BMW Financing: What To Know Before You Buy
With the right lender to finance your new or used BMW, you can make lower monthly payments and pay less in interest over the life of your loan. We’ll review all of your financing options so that you can choose the one with the best BMW finance rates and get behind the wheel sooner.
How do your BMW payments compare to the average?
Use our auto loan calculator to determine how much car you can afford.We’ve calculated an estimated average monthly car payment for the most popular new and used BMW models. If you already have a BMW financing offer in hand, compare your quote to the average monthly payment for borrowers in your credit band to see if you’re getting a good deal. If you’ve just started shopping for an auto loan, you can use these estimated monthly payments to help you budget for your new ride.
Our estimated monthly payments tend to decrease as credit scores go up, since lenders offer lower interest rates to borrowers with good credit. But you’ll notice that borrowers with excellent credit often have higher monthly payments than people with good or fair credit. That’s because people with excellent credit tend to choose shorter loan terms in order to minimize the amount of interest they pay over the course of the loan.
How did we get these numbers?
The starting MSRP (manufacturer suggested retail price) doesn’t include add-ons, dealer fees or title fees. In order to estimate the monthly payments for the most popular new and used BMW models, we pulled data from EdmundsEdmunds and Experian on average APRs and loan terms for borrowers in different credit bands.
Learn more about how we calculated average monthly BMW payments.
Estimated average monthly payments for new BMWs
| Model | Starting MSRP | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2024 BMW 3 Series | $44,500 | $723.66 | $672.11 | $652.94 | $697.27 |
| 2024 BMW X1 | $40,500 | $646.32 | $600.28 | $583.16 | $622.75 |
| 2024 BMW X3 | $46,900 | $770.06 | $715.21 | $694.81 | $741.98 |
| 2024 BMW 4 Series | $48,300 | $797.13 | $740.35 | $719.24 | $768.07 |
| 2024 BMW i4 | $52,200 | $872.54 | $810.39 | $787.28 | $840.72 |
Estimated average monthly payments for used BMWs
| Model | Fair purchase price | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2018 BMW 3-Series | $16,055 | $292.00 | $255.93 | $228.98 | $224.87 |
| 2018 BMW X1 | $14,784 | $260.90 | $228.67 | $204.59 | $200.92 |
| 2018 BMW X3 | $19,242 | $369.99 | $324.29 | $290.13 | $284.93 |
| 2018 BMW 4-Series | $19,857 | $385.04 | $337.48 | $301.94 | $296.52 |
| 2018 BMW i3 | $13,620 | $232.42 | $203.71 | $182.26 | $178.99 |
BMW finance options
To find the best BMW finance rates, you should get quotes from several different lenders. Fortunately, this doesn’t have to take a lot of time or effort. You can find out what rates you qualify for by submitting a few forms online.
BMW Financial Services
Best for...
BMW deals and incentives.
If you finance directly with BMW, you’ll get a loan from BMW Financial Services. This is called captive financing, and it’s a common choice. According to Experian, over 61% of new financing in 2023 came directly from manufacturers.
BMW Financial Services offers financing on new BMWs and BMW Certified pre-owned vehicles model year 2016 or newer. Loan terms range from 24 to 84 months, and you may be able to finance a BMW with a low down payment — or none at all. Your interest rate will depend on your loan terms, credit score and location, but as of the writing of this article, BMW Financial Services is offering rates as low as 5.29%.
BMW doesn’t publicize what credit score you’ll need to qualify for a loan through BMW Financial Services, and they don’t currently offer a way to prequalify for financing. When you apply for financing through BMW Financial Services, you’ll provide basic personal information like your address, Social Security number, income, down payment and desired BMW model. Then, BMW will do a hard credit pull, which may temporarily lower your credit score by a few points.
If you do qualify for financing through BMW Financial Services, it’s worth looking into its programs and incentives to see if you qualify for discounts or special BMW finance offers.
BMW Certified Pre-Owned
BMW certified pre-owned vehicles come fully inspected and reconditioned to manufacturer standards. You’ll drive away with a limited warranty that will cover your newly purchased ride for one year, and you’ll get BMW Roadside Assistance for up to six years. Plus, BMW certified cars come with special offers. For instance, BMW is currently offering a $1,000 credit on a 2019-2022 BMW 5 Series.
