BMW select financing option, the right way to go?

Been searching for 330/ 330 e lease, , and numbers have been ridiculous, $700 plus,Dealers locked in on MSRP, incentives dropping by the day( even found Edmunds to be off on everchanging incentives)so, knowing the 5800 plus federal tax rebate on 330e, I honed in on that model(the 20 mi range didn’t really excite me, but financial enticement did)unfortunately, leasing did not unlock the credit, so had to look further. Thought there was only 1 option, owners choice leasing,( Georgia ,Texas, Illinois only), but a fellow hacker suggested looking into bmw “select ” financing, where you own the car, so you get federal ev credit,AND can tap into financing incentives from BMW, Under OC, you don’t qualify for finance incentives, just lease incentives, even though you technically own the car,BMW Still considers it a lease,with option to return it after 36 months . With select financing, you can select payments based on 36,48 or 60 months, with added bonus of no acquisition fee ( nonbank/ acquisition on OC either) and 1.9% financing,no limit on mileage, of course the more miles you put on, the lower the value at selling time. OC finance rates range from 3.5-4.5%, and there is only a 36 month option( I believe),payments based on a residual and 10k/ 12k,15k/ yr…both options are similar to lease payments, and there is a ballon at end of term for both OC and select financing.I took 60 month term ( my son needs payments at a certain level), with every intention of selling car at end of 48 months due to warranty concerns …MSRP on car is 44k,amount owed after 48 months Is roughly $17,500.this is with $3500 worth of incentives, $ 1000 ol code, 1000 loyalty, and $1500 BMW finance cash and NO discount of MSRP ( dealer said discount was they would also contribute $500 to ol code for a total of 1000, I guess they didn’t have to do that,lol). I am putting down up front the $5800 that I will be getting back around April 15, $500 that I’ll get back from bmwcca rebate, and approximate 1st month. As any money you put down just goes toward your purchase price,not really a big deal laying it out for a few months. Some will say at 1.9 % ,finance as much as you can as long as you can, but we want to keep payments at a certain level. In this case our budget is $450-465/month, and that is where we are at. Now, of course we are taking a chance that used car market tanks, as we certainly don’t know where it will be in 48 months, but with a 17.5 k buyout, at 48 months, (figures out at 40% of purchase price/ residual), I think we are fairly safe. Trying to make lemonade out of lemons isn’t easy, but this is best I came up with. Went to all dealers in Atlanta, and even went to Columbus/ Athens,all firm on MSRP, some with dealer add ons to boot,some with no cars or build available…I guess I could have tried other areas for some discount, but with almost 10k off of MSRP in rebates/ incentives,$459/ month payment effectively with just 1st month payment DAS,I’m calling uncle, unless anyone knows a dealer that is discounting, I believe Select financing is an option nationwide… Here are exact numbers, I have placed a refundable deposit down, and if incentives increase by the time car is delivered, I can take advantage of that. here are exact numbers, looking for input or suggestions
2022 BMW 330 e
MSRP $43,625( base model with convenience package (wonder if they left off destination and handling and will catch later, or can add to non- existent discount, lol)
Selling price : $43625
Apr: 1.9%
Term: 60 months
DAS: $ 6800( federal tax credit plus Bmw car club rebate and first month payment will cover this)
Rebates $3500($1000 ol code,$1000 loyalty, $1500 apr cash)
Amount financed: $36976
Monthly payment: $459
60 month ballon payment :$11,788( 48 month ballon is approximately $17.5 k)

  1. Enter your deal on SIGNED!:
  2. Share your deal url from SIGNED!
  3. Give us more context of the deal (if any) and post celebratory pictures!
  • SIGNED! guides you through all information needed to share your deal productively.

Title: Include model, monthly payment, and money down.
Tag the make (e.g., toyota, bmw) and region (e.g. ny, ca-socal, usa-nationwide) [required].

Im in IL

whats owners choice leasing?

It’s a balloon loan financing option offered in some areas. Behaves similar to lease, but you’re actually buying it.

Hybrid finance/lease contract with a bailout option using lease residuals.

1 Like

It is available in Illinois, primary reasoning is so you don’ pay tax twice on same vehicle if you decide to purchase at end of lease… or, tap into federal electric rebates/incentives, that leasing company usually keeps for themselves, you do also have option of returning car to captive if you desire at end of predetermined period at no charge, same disposition fees as regular lease apply

OC downside is rates usually much higher than leases. Also sales tax is due on entire vehicle price even though only own for the 3 years if not buying out. It does offer a way around City of Chicago crazy additional 9% lease tax too.

1 Like

Higher rates/ no acquisition fee, close to a wash

1 Like

Select financing has lowest rates of all and no acquisition fee

1 Like

And the lowest residuals too.