BMW Select Financing Explained

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BMW financing can be one of the important choices you make when you’re in the market for your dream car. But, as with many things in life, it can be easy to get confused about what it all means, and you might feel like you don’t have enough information to make the right decision. Whether you want to buy or lease your car, BMW financing offers many great benefits that might interest you, but how do you know if they are right for you? Read on to learn more about BMW financing and why it might be right for you.

What is the BMW Select Financing?

German for Bavarian Motor Works, BMW stands for Bayerische Motoren Werke AG.  BMW is a multinational company that develops and produces automobiles, including motorcycles, aircraft engines, and motor scooters. BMW’s significant divisions include Automobiles and Motorcycles, Motorcycle-engine Manufacturing; Components; Financial Services (including auto financing), and Corporate Development. The auto division of BMW is noted for its M series vehicles and several successful racing cars. BMW sells more than 1 million vehicles per year across the globe through dealerships in numerous countries worldwide.

What are the benefits of the BMW Select Financing?

BMW is one of those brands that make you feel like you have a healthy bank account. BMW’s motto is The Ultimate Driving Machine, and it truly delivers on that promise—but its vehicles aren’t affordable to just anyone. However, BMW offers several financing programs to make it easier for their customers to purchase a car, but they come with strings attached in some cases. The three main BMW financing programs are Standard Finance Lease, Standard Finance Purchase, and Premium Finance Lease. For each of them, let’s have a look at it in detail.

Standard Finance Lease

With a Standard Finance Lease, you are given a set amount of time to repay the loan, and there is an initial down payment that you have to make. To establish if you can get a fair interest rate on a loan to purchase the automobile at the conclusion of your lease period, your credit score is crucial. The downside is that BMW doesn’t offer any extras such as roadside assistance or rental reimbursement if something goes wrong with your vehicle.

Standard Finance Purchase

With a Standard Finance Purchase, you are given the same amount of time to repay the loan as a Standard Finance Lease, but there is no down payment required. The upside is that you can qualify for better rates than with a Lease if you decide to buy the car at the end of your term. However, like with a Lease, BMW doesn’t offer any extras on top of the basic car features.

Premium Finance Lease

With a Premium Finance Lease, you can choose to repay the loan over time or purchase the car at the end of your term. If you decide to take out a loan and then buy the car at the end of your term, BMW will give you a rebate on the price difference between what you paid for your vehicle and what BMW would have charged if you had taken out a Standard Finance Lease. This is the most popular option for BMW buyers, as it allows you to own the car without having to worry about monthly payments or terms.

How do I get approved for the BMW Select Financing?

BMW dealers offer different finance options, including BMW Select and BMW Financial Services. However, it’s important to note that BMW car loans are issued by third-party banks and credit unions, not by a BMW dealer directly. You can still get approved for a new or used car loan using either financing option—but before you go down that path, there are several factors you should consider to make sure you’re getting an affordable rate.

 The first step to getting approved for BMW financing is filling out a credit application with a participating bank or credit union. You can request an application from several financial institutions by visiting BMW’s website, but it’s also essential to shop around and compare rates offered by various lenders. Many banks offer loan rates based on your credit score and other factors, so paying attention to each lender’s underwriting criteria can help you make sure you’re getting the best rate possible. An excellent place to start is by reviewing BMW finance options online at sites like Bankrate and CreditKarma, which allow you to find financing rates without applying for a loan.

What are the restrictions of the BMW Select Financing?

Although BMW’s finance arm is a great way to get out of a bad credit situation and into a new car, some restrictions exist. For instance, if you have less than 24 months left on your lease or don’t own your current vehicle outright, you won’t be able to qualify for BMW Select Financing. On top of that, there are also stipulations about how long you have to wait before being able to qualify for BMW financing and financing in general. Also, know that not all dealerships will work with a BFS customer—so it might be worth it to shop around before agreeing to buy from one particular dealership.

What is required to qualify for the BMW Select Financing?

You’ll need a good credit score, for starters. According to BMW, you should have a FICO score of at least 675. That’s on a scale of 300-850, and it’s based on your credit history (35%), your current level of indebtedness (30%), and your payment history (30%). Experian, Equifax, and TransUnion each provide a free credit report once each year. Additionally, you’ll need an acceptable amount of personal income each month to qualify; BMW doesn’t publish any minimum guidelines but suggests enough to live comfortably. Last but not least, you must be at least eighteen years of age to participate.

How long does it take to get the BMW Select Financing?

When using BMW Select Financing, you can choose between a 12-month or 24-month term. When selecting which one to go with, consider your monthly and one-time payments; shorter terms mean more cars for a lower payment. But don’t forget that a long term also means lower monthly payments but higher total costs when it comes time to pay off your car. To find out how long it’ll take you to get through special financing, speak with a BMW financing specialist today!

What is the APR for the BMW Select Financing?

Yes, BMW Select financing is a loan and therefore requires monthly payments. Depending on your lease term, these payments will vary. At its most basic level, BMW Select Financing requires that you make 12 equal monthly payments to own your car at the end of your lease term. However, every month comes an additional payment of interest and another depreciation charge, which brings down your final profit/savings total. If you’re looking for a way to minimize these charges, you can pay off more than your monthly bill through early settlement fees or by paying extra each month.

Is there an annual percentage rate (APR)? 

Yes, an APR measures how much it costs to borrow money. When you apply for a loan or credit card, you’ll be presented with several different APRs, each corresponding to a different period. Your APR determines how long your payment is dispersed over (the time). Most vehicle loans have a 60-month term, which means that if you wanted to pay off your loan in full after six months, you’d still be paying down interest on everything you purchased during those first six months — not just on your car but also on financing fees and other charges that were rolled into your loan agreement.

How much can I borrow with BMW Select Financing and what is the minimum amount?

Your BMW loan amount depends on various factors, including your credit score, income, and overall financial situation. We can work with you to determine what type of financing is right for you, and then we’ll help find a lender who will support your needs. We know how important it is to get behind the wheel of a fantastic new BMW as soon as possible, so we work hard to ensure you get approved as quickly as possible. The more information you give us about your specific circumstances, such as job status and available income, when applying for BMW car financing online, or any time during the application process itself, it helps us find funding solutions sooner. Unless required by law, we will never disclose or sell your personal information to a third party.

Does my BMW Select Financing require me to make monthly payments?

BMW Select gives you flexibility with monthly or bi-weekly payments. When financing a BMW with BMW Select, there is no minimum payment.  A low down payment is required at the time of purchase. Payments are then deducted directly from your bank account on either a monthly or bi-weekly basis depending on your preference, and they never exceed more than 50% of net pay each month. The goal is to help make purchasing your new BMW more affordable. Whether you have good credit, bad credit, or no credit history, we can help put you behind the wheel of a new vehicle today!


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