Car buyers seeking comfort, style, and performance may find a BMW the perfect fit. After all, BMW has been producing some of the best cars, SUVs and motorcycles in the world since 1916. The thing is, BMWs are very pricey compared to other popular models. Fortunately, there are financing options available to help you cover the relatively high cost of a BMW.
Keep reading to find out more about BMW financing in Canada.
Key Points:
- BMWs are relatively expensive vehicles, with average prices higher than industry averages.
- Given the high ticket price of a BMW, you may need to finance this big purchase with a car loan.
- Financing for BMWs is available from the BMW manufacturer, car dealerships, banks and credit unions, and private lenders.
Best Car Loans In Canada
| Amount | Interest | Term (Months) | ||
|---|---|---|---|---|
 | $500 - $50,000 | Up to 35% | 12 - 84 | Learn more |
 | $7,500+ | Varies | 24 - 96 | Learn more |
 | $500 - $35,000 | Starting at 29.99% | 9 - 60 | Learn more |
 | $500 - $10,000 | 12.99% - 34.99% | 9 - 60 | Learn more |
 | $5,000 - $40,000 | Varies | 12 - 72 | Learn more |
 | $5,000 - $45,000 | 4.90 % - 29.95% | 36 - 72 | Learn more |
 | Varies | 11.9% + | 12 - 84 | Learn more |
 | Up to $50,000 | Varies | 12 - 84 | Learn more |
How To Finance A BMW In Canada
Unless you buy used, you’ll be spending well over $45,000 for a BMW, depending on the specific model. Thankfully, there are several financing options you can look into in Canada for BMW financing. Make sure to compare options until you find a deal that suits your finances perfectly.
BMW Manufacturer Financing
The BMW manufacturer itself offers financing options to consumers through BMW Financial Services. You can access these services through the BMW dealership you purchase your car from. These services are available for both new and pre-owned BMWs. Depending on the dealership you work with, you may even be able to qualify with bad credit, or trade in your existing vehicle to reduce your upfront costs on a new BMW.
Under this program, you have two financing options to choose from: the BMW Standard Finance and BMW OwnersChoice.
BMW Standard Finance
With BMW Standard Finance, you can qualify for a loan term of 24 and 84 months, depending on your financial preferences and which model you want. You can choose a weekly, bi-weekly or monthly payment plan, as well as a range of down payment options.
BMW OwnersChoice Financing
The BMW OwnersChoice Financing program offers terms of 24, 36, 48, or 60 months and weekly, bi-weekly, or monthly payment plans. In this scenario, you’ll make equal payments until your term ends, then a large balloon payment to cover the remaining costs.
The size of the final payment depends on the contract terms and the specific BMW model. If the balloon payment amount at the end of the term is too much for you to financially handle when the time comes, you may be able to refinance this payment.
Note. BMW OwnersChoice Financing is NOT available in Quebec.
BMW Dealership Financing
To maximize convenience, you can apply for a car loan directly with the BMW dealership you purchase your vehicle from. Not only does this save time and hassle, but you may be able to take advantage of dealer-specific promotions and deals.
For instance, as noted earlier, some dealerships work with bad credit borrowers. So, if you’ve got bad credit and are unable to qualify for financing through traditional means, the dealership you buy your BMW from may be willing to work with your situation.
Some BMW dealerships may also offer special offers, including 0% financing. With this type of arrangement, you’d pay no interest on your car loan, which can save you hundreds or even thousands of dollars in interest charges over the life of your loan.
That said, you’ll likely need excellent credit to qualify, and the 0% rate may only apply for a portion of your loan term. Plus, these offers aren’t always available, and may only apply to specific BMW models.
Learn more: 0% Car Financing Offers By Car Brand In Canada
BMW Financing With An Auto Loan
You can apply for traditional auto financing from your bank, credit union, or alternative lender. With this type of financing, you would apply directly with the dealership who is partnered with specific banks. In other words, you would apply for bank financing with a specific financial institution that is partnered with the dealership, but the arrangement is made with the dealer.
With a car loan, the bank will approve a specific amount of money to cover the cost of the vehicle, which they typically provide to the dealership. Then, you make loan repayments to the lender over a set term, which includes both principal and interest.
