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Where can you get a car loan for a BMW?

Buying a luxury car like a BMW in Australia often requires some kind of car finance, whether that’s a car loan, car lease, or other option.

You may be offered car finance from your BMW dealer, or even directly from the BMW group via BMW financial services or Alphera Financial Services. 

While this may be convenient, other options from large and small banks, non-bank lenders and other specialist car finance providers may offer interest rates, fees, features and benefits that better suit your needs. 

Comparing car loans from different financial service providers can help you work out the best options for buying your new car.

What car models are available in the BMW range?

Some of BMW’s current offers include:

  • BMW 1 series 5-door hatchbacks from $46,990, with sporty and dynamic design.
  • BMW 2 series coupes, convertibles and active tourers from $50,990, with striking design and efficient performance.
  • BMW 3 series sedans, touring and gran turismos from $69,900, with intelligent features and a focus on performance.
  • BMW 4 series coupes, convertibles, and gran coupes from $70,900, designed to provide sporty performance.
  • BMW 5 series touring and sedans from $99,400, for modern business needs.
  • BMW 6 series convertibles, gran coupes and gran turismos from $73,200, with distinctive and expressive designs.
  • BMW 7 series sedans from $204,400, designed with luxury in mind.
  • BMW 8 series coupes, sedans and convertibles from $179,900
  • BMW X series SUVs from $46,900, with versatile and dynamic designs.
  • BMW M series sports cars from $102,900, combining performance, agility and precision.
  • BMW i series electric cars from $70,900, featuring innovative technology as well as trend-setting design style.
  • BMW Z series convertibles from $84,900.

Note: Prices based on BMW prices and current prices listed on carsales.com.au as of 29.10.2021. 

How do you compare BMW finance?

Some car loan options may be better suited to buying your next BMW than others, making it important to compare your choices before making a decision. The cost and value of your BMW car loan may depend on a range of factors, including:

  • Interest rate: The higher the rate, the more your loan may cost in interest charges
  • Comparison rate: Combines the cost of interest with standard fees and charges you give you a better idea of the loan’s total cost
  • Fees: May include establishment fees, account keeping fees, and other fees
  • Features: May add extra value for some customers e.g. the option to make extra repayments and redraw this money if required
  • Loan term: A shorter loan term may have higher monthly repayments, but cost you less in total. A longer loan term may help to lower your monthly repayments, but you’ll pay more total interest on your BMW.

What type of credit score do you need to get a BMW car loan?

Generally, the better your credit score, the better the car loan deals you may be eligible for. This is because having a good credit history indicates to lenders that you’re a safer lending risk, who is less likely to default on your repayments.

You can check your credit score at RateCity to get a better idea of which car loans you’re more likely to be eligible for.

What different types of finance are available for BMWs?

Depending on your financial situation, a variety of car finance options may be available for you to use when buying a BMW. These may include:

  • Secured car loans: Using the value of your BMW as collateral on the loan could help you get a lower interest rate, though you risk losing the car if you default on your repayments.
  • Unsecured car loans: These loans don’t require you to use your BMW as security, though they may have higher interest rates.
  • Chattel mortgage: If you’re using your BMW for work, a chattel mortgage may offer some extra tax benefits when used for business finance.
  • Car lease: This may let you enjoy access to a BMW, though you may not get to own the car at the end of the term.

How much does it cost to finance a BMW?

The cost of your BMW car loan will depend on how much you’re borrowing to cover the car’s purchase price, as well as the interest rate, fees, and loan term you’re offered.

The maximum loan amount you may be approved to borrow will depend on a range of factors, from your income and other expenses to your credit score. Your credit score may also affect the interest rate you’re offered.

You can use a car loan calculator to work out the repayments on a car loan in advance, and to estimate the total cost of the loan over the full term. Keep in mind that there may be other fees and charges to also take into account.

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How do you get a BMW car loan?

Once you find a car loan you like the look of, you can start the pre-approval process before buying your BMW. It’s important to check that you can fulfil the lender’s eligibility criteria, and that you can provide the necessary proofs of income, residence and identity.

