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

Originally Posted by afshawnt

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.

Originally Posted by Daniel@Pacific BMW

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?

Originally Posted by miamiboyca

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.

This is how I financed my 2009 335. It made my payments very reasonable.

PenFed currently has a 1.79% ballon available.

Thanks for the calculation help.

Originally Posted by zachp13

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.

Originally Posted by zachp13

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.