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  #1  
Old 09-06-2012, 12:27 PM
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afshawnt afshawnt is offline
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Calculating Residual and Rate for BMW Select?

I tried some searching but didnt' find the exact answer I was looking for. When determining the residual value for the balloon, should one use the the base lease residuals? or is it calculated with the "10k" or "12k" miles/yr residual?

If I remember correctly, the rate used is the same as advertised by BMWFS. So, for this month it would be 3.79% for say a 36 month BMW select?


Thanks in advance
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  #2  
Old 09-07-2012, 05:29 PM
Daniel@Pacific BMW Daniel@Pacific BMW is offline
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Quote:
Originally Posted by afshawnt View Post
I tried some searching but didnt' find the exact answer I was looking for. When determining the residual value for the balloon, should one use the the base lease residuals? or is it calculated with the "10k" or "12k" miles/yr residual?

If I remember correctly, the rate used is the same as advertised by BMWFS. So, for this month it would be 3.79% for say a 36 month BMW select?


Thanks in advance
When calculating the residual value for a balloon with BMW it is actually dependent on a combination of the model of car you are getting and your credit score. It is not adjusted on the miles driven per year like it is with a lease. Currently it is calculated by using the posted residual percentage if your are Standard or Standard Plus credit. You would add 3% to the posted residual percentage if you are Elite or Super Elite credit and subtract 3% from the posted residual value if you are Progressive or Progressive Plus credit.

As far as the rate you are correct. You would just use what ever the current retail purchase rates are with BMW. Hope this helps.
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  #3  
Old 09-07-2012, 05:36 PM
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miamiboyca miamiboyca is offline
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Quote:
Originally Posted by Daniel@Pacific BMW View Post
When calculating the residual value for a balloon with BMW it is actually dependent on a combination of the model of car you are getting and your credit score. It is not adjusted on the miles driven per year like it is with a lease. Currently it is calculated by using the posted residual percentage if your are Standard or Standard Plus credit. You would add 3% to the posted residual percentage if you are Elite or Super Elite credit and subtract 3% from the posted residual value if you are Progressive or Progressive Plus credit.

As far as the rate you are correct. You would just use what ever the current retail purchase rates are with BMW. Hope this helps.
So besides the insurance difference, what is the benefit of going this route?
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  #4  
Old 09-07-2012, 05:40 PM
Daniel@Pacific BMW Daniel@Pacific BMW is offline
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So besides the insurance difference, what is the benefit of going this route?
The main reason some people do this is to have a cheaper monthly payment for the first few years.
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  #5  
Old 09-07-2012, 09:52 PM
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DonnaBlackson DonnaBlackson is offline
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This is how I financed my 2009 335. It made my payments very reasonable.
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  #6  
Old 09-08-2012, 11:34 AM
zachp13 zachp13 is offline
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PenFed currently has a 1.79% ballon available.
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  #7  
Old 09-08-2012, 11:48 AM
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afshawnt afshawnt is offline
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Thanks for the calculation help.
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2014 328d xDrive Sports Wagon
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Retired
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2009 MINI Cooper
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1991 325i
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  #8  
Old 09-08-2012, 11:50 AM
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afshawnt afshawnt is offline
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Originally Posted by zachp13 View Post
PenFed currently has a 1.79% ballon available.
Thanks. I will look into that as an option as well. I am a US Gov employee, but I don't see my agency on there for some reason.

I'll call on Monday. I am already approved with BMWFS. I don't see why PenFed wouldn't do the same.
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2014 328d xDrive Sports Wagon
2013 X1 sDrive28i
2005 330i ZHP
1999 323iC
1989 M3

Retired
2013 X5 xDrive35d
2012 128i
2010 128i
2009 MINI Cooper
2006 330i
2004 325i
1991 325i
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  #9  
Old 09-08-2012, 12:07 PM
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afshawnt afshawnt is offline
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Quote:
Originally Posted by zachp13 View Post
PenFed currently has a 1.79% ballon available.
I also need to check rates at that time since there is no "rate lock" with them, and if they are ED freindly.
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2014 328d xDrive Sports Wagon
2013 X1 sDrive28i
2005 330i ZHP
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1989 M3

Retired
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2012 128i
2010 128i
2009 MINI Cooper
2006 330i
2004 325i
1991 325i
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