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      10-11-2011, 07:37 PM   #1
jnm
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question about BMW financing

quick question I'm hoping someone here knows the answer here: if you finance/lease a car through BMW financing, is there a penalty if you want to pay off the finance/lease early? (like, the next day for example)?
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      10-11-2011, 10:38 PM   #2
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Yes I think if you used the Olympic drive discount or the owner loyalty program to reduce the rate then I think you need to keep the loan with BMWFS for a min of 6 months
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      10-11-2011, 10:46 PM   #3
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Originally Posted by JAX S50 View Post
Yes I think if you used the Olympic drive discount or the owner loyalty program to reduce the rate then I think you need to keep the loan with BMWFS for a min of 6 months
If you got the car on Euro delivery, they postpone the first payment for a month. If you cancel with less than three payments made there is a small penalty. I was told it would be around $200, so it might be worth it. If you got a 4.99% from BMW and can hook up a 2.75% which is the going credit union rate, $200 is worth it over the life of the loan.
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      10-11-2011, 10:47 PM   #4
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My contract had no such stipulation. I paid it off early with no penalty. The dealer may get a charge back that costs them profit but will not cost you anything.
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      10-11-2011, 10:52 PM   #5
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Just pay off everything except $100... leave the 100 on there for 3-5 years and pay it off in the end. That way your credit history will show a 50k loan for 36-60 months too.
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      10-11-2011, 10:54 PM   #6
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Originally Posted by Papethova View Post
Just pay off everything except $100... leave the 100 on there for 3-5 years and pay it off in the end. That way your credit history will show a 50k loan for 36-60 months too.
: )

Listen to Papethova...he really knows how to work "the system!"

I never thought of that.
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      10-11-2011, 10:56 PM   #7
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Originally Posted by Papethova View Post
Just pay off everything except $100... leave the 100 on there for 3-5 years and pay it off in the end. That way your credit history will show a 50k loan for 36-60 months too.
LOLLLLL
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      10-11-2011, 11:12 PM   #8
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Quote:
Originally Posted by nachob View Post
: )

Listen to Papethova...he really knows how to work "the system!"

I never thought of that.
Every car purchase I have made has been that way. I just get a statement that says credit XXXXX, 0 due every month. The only downside is you dont have the title, but why do you really need it?
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      10-12-2011, 12:23 AM   #9
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I got pre-approved through BofA ironically. *I did not expect them to give me the best rate when I was shopping around. *I just walked in to the dealership with the letter and allowed them to match the rate if they could because they get something for locking in the financing. *I am sure I wouldn't have gotten that rate if I hadn't done my homework prior.*

I financed half of the car in the end. *If your credit is good enough BofA will waive the $200 processing fee and even drop the rate a bit from 2.75%. *Final rate I ended up with last month was 2.49% for 60mos. *BMW Financial did the financing on the first few BMW's I purchased but lately their rates have really sucked and they are not interested in matching it either.

Oh, and no pre-payment penalty of course.
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      10-12-2011, 12:49 AM   #10
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+100 to Papethova for creative thinking on this one!!! I actually really like that one .

I'll tell the story behind the question in a few days when it's all more locked in, but you guys can probably figure out what it's related too! !
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      10-12-2011, 02:51 AM   #11
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Quote:
Originally Posted by Papethova View Post
Just pay off everything except $100... leave the 100 on there for 3-5 years and pay it off in the end. That way your credit history will show a 50k loan for 36-60 months too.
this is definitely something i've never thought of....
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      10-13-2011, 12:03 AM   #12
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Happy Ending to my story!

So for the end of the story:

My allocation just came through, I have a production #!

I am so happy that almost 8 months after putting down a deposit I finally have a code 112 and a production # in hand!

