Owners Choice Question. - Bimmerfest - BMW Forums

Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > Bimmerfest Regional > Regional Forums

Regional Forums
General discussion and questions about what's going on in your area.

Thread Tools Display Modes
Old 10-01-2002, 11:11 AM
CD-55 CD-55 is offline
Double Bimmers
Location: N. VA
Join Date: Dec 2001
Posts: 1,176
Mein Auto: 2003 330i & 1988 325is
Owners Choice Question.

Here is my Data:

2002 330i
SP, Moonroof, Heated Seats, PDC, Xenon, & NAV
MSRP: $40,895
$0 down, $0 trade in, 15,000 miles per year, 36-Months.

I was surprised to see that Owners Choice was priced so much less than leasing. What’s the catch? If you want to return the car at the end of the Owners Choice term, do you have to buy another BMW?

Lease: $777/month
Owners Choice: $698/month
Old 10-01-2002, 11:31 AM
Jon Shafer's Avatar
Jon Shafer Jon Shafer is offline
Bimmerfest Founder
Location: Santa Barbara
Join Date: Dec 2001
Posts: 14,349
Mein Auto: E92 M3 Cp
You know, out here in CA, we don't have these programs,
so I'm not a total expert with OC.

Did you see this in the New Section?


The way that "balloon payment retail finance contracts"
(e.g. "Owner's Choice") normally work, it's basically
the same thing as a lease. There is a "fixed-value amount"
(equivalent to residual value in leasing terms) that, at maturity,
the buyer can pay off to complete the acquisition. That
balance can then be refinanced at that time, or, the
buyer can simply "walk away"... This is different from the
new "BMW Select" program.

These payment programs were originally invented
to circumvent the problem of leasing in Personal
Property Tax States.

When I used to run Chrysler/Plymouth/Jeep/Eagle
store we had the Chrysler Financial "Gold Key Plus"
(balloon note) contracts, which were basically the
same thing... They used them as a program
to get buyers with marginal credit done (with high interest).
Since the car would be coming back, risk was assumed
to be minimized.

What you will find with OC is that the payment looks great;
when you see the actual contract, you will be alarmed,
perhaps shocked at the very high amount in the "finance charges" box. This is part and parcel of the math here.

Anyway, I really have to run
now. I am swamped.

Good luck and best regards,
Old 10-01-2002, 11:35 AM
Jetfire's Avatar
Jetfire Jetfire is offline
Car Junkie
Location: N. VA
Join Date: Jun 2002
Posts: 3,390
Mein Auto: '88 M3, Ex-'99 M3
When I was working w/ a sales rep at Sterling for my order, I was informed that Owner's Choice was either changing or disappearing entirely in VA. You may want to check with your salesman and ask for the terms.

'88 M3
Conforti chip, Evo airbox/K&N filter, UUC short shift kit, oil pan baffle, Hella H4 lights, OEM glass sunroof
sold: '99 M3 Coupe
Cosmos Black
Airbox baffle removed, ZKW ellipsoid headlights, UUC short shift kit, BMW x-brace, debadged

'96 Jeep Grand Cherokee Laredo V8
(Support Vehicle)

See More Related BMW Stories

Forum Navigation
Go Back   Bimmerfest - BMW Forums > Bimmerfest Regional > Regional Forums
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump

All times are GMT -7. The time now is 10:25 AM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
© 2001- VerticalScope Inc. All rights reserved.