[CigarManNY]

Hey folks. Let me outline a scenario and just kindly let me know if I can do this:

-I purchase and finance via BMWNA
-Sign the deal, take the car
-My local credit union has much more effective terms

Can I next day for example just go to my credit union and have them buy out the BMWNA loan?

The dealer basically is giving me a deal that is only valid if I go via BMW NA. I want to basically say ok sure and then turn around and just refinance via my credit union.

Thoughts? Thanks folks

[Medal]

Originally Posted by CigarManNY

Hey folks. Let me outline a scenario and just kindly let me know if I can do this:

-I purchase and finance via BMWNA
-Sign the deal, take the car
-My local credit union has much more effective terms

Can I next day for example just go to my credit union and have them buy out the BMWNA loan?

The dealer basically is giving me a deal that is only valid if I go via BMW NA. I want to basically say ok sure and then turn around and just refinance via my credit union.

Thoughts? Thanks folks

Pretty sure you need to hold onto the loan with BMW NA for a year. I don't remember everything that happens if you don't, but from a similar situation in my wife's X5, there were repercussion such as having some of the cost I negotiated down was tacked back on.

[vj123]

I have not dealt with BMWfs so far but based on the reports in the forum, they dont have any prepayment penalty and you can pay it off immediately.

Typically, dealers recommend paying off after 90 days. If you pay earlier, dealer wont get their kickback and might not be happy with you.

[yami sukehiro]

Originally Posted by vj123

I have not dealt with BMWfs so far but based on the reports in the forum, they dont have any prepayment penalty and you can pay it off immediately.

Typically, dealers recommend paying off after 90 days. If you pay earlier, dealer wont get their kickback and might not be happy with you.

I wonder how many people are even ordering (m cars) from their preferred dealers these days

[petrol_phxz]

Why not just finance through your preferred lender to begin with?

Also, in the scenario you mentioned the car might then be considered "used" which usually comes with rates that differ from "new" cars or it might be considered a re-finance which again, comes with different rates.

[vj123]

Originally Posted by yami sukehiro

I wonder how many people are even ordering (m cars) from their preferred dealers these days

Anyone who has an allocation becomes the preferred dealer

[CigarManNY]

Originally Posted by petrol_phxz

Why not just finance through your preferred lender to begin with?

Also, in the scenario you mentioned the car might then be considered "used" which usually comes with rates that differ from "new" cars or it might be considered a re-finance which again, comes with different rates.

Very good point thank you. To answer your question, the dealer is telling me they won't "honor" the deal if I bring outside financing ... ie they won't be getting the kickback via the BMWFS loan. Trust me, I would much prefer to do this with outside financing from the beginning.

They have the consumer by the throat and they know it.. really a shame as this will continue for potentially years to come.

[yami sukehiro]

Originally Posted by CigarManNY

Very good point thank you. To answer your question, the dealer is telling me they won't "honor" the deal if I bring outside financing ... ie they won't be getting the kickback via the BMWFS loan. Trust me, I would much prefer to do this with outside financing from the beginning.

They have the consumer by the throat and they know it.. really a shame as this will continue for potentially years to come.

I've never heard a dealer say no to a cash deal, interesting

[Bimmer5]

Originally Posted by vj123

I have not dealt with BMWfs so far but based on the reports in the forum, they dont have any prepayment penalty and you can pay it off immediately.

Typically, dealers recommend paying off after 90 days. If you pay earlier, dealer wont get their kickback and might not be happy with you.

This ^^^

[razman]

Originally Posted by CigarManNY

Very good point thank you. To answer your question, the dealer is telling me they won't "honor" the deal if I bring outside financing ... ie they won't be getting the kickback via the BMWFS loan. Trust me, I would much prefer to do this with outside financing from the beginning.

They have the consumer by the throat and they know it.. really a shame as this will continue for potentially years to come.

You don't tell them you're getting outside financing. You just saying you're buying the car outright. The check you hand over will be a cashier's check from your credit union instead of a personal check.

[M4CompConv/X7]

Originally Posted by yami sukehiro

I wonder how many people are even ordering (m cars) from their preferred dealers these days

I live in FL, but found an allocation in Mobile AL.
So, NO.

[BugKiller]

I found two allocations: MSRP+$7.5k or MSRP+Loan, pursued the latter.

Told the CA I could pay cash and was told no, had to use BMW Financial but (in a conspiratorial tone of voice) that I could pay off the loan in three months. My plan is to make a massive down payment and pay off in exactly three months, which will be a lot cheaper than the $7.5k over MSRP deal.

Financial hint #1: If you need a loan, get a home equity line of credit and use it to buy whatever. Interest on a home loan is tax deductible, interest on a car and many student loans is not. Used this only once, to buy a car and pay off my last law school student loan in the 1990's.

Financial hint #2: If you own a business and can justify what you are buying as a business expense (my tax accountant said I could have done this with my C63s but I already have an audit bullseye on my back so I didn't) you can use a business line of credit and the interest is a deductible business expense.

Everything listed below I bought for cash. As Mel Brooks said, "Its good to be the King."