Car loans from banks and credit unions come with the lowest rates and best loan terms, making them more cost-effective and easier to manage. However, you may have trouble qualifying with a traditional lender if you have poor credit or a unique financial situation. In this case, you can consider applying for a car loan with an alternative lender.
Just keep in mind that car loans from alternative lenders tend to come with higher rates, making them more expensive.
Learn more: Car Loans
| Note: When financing your BMW with a bank, credit union, or private lender, it’s important to understand that the car is used as collateral to secure the loan. While this can help you qualify for better rates and payment plans, your car may be at risk of repossession if you default on the loan at any point throughout the term. Make sure you keep up with your loan payments to avoid risking your vehicle. |
Can You Finance A BMW With A Personal Loan?
While a car loan is a standard way to finance the purchase of a car, including BMWs, you also have the option to take out a personal loan instead.
A personal loan can be another viable way to finance a BMW. Like car loans, personal loans are offered by banks, credit unions, and alternative lenders. These loans allow you to borrow a set amount of cash to buy a BMW, then repay your debt in installments.
However, a personal loan offers less security than a car loan since there’s no collateral. As such, they are often hard to qualify for large amounts and have higher interest rates than a car loan.
What Are The Requirements To Finance A BMW In Canada?
Depending on where you apply, you may need the following to be eligible for BMW financing:
- Good Credit: Your creditworthiness plays a role in your ability to secure auto financing, as it provides lenders with a way to determine how likely you are to repay your loan on time.
- Sufficient Income: You’ll need enough income to comfortably cover your car loan payments.
- Down Payment: A higher down payment will cut down on how much you have to borrow and will reduce the lender’s risk. The higher the down payment, the lower the lender’s risk, and therefore the higher your chances of loan approval at a competitive rate.
| Can You Finance A BMW With Bad Credit? Yes, you can get a BMW car loan despite having bad credit. Car dealerships and alternative lenders are often willing to work with bad credit borrowers to help them get the financing needed to purchase a BMW. That said, you’ll still need to meet other loan criteria, including meeting minimum income requirements. Learn more: Bad Credit Car Loans |
Documents Needed For BMW Financing
Your lender or BMW dealer could ask for these personal and financial elements too:
| Personal Identification | To apply for BMW financing in Canada, you’ll need to provide a valid government ID, such as your driver’s license, as proof of identity. |
| Proof of Income | BMWs are pricey, so you’ll need to prove you have a stable income source by providing pay stubs and/or an employment letter. |
| Banking Details | You’ll need to provide your direct deposit information for payment withdrawals. |
| Vehicle Information | When you apply, don’t forget to include the model and purchase price of your desired BMW, which any dealership will provide. |
Cost Of Financing A BMW In Canada
Before you purchase a BMW, remember that the Manufacturer’s Suggested Retail Prices (MSRPs) above are just the starting prices for each model. You still have to think about insurance, registration, and sales taxes.
If you’re planning to finance a BMW in Canada, you should also consider the factors that can affect the overall cost of your loan payment plan, such as the following:
Interest Rate
Interest rates can vary according to many things, like your credit, income, down payment and how much financing. For example, you may qualify for a lower rate if you have good credit, a high income, and a down payment of at least 20% of your BMW’s sales price when you apply.
Learn more: How To Lower Your Car Loan Interest Rate
Term Length
Your payment term can affect the amount of interest you pay for your BMW financing too. Longer terms may come with lower payments but can cause you to pay more interest over the course of your loan. Similarly, while shorter terms have higher payments, they often lead to lower interest.
Fees
You may also be charged fees during your BMW financing process. Some dealers will charge you to prepare, register and deliver your car. If you miss loan payments, penalty fees may be an issue too.
Learn more: Are Car Dealerships Charging Canadian Consumers Hidden Fees?
Sales Tax
You’ll also have to pay multiple types of sales tax, depending on the province/territory you’re in (GST, HST, PST, etc.). The amount of sales tax you pay will also vary based on the value of your car and whether you’re buying from a dealership or a private seller. You can pay the sales tax upfront or roll it into your car loan payments.
