[hellotj]

Hi,

I read most of the threads about owners choice and it is not clear if I can simply turn in the car after 3 years. Can someone confirm that using owners choice would allow me to turn in the car like a lease?

MSRP on car is 77075 and for a 3yr/12000 payment is 791.
This is all including tax.
Down payment is 4000.
Owners choice

550xi with M sport, Premium 2, convi, cold,HUD, sport trans

Negotiated price is invoice plu 1740

Is this a good deal?

[jettie1767]

With Owner's Choice, you're actually financing the car with a balloon payment at the end of the initial term. So, if you're taking 3 years, at the end of those 3 years, you have a balloon payment.

That's how they can lower your payment in the initial term.

[hellotj]

Thanks..let me talk to the dealer again.

It seems that I can simply turn in the car...at least thats what my dealer is claiming...

[jettie1767]

Originally Posted by hellotj

Thanks..let me talk to the dealer again.

It seems that I can simply turn in the car...at least thats what my dealer is claiming...

For example...car cost $100k. Dealer structures Owner's Choice as $75k for 3 years and balloon payment of $25k at the end of 3 years. So, your monthly payment for the first 3 years will be the amortization for the $75k+interest.

When 3 years is up, the $25k will come due. You can pay it off or refinance it if you're keeping the car. Or, you can trade it in but you will still owe the $25k to get rid of the car.