A BMW is now more accessible than ever with BMW Financial Services’ leasing programme
In Singapore, besides buying a car outright, there is the option of getting one on a lease. BMW Flow, as offered by BMW Financial Services, is a car leasing programme that promises lower upfront costs and an accessible lease period starting from just 18 months.
It’s a financing solution that gives you the flexibility to drive a BMW with minimal commitment. You have the freedom to decide if you would like to extend your lease on a monthly basis for up to 60 months, which is a good five years, or you can decide to own it at any point in time.
BMW Flow allows you to choose from any car in the current BMW range. It has an advantage over buying a car with a loan because BMW Flow does not affect your personal Total Debt Service Ratio, which enables you a larger degree of financial flexibility when you need to maintain a reasonably large cash flow for other big ticket expenses like home renovations.
The maintenance costs of a vehicle can be quite a bother, but the great thing about the BMW Flow programme is that regular servicing, insurance and road tax are completely covered and already priced into the contract.
Take the example of a BMW X1 sDrive18i. It could cost you only around S$2,500 to drive a month, over a contracted 36-month period, with BMW Flow.
The process begins with a $10,000 sign-up fee and the selection of a lease lock-in period of 18, 24, or 36 months.
|Financing Products||BMW Flow||Hire Purchase|
|Monthly Payment*||S$2,480 / month||S$3,456 / month|
|Road tax, Servicing and Insurance||Included||Not included|
*Prices as of August 2021 for 36 months
Compare that to the traditional car loan, which would require an initial down payment in excess of S$75,000, and a monthly instalment of around S$3,500 for the same 36-month period. There are other important costs to consider too, as buying a car the regular way doesn’t include the cost of road tax, servicing, insurance, and depreciation.
If you’re a driver who likes variety and the option of changing cars often, BMW Flow allows you to do that between contract renewals with no additional fees. When the lease period of 18, 24 or 36 months ends, you can decide if you want to:
– Retain: Purchase the car at a pre-determined price.
– Restart: Continue with a new and different BMW model.
– Renew: Extend your leasing contract for your current BMW model.
However if you need to end your lease earlier, you have the flexibility to do so by topping up the difference in the monthly payment amount.
As far as annual costs go, BMW Flow might be costlier in the short term, but over longer periods it can be slightly cheaper than traditional hire-purchase. Plus, there’s the bonus of not having to worry about and pay for vehicle maintenance costs.