I hope this is the right forum for the question.

I received a promo for a BMW Visa card. One may accumulate points ($1 spent = 1point). Here is the schedule for some rewards:

Lease or loan Rebate on next BMW:
$100 10,000 pts
$1,000 100,000 pts
$5,000 500,000 pts <--(NDLR: I have to spend half a million bucks to get a $5,000 discount? )

Additional lease miles
1,000 miles 25,000 pts
2,000 miles 50,000 pts
5,000 miles 125,000 pts

Excess wear and tear:
$50 6,250 points
$100 12,500 points
$200 25,000 points

Air Travel US Domestic, no blackout date
30,000 points

$50/year fee.

How does this compare to other car cards?
Does it look to you like a good program?

Thanks!



[This message has been edited by Droneklax (edited 07-12-2002).]

Despite being a big fan of BMWs as cars, I don't think this is a good deal. In fact, I turned down the same offer.

It's limited in what you can use points for. The redemption value for BMW stuff, assuming you're going to buy or lease one, is not over 1 �/mile. I suspect (I don't remember any more and I've tossed the stuff) the ticket has a price cap plus a requirement that you get it through their agency, which would put its cost to them in the same ballpark.

You can get better value for flights other ways, and most people don't buy BMWs often enough to take advantage of that part on a regular basis.

For the same $50/year, you can get something like an AA Visa/MC with more and better redemption opportunities, though AFAIK you can't use AA points toward BMWs.

It values the points at $0.01 which is below the consensus of around $0.02 and they charge $50 anual fee. I'd say it's a lousy deal. You would be far better of getting 1% cash back from Discover without an anual fee and spend the money where you like (including BMW).

As a comparison, when I used the GM card a few years ago, they offered a 5% rebate on all charges on the card toward the purchase or lease of a GM car - that's 5 times higher than the BMW card you describe.

FWIW: If you join the BMW Club of America for 1 year, you get a discount of $500 on a 3 series, $1000 on a 5 series, etc. Membership fee is $35 a year and you get a publication and some discounts on service.
Much better deal IMHO.

[This message has been edited by Banton (edited 07-15-2002).]

Just to clarify this. You have to be a fully paid member of the BMWCCA for a full year (365 days) before you're eligible for the "rebate" discount. (it is sent back to you in the mail after submitting a form.) Rebate is also available for used cars ($500) and other models up to the 5 series (including X5). Parts and service discount is 10% at participating dealers.

Here in Germany you can 1% of your gas bills back when you back with the BMW Visa. This is not bad if you see the German prices...up to 1.10$ per litre.

Tim

Also for the $35.00 BMWCCA Membership Fee you also get Roundel. This is the monthly magazine of the CC. It is a great magazine and a wealth of information.

Stinky.

You'd only have to spend $245,000 on the 2% Cash Back Farm Bureau Bank Visa to get $5,250 in cash back, and you can spend that cash back with anyone (not just BMW). On the FBB plan, $1 = 1 point, you need 35,000 points to get $750 cash back.

To top it off the FBB Visa has no annual fee.

http://www.farmbureaubank.com



[This message has been edited by skofarrell (edited 07-15-2002).]