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Options for financing a BMW

Buying a new BMW? Here’s how to find the funds you need for your next set of wheels.

BMW is synonymous with refined luxury and performance vehicles, offering everything from sporty coupes to go-anywhere SUVs. If you’re looking to buy a car from the marque that promotes itself as “The Ultimate Driving Machine”, and you need help to cover the full purchase price, you’ll need to consider the wide range of finance plans available.

Let’s take a closer look at a selection of BMW finance options to help you work out which one is right for you.

What are the different options for BMW finance?

There are several types of finance available if you want to buy a new BMW:

  • Car loan. Also referred to as a secured loan, a car loan allows you to borrow the money you need to cover the purchase price of your new BMW. These loans are available with fixed or variable interest rates, while the car is offered as collateral for the loan.
  • Unsecured loan. An unsecured loan is almost identical to a regular car loan but with one important difference: you don’t need to offer the car as security. As a result, unsecured loans have higher interest rates than secured car loans.
  • Novated lease. A novated lease is a salary sacrifice arrangement you can set up with your employer. Under this type of agreement, you lease a car and your employer covers the lease repayments directly from your pre-tax income. You then have the option to buy the car outright at the end of the lease. This can be a tax-effective way to purchase a car, but if the car you buy depreciates in value more than expected then you could end up out of pocket.
  • Car lease. Under this type of arrangement, the financier purchases a vehicle on your behalf and then leases it back to you. You’re required to make monthly payments throughout the lease term, with the option to purchase the car outright at the end of the term. Fixed repayments mean you have the security of knowing how much your finance will cost, while the fact that the lease is secured against the vehicle means that you can access lower interest rates.
  • Chattel mortgage. A chattel mortgage is a commercial finance arrangement where a financier lends you the money you need to purchase a new car, and you take ownership of that car straight away. The financier then places a mortgage on the vehicle so that it becomes security for the loan. An optional lump-sum balloon payment at the end of the loan term allows you to tailor repayments to suit your budget.
  • Dealer finance. Another option commonly used by new car buyers is to obtain finance from the car dealer. This is undoubtedly a convenient option and regular discounts or promotional offers mean you may be able to find a good deal. However, dealer finance will usually end up being more expensive than a secured car loan, and you also need to consider whether there’s a large balloon payment – a lump sum payment at the end of the term to finalise your repayments.
  • Credit card. Buying a car on your credit card might seem simple and convenient, with the added bonus of earning a big stack of reward points. However, high interest rates on credit cards, not to mention surcharges imposed by car dealers, mean this option is typically not recommended.
  • Redrawing on your home loan. The final option is to use your home loan’s redraw facility to access the equity you have built up there. If your home loan offers this flexibility and you have sufficient funds built up, this can be a convenient option to help you take advantage of lower mortgage interest rates. However, be warned that redraw fees may apply and you’ll need to be sure you can afford your increased mortgage repayments.

Some of the possible options to finance a BMW

Rates last updated November 19th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Latitude Car Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Finance a new or used car up with loans from $5,000 and benefit from flexible repayments.
Loans.com.au - New Car Loan
5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.
Stratton Finance New Car Loan
From 5.14% (fixed)
5.8%
$18,000
1 to 7 years
$8.90
$457 (for private seller vehicles this fee is $608)
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
You'll receive a fixed rate of 5.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
IMB New Car Loan
5.89% (fixed)
6.24%
$2,000
1 to 7 years
$0
$250
You'll receive a fixed rate of 5.89% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.
Australian Military Bank Car Loan
From 5.71% (fixed)
6.57%
$1,000
1 to 7 years
$10
from $100 to $500
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$250
You'll receive a fixed rate of 8.49% p.a.
Finance a new or used car and benefit from convenient features for car buyers including a car search tool and the option to borrow extra for on-road costs.
RACV New Car Loans
From 5.99% (fixed)
6.55%
$15,000
1 to 7 years
$0
$399
You'll receive a fixed rate of 5.99% p.a.
A larger loan of $15,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
IMB Secured Personal Loan
6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
You'll receive a fixed rate of 6.89% p.a.
Benefit from this competitive rate by securing the loan with a vehicle up to 6 years old. Use this flexible loan for any purpose.

