How To Finance A BMW In Canada

How To Finance A BMW In Canada

Written by Bryan Daly
Fact-checked by Caitlin Wood
Last Updated July 26, 2022

Every driver has different tastes. Some want a car with more seating and cargo space, others prefer an economical or fuel-efficient (maybe emission-free) model. For anyone seeking comfort, style and performance, a BMW may be a perfect fit. After all, BMW has been producing some of the best cars, SUVs and motorcycles in the world since 1916. 

The only issue is that most BMWs are very pricey, especially new. In fact, it can be at least $38,000 just for a base model and over $80,000 for one from a higher-end series. If you’re thinking about purchasing a BMW, here are some ways you can finance one in Canada.

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How To Finance A BMW In Canada

BMW models cost well over $35,000 for just the base 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 Dealership Financing

If you apply at any BMW dealership, you can finance a new or certified pre-owned car through BMW Financial Services, which offers two alternatives:

Standard Finance 

With BMW Standard Finance, you can qualify for a loan term of 24 – 84 months, depending on your financial preferences and which model you want. You get to choose a weekly, bi-weekly or monthly payment plan, as well as a range of down payment options.    

OwnersChoice Financing

This alternative financing 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. OwnersChoice Financing is NOT available in Quebec.         

BMW Dealership Leasing

If you enjoy changing your car every few years, BMW Financial Services Canada also offers 4 types of leasing for new and certified pre-owned 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 9 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

A standard BMW lease includes 24,000 KM, which means you’ll have to pay extra to go over that limit. The Kilometre Option lets you add more distance. For new BMWs, you can choose to add 12,000 KM, 16,000 KM, 20,000 KM or 24,000 KM per year OR buy a set amount of kilometres upfront.   

Learn how to get out of a car lease.  

Can You Finance Your BMW With A Car Loan?

Some financial institutions offer loans exclusively for financing cars. Basically, you borrow money, use it to buy your BMW, then repay them over time with interest. When it comes to traditional car loans in Canada, there are a variety of lenders you can get a car loan from.

Types Of LendersDefinitionApproximate  Interest RatesLender Examples
BanksMajor financial institutions like Canada’s Big Five banks offer personal loans. They generally offer the best rates but have strict requirements. 0.5% - 15%- TD
- BMO
- RBC
- CIBC
- Scotiabank 
- Laurentian Bank of Canada
Credit UnionsCredit unions are non-profit organizations that are owned by their members. They offer smaller loans than banks but rates are still affordable. Requirements are also more flexible than banks, but you must be a member (of the credit union) to get a loan. 3% or more - Fusion Credit Union
- First West Credit Union
- PACE Credit Union
- DUCA Credit Union
- Meridian Credit Union
- Vancity Credit Union
- Ganaraska Financial Credit Union
Private LendersPrivate lenders are easier to qualify for than banks due to their flexible lending standards. Even those with poor credit may qualify, however, they often charge much higher rates than banks, making them a more expensive option. 8% - 46%- Loanz
- Spring Financial
- LendDirect
- LoanMeNow 
- Consumer Capital Canada
- Mogo

When financing your BMW with a bank, credit union or private lender, it’s important to understand that the car will probably be used as collateral to secure the loan. While this can help you qualify for better rates and payment plans, there are certain risks involved.      

Can You Finance Your BMW With A Personal Loan? 

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 instalments.

An unsecured personal loan may be a more appealing option as there’s no collateral involved. However, since personal loans offer less security, they are often smaller and have less appealing conditions (high rates, short terms, etc.).

What Are The Requirements To Finance A BMW In Canada

Depending on where you apply, you may need good credit, a decent income and a down payment or collateral to be eligible for BMW financing. Your lender or BMW dealer could ask for these personal and financial elements too: 

  • Photo ID – To qualify for any kind of financing, you must be at least the age of majority in your province or territory (18 – 19+). You can provide one or more pieces of valid government ID, such as your driver’s licence and passport as proof of identity.
  • Employment Details – BMWs are pricey, so you’ll need a stable income source. Some lenders may accept alternative sources of income, like self-employment, EI, and government benefits.   
  • Proof of Residency – Most lenders and dealers require you to be a resident or citizen of Canada. That means having a permanent address, which you might need to showcase with a recent utility bill, bank statement or phone bill.   
  • Personal Information – To apply for BMW financing in Canada, you may need to provide other information, like your name, email address and phone number(s). 
  • Financial Details – You’ll need a chequing account for your lender/dealer to withdraw payments from, as well as an income that’s large enough to cover all payments, interest and fees (your bank statements will be necessary here too).  
  • 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 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 your:

  • 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.  
  • 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.  You’ll also have to pay multiple types of sales tax, depending on the province/territory you’re in (GST, HST, PST, etc.). 

Here’s an example to show the potential starting costs of financing a BMW in Ontario, where sales tax equals 13%. Car financing rates range from 0.99% – 4.99% on average.

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 Months84 months 
Interest Rate4.99% APR2.99% APR
Monthly Payment $665.42$763.47
Total Paid$31, 940.16$64,131.48
Total Interest Paid$3 039.95$6 331.33

Types Of BMWs You Can Finance 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 $38k while more higher-end models start as high as $100k. Here are some BMW models you can finance in Canada.

Individual Series2 Series Coupe (Starting MSRP: $38,990)
3 Series Sedan (Starting MSRP: $44,950)
4 Series Coupe & Gran Coupe (Starting MSRP: $53,650)
5 Series Sedan (Starting MSRP: $63,500)
X SeriesX1 Crossover (Starting MSRP: $39,990)
X2 Crossover (Starting MSRP: $43,275)
X4 SAV (Starting MSRP: $59,555)
X5 SUV (Starting MSRP: $77,500)
M Series M2 Competition Coupe (Starting MSRP: $72,200)
M4 Coupe (Starting MSRP: $85,100)
M4 Convertible (Starting MSRP: $89,000)
M5 Sedan (Starting MSRP: $122,000)
M8 Cabriolet (Starting MSRP: $165,000)
X5M SUV (Starting MSRP: $130,000)
Z SeriesZ4 Roadster (Starting MSRP: $63,200)
i Seriesi3 Sedan (Starting MSRP: $44,950)
i8 Coupe (Starting MSRP: $149,900)
I8 Coupe & Roadster (Starting MSRP: $169,900)

BMW Financing FAQs

What is a balloon payment?

A balloon payment lets you finish leasing or financing your BMW with one big payment at the end of your term, instead of several smaller ones. Although this might help you qualify for a lower rate, not everyone can afford such a huge payment. If you need to refinance your loan, you’ll pay more interest because your term will be extended.     

How much does it cost to maintain a BMW?

Most BMW owners pay $1,200 – $2,300 a year in maintenance ($25,000 – $25,000 a decade). That’s pricier than other car brands, especially once your 4-year/80,000 km manufacturer’s warranty ends. Parts are imported from Germany and mechanics must be certified to do repairs/maintenance. Even basic procedures could cost you $250 – $800 yearly.

How much money should I put down on my BMW?

While some dealers and lenders will let you finance a BMW without a down payment, it’s unlikely, given the brand’s high purchase prices. Depending on where you apply and how expensive your BMW is, a down payment of at least 20% is typically the norm. A larger down payment also helps to qualify for the best financing amounts, interest rates and payment plans available.

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.

Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and traveling the world in search of the coolest sights our planet has to offer. Bryan uses the BMO Cash Back Mastercard to earn cash back on everything from boring bill payments to exciting excursions. He is also a strong saver, holding both a TFSA and an RRSP account in order to prepare for his future while taking full advantage of tax benefits.

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