BMW Credit Lock
With BMW Credit Lock, you can lock in your rate for a period of time while you shop around for your new ride.
BMW International Executive Program
Buyers who are in the U.S. for work and who haven’t yet established credit in the U.S. may qualify for financing from BMW Financial Services through the BMW International Executive Program.
BMW Military Program
Active duty, veteran, retiree and reservist military members can get up to $5,000 in credits on select BMW models.
BMW College Graduate Program
If you’ve graduated college in the past two years or you plan to graduate within six months and have an offer of employment, you may qualify for $1,000 toward a new or certified pre-owned BMW.
BMW Mobility Program
When you buy or lease a new or certified pre-owned BMW, you may qualify for up to $2,500 for an adaptive equipment reimbursement.
BMW Financing Programs
BMW Financial Services offers balloon financing, which allows you to make lower monthly payments with a larger “balloon payment” due at the end of your loan term. While this kind of loan may be less expensive in the short term, it is risky if you’re not able to afford the final payment. Consider other ways to lower your car payment before signing up for balloon financing.
Bank and credit union auto loans
Best if...
You can get a discounted interest rate through your bank or credit union.
Traditional lenders like banks and credit unions offer auto loans with competitive rates for borrowers with good to excellent credit. As a bonus, they often offer discounted rates to current customers. As of the writing of this article, Bank of America is offering rates as low as 5.34% on new cars and a 0.50% interest rate discount for Preferred Rewards members.
If you’re a member of a credit union or bank, reach out to ask them whether they offer discounts to current clients. The application process should be simple. Many banks and credit unions allow you to prequalify for a loan, which will allow you to look at your potential interest rates without damaging your credit.
Online auto loans
Best for...
Shopping around for low BMW financing rates.
If you’re looking for the best deal on your BMW loan, it’s a good idea to compare rates from a few lenders. Some online lenders specialize in auto loans for people with fair or bad credit, so if you can’t secure financing through BMW Financial Services or your bank, an online lender may be your best bet.
You can get quotes from up to five lenders at once through the LendingTree auto marketplace. You’ll fill out a form with basic information about the car you want, your down payment, desired loan term and employment information. Then, once you’ve seen the rates you qualify for, you can compare them to any other quotes you already have for your new BMW. Checking your rates won’t hurt your credit.
In-house financing
Best for...
Financing a BMW if you have bad credit and no other options.
At a buy here, pay here dealership, you can get a loan directly through the dealer instead of working with an outside lender. This is called in-house financing. While these loans are convenient and often available to people with bad credit, they come with a hefty price tag in the form of high interest rates.
Bottom line: You’ll likely pay more for your BMW loan at a buy here, pay here lot than with a traditional lender. If you’re having trouble getting BMW financing, consider auto loans for bad credit.
How we calculated average monthly BMW payments
To calculate average monthly BMW payments, we found estimated starting MSRPs and the fair purchase price for some of BMW’s most popular models.
Then, we subtracted an average down payment from each. According to Edmunds, the average down payment on a new vehicle was $7,074 in Q4 2023. For used vehicles, it was $4,122. The resulting figure represents the total amount our hypothetical borrowers financed.
From there, we used our auto loan calculator to figure out average monthly BMW payments, using average APRs and loan terms as reported by Experian’s State of the Automotive Finance Market Q4 2023. You’ll find this data in the tables below. Please note that loan terms were rounded to the nearest whole number during our calculations.
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 12.28% | 9.60% | 7.01% | 5.64% |
| Average loan term | 73.54 months | 74.00 months | 69.94 months | 61.90 months |
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 18.89% | 14.12% | 9.73% | 7.66% |
| Average loan term | 66.25 months | 68.43 months | 68.40 months | 64.77 months |
Frequently asked questions
As of the writing of this article, BMW is not currently advertising any 0% financing offers.
Interest rates with BMW Financial vary based on the car model, the borrower’s credit score, the down payment and the term length. As of the writing of this article, BMW is currently offering rates as low as 5.29% to qualified buyers.
One of the best times to buy a BMW is at the end of a sales cycle — think end of month or end of year — when salespeople are likely working to hit a quota in order to get a bigger bonus. Keep an eye out for holiday sales, since many dealerships will offer discounts on holidays to incentivize people to buy.