Compare up to 4 providers

Features to consider when comparing your BMW finance options

Consider the following features and inclusions when investigating the finance choices for your new BMW:

  • Loan term. Check how long you will have to fully repay any money you borrow. Will this be managed with regular repayments of the same amount or will there be a larger balloon payment required at the end of the loan term? Terms typically range from one to five years for fixed-rate loans and can extend up to seven years for variable-rate loans.
  • Interest rate. The interest rate has a substantial impact on the total cost of your loan. Even a small variation in the rate can make a big difference to the total amount of interest you pay, so compare a range of finance options to find the best rate available.
  • Fees. Read the fine print closely to familiarise yourself with any fees that apply to your loan. These could be one-off upfront fees or regular ongoing fees, while you may also incur charges in special circumstances, such as if you make an additional repayment ahead of schedule.
  • Comparison rate. The interest rate isn’t a true reflection of how much a loan will cost; you can get a much clearer idea of the cost of a loan by examining its comparison rate. This figure includes the interest rate and all fees that apply to a loan, and is a very useful tool when comparing multiple loan products.
  • Loan amount. Are there any minimum or maximum loan limits? If so, are they suitable for your borrowing requirements?
  • Repayment schedule. Any finance option you choose must have a repayment schedule that suits your income and budget. Make sure you can comfortably afford to make regular payments as well as any balloon payments at the end of the term (if required).

Things to consider before you finance a BMW

Before you decide on a finance option for your BMW, familiarise yourself with the ins and outs of each option and any pros and cons that apply. As an example, while dealer finance can be a convenient and affordable option for some buyers, it’s important to be certain that any dealer finance you are offered represents a good deal. In addition, remember that any balloon payments required once the loan term finishes can be substantial and could cause financial difficulty.

Next, check whether the finance option you are considering allows additional repayments. Making extra repayments whenever you can afford them can help you pay off your loan ahead of schedule, but in some cases you will be charged a fee for each of these repayments. This could have a huge impact on the total cost of your loan, so if you want a finance option with additional repayment flexibility, make sure this option is included.

When comparing finance options, remember that the price advertised for a vehicle usually doesn’t reflect the total cost you end up paying. You’ll need to factor a range of other expenses into your calculations, including:

  • Stamp duty
  • Dealer delivery
  • Optional extras (eg automatic transmission)
  • Registration
  • Insurance
  • Interest on your car finance

Finally, make sure you’ve compared your finance options before you walk into a car dealership ready to buy. This will ensure that you know how much you can afford and allow you to negotiate with confidence.

What you will need to apply for a loan

Before starting an application for any BMW finance option, make sure you satisfy any eligibility criteria that apply. You will usually need to meet the following loan conditions:

  • You must be at least 18 years of age.
  • Your credit history has to be good.
  • You may need to earn a specific minimum income amount each year.
  • You must be eligible to live and work in Australia for the full loan term.

If you meet the above requirements, and you’re ready to apply for car finance, be aware that you’ll be required to supply specific information and documentation during the application process. This includes:

  • Proof of ID. An Australian driver’s licence or your passport will be sufficient.
  • Financial information. The financier will request proof of your ongoing income, for example recent pay slips and bank statements, as well as information about your assets and liabilities. This will help the financier to determine your capacity to repay the money you borrow.
  • Vehicle information. You’ll also need to supply the make, model and purchase price of the car you want to buy.

If you want to hit the road in a new BMW, there are myriad finance options available to help you buy your next vehicle. Just make sure that you carefully compare the pros and cons of each finance option before deciding on the right one for your financial needs.

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Car Loan Offers

Important Information*
Latitude New and Used Car Loan

You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

Loans.com.au - New Car Loan

You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 5.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

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