mr. Maboomba

Is BMW Select available in Hawaii? I would never pay 3.49% for a 48 month PenFed Payment Saver loan when I could pay 0.9% for a 60 month BMW Select loan. But if BMW Select isn't available...

I bought my car today. They wouldn't give me the .9% on the balloon. They Wanted 1.9%. I ended up just going with regular 60 month financing as the Balloon was working out about $6k more expensive over long run so I took the higher payment on the chin

[OF Hero]

Dumb question...but is the balloon payment due at the end only if you decide to keep the car beyond the original term? Would you be able to tradr in the car at that point, or are you obligated to pay it?

[mattssi]

I got .9 on my select. 0 down, with 28k balloon.

You are obligated to pay the balloon. You can redo, trade in, or sell, but you owe the entire balloon either way.

[barryc365]

Originally Posted by mattssi

I got .9 on my balloon with 28k balloon.

You are obligated to pay the balloon. You can redo, trade in, or sell, but you owe the entire balloon either way.

Correct but you won't end up owing the full 28k. If you have equity built up In the car you'd end up paying less usually right? Atleast that was my understanding

That balloon is pretty good. He was quoting me $33k balloon and with the higher rate I just went for the straight forward option.

He just really didn't want to sell me the balloon so was putting blockers in front of me

[PLF69]

Originally Posted by mattssi

I got .9 on my balloon with 28k balloon.

You are obligated to pay the balloon. You can redo, trade in, or sell, but you owe the entire balloon either way.

Incredible, I don't even think this is legal in Canada.

They can finance what you owe on another car but I don't think you can report a part of the cost of a brand new car to later without making any capital payments.

[amzbimmer]

Originally Posted by Mr. Maboomba

I did a little bit more work comparing my options last night. The options are a bit complicated because the cost of financing varies based on time horizon (not everyone wants to own a car forever) and the available incentives vary depending on your financing choice. You can see my math in the screenshot below. Key impressions:
* BMW's Military Appreciation/PenFed Incentive program (which almost anyone can access by getting a PenFed account) is really compelling right now with a $2500 rebate if you don't finance with BMW and a discounted APR if you use their Car Buying Service. This results in the lowest 3 year ownership cost (marginally better than leasing with max MSDs) and lowest total ownership cost (meaningfully better than BMW financing or leasing).
* If I were planning to own for only three years, given the current interest rates, incentives and residuals, I would go with leasing with max MSDs. This is only $275 more expensive than a 60 month loan with the Military Appreciation incentive but it offers less complexity and lower monthly payments and certainty around depreciation.
* If you think you might want to buy the car, leasing with a plan to buy it out is much more expensive than the other options.
* BMW Select is quite a bit more expensive ($2000 more than the cheapest path and $1000 more than a traditional 60 month loan with BMW) but the lower monthly payment might be worth it.

Thanks for all the leg work, this is a very useful analysis for me. Are you able to share the spread sheet so we can play around with our own specs and numbers?

One other variable to consider is the time value of the money that you aren't putting into the car. Since less money per month is going into BMW select and lease options, that frees up more money to be invested and earn the 6-8% in the market for those options. Which make them more appealing. I wish there was a spreadsheet that someone made that also takes that into account.

I found the dealers did not want to negotiate at all with the Penfed deal. They would much rather give me the $2500 off and have me finance through BMW without the Penfed program.

[Multimodal]

Originally Posted by amzbimmer

I found the dealers did not want to negotiate at all with the Penfed deal. They would much rather give me the $2500 off and have me finance through BMW without the Penfed program.

If you qualify for big rebates like the $2500 military incentive I wouldn’t mention it until you’ve agreed on a net selling price / dealer discount. If a salesman knows you qualify for a big rebate they probably are going to be more resistant to give you a big dealer discount because the net net number feels so low, even though it’s nothing out of their pocket.

[mattssi]

Originally Posted by barryc365

Correct but you won't end up owing the full 28k. If you have equity built up In the car you'd end up paying less usually right? Atleast that was my understanding

That balloon is pretty good. He was quoting me $33k balloon and with the higher rate I just went for the straight forward option.

He just really didn't want to sell me the balloon so was putting blockers in front of me

You are contractually obligated to pay the 28k (in my case). The balloon payment is based on a % of the MSRP amount.

Now, if magic happens and the car is worth more than the 28k at the end of 5 years, you could trade it in for that higher amount, yes. But behind the scenes, that 28k is getting paid off. It will never change.

This is my first balloon, but I did some math and I should be able to do much better with the 15K I originally planned on putting down on a standard finance (60 or 72 mo) and investing it over a 5 year period to use towards the balloon at the end. Going to be weird being so upside down for the entire time I own the car, but who cares. Kind of a YOLO thing for me.

[barryc365]

Originally Posted by mattssi

You are contractually obligated to pay the 28k (in my case). The balloon payment is based on a % of the MSRP amount.

Now, if magic happens and the car is worth more than the 28k at the end of 5 years, you could trade it in for that higher amount, yes. But behind the scenes, that 28k is getting paid off. It will never change.

This is my first balloon, but I did some math and I should be able to do much better with the 15K I originally planned on putting down on a standard finance (60 or 72 mo) and investing it over a 5 year period to use towards the balloon at the end. Going to be weird being so upside down for the entire time I own the car, but who cares. Kind of a YOLO thing for me.

I was going in to sign the contract with the exact same mind set. I have the money, I just want to use it else where but he didn't want to do it. He was giving me an inflated balloon and an inflated rate. I decided to just pay the extra $440 a month in a straight deal because when you've added the total cost of both deals up the balloon was $6k more all in and returns in the market are not guaranteed especially at these all time highs

[Wamion117]

Originally Posted by barryc365

I hear you, and I could put the money in the market etc but I like the idea of having a decent amount of equity in it. I'll be doing small miles and unsure how long I'll keep it.

Anyone else worried about the AWD being much more in demand come resale? I'm in the North East. I'd like the AWD but want the car for the summer and don't want to wait

I'm in the same exact boat lol

The day after i picked up my g82 dealers started taking orders for awd

Resale value in the east coast is interesting but you also have to remember there's going to be somewhat of a price barrier between awd and rwd so keep this in mind

Moreover most people who buy m3/m4 second hand are likely not dailying them making rwd more attractive but only time will tell

[amzbimmer]

Originally Posted by Wamion117

I'm in the same exact boat lol

The day after i picked up my g82 dealers started taking orders for awd

Resale value in the east coast is interesting but you also have to remember there's going to be somewhat of a price barrier between awd and rwd so keep this in mind

Moreover most people who buy m3/m4 second hand are likely not dailying them making rwd more attractive but only time will tell

I haven't heard of anyone getting official allocations for AWD. It is interesting that they are taking orders for it. As of now, I've only heard of people lock in full MSRP price, as the dealers don't know what the incentives will be on the MY2022.

I've thought about the resale factor in the northeast, but it just doesn't seem to be worth it for that point alone. Worst case, someone from FL, TX or CA will buy our cars. Plus, I think it's better to put the 4k difference towards really good snow tires, which you will need on either version of the car to daily drive, regardless of if it is AWD.