A balloon payment is a final payment that is significantly higher than the amount of a regular monthly payment (for example, a payment that is more than one and a half or two times larger than the amount of a regular monthly payment).

BMW Select is a retail installment contract with a final balloon payment.  This product allows a customer to have lower monthly payments than with traditional retail installment financing, but still have the security of vehicle ownership. You make lower monthly payments during your selected term and then reach a decision point:

1. You can complete your vehicle purchase by making a final balloon payment.
2. You can apply to refinance the balloon payment amount.
   

BMW Select is a good alternative to leasing if you prefer the benefits of vehicle ownership and a lower monthly payment. Not available in all states; see your BMW Center for details.

The following financial products are available through BMW Financial Services. Click on the links to the left for more details on each product:

• Leasing
• Owners Choice
• BMW Select
• Traditional Retail Finance

Accessories are defined as any item installed at a BMW Center and not by the manufacturer. For purposes of a Lease, Select or Owners Choice Payment, this amount will be added to the total sales price of the vehicle, but not to the residual value of the car at the end of the financing term. For specific details please see your BMW Center.

The trade-in value for a vehicle is based on prices currently being paid by dealers for vehicles that match its age, mileage, and condition. What can lower its value?

• Mileage in excess of 12-15,000 miles per year
• Exterior dents, scratches, rust, or mismatched paint
• Torn or stained upholstery or carpets, or broken or missing trim
• Worn tires, brakes, or other mechanical parts
• Lack of equipment such as power windows and A/C
• Unpopular color combinations
• Vehicle alterations, customized wheels and paints

In general, a trade-in value allows a dealer to earn a reasonable profit on the resale after covering expenses for repair, advertising, and sales commissions. The trade-in value also reflects the variability of used car prices and the dealer's risk of selling at a loss.

The annual percentage rate, or “APR,” is the cost of credit, stated as a percentage, and expressed as an annualized rate. The APR that you enter and any APR provided on the Payment Estimator are for example purposes only. Not all customers will qualify for the lowest rate. You and your BMW Center will determine your actual rate.

Leasing allows you to drive a BMW while keeping monthly payments lower than with traditional retail installment financing. When you lease, you pay your payment is based upon your use of the vehicle during the term of the lease. At the end of your lease, you can turn in your BMW and lease a new or Certified Pre-Owned BMW, re-lease or refinance (subject to approval) your current BMW for another term, buy your BMW at the price set forth upfront in your lease agreement, or turn in your BMW and walk away (subject to applicable charges for excess mileage, wear, and use).

An Owners’ Choice contract is a retail installment financing option that includes a final balloon payment. Available only in select states, Owners’ Choice offers lower monthly payments (similar in amount to a lease payment), and a balloon payment that may be satisfied by returning the vehicle. Owners’ Choice may be a good alternative if you reside in a state where leasing is less advantageous due to federal, state, or local tax laws. 

When the final payment (the balloon) is due on an Owners’ Choice contract, you have the following options:

You may complete your vehicle purchase by making the final balloon payment.

You may be able to refinance the final balloon payment, subject to certain conditions.

You may be able to sell your BMW back to us at a pre-determined price that is less than the final balloon payment amount, and have the pre-determined price (adjusted, as applicable, for condition) applied towards the final balloon payment amount. If you chose this option, you will owe the difference between the predetermined price of the BMW and the balloon payment amount, and you will no longer own the vehicle. (You may also be able to refinance the difference between the predetermined price of the BMW and the balloon payment amount, subject to certain conditions.)

Traditional Financing is a retail installment contract that allows you to buy a BMW and pay monthly. Monthly payments include interest at the rate agreed upon by you and your BMW Center. You may not be required to have a down payment (based on credit). Just as in buying a vehicle with cash, your name goes on the title. When the financing is paid in full, we release our security interest in the vehicle.

Please note that the annual percentage rate you enter is your estimate, and may not reflect rates available to you from BMW Financial Services. Please discuss available rates based on your credit, area of the country, and other factors with your BMW Center.