[50shadesofhockenheim]

Purchase price of car is $81,145
With tax it's $86,825

Residual is $23,145
And I'm putting down $20,000

Shouldn't I be paying my 60 months @ 2.99% on $86,825 - $23,145 residual - $20,000 down = $43,680

$784/month and not $834? Not sure where they are getting that from

[MVDsF30]

I believe its because they're charging interest on the entire amount including the residual.

[apexes]

As I understand it, with BMW Select you are paying interest on the full amount, same with taxes. It's one of the drawbacks, however, it can make sense if you plan to pay it off outright at the end and not finance the balloon, which would mean you are paying interest twice.

I personally plan to do this as I intend to pay it off in three years, just would prefer to keep making money on my money as opposed to financing and having to either put a larger down payment or higher monthly. Select gives you the flexibility, but it may not be right for everyone.

[50shadesofhockenheim]

Originally Posted by MVDsF30

I believe its because they're charging interest on the entire amount including the residual.

Just learned this! This is correct. The difference was the interest payments of ~$57/month on the balloon. Thank you

[spaceage]

Originally Posted by 50shadesofhockenheim

Purchase price of car is $81,145
With tax it's $86,825

Residual is $23,145
And I'm putting down $20,000

Shouldn't I be paying my 60 months @ 2.99% on $86,825 - $23,145 residual - $20,000 down = $43,680

$784/month and not $834? Not sure where they are getting that from

The $23K payoff is a lot lower than my quote....at $78,595 selling price, I am quoted 2.99%/$28,294 balloon/$5K down--$901.57 mo./$10K down--$811 mo. (No taxes)

Not sure if this a regional difference on the balloon...but if going select to keep money in pocket, maybe you can negotiate a little larger balloon?

[canigetaxm]

if your putting 20k down might as well do a straight finance threw penfed or another credit union you can get a longer term with a better interest rate , this deal looks strange anyway this is my select deal way more simplified with .9%

[wtwo3]

Originally Posted by canigetaxm

if your putting 20k down might as well do a straight finance threw penfed or another credit union you can get a longer term with a better interest rate , this deal looks strange anyway this is my select deal way more simplified with .9%

Did the residual really drop from 36% whenever you signed this deal to now the 30% that OP is showing? Or am I missing something. I've never looked at balloon financing so I'm not as familiar with it as I am with leasing.

Edit: I see OP is expecting 15k miles a year... so perhaps that's the difference.

[apexes]

The website estimator allows you to choose terms from 36-60 months, but I have been told by a CA that it's only available for 60 month terms. Other CA's I've asked don't seem to know much.

Can anyone confirm if the program is available for 36 months?

[50shadesofhockenheim]

Originally Posted by wtwo3

Did the residual really drop from 36% whenever you signed this deal to now the 30% that OP is showing? Or am I missing something. I've never looked at balloon financing so I'm not as familiar with it as I am with leasing.

Edit: I see OP is expecting 15k miles a year... so perhaps that's the difference.

I was never given an option to select miles. The 30% seems to be the only option. I can try asking my CA on Monday

[wtwo3]

Originally Posted by 50shadesofhockenheim

I was never given an option to select miles. The 30% seems to be the only option. I can try asking my CA on Monday

Your numbers show total expected miles of 75,000 over 60 months... so I figured that impacts residual on balloon payments.

[MavRick]

Originally Posted by 50shadesofhockenheim

I was never given an option to select miles. The 30% seems to be the only option. I can try asking my CA on Monday

we did a 60 month Select deal, as well. your balloon payment looks *really* low. on a '22 G82 w/ a $79k MSRP...our balloon was right around $29k.

also...they never mentioned any mileage with the loan when we went through the process. maybe thats where the discrepancy is coming? in no way should they be able to anticipate what kind of mileage youre expected to put on the car if you arent returning it to them at the end of the term.

you need to speak to someone. that can impact your payment pretty significantly.

[50shadesofhockenheim]

Originally Posted by MavRick

we did a 60 month Select deal, as well. your balloon payment looks *really* low. on a '22 G82 w/ a $79k MSRP...our balloon was right around $29k.

also...they never mentioned any mileage with the loan when we went through the process. maybe thats where the discrepancy is coming? in no way should they be able to anticipate what kind of mileage youre expected to put on the car if you arent returning it to them at the end of the term.

you need to speak to someone. that can impact your payment pretty significantly.

It looks like it's straight 30% residual. I'll call Monday and see if that can be changed somehow to a higher %. I'm guessing the residuals are lower now though

[Coolked]

I was gonna do select financing but since the rates are jumping (was 0.9% when I went on the waitlist) and now they're at 2.9%, I figured I'll go with outside lending (can get a 1.49% rate at DCU) and have more of my monthly payment go towards the principle rather than interest and I won't have to worry about the 28K bubble payment in 60 months.