You may be able to apply for a BMW car loan online, in person at a branch, or over the phone. A car finance broker may be able to help you take care of the paperwork, as well as helping you select a car loan that may suit your needs.

Can you get a car loan from a BMW dealership?

One convenient way to buy a BMW is to take out dealer finance right there in the showroom, or directly from the manufacturer via BMW Australia Finance. However, depending on where you’re buying your BMW, there may only be limited finance options to choose from. Using comparison tools to compare consumer loans before visiting a BMW dealership can give you a better idea of what’s available, so you can make the best choices to suit your financial situation.

What are the pros and cons of guarantor car loans?

Like all things, there are positives and negatives to guarantor car loans, though one may outweigh the other depending on your needs.

Guarantor car loan pros may include that you’re more likely to be approved for a long if you have no credit or a history with bad credit, that you’re more likely to secure a car loan with a lower interest rate, and that because your guarantor car loan is based on a relationship, you will be more inclined to meet your repayment schedule.

However, there are negatives, as well. Guarantor car loan cons may include leaving a detrimental mark on a personal relationship with added strain if you don’t meet your repayments, and you may take out a loan that you can’t actually afford.

Weighing these pros and cons will give you a greater understanding of whether a guarantor loan is ideal for your circumstances.

Where can I get a student car loan?

Student car loans are not a necessarily a product in and of themselves, but what you may be looking for is a guarantor car loan.

A guarantor car loan has a third-party act as a form of guarantee for your loan application, telling the bank or lender that if you default on your loan, someone will pay the loan repayments.

Going guarantor on a car loan is no new thing, and before internet-based credit scores, guarantor car loan applicants would apply for loans with a guarantor or property owner who could vouch for the person borrowing the loan.

To get a guarantor car loan, you’ll need someone willing to act as a guarantor for your car loan.

Can you get a chattel mortgage with bad credit?

Getting approval for a chattel mortgage with bad credit may be possible, given ‘chattel’ (usually a piece of equipment or car) is put up as security for the loan. That means if you fail to repay the loan, the creditor can recover the loaned amount by repossessing and selling the car or piece of equipment. This differs from unsecured car loans, where the asset is not tied to the loan and cannot be taken if you don’t meet the repayments. 

How to get a chattel mortgage?

Both businesses and individuals may use a chattel mortgage, provided that the car is being used predominantly for business purposes. 

To apply for a chattel mortgage, you need to first consider your options and choose a suitable lender that meets your requirements. Once you have selected a lender, you can apply for the loan online by filling out a form. If the lender doesn’t offer an online application process, you can either call them or visit their nearest branch. 

After you’ve applied, the lender will ask you to supply documents that confirm your identification, income, job profile, etc. If everything is in order, most lenders will arrange the loan’s settlement, so all you need to do is pick up your car!

How to find a great car loan

Historically, finding a great car loan would require excess research ranging from visiting an excess of websites or making phone calls, but technology has moved on. Using RateCity, Australia’s leading financial comparison service, you can check out great deals from a range of lenders on the one site.

To start, select the amount you want to borrow and the length of the loan, narrowing your search to show just fixed or variable interest rate results.

Once you’ve indicated your search criteria, you’ll see an immediate list of lenders, ranked by interest rate or application fees. You’ll also be able to view the monthly repayment amount for each result, helping you to know what you can afford.

Up to six products can be compared side-by-side, complete with more information about each car loan, giving you more information about your options.

When comparing your car loan options, it’s ideal to keep in mind some points find a great car loan for your needs. Consider the following:

  • Choosing a low interest car loan can reduce costs
  • Selecting an option with low fees and charges is ideal, because these can really add up
  • Be aware of penalties, such as early exit penalties if you pay off the loan sooner than expected
  • Consider the features that best suit your situation

There are many ways to ensure that you get a great car loan. Ultimately, you’ll end up with the best deal by doing your research and selecting the most suitable product for you.

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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