[Sinjen]

Originally Posted by amzbimmer

Just as a followup to this, I've talked to my dealer about the 0.9% at length, as I understood I was getting the base rate. The purchase agreement was slyly marked up to 1.9%, the payment was updated, but they didn't write down the actual percentage anywhere, so they are holing me to the higher rate. I showed them an earlier paper that wrote the 0.9% but they won't honor that.

I tried everything to convince them to give me the 0.9%, including saying that I have secured my own financing, which they said is fine, and they insist there is no way they can do the 0.9% because they would be "losing money" on the loan.

The sellers market is working strongly in their favor, as they know I'm unlikely to walk away from this car.

I'm sorry but there is no way you should accept that. At bare minimum, get the same rate from another bank just out of spite. I would personally walk away, but we all have different scenarios.

[modat]

Originally Posted by amzbimmer

Just as a followup to this, I've talked to my dealer about the 0.9% at length, as I understood I was getting the base rate. The purchase agreement was slyly marked up to 1.9%, the payment was updated, but they didn't write down the actual percentage anywhere, so they are holing me to the higher rate. I showed them an earlier paper that wrote the 0.9% but they won't honor that.

I tried everything to convince them to give me the 0.9%, including saying that I have secured my own financing, which they said is fine, and they insist there is no way they can do the 0.9% because they would be "losing money" on the loan.

The sellers market is working strongly in their favor, as they know I'm unlikely to walk away from this car.

Where is your dealership located? I wonder if different states have different financing. My dealership put 0.9% in writing too. I hope they dont back out once my car comes in

[Flying05]

Originally Posted by amzbimmer

Just as a followup to this, I've talked to my dealer about the 0.9% at length, as I understood I was getting the base rate. The purchase agreement was slyly marked up to 1.9%, the payment was updated, but they didn't write down the actual percentage anywhere, so they are holing me to the higher rate. I showed them an earlier paper that wrote the 0.9% but they won't honor that.

I tried everything to convince them to give me the 0.9%, including saying that I have secured my own financing, which they said is fine, and they insist there is no way they can do the 0.9% because they would be "losing money" on the loan.

The sellers market is working strongly in their favor, as they know I'm unlikely to walk away from this car.

Here is what worked for me when my dealership tried to give away my allocation that I had in writing. Call and ask for the GM and if you don't get them, leave a message that you wanted to talk to them first with your concerns before you call BMWNA about the shady practices going on of which you have in writing. That will get their attention quick. Be professional, but also reiterate in the conversation before you state you issue that you wanted to be fair and connect first before losing forward.

Let's just say that I got my allocation back to me within 12 hours and the GM called again to confirm.

Rates can be different possibly unless you signed a sheet. Is there any fine print language on the bottom? They could say that it was just an example I would say with nothing signed. But none the less, it's shady and very disappointing with all of this greedy BS going on at dealerships right now. Customer service and relationships don't mean shit anymore. It's everyone for themselves unfortunately.

1.9% is not bad, but if you walk, they will just sell it else where. Call their bluff and get financed outside as they definitely won't get a damn thing if you do that. Somebody posted on here that Delta community had some rates in the mid 1% range. Go that route and give the dealer a finger on the way out when you drive off.

['Cane]

Just tell them that you're going to take the deal, but you'll also be putting their shady practices on every BMW forum/Facebook/Twitter so that other buyers know exactly how shady they are.

[amzbimmer]

Originally Posted by 'Cane

Just tell them that you're going to take the deal, but you'll also be putting their shady practices on every BMW forum/Facebook/Twitter so that other buyers know exactly how shady they are.

Thanks guys, I appreciate the support but I also don't want to create too much drama. I'm going to speak to the GM in the next day or so. If they still honor my Penfed discount (which I originally turned down assuming I would get the 0.9% APR), I will come out at net zero if I get the DCU 1.49% rate.

I don't like to burn bridges because I may need them in the future, and I want the car pickup process to go smooth. With the current shortages I do think they have the upper hand, unless I am ready to walk away from a car I've ordered 5 months ago. Even if the delta is $1000 more out of my pocket, it's hard to walk away from a car I've been waiting really 1.5 years for since I've sold my last M3.

[amzbimmer]

Originally Posted by modat

Where is your dealership located? I wonder if different states have different financing. My dealership put 0.9% in writing too. I hope they dont back out once my car comes in

My dealership is in PA, and they just say they are not participating with the current car shortage since they would be losing money on it, not that you can't do it in PA. I think they aren't very happy that I got all three discounts (OL code, loyalty and Penfed) given how hot the market is and how long their waiting list has become.

If they put the rate in writing I wouldn't worry. Just make sure you lock in your rate at the appropriate time prior to picking up the car (website says 60 days), as rates can change on BMW's end.

[Sinjen]

Originally Posted by amzbimmer

Thanks guys, I appreciate the support but I also don't want to create too much drama. I'm going to speak to the GM in the next day or so. If they still honor my Penfed discount (which I originally turned down assuming I would get the 0.9% APR), I will come out at net zero if I get the DCU 1.49% rate.

