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Auto Loans

What to Know About BMW Financial Services Before You Borrow

Updated Mar 07, 2022   |   5-min read

BMW Financial Services offers auto loans for BMWs everywhere in the U.S. With BMW, you have the option of buying, leasing, or subscribing in order to pay for your car.

With BMW Financial Services you’ll get perks such as roadside assistance, detailing and maintenance, a $1 million liability insurance policy, and a personal concierge who will clean and deliver your vehicle.

Financing an Automobile Through BMW Financial Services

To have your best chance of getting approved by BMW Financial Services, you’ll want a credit score of at least 680. Although it is possible to get approved for leasing or buying with a lower credit score, the rates won’t be as favorable.

After approval, BMW Financial Services generally offers low- and zero-interest options for borrowers depending upon how creditworthy they are.

For those who have recently graduated, BMW offers $1,000 off a new or certified pre-owned vehicle. In order to score this deal, a degree must have been obtained within the past 24 months or the student must be graduating within the upcoming six months and must have an employment offer that can be confirmed. There are other criteria that must be met as well, such as a 20 percent or less debt-to-income ratio.

Basic Information: Rates, Terms, Fees, and Limits

If you’re interested in leasing a vehicle through BMW Financial Services, the current financing rates, as of 10/17/18, are 4.15%. Depending upon which make and model of car you want to lease, you can find options that range from $300 to $2,200 a month.

The longest financing term you arrange with BMW Financial Services is 72 months. While taking out a long-term loan will help you get a bigger loan that can net you a nicer car, you’ll be paying a lot in interest during the course of that long loan.

Plus, you might have wracked up a lot of miles on your vehicle before your car is paid off. With how quickly vehicles depreciate once they are owned, you run the risk of going underwater on your vehicle with a long loan should you ever need to sell it.

BMW Financial Services does charge an origination fee and penalties for late payments. In some states, BMW will also charge prepayment fees if a loan is paid off early. As a consumer, it’s in your best interest to stay away from companies that charge such fees, because you’re essentially being penalized for wanting to get out of debt sooner. Be sure to ask your BMW dealer about prepayment penalties before signing your loan agreement.

The Benefits

BMW does offer a car and ride sharing lease program that is available only through BMW Financial Services. You can earn money by driving passengers or even renting out your vehicle. This program is only available so far in California, Washington, and Oregon. This program does cost extra, depending upon which model of car you’re planning to use. That extra cost can range from $2,100 to $3,700.

You also have the option of adding on extended vehicle protection if you buy a vehicle or lease protection to help you avoid extra fees when it’s time to turn in your vehicle.

If you participate in the subscription program, you can have the benefit of driving a different car to match whatever mood you’re in or to tailor it to your needs for that particular trip. The company has an app that makes it easy to find the right kind of car for any situation. It will be delivered to you by a personal concierge, and it will be hand-detailed and all fueled up or charged.

The Downsides

The prepayment penalty in some states is a big negative to watch out for, since it can eat away any benefit of paying off your loan early. There are many other auto loan lenders who do not charge prepayment penalties.

The car and ride sharing lease program may not benefit you much once you factor in the extra fee you have to pay for it. It depends upon how often you’re willing and able to ride share.


BMW Auto Financing Alternatives

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  • Loan amounts from $5,000$100,000
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  • Funds deposited in your account as soon as the same day you apply
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  • Auto loans made easy for any credit situation
  • Start loan process in 60 seconds
  • No-hassle process – no obligation

  • One application – Up to 4 loan offers in minutes
  • Receive online certificate or check within 24 hours
  • Use your check to buy the car you want

Bottom Line

Although BMW Financial Services does have some interesting programs, you are likely to find a better deal elsewhere, especially because of the potential prepayment penalty. If you’re not the type to pre-pay your car loan and the idea of the car and ride-sharing lease program appeals to you, you may want to consider BMW Financial Services.

>> Read More: Is it better to finance a car through a dealer or bank?