BMW Promotion

[Porkchop]

Is this shady? Or just basically a lease? I can't tell......

BMW 3asy Ride
Ride the Best Bikes in the World at Affordable Monthly Rates
BMW Financial Services presents 3asy Ride, a new financing program that lets you ride the best bikes in the world at an affordable monthly rate. 3asy Ride, as the name suggests, is the most efficient and affordable way to get you on your favorite BMW motorcycle.

3 Steps to Nirvana: in just 3asy steps you can start riding the BMW motorcycle you have been dreaming about. Whether it’s the S 1000 RR Superbike which was voted “International Bike of the Year,” or our Globe-Conquering R 1200 GS Adventure enduros, or our new agile, middleweight naked the F 800 R, or the “all-out-class king” the 175 hp K 1300 S, all of our 2011 models qualify for 3asy Ride.

There are three key elements to 3asy Ride:

1- No down payment required (however a down payment, which could be your current motorcycle will make your payments even smaller).
2- Affordable monthly payment based on partial value of the bike. (Please see end-of-term options below.)
3- No payments until July 2011.

With 3 being the magic number, the concept behind 3asy Ride is truly simple. You choose an eligible new BMW, with no money down, or with a down payment if you choose and then finance the partial value of the bike over 48 months at a competitive interest rate. In addition you can take 90 days to make your first payment. Then, after enjoying your BMW bike for four years you have three options:

• Pay off the remaining balance and keep the bike.
• Re-finance the remaining balance at a competitive rate.
• Trade-in your motorcycle and upgrade to a brand new BMW of your choice.


Sounds simple? We think so.

3asy Ride makes the bike of your dreams more affordable. For example ride a new 2011 BMW for 48 months and depending on the model of your choice you may be paying as little as $92 a month.
Here are 3 popular examples based on the 48/mnt 3asy Ride program:

S 1000 RR for only $147.47/mnt*
R 1200 RT for only $192.35/mnt*
R 1200 GS Adventure for only 216.67/mnt*

BMW 3asy Ride is a great, low payment alternative to regular financing programs. Payments on 3asy Ride will always be lower than a traditional retail loan, since the full cost of the motorcycle isn’t amortized over the entire term. 90 Days to First Payment Program allowed on 3asy Ride. This program is available on all 2011 and select 2010 BMW motorcycles. To find out more about 3asy Ride please contact your authorized BMW Motorcycle dealer.

Now here is the kicker. It sounds all good, $147.47 for an S1000RR right? Here is the disclaimer...

DISCLAIMER:
* The S 1000 RR, R 1200 RT and R 1200 GS Adventure monthly payment examples are based on 6.49% APR, 90 days to first payment, 47% residual and 20% down payment. Qualified customers only. Where balloon financing is available, similar terms may not be available. Excludes tax, title and registration fees. Available only at participating BMW motorcycle dealers. Subject to credit approval. Program not offered in MD, NC, NH, NV, PA & WV. Financing provided by BMW Financial Services. Offer valid until June 30, 2011. © 2011 BMW Motorrad USA, a division of BMW of North America, LLC. The BMW names and logos are registered trademarks.

[shmike]

Originally Posted by Porkchop

Is this shady? Or just basically a lease? I can't tell......



Now here is the kicker. It sounds all good, $147.47 for an S1000RR right? Here is the disclaimer...

It's balloon payment financing.

If you had taken the dealership job, you'd be selling those right now.

[derf]

It doesnt sound shady, but its definately creative financing because you only finance part of the actual bike cost, and are responsible at the end of 3 years for the balance of the loan that isn't financed.

From what I can tell you need a 20% down payment, finance 47%, and are left owing 33% at the end of the loan.

Reminds me of the deals all the other bike companies were doing for a while, $33/month, $99/month, $50/month for the first 2 years then the bike jumps to a normal apr and you wind up with a $350 payment for the next 3 years

[shmike]

Originally Posted by derf

It doesnt sound shady, but its definately creative financing because you only finance part of the actual bike cost, and are responsible at the end of 3 years for the balance of the loan that isn't financed.

From what I can tell you need a 20% down payment, finance 47%, and are left owing 33% at the end of the loan.

Reminds me of the deals all the other bike companies were doing for a while, $33/month, $99/month, $50/month for the first 2 years then the bike jumps to a normal apr and you wind up with a $350 payment for the next 3 years

Close.

The 47% residual is what is owed.

You are paying $147/mo to pay off 33% of the bike.

[Porkchop]

Originally Posted by derf

It doesnt sound shady, but its definately creative financing because you only finance part of the actual bike cost, and are responsible at the end of 3 years for the balance of the loan that isn't financed.

From what I can tell you need a 20% down payment, finance 47%, and are left owing 33% at the end of the loan.

Reminds me of the deals all the other bike companies were doing for a while, $33/month, $99/month, $50/month for the first 2 years then the bike jumps to a normal apr and you wind up with a $350 payment for the next 3 years

A friend bought a 2008 gsxr-600 under one of those deals. It was $69 a month for the first 2 or 3 years. Now he has to pay the remaining 8 grand in very large monthly payments.

[derf]

Originally Posted by shmike

Close.

The 47% residual is what is owed.

You are paying $147/mo to pay off 33% of the bike.

Ha thats what I actually meant to say! But then I didn't

Either way, its a good way of getting into a bad loan. Its also a very easy way into your dream bike if you expect to be in a much better place financially in 2-3 years.

Originally Posted by Porkchop

A friend bought a 2008 gsxr-600 under one of those deals. It was $69 a month for the first 2 or 3 years. Now he has to pay the remaining 8 grand in very large monthly payments.

He's better off wrecking it and using the insurance claim to pay off the difference.

The only good that can come from these loan which are slightly different than the BMW loan mentioned in the OP is that you can actually get a decent deal on these $69/month loans if you pay extra in for the first 2 years. I used to ride with this guy that bought a few bikes with these loans, but paid off the full amount in the first 2 or 3 years. He started off when they first came out paying 3-5x the monthly payment due at the 1.9% apr and had the bike paid off well before he went into the 12% apr at the end of the first few years. Doing it that way he basically paid straight into the principal and had almost no interest being paid off. If you have the ability to pay it off like that from the start its not a bad deal.

Although the original BMW deal has a 6.5% apr and I'm pretty sure for a slightly higher payment you can find a 4.5% apr from a bank or credit union and pay off the full amount in slightly longer time.

[derf]

Hell even my honda fit which I financed around 12k on has a very slightly higher payment than the 1200GS, and it will be paid off in full in 5 years if I make minimum payments the entire time. As it is 14 months into owning the car making $300-$350 monthly payments vs the $225 I actually owe I'm up over 6 months. i should pe paid off in 3 or 3.5 years instead of the actual 5 years the loan is for, save a buttload of money on not paying interest and be payment free for the next few years until I need a new car.

[smileyman]

I see a sub prime BMW bubble!! Wait till the 4 years is up and catfish up the leftovers!

[goof2]

Looks like a great way to purchase half of a sub $14k bike for more than $10k. Isn't credit awesome!