Bmw Full Circle Agreement
The BMW Full Circle Agreement: Everything You Need to Know
Are you considering buying a BMW but unsure about financing options? The BMW Full Circle Agreement is one financing option that might be worth exploring.
What is the BMW Full Circle Agreement?
The BMW Full Circle Agreement (also known as the BMW Select agreement in some countries) is a type of hire purchase agreement that allows you to finance a BMW car. Unlike traditional hire purchase agreements, this agreement offers flexibility in terms of how much you pay upfront, how much you pay monthly, and how much you pay at the end of the agreement.
How does the BMW Full Circle Agreement work?
When you sign up for a BMW Full Circle Agreement, you agree to pay a certain amount of money upfront (usually between 10% to 30% of the car`s value). You then continue to make monthly payments for a certain period (usually between two to five years), after which you have three options:
1. Pay the Optional Final Payment: This payment is a balloon payment that is equal to a predetermined amount (usually between 40% to 50% of the car`s value). Once you make this payment, you own the car outright.
2. Part-Exchange the Car: You can use the value of the car as a deposit on a new BMW.
3. Return the Car: You can return the car to BMW and walk away.
What are the advantages of the BMW Full Circle Agreement?
1. Lower Monthly Payments: Since you only pay for a portion of the car`s value during the agreement period, your monthly payments are lower compared to traditional hire purchase agreements.
2. Flexibility: The BMW Full Circle Agreement offers flexibility in terms of how much you pay upfront, how much you pay monthly, and how much you pay at the end of the agreement.
3. Predictable Costs: Once you make the Optional Final Payment, you own the car outright, which means you know exactly how much the car will cost you in total.
What are the disadvantages of the BMW Full Circle Agreement?
1. Higher Overall Cost: Since you`re only paying for a portion of the car`s value during the agreement period, you`re essentially borrowing a larger amount of money, which means you`ll pay more in interest charges overall.
2. Balloon Payment: The Optional Final Payment can be a substantial amount of money, which might be difficult to pay for some people.
3. Ownership at the End of the Agreement: Unlike Personal Contract Hire agreements, you`re responsible for selling the car if you choose not to keep it. This can be time-consuming and you may not get the price you want for the car.
Is the BMW Full Circle Agreement right for you?
The BMW Full Circle Agreement is a good option if you want flexibility in terms of how much you pay upfront, how much you pay monthly, and how much you pay at the end of the agreement. However, it`s important to note that this type of agreement is more expensive compared to other financing options, and the Optional Final Payment can be a substantial amount of money. It`s important to carefully consider your budget and financial situation before signing up for any type of financing agreement.
In conclusion, the BMW Full Circle Agreement is a flexible financing option that may be suitable for some people. However, it`s important to weigh the advantages and disadvantages carefully before making a decision. If you`re unsure about your options, it`s always a good idea to speak to a financial advisor or a BMW dealership representative.