[deetjohn]

Car leasing will become much more expensive with GST. source

Wonder how that is going to affect these 360 degree programs.

[agambhandari]

Originally Posted by Turbanator

It will be in the same ballpark, you can always try selling it outside, say within your extended family or known circle or in open market at higher rates. Do note that this gets invalidated in case of any serious damage to the car. A3 Cabriolet will definitely have a lower resale as it will appeal to a limited set of customers. Go for a mid or higher-spec variant of whatever you buy, after the initial euphoria, you will start missing features which might be available in a segment or two below as standard. If you can stretch your budget, outgoing 520-D makes a good sense given the high rebates they are offering.

Oh okay, then I guess in the case of well selling models we can look at going the way of the regular financing rather than these schemes. But as you said, The A3 cabriolet would have limited appeal and thus lower resale so in that case, such a scheme makes sense.

And thanks for this heads up, I didn't keep it in mind that a lower variant would also affect the resale value. Obviously they skip so many feel good features that one does end up going for the top ones, but didn't know about this aspect.

Not really looking into the regular sedans. Basically looking for a car that gives an open air feeling, so the X1 with the great headroom and panoramic roof feels really good and the A3 cabrio is well, the definite choice in this segment. That's a lot of cross shopping I know, but don't really need the Size and diesel frugality of the X1, but the cabriolet is almost too impractical and now comes with a smaller engine.

Btw, do the models in high demand retain about 50% value at 3-4 years? Or is it lower or higher?

[morphin1]

Guys does BMW even honour their buyback offers ?

[LordSharan]

Very ineffective scheme, nothing new apart from the assurance(?) of buy back.

1. The rate of interest (11%) is way too high. On such high amount of loans, the interest rates can be very low, and I've seen ridiculously low figures on BMW/Audi/Merc cars on outright buys.

2. Let's dissect the financial scheme a bit. Lets say I do not want to own the car at the end of the scheme.

They are charging the interest and EMI on the total price of vehicle minus the down payment. It seems like we would be made to pay the interest and EMI on the financed value minus the residual value of the car, but In essence, I'm also paying interest on the 23L residual value of car at the end of 3 years, which is ridiculous and to some extent, unethical for BMW.

A better scheme would have to calculate the EMI based on two factors below:
1. EMI on financed-residual value of the car at the end of 3 years
2. Added component on EMI for residual value adjusted for inflation say 5%-6%.

Now, I need to pay the EMI only on the financed-residual value which is around, 16L (39L-23L), with a down payment of 10L, and interest rates as 14-15% (9% RoI + 5% Inflation). And then EMI would work out to be much lesser. Simple calculations will show- this EMI works out to be 56K per month (16L, 3years, 15%) as against 73K for this scheme.

BMW gets returns on the residual value of car, Customers get a more transparent scheme which does not charge them interest and EMIs on amount they are actually being financed for.

Can do an advanced excel analysis for this, but too lazy to. If members have questions on this perspective, I'll surely do one and paste the results here.

[arif_t01]

3GT @ Rs.39,999/month.
5 @ Rs.49,999/month.
6GT @ Rs.59,999/month.
X1 @ Rs.33,333/month.
X3 @ Rs.49,999/month
and the very latest
X4 @ Rs.59,999/month.

I was going through my Twitter feed, when I noticed a too good offer for BMW cars. I am smitten by the offer & would love to know more about it. Does anyone know the details? I am attaching the screenshots I took from their website.

I am particularly interested in the X1, if I can get the xDrive M Sport model with BSI+ Package also included. It does mention 3-year complimentary service & maintenance package, but doesn't specify which one nor the variant of the car. At the end of 3 years, I would have paid 12L in emi. I don't know how much it will be for the downpayment, road tax, insurance, etc. Anybody knows? Does it make any sense going for this as the effective interest rate mentioned are 7.99% & 8.99% for different models.

I have my own business & as far as I understood, I can claim expenses on the emi payments. At the end of the 3rd year, I could return the car & again opt for a similar deal for the latest model for the next 3 years. Why would I wish to pay for the 3-year old car to retain it, when I can get the latest model or even upgrade from, say X1 to X3, even if the EMI increases a little bit? Please correct me if I am wrong.

[sharninder]

This looks like one of those schemes that have bullet payments. So you'll pay the given amount for 11 months and the 12th month will have a bigger payment. I might be wrong though but most luxury manufacturers have a scheme like this.

[Mission_PGPX]

Originally Posted by arif_t01

3GT @ Rs.39,999/month.
5 @ Rs.49,999/month.
6GT @ Rs.59,999/month.
X1 @ Rs.33,333/month.
X3 @ Rs.49,999/month
and the very latest
X4 @ Rs.59,999/month.

I was going through my Twitter feed, when I noticed a too good offer for BMW cars. I am smitten by the offer & would love to know more about it. Does anyone know the details? I am attaching the screenshots I took from their website.

I am particularly interested in the X1, if I can get the xDrive M Sport model with BSI+ Package also included. It does mention 3-year complimentary service & maintenance package, but doesn't specify which one nor the variant of the car. At the end of 3 years, I would have paid 12L in emi. I don't know how much it will be for the downpayment, road tax, insurance, etc. Anybody knows? Does it make any sense going for this as the effective interest rate mentioned are 7.99% & 8.99% for different models.

Thats now how this works. This is a part of buy back offer by BMW. The EMI you mentioned are after deducting the down payment of almost 25-40%. Rest is financed by BMW and set as EMI for your buy back period of say 3-4 years. You and BMW will enter into buy back program and fix the value of car after 4 years alongwith 15-20K kms whichever you prefer to. The buy back value will depend on your selection of yearly kms. If you want to keep the car at the end of your tenure then you need to pay the bigger EMI equivalent to your buy back value.

Then lets say you dont want to keep the car and want to upgrade the model after 4 years then you can give the buy back value as your down payment and the new EMI will then depend on your finance value. if you want lower EMI such as those mentioned in the ads then you need to pay bigger downpayment and then almost forget it. The only respite this program gives is the hassle of selling and maintenance of your car.

[Mission_PGPX]

Originally Posted by arif_t01

3GT @ Rs.39,999/month.
5 @ Rs.49,999/month.
6GT @ Rs.59,999/month.
X1 @ Rs.33,333/month.
X3 @ Rs.49,999/month
and the very latest
X4 @ Rs.59,999/month.
.

Found an old email with some more information:

360 Degree Programme
BMW 320d Sport Line
Kilometres 15000 kms
Tenure 48 months
Ex-Showroom Price 4250000
Loan Amount 3500000
Tenure 48 Months
Margin Money 750000
Nil Advance EMI 49511
Balloon Emi (48th EMI) 2061000
PF + Stamp Duty 6610
Down Payment 756610
ROI 7.90%

Note :* offer subject to individual credit approval

[gaurav371]

Not sure if its the right thread - if a car is bought with BMW 360 finance plan can depreciation benefits and tax savings on the account of interest payments can still be claimed? (effectively we end up paying a much higher rate of interest over a smaller principal amount as a I understand it)