I don't like to burn bridges because I may need them in the future, and I want the car pickup process to go smooth. With the current shortages I do think they have the upper hand, unless I am ready to walk away from a car I've ordered 5 months ago. Even if the delta is $1000 more out of my pocket, it's hard to walk away from a car I've been waiting really 1.5 years for since I've sold my last M3.

Bringing your own financing like that is the best route...you get the car and take a few dollars out of the fini managers pocket for being a clown. Best of all worlds.

[Slownomore]

Originally Posted by Sinjen

Bringing your own financing like that is the best route...you get the car and take a few dollars out of the fini managers pocket for being a clown. Best of all worlds.

I'm being told now that if I finance outside the dealership it will be a $2k charge. GM isn't budging either, and even hinted at giving away the allocation.
He told me several times "I have at least 15 offers on this car". I know this guy is a crook but it's tough walking away from something I've waited for so long on. To add to that, this is all in writing and the raised the processing fees due to new ownership of the dealership

Any suggestions?

['Cane]

Originally Posted by Slownomore

I'm being told now that if I finance outside the dealership it will be a $2k charge. GM isn't budging either, and even hinted at giving away the allocation.
He told me several times "I have at least 15 offers on this car". I know this guy is a crook but it's tough walking away from something I've waited for so long on. To add to that, this is all in writing and the raised the processing fees due to new ownership of the dealership

Any suggestions?

Damn, that's so slimy. All I can think of is if you have a contract, maybe see if an attorney can look at your deal to see if it's legally binding?

[astroricardo]

Man that's rough. This is just for the allocation too? Like you're still going to have to wait for it to be built?

[Flying05]

None of this surprises me. 99% of dealerships and car salesman are flat out crooks in my vast time of dealing with them. Try contacting the owner of the dealership. I'd move up the ladder and not stop. Been there plenty of times and if you are indeed in the right as it sounds you are, it will eventually work out for you. Most likely they think you're a push over and will either pay up or move on. Don't be that guy.

[SintAFM]

Originally Posted by Slownomore

I'm being told now that if I finance outside the dealership it will be a $2k charge. GM isn't budging either, and even hinted at giving away the allocation.
He told me several times "I have at least 15 offers on this car". I know this guy is a crook but it's tough walking away from something I've waited for so long on. To add to that, this is all in writing and the raised the processing fees due to new ownership of the dealership

Any suggestions?

What terms are you looking at either way?

BMWFS: 1.9% @ MSRP?

Third Party Finance: ___% @ 2k markup? What's the interest rate on your third party loan?

[Slownomore]

Originally Posted by SintAFM

What terms are you looking at either way?

BMWFS: 1.9% @ MSRP?

Third Party Finance: ___% @ 2k markup? What's the interest rate on your third party loan?

My car is at the port and should deliver any day.

At MRSP, 2.29 for the dealer and looking at 1.75 for PenFed. Having really searched around cause figured BMWFs would be the best. This dealer didn't use them and used BOA

[Brazilian_BAMF]

I had a good credit score too and I didn't understood why I got 1.9% instead 0.9%.

[SintAFM]

Originally Posted by Slownomore

My car is at the port and should deliver any day.

At MRSP, 2.29 for the dealer and looking at 1.75 for PenFed. Having really searched around cause figured BMWFs would be the best. This dealer didn't use them and used BOA

Assuming
- $80K out the door (to make #s easy)
- Start first payment on 1 Dec (again to make it easy)

BMWFS puts you at a $1412.39 monthly payment & totals $4743.61 in interest over the life of the loan

PenFed would be $1428.33 monthly & $3699.55 in interest over the life of the loan. Also accounts for a $2k markup on MSRP

Seems like the latter is the better option. Maybe you can negotiate the BMWFS rate to 1.9, but that would put you at about $3.9K total interest compared to the PenFed loan at $3.7K. Does give you the lowest monthly rate ($1398.72)... but we're talking differences of +/- $30 all around.

[merlin3008]

Originally Posted by Slownomore

I'm being told now that if I finance outside the dealership it will be a $2k charge. GM isn't budging either, and even hinted at giving away the allocation.
He told me several times "I have at least 15 offers on this car". I know this guy is a crook but it's tough walking away from something I've waited for so long on. To add to that, this is all in writing and the raised the processing fees due to new ownership of the dealership

Any suggestions?

This is total BS. A penalty for not financing through them?!! I'm not an attorney but I play one sometimes. Any real lawyers please feel free to step in and tell me where I'm wrong.

From what I understand, you have a purchase price and finance rate in writing. You also gave a deposit based on that information. So what you have is a CONTRACT. You also have a production number that was the result of the contracted agreement. They made an offer in exchange for a financial consideration. You have proof of this.

