BMW Finance FAQs

To help you understand the BMW financing process, we’ve compiled some frequently asked questions and answers.

1. When will my first payment be due?
2. What is the longest finance term available for my vehicle?
3. What is the minimum down-payment that I’ll need for my loan?
4. What is GAP Coverage?
5. Can I still buy an Extended Service Agreement for my car?
6. What is my responsibility if my leased vehicle is involved in an accident?

When will my first payment be due?
On a retail finance contract, your first payment can be structured so that it is due anywhere between 30 and 45 days beyond your contract date. On a lease, your first payment is made as part of your lease inception fees.

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What is the longest finance term available for my vehicle?
Depending on the age of the vehicle being financed and your credit worthiness, finance terms can be as long as 84 months.

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What is the minimum down-payment that I’ll need for my loan?
The amount of required down-payment required by the lender may be determined by your credit history. It is often possible to finance a BMW vehicle with NO money down. Keep in mind that any down-payment will lower the amount of the monthly payment.

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What is GAP Coverage?
GAP Coverage is an easy and effective way to protect your good credit by eliminating certain unforeseen expenses. You may be surprised to know that, in the event of a total loss, most insurance companies reimburse only the "market (wholesale) value" of your car, not its "replacement value." This, along with your deductible, which may range up to several thousand dollars, can create a significant ‘GAP’ between the settlement and your actual loan balance. This ‘GAP’ is your financial responsibility. GAP Coverage pays that settlement deficiency allowing you to use your money for things you want and not to pay old liabilities.

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Can I still buy an Extended Service Agreement for my car?
You have the full array of BMW extended warranty options available to you until the vehicle age exceeds 45 months or 45,000 miles beyond its original in service date. Once you exceed that milestone, the options become more limited. Please contact Sam ssilverman@BMWofMtLaurel.com or Jason jbaker@BMWofMtLaurel.com in the Finance Department for specific eligibility.

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What is my responsibility if my leased vehicle is involved in an accident?
If your BMW is declared a total loss, the included GAP Coverage through BMW Financial Services will pay any deficiency balance on your lease. (GAP Coverage is included in every BMW Financial Services lease, but it is optional on Retail Installment contracts and other lenders). If your vehicle is damaged but the insurance company determines that it can be fixed, then it is strongly recommended that it be repaired at a BMW Authorized Collision Center. Please contact us here for collision repair details.

If you have further questions about the BMW financing process, click here to contact us or call (866) 926–9726.

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