Hey guys. I'm awaiting delivery of my 530i. It's set to arrive in Charleston on March 4th. I was thinking about financing with BMW select. Does anyone have experience with this? I have a very good credit history, but it's also very short - barely 2 years. I want my payments to be under $850 a month. Dealer said with regular financing he could make it about $910 - 930. Within the last year I've paid off my last car (totalled in December - payoff of $27,000) and have never had any late payments, and all my credit cards are usually paid off in full at the end of each month. That's a little more than I am looking to pay monthly though. Any ideas or suggestions would be appreciated.
Info on financing
- Thread starter usherjackson
- Start date
BMW select is pure evil unless your thinking about keeping the car 'till you die. If you can't afford the $925 then it might be a good idea to look at another vehicle.
Why is the select plan evil? Well, but the time your done with FIRST round of payments you still have a HUGE sum of money that you will either have to payoff or refinance (nothing like 8-10 years of car payments on ONE car!). So if you decide to ditch the car after a few years, be prepared to bend over and take it. While it may be an attractive option short term but make sure you look long term.
Why is the select plan evil? Well, but the time your done with FIRST round of payments you still have a HUGE sum of money that you will either have to payoff or refinance (nothing like 8-10 years of car payments on ONE car!). So if you decide to ditch the car after a few years, be prepared to bend over and take it. While it may be an attractive option short term but make sure you look long term.
Your best bet for a low APR is a local credit union OR your own bank if you do alot of business with them. LendingTree.com is a great way to get some quick offers from various lenders.
If you have excellent credit a BMW Performance Loan will get you about a 4% rate. And keep a lower monthly payment by putting some $$$ down! Shopping around is the best thing you can do
If you have excellent credit a BMW Performance Loan will get you about a 4% rate. And keep a lower monthly payment by putting some $$$ down! Shopping around is the best thing you can do
Have you thought about a lease and then convert to a loan?
You should check and see what the overall cost will be under all scenarios. That is, what will you pay in payments and balloon payment to buy the car.
If the car you are buying is 54,000.00 then the buy payment they gave you is based on about 6% APR (I based this on 530 with PP and SP and Bi Xeons).
My lease is effectively 2.6% APR for three years. By leasing at first this will give you a lower payment and the opportunity to pay more of the depreciation in the first few years. Rather than paying 910-930, you could pay 700-725 for 3 years and put the other 200.00/month towards principal payoff. This way you are paying less than half the interest rate and more of the 900+ you pay goes on the car, provided you still pay the 900 or keep the 200 extra to pay on buyout.
You are using 50,000+ of their money for 3 years at <3% instead of 6%.
And you also have no mileage concerns because you are going to buy it anyway. I would look at the total payments before you commit to anything.
You should check and see what the overall cost will be under all scenarios. That is, what will you pay in payments and balloon payment to buy the car.
If the car you are buying is 54,000.00 then the buy payment they gave you is based on about 6% APR (I based this on 530 with PP and SP and Bi Xeons).
My lease is effectively 2.6% APR for three years. By leasing at first this will give you a lower payment and the opportunity to pay more of the depreciation in the first few years. Rather than paying 910-930, you could pay 700-725 for 3 years and put the other 200.00/month towards principal payoff. This way you are paying less than half the interest rate and more of the 900+ you pay goes on the car, provided you still pay the 900 or keep the 200 extra to pay on buyout.
You are using 50,000+ of their money for 3 years at <3% instead of 6%.
And you also have no mileage concerns because you are going to buy it anyway. I would look at the total payments before you commit to anything.
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Are these things I should openly discuss with the BMW dealer, or will they just try as hard as possible to take advantage? I'm trying to make sure I go in without looking too naive. I didn't even think about that idea with the lease. I was always told that if you lease you have to pay more if you go over the allotted mileage. Never thought that if I bought it, mileage wouldn't matter. Thanks for the info. Anyone else out there who wants to chime in, feel free. I'm young and trying to look like I know what I'm doing so that I'm not taken advantage of.
Worked him down to 861.00. I did my research, read a whole lot about negotiating and then used lending tree to take in some figures. Although they originially told me payments would be around 920.00, when I actually was in with the finance manager, he says, "OK, so your payments are gonna be 1090.00. I acted to get up and said that I had approved 50,000 loans from several online banks. He pushed some keys and said, "OK, I can give you 950.00. I told him I'd be back tomorrow with a cheque from etrade bank. He pushed some more keys and brought my payment down to 860.00. Only 0.1% higher than etrade. I took it, mainly because I don't know what the hell I'm doing. I think I looked like I did though. ![[wiggle]](/images/smilies/icon_smile_wiggle.gif "Wiggle [wiggle]")
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