BMW Ramps Up Incentives for June

June 3, 2010

BMW has announced a variety of nice new incentives for June 2010 — in the form of low-interest loans, “loyalty” cash, special promotional leases, and factory-to-dealer cash.

The low-interest loans are structured a little odd but are nevertheless interesting and worth considering. For example, on the BMW 335i xDrive, you can get 0.9% APR for 24 months or 2.9% APR for 72 months – or 1.9% APR for 72 months if you have owned/leased a BMW vehicle in the last 12 months. Similar low-interest rates are available on many other models and styles.

Many 2010 BMW models get special lease deals. These include the 1-Series, 3-Series, 5-Series, 6-Series, 7-Series, X3, X5, X6, and Z4. Note that there are no special leases being offered on new 2011 models. However, you can negotiate your own lease deal — if you understand how leasing works. If not, we recommend you visit LeaseGuide.com.

The BMW special car leases are genuinely good deals. The company has reduced the price (capitalized cost) on which the lease is based, has reduced the interest rate (money factor), and boosted the lease-end residual value. When combined, these factors create a low monthly lease payment for that vehicle. You would not be able to negotiate the same terms on your own.

BMW is also offering “Owner Loyalty Bonus Cash” on selected models, for customers who have previously leased a BMW and now want to lease again. The amount is typically $1500.

Finally, BMW the manufacturer, is providing dealers a form of factory-to-dealer rebate that they call “Build-Out Cash” on many models and styles. This money can be used by dealers to promote sales or provide price discounts to customers — which is typically what happens. When you accept one of those nice lease deals, for example, one of the reasons for the low monthly payment is that the lease price has been reduced by the “build-out cash.” Or if you are buying and it looks like the dealer is giving you the shirt off his back, he’s only passing along his “build-out cash” to you.

Build-out cash can be very significant, especially on higher priced BMW models. For example, the 2010 BMW Z4 gets $3500. The 2010 BMW 5-Series gets $6000. And the 2010 BMW 6-Series gets a whopping $10,000! That’s a nice price discount on a nice car.

You can get free price quotes on any of the above BMW vehicles from Edmunds.com.The quotes will automatically include any cash-back rebates or discounts that are currently available.