When you buy or lease a BMW car, SUV or motorcycle, the company that finances your purchase is part of the same brand that produces your vehicle. That company, known as BMW Financial Services (BMW FS), is an international auto financing and leasing organization that also offers protection plans and credit cards. Known as BMW Group Financial Services in Germany, it contributes nearly one third of the Munich-based company’s total profit.
Buying or leasing a BMW from a dealership that works with BMW FS gives you access to special programs that aren’t available to non-BMW dealers or customers who finance their cars separately from the dealer. These programs include discounts on new car purchases, lowered or waived lease payments and extra mileage allowances. The BMW FS website has an online application, which makes it easy to determine your eligibility.
Many BMW shoppers apply for financing directly through the company’s website, and that process can make it easier to get the loan or lease you want. However, this approach can also raise the risk of credit issues if you aren’t fully ready to buy or lease a BMW. An official financing application will make a hard inquiry on your credit report, and multiple applications can lower your score.
The company’s application also includes a credit score simulator, which can give you an idea of how your score might impact your financing. But it’s important to remember that this isn’t an accurate representation of what your actual score may be. Other factors like your income, your down payment and the model you are trying to finance also play a role in your BMW financing.
The company does report your loan or lease payment history to the major credit bureaus, and consistent on-time payments can help you improve your credit. This can be especially helpful if you are trying to rebuild your credit after bankruptcy or foreclosure. But you should always shop around for the best car loan or lease terms. There are other lenders who may offer better rates, or you can use a pre-approved car loan from your bank or a credit union. If you are an active duty service member, you should know that the Military Lending Act restricts BMW FS from charging you more than 36% APR. BMW Financial Customer Service