How To Finance BMW Used Cars When you go to a dealership to buy BMW used cars, the dealer may wish to know how you are going to finance your purchase. This simply means how you are going to pay for the car that you will choose. You can opt to pay in cash, lease or apply for a car loan. Below is an overview of these three methods of financing the purchase of a car. a)
Buying in cash
This is the best way to buy a used BMW. When you pay for the car in cash, you will be given a significant discount. However, the majority of people do not have enough money to buy cars on cash. Therefore, they opt for the other two options below. b)
Leasing the car
You can lease the BMW and use it as if it was yours. This method of getting a car is not recommended mainly because you will be paying for a car that will never belong to you. In a lease agreement, the dealer may lease the car to you for a specific number of years. You will be paying a monthly fee for the car during the duration of the lease. When the term of the lease expires, you will have to return the car to the dealer or renew the lease. c)
Buying using a car loan
Most people buy BMW used cars used car loans. You can be approved for financing by a lender or apply for a car loan through a dealer. The loan will have to be paid back in installments and should be completed within a set term. The loan is usually secured by the car that you buy. If you fail to pay back the loan, the lender may repossess the car or any other asset you may have used to secure the car loan.