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      07-05-2019, 09:49 AM   #1
omaralt
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How long before paying off Bmw FS account to avoid dealer charge back?

I just purchased my x5 and there was a $2k finance credit that I had to finance with Bmw fs to get. My plan was to pay it off ASAP but now the salesman was asking me to wait 7 payments or else they lose that credit? Has anybody heard of this before? I would like to keep using my local dealer and SA so I don't want hard feelings but this seems absurd..
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      07-05-2019, 09:51 AM   #2
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Quote:
Originally Posted by omaralt View Post
I just purchased my x5 and there was a $2k finance credit that I had to finance with Bmw fs to get. My plan was to pay it off ASAP but now the salesman was asking me to wait 7 payments or else they lose that credit? Has anybody heard of this before? I would like to keep using my local dealer and SA so I don't want hard feelings but this seems absurd..
In my case, I have to make four payments. Then i can pay off.

However, the financing incentives and rates are provided by the dealer, NOT BMW financial. So maybe at your dealer it is seven payments. Just ask your sales associate, they will confirm.

You also can pay extra, which reduces the total $$$ paid in interest when you pay it off. So, that also is an option. Pay the entire loan off in those seven payments if you want to!

About two weeks after you get your car, your finance account will be activated via the “my BMW owner’s” link. You can set the payments up for as much as you want. Dealer has no way to prevent that, as far as I know.

Last edited by natahoa; 07-05-2019 at 09:57 AM..
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      07-05-2019, 06:54 PM   #3
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I saw in one of the other forums where someone took the finance incentives and refinanced before the 2nd Payment and another refinanced the next day after purchase.
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      07-05-2019, 07:05 PM   #4
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My dealership asked for 3 months. I called bmw financial and there is no minimum time frame. I'm still going to give them the 3 months tho. They are getting $200 in interest from me and that's it. Lol
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      07-08-2019, 04:44 PM   #5
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If the car is paid off to quickly BMW will charge the dealer the amount of rebate. While you are not obligated to hold the loan any specific amount of time you would be doing your local dealer a favor by making 4-5 payments.
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      07-08-2019, 05:04 PM   #6
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Originally Posted by JayPichardo View Post
If the car is paid off to quickly BMW will charge the dealer the amount of rebate. While you are not obligated to hold the loan any specific amount of time you would be doing your local dealer a favor by making 4-5 payments.
Ya that’s what I thought. And I like my SA and dealership so don’t want them to lose out on the rebate. I was just surprised it’s 7 payments
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      07-12-2019, 10:41 AM   #7
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Not sure about the charge back to dealer, but I paid off the loan before 2nd payment was due -- roughly about 65 days from date of purchase

spoke to dealer and BMWFS and they were v clear that I can pay-off whenever I want

I did wait for BMW CCA rebate to process, so once I got the check, i paid off the BMWFS loan
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      07-13-2019, 05:40 AM   #8
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Thanks. But I spoke to the finance manager and he confirmed if I pay it off before 7 payments they lose out on the rebate. So I can pay it off but they lose. They did give me an amazing deal so I’ll hold off
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      07-14-2019, 03:30 PM   #9
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Quote:
Originally Posted by omaralt View Post
Thanks. But I spoke to the finance manager and he confirmed if I pay it off before 7 payments they lose out on the rebate. So I can pay it off but they lose. They did give me an amazing deal so I'll hold off
I was told minimum 15k loan and 3 month to get the 2k rebate.
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      07-14-2019, 03:41 PM   #10
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Quote:
Originally Posted by omaralt View Post
Thanks. But I spoke to the finance manager and he confirmed if I pay it off before 7 payments they lose out on the rebate. So I can pay it off but they lose. They did give me an amazing deal so I’ll hold off
Can you tell me what dealer. I will be purchasing an X5 40i in the fall.
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      07-16-2019, 12:07 PM   #11
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Originally Posted by poppop View Post


Can you tell me what dealer. I will be purchasing an X5 40i in the fall.
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      07-19-2019, 12:11 PM   #12
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We just ordered a 2020 X5 and our CA said we had to pay at least 3 payments before we paid off the loan to get the discount.

Look closely at the loan cost. Typically the early payments are almost all interest, not principle. So at the end of 3 months, I would have to pay off almost the full value of the loan. So, in the end, it would cost me more to use a loan to pay if I am going to pay it off in three months.
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      07-19-2019, 02:41 PM   #13
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Quote:
Originally Posted by dan321 View Post
Look closely at the loan cost. Typically the early payments are almost all interest, not principle. So at the end of 3 months, I would have to pay off almost the full value of the loan. So, in the end, it would cost me more to use a loan to pay if I am going to pay it off in three months.
Highly unlikely that would be true. You get $2,000 for financing and if you would finance all of it (let's say 80k) at 4.5% (which is higher than the rates we have seen) it still would only cost you about $900 in interest for 3 months. You would still be $1,100 ahead in that scenario and that is not even taking into account the difference in what you would be earning on that money.

Many people only finance the minimum amount ($7.5k or $15k from what many say) and you would be far ahead in that case.
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      07-19-2019, 09:28 PM   #14
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Quote:
Originally Posted by dan321 View Post
We just ordered a 2020 X5 and our CA said we had to pay at least 3 payments before we paid off the loan to get the discount.

Look closely at the loan cost. Typically the early payments are almost all interest, not principle. So at the end of 3 months, I would have to pay off almost the full value of the loan. So, in the end, it would cost me more to use a loan to pay if I am going to pay it off in three months.
Hi dan,

You can try this free loan amortization template. Just plug in the dollar amount you want to borrow, tenor, interest rate, how much additional principal you want to pay down after financial close and when, you will see the total interest you will save and pay over the life of the car loan. That’s how I do it for thinking about the financing strategy of my upcoming G05.

https://www.vertex42.com/ExcelTempla...-schedule.html
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      07-20-2019, 07:07 AM   #15
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Originally Posted by doctorttt View Post
Hi dan,

You can try this free loan amortization template. Just plug in the dollar amount you want to borrow, tenor, interest rate, how much additional principal you want to pay down after financial close and when, you will see the total interest you will save and pay over the life of the car loan. That’s how I do it for thinking about the financing strategy of my upcoming G05.

https://www.vertex42.com/ExcelTempla...-schedule.html
Thanks!
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      07-20-2019, 07:58 PM   #16
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My dealer indicated 6 months as well
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      07-27-2019, 11:30 AM   #17
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For financing, is there any upfront fee? Thanks.
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