Federal Luxury Sales Tax
If your car value exceeds a certain amount, it may be subject to a luxury sales tax. The federal luxury tax applies to new vehicles priced over $100,000. This tax is calculated as 10% of the total vehicle price or 20% of the amount exceeding $100,000. It’s applied at the point of sale, before GST/HST is added, which means this tax will increase the overall amount you’ll pay.
Given the cost of many BMW models and trim levels, it’s not difficult to reach the $100,000 threshold for the luxury tax to kick in when you buy a BMW.
Learn more: Taxes On Cars In Canada: Dealership vs. Private Sale
Calculate The Costs Of Financing A BMW In Ontario
Here’s an example to show the potential starting costs of financing a BMW in Ontario, where sales tax equals 13%.
| Car Price | $30,000 | $60,000 |
| Down Payment | $5,000 | $10,000 |
| Sales Tax (13%) | $3,900 | $7,800 |
| Loan Amount | $28,900 | $57,800 |
| Term Length | 48 Months | 84 months |
| Interest Rate | 4.99% APR | 2.99% APR |
| Monthly Payment | $665.42 | $763.47 |
| Total Paid | $31,940.16 | $64,131.48 |
| Total Interest Paid | $3,039.95 | $6,331.33 |
What’s The Average Price Of A BMW In Canada?
At the moment, BMW offers 5 series of luxury passenger vehicles: Individual Series, X Series, M Series, Z Series and i Series. Base models start as low as $45,000, while higher-end models can start over $100,000.
The average price you’ll pay depends on the exact model and whether you buy new or used. That said, BMWs are considered more of a luxury vehicle versus other car models, so you can expect to pay more for this brand compared to others.
Types Of BMWs You Can Finance In Canada
Here are some BMW models you can finance in Canada.
| Individual Series | -2 Series -3 Series -4 Series -5 Series |
| X Series | -X1 Crossover -X2 Crossover -X4 SAV -X5 SUV |
| M Series | -M2 Competition Coupe -M4 Coupe -M4 Convertible -M5 Sedan -M8 Cabriolet -X5M SUV |
| Z Series | Z4 Roadster |
Alternative Options To Financing A BMW
While financing a BMW is a common option among car buyers, other alternatives are available to help you cover the cost of your vehicle:
Buy A Used BMW Upfront In Cash
Buying used is a great way to keep the cost of your BMW purchase low and avoid the first few years of rapid depreciation. Used BMWs are available from both dealerships and private sellers. If you have the financial means, you may consider an all-cash deal to avoid taking out a loan.
Buying a car in cash will help you avoid the hard credit check and the interest you otherwise would pay on a loan. This can save you money and hassle.
Learn more: Is Paying Cash For A Car A Good Idea?
BMW Dealership Leasing
If you enjoy changing your car every few years, a car lease may be something to consider. BMW Financial Services Canada offers 4 types of leasing for BMW vehicles:
Standard Lease
A standard BMW lease can have a term of 24, 36, 39, or 48 months (based on the model year), and you get to choose your preferred down payment. Additionally, you’ll receive a guaranteed buyback value and the option to lease a new BMW or buy yours once your leasing period is over.
Single Payment Lease
Rather than making monthly payments, this plan allows you to lease a BMW with one large lump sum payment. Moreover, you’re only charged interest on the BMW’s residual value, and after the lease ends, you can buy your BMW or move on. Plus, most Single Payment Leases come with lower rates and borrowing costs.
Multiple Security Deposit Lease
This plan lets you lease a BMW by offering up to 6 additional refundable security deposits. That extra security can earn you a lower leasing rate. Once your term is up, your deposits will be refunded, and you can apply the money toward a new lease or use it to buy your BMW.
Kilometre Options
With this option, you can choose the number of kilometres included in your lease, then pay extra for additional distance you drive. New BMWs come with annual allowances of 8,000 km, 12,000 km, 6,000 km, 20,000 km, and 24,000 km. Certified pre-owned BMWs come with annual allowances of 18,000 km, 24,000 km, and 30,000 km.
Bottom Line
There are plenty of different ways you can finance or lease a BMW in Canada, as long as you have the financial capacity to cover all your payments on time. Banks, credit unions, alternative lenders, and BMW manufacturers themselves all provide some form of financing to help you cover the cost of a BMW, whether new or used.
