Hello and goo day to all otai2...I booked already my own f30 320d without knowing the salesman rekemen me this bmw credit scheme so call step up financing.... According to him monthly installment will increase over the years. The laon already approved but hey i need to think fisrt before sign any document....... Wether to proceed or not....Can u guys tell me pro and cons about this scheme? I really need u guys help as this is for my very 1st udm... Thank zillion......
Bmw credit step up financing ??? Any advise ???
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JFT63
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I recalled my friend's experience quite similar to this. He bought naza citra with this kind of scheme and ended up paying more as the car got older. I am not sure abt this multi tier financing, so i might be wrong. But that was what my friend faced during the tenure. Do ask the salesman about the scheme before signing the agreement..my duasen saja (my 2 cents)
fabianyee
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First of all, did they provide u with the complete list of monthly repayment amount over the duration for you to study in detail??
The reasoning behind this is that your income will increase over the years. so you can afford to pay higher installment from year to year. It's good if the income grows as per projected.. But then only you know whether this will work.
The bad side of it is that the repayment is lower for the 1st 2-3 years. But when you want to sell the car, the outstanding loan balance might still be a lot, depending on the downpayment paid. Will be a pain to still have to top up the balance to sell the car.
The reasoning behind this is that your income will increase over the years. so you can afford to pay higher installment from year to year. It's good if the income grows as per projected.. But then only you know whether this will work.
The bad side of it is that the repayment is lower for the 1st 2-3 years. But when you want to sell the car, the outstanding loan balance might still be a lot, depending on the downpayment paid. Will be a pain to still have to top up the balance to sell the car.
AFAIK, the 1st year will be cheap (aka no need downpayment) and the monthly installment will increase yearly.
So let's "assume"1st year you pay 1,888 per month, 2nd year- 2,088 p/mo, 3rd year-2,288 p/mo.
By the time you reach the last yr (assume 7th yr), you'll be paying 3,088 p/mo.
BUT you'll also need to pay a lump sum- i.e 60K for the final year.
BMW logic is that it assumes you'll sell your car by 7th yr (for at least 60K) and you'll use it to pay the lump sum.
If you calculate the annualized interest rate for step-up VS normal bank loan, the step-up is more expensive.
But the good thing is that you can have the option of paying less deposit.
So let's "assume"1st year you pay 1,888 per month, 2nd year- 2,088 p/mo, 3rd year-2,288 p/mo.
By the time you reach the last yr (assume 7th yr), you'll be paying 3,088 p/mo.
BUT you'll also need to pay a lump sum- i.e 60K for the final year.
BMW logic is that it assumes you'll sell your car by 7th yr (for at least 60K) and you'll use it to pay the lump sum.
If you calculate the annualized interest rate for step-up VS normal bank loan, the step-up is more expensive.
But the good thing is that you can have the option of paying less deposit.
digerati
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Actually, the sample is on BMW Malaysia's website:
http://www.bmw.com.my/com/en/genera...privateindividuals/leasing_usage_leasing.html
Then click download example. Hope that helps
http://www.bmw.com.my/com/en/genera...privateindividuals/leasing_usage_leasing.html
Then click download example. Hope that helps
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