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How to finance a BMW

If you're looking to buy a luxury BMW, there are plenty of financing options to consider.

Luxury vehicles like a BMW can be a pricey investment, but thankfully there are plenty of financing options.

BMW offers four financing products and there are several third-party options too.

Below, we explore all of the financing options available so you can decide which is most suitable for you.

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How can I finance a BMW?

When deciding the best way to finance your BMW, decide whether speed or price is your biggest priority. It’s likely to be cheaper to take out a car loan from a bank, credit union or online lender. However, it can also be the most time-consuming, as you’ll need to compare lenders and take action to see what rates and terms you’re eligible for. An unsecured personal loan is an option, though it could be harder to find favourable rates and terms because there is no collateral on the loan.

What options does BMW offer?

The fastest way to get behind the wheel of a new BMW is likely to be through an authorised dealer, especially if you already know the model and accessories you want. In this case, you can negotiate your car price and loan interest rate all at the same time.

BMW offers four financing options:

  • BMW Select (PCP). With this deal, you pay an initial deposit, then cover the rest of the cost using fixed monthly repayments. At the end of your agreement, you can pay an option-to-purchase fee and keep your BMW, part-exchange it for a new one, or return it. You can pay between 0% and 40% of the car’s value as a deposit. The maximum term is 48 months for new vehicles or 60 months for used vehicles. Deals with a term of 50 months or more require a minimum deposit of 10%.
  • BMW Divide. This deal works similarly to BMW Select, although it’s only available for selected models of new car. The term is 24 months and you’ll have to put down between 40% and 60% of the car’s value for a deposit.
  • BMW Hire Purchase. A simpler finance deal. You put down a deposit (between 0% and 80% of the car’s value), then make fixed monthly payments over your chosen term. At the end of your agreement, you’ll own the vehicle. There’s no additional fee at the end of the term. The maximum term is 48 months for new vehicles or 60 months for used.
  • BMW Contract Hire. With this deal, you’ll return the vehicle at the end of your agreement. You’ll pay an initial rental fee, then make fixed monthly rental payments. You can choose a term between 24 and 48 months. This deal is only available on new cars.

The maximum credit amount is £150,000 for all of these deals. You’ll be granted mileage between 8,000 and 50,000 miles per annum, and 150,000 miles in total. You might find additional deals depending on the dealership and where you live. The rates and terms you qualify for will vary based on your creditworthiness and personal finances.

What third-party options are there to finance a BMW?

  • Car finance companies. There are plenty of third-party car finance companies that’ll help you to finance a BMW. With a secured loan, the car will serve as collateral on your loan, meaning your BMW could be repossessed if you fall behind on repayments. Unsecured loans could be available, although these tend to have higher interest rates and less competitive terms attached.
  • BMW dealership finance. BMW dealerships may offer different finance deals to those explained above. Dealership staff will be able to explain the differences for you.
  • Personal loans. You could use a personal loan to buy a BMW. This could be particularly suitable if you’re looking to cover other expenses as well as the cost of the vehicle. You could secure a better rate by using the car as collateral or adding a guarantor.

Does a new BMW come with a warranty?

All new BMWs bought in the UK come with a three-year warranty, while a BMW Approved Used Car comes with a 12-month warranty. Extended warranties are available. To ensure your warranty remains valid, all work on your car will need to be completed at a BMW-authorised workshop.

Average insurance costs for driving a BMW

Frequently asked questions

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