So the story goes that the guy I'm dealing with told me a couple weeks ago that there were a few 'bonus' allocations coming to the US and that he thought his dealership was going to get one of them. To make the long story short there was a little catch, rather than a pretty much stripped car that I had spec'd the car had to be loaded car (with a few accessories on top), the 'understanding' being that he had at least 3 people in the line behind me ready to pay $15K over to get that slot and his general manager wanted to give the allocation to one of those people. So to make sure that this last minute allocation would not somehow become a 'company car' (like the allocation before mine for example, and like it's been happening at other places as described here) I went along with it. He had me over a barrel and he knew it, and because I have been following this forum since I put the deposit down I knew it as well.

So in the end I'm going to spend more than the way I had it spec'd, and a few of Ks in accessories I would have not bought otherwise, but I am getting it at AT MSRP!!! . Do I feel a bit taken advantage of by the BMW car dealer? Yes I do! But not as much as if I had to pay for a ($7.5K to $20K in my part of the country) markup! At least I'm getting something for the extra $ I had to spend over a base car. And I get to pretend I kept my pride by not paying for any markup .

He says the car will start production next week and arrive by end of November. But after all the anguish that I have been going through and the length of time to get that allocation, this is the easy part .

So there you go, it is possible to get a new allocation at MSRP for a 1M in the middle of October, despite what all those people have been saying in various thread... You just have to had placed a deposit 8 months ago! .

I do believe that BMW did increase a very little bit of production to the US at the last moment (or manage to squeeze a few extra cars out of the factory's production schedule) in order to please a few dealers since the demand has been so high.
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      10-13-2011, 12:41 AM   #13
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Congrats. I'm sure the "bonus car" story was used to reel folks in, as well as, the buyer willing to pay $15K over. If they really had a buyer willing to pay $15K over, then I'm sure the vehicle would've went to him. At the end of the day, you got the car and you're satisfied.
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      10-13-2011, 07:21 AM   #14
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That's what I thought as well but when you think about it they don't need to 'reel folks in', anyone reading these forums knows that in the US at least there's more people wanting those cars than available allocations, and in California at least they ARE selling with a markup (for example BMW of San Francisco never took any names on a waiting list and just put the cars up on the lot with a $20K markup and they have sold all of them (maybe not at $20K over, but probably close to that)). So I would totally believe they have customers willing to pay $15K over (a loaded car). The only reason I am getting the car at MSRP is because that was the deal we agreed on back in March where the guy was taking names and deposits for the waiting list and probably before they realized that they could get away with asking for a substantial markup. Remember that at that time the car hadn't been released yet and the journalists hadn't reviewed it and it barely had been shown at a few car shows.
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      10-13-2011, 07:58 AM   #15
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The best deal I've been able to find out there is navyfederal.com. They have 1.8% for 60 months. Problem is you or a relative as to have -retired- from the military. Meaning 20 years service (or maybe medical discharge). That wasn't going to work for me so I went with penfed. For $15 to join 'Voices for America's Troops' you can become a member of the credit union. Another $5 to open a bank account and your done. In less than 20 minutes I had a check for $20,000 sent to me. Rate is 2.5% for 60 months.

Not quite the deal as Navy federal but if you do the math the difference is only like $6/month. I'm quite happy with the deal
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      10-13-2011, 08:37 AM   #16
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The best deal I've been able to find out there is navyfederal.com. They have 1.8% for 60 months. Problem is you or a relative as to have -retired- from the military. Meaning 20 years service (or maybe medical discharge). That wasn't going to work for me so I went with penfed. For $15 to join 'Voices for America's Troops' you can become a member of the credit union. Another $5 to open a bank account and your done. In less than 20 minutes I had a check for $20,000 sent to me. Rate is 2.5% for 60 months.

Not quite the deal as Navy federal but if you do the math the difference is only like $6/month. I'm quite happy with the deal
+1

Pentagon Federal is great to work with. I'm doing my 1M through them for 1.99% for 48 months. They also work with European Delivery, and are OK with getting the title 2-3 months after they fund the car.
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      10-13-2011, 09:21 AM   #17
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oh u so smartttt



lol
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