[comebackid]

Greetings all.

It's been a long time since I posted on this board. Went from a 335i coupe (When I was on the board) to a Z4. Well the lease clock is ticking, and it looks like I might get back into a 335i again.

I will probably go ahead in the ensuing months and finance a 335i through BMW Select. I just want to make sure my calculations are correct, so if I'm missing something or did something wrong let me know.

I'm only using arbitrary numbers for this example. We can discuss rates and deals another time.

$50,000 MSRP.
BMW offers 3.9% financing.
60 month BMW select plan
State of NJ – 7% sales tax.

$50,000 MSRP x 7% tax = 3,500

$53,500 total

I put down $3,500

$50,000 loan.

From bankrate.com I used their auto loan calculator.

I plugged in the loan amount ($50,000) at 3.9% for 60 months and came up with $918.57 per month.

I multiplied $918.57 x 60 and came up with $55,114. So on a traditional loan, that is what I would pay, BUT this is a BMW Select program with a balloon payment in the end.

At tier 1 credit I believe the balloon payment (60th payment) is 37% of the total MSRP. So is this based on the original MSRP ($50,000) or total with tax ($53,500) or the amount after what I put down ($3,500) back to $50,000?

So let's say it's the original MSRP of $50,000. 37% of $50,000 is $18,500. That would be my 60th payment.

So would I go back to my original calculation when I came up with $55,114? If that is the case, then I subtract $18,500 from $55,114 and come up with $36,614. Divide that by 59, and I come up with $620 a month for 59 months and $18,500 on month 60.

Let me know if this is the case or if I am missing something.

Thanks.

[atwell3993]

All the math looks pretty good, you've just gotta watch that balloon payment, it's a large sum of money...

[persian54]

Use mine as an example (with numbers estimated as i dont have a calc)

$62k car
2k down
60k financed at .9% for 60 months
paying $709.34 x60= $42,560
balloon end payment of about $20k

Basically, in a balloon style finance, you pay more interest as you owe more money.
Because in a traditional loan, you're paying more and more off, so you're being charged interest on less money.
In the BMW Select program, you're not paying nearly as much off (my loan would have been about $1k a month vs the 700; 300 a month x 12=3600x.9%, ~34$ more)

Obviously. at your rate it'll be different...
I only did BMW Select because it was more advantageous to keep the $ in the bank since .9% is almost free... I get more than that keeping my money in my savings.. and much more using it etc etc (don't need to get into an investments thing)

Good luck with what you decide to do.

[comebackid]

Originally Posted by persian54

Use mine as an example (with numbers estimated as i dont have a calc)

$62k car
2k down
60k financed at .9% for 60 months
paying $709.34 x60= $42,560
balloon end payment of about $20k

Basically, in a balloon style finance, you pay more interest as you owe more money.
Because in a traditional loan, you're paying more and more off, so you're being charged interest on less money.
In the BMW Select program, you're not paying nearly as much off (my loan would have been about $1k a month vs the 700; 300 a month x 12=3600x.9%, ~34$ more)

Obviously. at your rate it'll be different...
I only did BMW Select because it was more advantageous to keep the $ in the bank since .9% is almost free... I get more than that keeping my money in my savings.. and much more using it etc etc (don't need to get into an investments thing)

Good luck with what you decide to do.

Ah. That definitely makes more sense. Thanks.