BMW Financing Terms Explained

When you prepare to buy or lease a luxury vehicle, it helps to understand key BMW financing terms so you get a payment package that works for you. Each driver is unique, and most people have additional questions even after they’re familiar with these words and phrases. BMW of Wesley Chapel is here to provide helpful answers and make the financing process stress-free.

b

BMW Lease

A BMW lease is a package that allows you to drive a BMW model for a few years and then trade it in for a new one. Leases typically will have lower monthly payments compared to loans, although they come with certain restrictions, such as how many miles you can put on the vehicle.

BMW Loan

A loan is the money borrowed for your pre-owned or new BMW model that you’ll pay back monthly (plus interest) over a set amount of time, usually about 5 years. With a loan, you are paying to own the vehicle, as opposed to a lease, which is more akin to a long-term rental.

Co-Applicant

A co-applicant is an individual – often a spouse or family member – who will legally assume responsibility for the loan should you be unable to make the payments. If your credit score is low, a co-applicant can help greatly improve your chances of getting approved for BMW financing.

Down Payment

This is the cash you put down when purchasing a vehicle. You usually want to have a down payment between 10 and 20 percent of the vehicle’s price, though this varies depending on whether you’ve chosen to take home a new or pre-owned BMW model.

Interest Rate

A percentage of the total loan value that will be incorporated into your monthly loan payments. Your interest rate may be affected by your credit score and history. The higher your score, the lower your interest rate, and the lower your score, the higher your interest rate will be.

Trade-In Value

Trade-in value is the monetary value of the vehicle that our dealership will purchase from you as part of your BMW financing package. This dollar amount will be subtracted from your overall package and can help to lower your monthly payments.

Virtual Financing Tools

Our BMW finance center offers several resources to help you quickly and easily get a lease or loan package that works for your budget and lifestyle. These tools include an obligation-free credit pre-approval application, a trade-in value calculator, and a monthly payment estimator.

Learn More About BMW Financing in Wesley Chapel, FL

The financing team at our Wesley Chapel, FL, BMW dealership is here to take the stress out of the car financing process. Come see us today to get the ball rolling. We’ll help you get a great payment package so you can start enjoying your luxury model right away!