Here's where my legal knowledge may limit me, but here it goes. This is an obvious breach of contract. So now that they've breached, what are the damages? You can't assign a monetary loss as a remedy. So what do you do? There is a concept in the law called "specific performance." Essentially, it says that the party to the contract must perform to the agreement 100% as agreed upon. So basically, they have to sell you the car belonging to the production number assigned, at the agreed upon price at the agreed upon finance rate. Simple right?

But the real question is what to do about it? Are you going to sue them and lose the car, time and money? Probably not. This is where a strongly worded lawyer letter may be your best option. I'd forward to the GM, owner, BMW regional manager, and BMWNA. This could totally backfire, but I hate when dealers do slimy crap like this.

[Sinjen]

Originally Posted by Slownomore

I'm being told now that if I finance outside the dealership it will be a $2k charge. GM isn't budging either, and even hinted at giving away the allocation.
He told me several times "I have at least 15 offers on this car". I know this guy is a crook but it's tough walking away from something I've waited for so long on. To add to that, this is all in writing and the raised the processing fees due to new ownership of the dealership

Any suggestions?

Yeah they can do this. If you HAVE to have the car, line up refinancing and refi it immediately. They'll still probably get paid but you'll at least get the better rate and the car. You CA will be pissed as they may not end up getting the sale if you walk, but the fini and GM don't care.

It sucks to want something so badly and this is exactly why they're pulling this bullshit. I'd walk in a flash, but have a character flaw that makes me want to burn it all down when they pull shit like this. I would say name and shame and just move on, but you have to do what you have to do.

[Sinjen]

Originally Posted by merlin3008

This is total BS. A penalty for not financing through them?!! I'm not an attorney but I play one sometimes. Any real lawyers please feel free to step in and tell me where I'm wrong.

From what I understand, you have a purchase price and finance rate in writing. You also gave a deposit based on that information. So what you have is a CONTRACT. You also have a production number that was the result of the contracted agreement. They made an offer in exchange for a financial consideration. You have proof of this.

Here's where my legal knowledge may limit me, but here it goes. This is an obvious breach of contract. So now that they've breached, what are the damages? You can't assign a monetary loss as a remedy. So what do you do? There is a concept in the law called "specific performance." Essentially, it says that the party to the contract must perform to the agreement 100% as agreed upon. So basically, they have to sell you the car belonging to the production number assigned, at the agreed upon price at the agreed upon finance rate. Simple right?

But the real question is what to do about it? Are you going to sue them and lose the car, time and money? Probably not. This is where a strongly worded lawyer letter may be your best option. I'd forward to the GM, owner, BMW regional manager, and BMWNA. This could totally backfire, but I hate when dealers do slimy crap like this.

It's written on the original term sheet that "This is not an offer or contract for sale."

[SintAFM]

Originally Posted by Sinjen

It's written on the original term sheet that "This is not an offer or contract for sale."

Yep. The Purchase Agreement you sign at delivery is typically the only legally binding contract you'll sign

[adr_M3]

Originally Posted by Sinjen

Yeah they can do this. If you HAVE to have the car, line up refinancing and refi it immediately. They'll still probably get paid but you'll at least get the better rate and the car. You CA will be pissed as they may not end up getting the sale if you walk, but the fini and GM don't care.

It sucks to want something so badly and this is exactly why they're pulling this bullshit. I'd walk in a flash, but have a character flaw that makes me want to burn it all down when they pull shit like this. I would say name and shame and just move on, but you have to do what you have to do.

This. Not sure if you're on the waitlists of other dealers you can use as a fallback but moving ahead with this would leave a bad taste in my mouth knowing they were able to screw you over and would dampen the joy of getting the car, but that's just me. I walked away from an MSRP allocation over a "non-negotiable" rate markup as I personally didn't want to reward their bad behavior even though they likely found another buyer in an instant.

[vj123]

Originally Posted by Slownomore

I'm being told now that if I finance outside the dealership it will be a $2k charge. GM isn't budging either, and even hinted at giving away the allocation.
He told me several times "I have at least 15 offers on this car". I know this guy is a crook but it's tough walking away from something I've waited for so long on. To add to that, this is all in writing and the raised the processing fees due to new ownership of the dealership

Any suggestions?

If you really want the vehicle, you can take the loan from your dealership and refinance with a CU a week later. You will get a lower rate and dealer will not get their commission from the original lender.

[amzbimmer]

Originally Posted by Slownomore

My car is at the port and should deliver any day.

At MRSP, 2.29 for the dealer and looking at 1.75 for PenFed. Having really searched around cause figured BMWFs would be the best. This dealer didn't use them and used BOA

FYI BOA has a 0.5% preferred member discount on auto loans (i.e. if you have 100k assets with them/Merrill Lynch)- which could bring the rate down from 2.29% to 1.79%, if the dealer lets you apply that. They will even give you a bonus ($300-600) for transferring your assets to Merrill if you ask.

DCU (digital federal credit union) is 1.49% if you can manage to qualify, which is not too hard- either via referral or with some nominal fee. See the process below.

https://financialpanther.com/dcu-referral-bonus/