Any thoughts of the BMW 'airbag' financing packages?

[Quikflyer]

Seems like a good deal, say after 3 years, can trade in and get a new BMW. Maintenance wise may be better since still under warranty?Only thing is that you'll never actually 'own' a BMW...and you'll keep paying for the rest of your life (if you continue getting new BMWs - which isn't a bad thing)...Your thoughts?

 

[astroboy]

Want to drink milk need not necessary buy a cow, but if u want to start a family, what choice do u have?

 

[funfer_fahrer]

The idea behind airbag financing is to make the idea of driving a BMW affordable to the masses but at a price. You will basically stuck with BMW brand for the rest of your life, and you'll pay a big amount of money (around 30K-40K) as the last instalment in order for you to own the car. I don't quite like the idea. I want freedom. Yes, freedom.

 

[magicfox]

If this airbag financing is like "leasing" in the USA, then there is mileage limitation on the car as well. And you have to pay if you run over the limit.

 

[pion]

The idea behind airbag financing is to make the idea of driving a BMW affordable to the masses but at a price. You will basically stuck with BMW brand for the rest of your life, and you'll pay a big amount of money (around 30K-40K) as the last instalment in order for you to own the car. I don't quite like the idea. I want freedom. Yes, freedom.

Buy cash. U have 100% freedom.

 

[funfer_fahrer]

Buy cash. U have 100% freedom.

Exactly.
Last year I saw one makcik pasar malam bought by cash a brand new 523i from AB. She just so pissed of she can't get loan from banks. Way to go makcik.:top:

 

[pion]

i bet the makcik doesnt pay income tax

 

[funfer_fahrer]

i bet the makcik doesnt pay income tax

At least she understands how money works.

 

[Quikflyer]

The idea behind airbag financing is to make the idea of driving a BMW affordable to the masses but at a price. You will basically stuck with BMW brand for the rest of your life, and you'll pay a big amount of money (around 30K-40K) as the last instalment in order for you to own the car. I don't quite like the idea. I want freedom. Yes, freedom.

I haven't done the exact calculation yet, but at the last year say, the 5th year, you car will definitely be worth more than 30-40k...

So you would sell your car off before the last payment, and bet there will be more than enough DP for you to get another new BMW, or any other car.

 

[astroboy]

...So you would sell your car off before the last payment, and bet there will be more than enough DP for you to get another new BMW, or any other car.

That's the idea! u are not suppose to keep the car until the last payment is due.. another better unit is always waiting for u at the showroom, for such customers..

The package just give u an easy entry.. to make many's dream come true.. :top:

Such cars has been the driving force for many successful individuals at the later stage of their life.. just like Credit Card. There are more bankrupt from using credit card than acquiring a BMW.. What matter is such individual most of them turn out to be more successful later stage of their life... being able to get back ur passport are one of those great thing few get to enjoy and it meant nothing for those who have not been there.. :smokin:

 

[ALBundy]

The idea behind airbag financing is to make the idea of driving a BMW affordable to the masses but at a price. You will basically stuck with BMW brand for the rest of your life, and you'll pay a big amount of money (around 30K-40K) as the last instalment in order for you to own the car. I don't quite like the idea. I want freedom. Yes, freedom.

Well bro, you are right about the idea on the air bag financing. It makes owning a BMW so much easier, and for same amount that you will be paying monthly for the CAMCords, you could be driving a BMW. More importantly, this package offers you plenty of flexibility as to compared to the traditional package of financing of which you pay a 10% downpayment and pay pay pay everything else within your loan tenure amount.

I had the opportunity to listen to one of the BMW Financial Services Manager enlightening me on this subject some time ago, needless to say when I first read this on the papers (I think came out a couple of years ago), I was just as sceptical over the whole scheme. But upon listening to him, the whole thing is simply fabulous and now in most parts of the world, air bag financing is more popular than the traditional scheme.

Among some of the benefits of this scheme is,

1) You pay lesser monthly installment, which enables you to own a BMW. From surveys, it also shows that by the time the buyer owns the car for 4-5 years, the buyer would more well off (higher salary or better revenue from their businesses), and hence the purchasing power is there to upgrade.

2) Works well with those that likes to upgrade cars every 4-5 years, and apparently from their records, many rich men have also taken this option. ( Why pay more now!! ) This is one point which I think is the strongest selling point of this scheme!!

3) For the final installment, it is set at below market value so that the owner can....

1) dispose the car at a higher market value and settle the last installment (and buy a new BMW again!)

OR

2) reschedule the final installment over the next 2 years (or as negotiated with the financier) at prevailing market interest rate then. The person can then own the BMW!!

I just thought the whole scheme is fabulous and why people will still opt for traditional straight line financing. Of course only BMW offers this package

Cheers!:top:

p/s would be good to know how many in this forum used the air bag financing

 

[E46Fanatic]

I regretted using BMW credit as the interest rate was slightly higher than Public Bank, but I found this out only after I signed the finance docs. However, I didn't opt for airbag financing as if I remember right, the interest is still higher than conventional HP packages. Anyway, my relationship with BMW credit should be coming to an end in the next couple of months.. Yaay!

 

[ALBundy]

However, I didn't opt for airbag financing as if I remember right, the interest is still higher than conventional HP packages.

Yup, the interest rate is slightly higher due to the fact that the monthly installment payment is significantly lower, and hence provides many BMW enthusiasts the option of owning the Ultimate Driving Machine!! :top:

Cheers

 

[racheltoh]

oooi why nobody told me about this? i didnt know its being offered in malaysia...
what is the current interest rate for air-bag financing?

 

[BMW9700]

The idea behind airbag financing is to make the idea of driving a BMW affordable to the masses but at a price. You will basically stuck with BMW brand for the rest of your life, and you'll pay a big amount of money (around 30K-40K) as the last instalment in order for you to own the car. I don't quite like the idea. I want freedom. Yes, freedom.

its a good scheme..dont mind driving BMWs for the rest of my life...wonder how it would work out if i were to pay a higher deposit just to reduce the monthly outlay..on the sixth year, trade in for the latest model...could live with that>>

 

[BMW9700]

oooi why nobody told me about this? i didnt know its being offered in malaysia...
what is the current interest rate for air-bag financing?

just spoke to a SA from ingress...she discouraged me from taking the airbag finance as it was expensive..the current interest rate is 2.98%...one percent higher than the straight financing

 

[paulpaul2]

not really understand wat its the airbag finance?

 

[Quikflyer]

not really understand wat its the airbag finance?

Free airbags

 

[3er]

not really understand wat its the airbag finance?

You pay cheap cheap like 1k every month then after x months POW! you pay RM200k.