Is car loan from BMW Financial Services is beneficial?

Looking for buy a new car or finance from four wheeler own subsidiary for finance your car but not cleared is it helpful or save your money on interest or not. so check how you can save lakhs of rupees.

BMW Financial Services has a range of financial options to choose from. Offers tailor-made financial solutions such as Step Up Scheme, Step Down Scheme, Balloon Scheme and Bullet Scheme, with low EMI options.

Benefits*:

  1. Efficient and professional services
  2. A range of down-payment options
  3. Several flexible financing terms
  4. Added security of keeping all your automotive needs under one roof

BMW Motors Pvt. Ltd, for instance, if you take a bullet scheme, in this scheme Interest rate is 8.05%.

For example-

you opt a BMW 1Series car which costs Rs.25.6 lakh. You have to make a 20% down-payment of Rs.5.6 lakh, and the company will give a loan of 80% or Rs.20 lakh (for 7 years tenure). The EMI would be Rs.19,999, but you have to pay Rs.1.59 lac of EMI one month every year (called a “bullet amount”). So, you pay an EMI of Rs.19,999 for 77 months, and Rs.1.59 lakh for 7 months.

In all, including processing fee, you would pay Rs.26.58 lakh at the end of seven years which includes just Rs.6,58,000 as interest.

On the other side

If you go with simple loan process of BMW Financial Services, they will charge a interest rate of 11.25%, which means an EMI of Rs.34,508 for 84 months. So, at the end of seven years, you would pay Rs.29.04 lakhs which includes interest of Rs. 898,700.

If you take a loan from State Bank of India (SBI) Currently offers lowest interest rates in market, Interest rate  are 10.45%, and the EMI would be Rs.33,669. In all, you would pay Rs.28.28 lakh at the end of 7 years which includes interest of Rs. 828,216.

In the end, if you go with special schemes for car finance, so check how much you have to pay at the end of your loan. On the basis of this calculation, Schemes of BMW Financial services are beneficial for customers.