[tobeface]

It's my first BMW and first M4.

I placed a custom order with the dealer with 3k deposit a month ago and they said they will get a production number for me soon.

now they got a production number, but insist to have me to run the credit application NOW with BMW FS with 5.99 rate to proceed with the order. Otherwise, will release the deposit. I don't want to finance with BMW FS actually. I got better choice.

They did mention in the email that I can shop around and choose other lender once the car arrive (2-3 months? ) but i do not trust them since they already broke their promise that put up a deposit then no worries until car arrived. I guess they want to transfer my allocation to other customers with better price (to dealer)?

any suggestion? I am not sure i can find a better price (5% off) with another dealer though

[iviegatron]

Originally Posted by tobeface

It's my first BMW and first M4.

I placed a custom order with the dealer with 3k deposit a month ago and they said they will get a production number for me soon.

now they got a production number, but insist to have me to run the credit application NOW with BMW FS with 5.99 rate to proceed with the order. Otherwise, will release the deposit. I don't want to finance with BMW FS actually. I got better choice.

They did mention in the email that I can shop around and choose other lender once the car arrive (2-3 months? ) but i do not trust them since they already broke their promise that put up a deposit then no worries until car arrived. I guess they want to transfer my allocation to other customers with better price (to dealer)?

any suggestion? I am not sure i can find a better price (5% off) with another dealer though

I went to a different dealer to order the M3 this time and they tried to do the same thing. They wanted me to do a credit check before they would give me an allocation. I told them I'm not running any credit checks since I may pay all cash. When I mentioned that they kind of backed off. Their excuse of running a credit check was that the car is expensive and they didn't want me leaving them hanging even though their deposit was non refundable.

Just tell them you'll pay all cash and no credit check is required. See how they respond.

['Cane]

A lot of dealers will want to run a credit check when the order is placed, but you can not do the actual financing until it arrives. Just wait till it shows up and use your financing, if they give you any grief, go with BMWFS then refinance it a week later with your source.

[Aalfred]

Keep it simple. More and more dealers are running credit checks when you place the order. Atleast in your case, they r running it when ur allocation is here. Just go ahead with the credit check and get ur finance APR. Once you are close to getting ur car, shop around for better offers from outside banks and when u pick up ur car, you can refinance with ur new bank within 30 days. That way, the dealer doesnt get the finance credit from BMWFS as u need to be with them for 90 days. Its a win-win

[DocWeatherington]

It's pretty common, it ensures you can actually pay for the car as in some areas a deposit is 100% per state law refundable, so just double stacks your intention. Some folks will custom order a car and even put down a deposit to only be denied any financing. Or have a debt to credit to income ratio that is non favorable. Loan defaults are high right now.

I would submit the app and it will lock in the rate (90-120days...if delays are hit your dealership can ask for a waiver) then when your car arrives look for a better rate if it exists. You don't have to use BMW FS unless the dealership requires it and like others have said just refi within a few weeks after you get it and the paperwork posts on BMW FS online. I would also ask if the 5.99 is based upon top tier credit or if it's in fact 4.99% and they are doing 1% markup. With that if it's the case you may want to run the math and consider paying a small markup if you consider the net costs.

Also, if you do find a better rate the dealership may give the lowest BMWFS at the time which maybe lower than 5.99 absent any markup. In order to get the $$$ from the loan.

The biggest thing is knowing rates expire and the FED lately keeps upping them so you want to have as many options available when your car arrives.

Welcome to the family.