[mowflow]

It sounds more or less the same as PCP (not the drug) which lost of people have been using for years over here.

You get a brand new car at an agreed monthly cost for an agreed annual mileage with a guaranteed future value. So in other words you pay the depreciation.

This form of finance has been going for years over here. It's normally worked out in such a way that you have a bit of equity in the car at the end of the term (if you make it to the end, you can voluntarily terminate/trade early, roughly half way through). Basically when you get to the end of the term you have 3 options. 1. pay the final payment 2. hand the car back and walk away 3. trade the car for something new.

There is no obligation to go back to BMW. You can trade the car at another manufacturer.

Opinions on this route of financing are mixed. It can be made to work and can be no worse than buying a new car with your own money. It's never going to be as cost effective as buying a used car but then that's always the case no matter how you finance a new car.