[NightWriter]

Originally Posted by tico1028

I think this could be a good approach, but question is, how much do prices have to fall (with discounts, etc) to offset increase in rates?

Let's compare $90k borrowed for 60 months:

4%: $1657/mo, total payments $99,449
7%: $1782/mo, total payments $106,926

So you'd pay $125/mo additional, or $7,477 total additional over the life of the loan with the higher rate.

Will auto loans reach 7%? Maybe. Will dealers be offering $7k off MSRP if/when they do? Maybe, though that's harder to believe at this point.

[tico1028]

Originally Posted by NightWriter

Let's compare $90k borrowed for 60 months:

4%: $1657/mo, total payments $99,449
7%: $1782/mo, total payments $106,926

So you'd pay $125/mo additional, or $7,477 total additional over the life of the loan with the higher rate.

Will auto loans reach 7%? Maybe. Will dealers be offering $7k off MSRP if/when they do? Maybe, though that's harder to believe at this point.

Right - so you would need a corresponding discount off MSRP to offset the higher rate. I agree that steep discounts are probably not likely any time soon.

[Shaneartistry]

Originally Posted by Nado

Same here. Did you go to BMW Nashville in Cool Springs? I originally went there and they were trying to sell for like 15 to 20k over MSRP.

Another local owner here said they call and was told they sell at MSRP. BMW Nashville blows. I wont purchase from them.

If you want a contact in Chattanooga, let me know. I ordered mine from them at MSRP and got an allocation in 29 days.

Yes, the $2500 over MSRP was from Cool Springs. I've purchase from both Chatt and Cool Springs within the past year. I haven't talked to Chatt yet about an M3.

Cool Springs ended up giving me a great deal on my X5 a month or two ago — way better deal than Chatt, even though I had purchased from them 9 months prior.

[DocWeatherington]

I will also add some folks paying MSRP are getting hit with 1% extra on the rates. So if you do the math it maybe equal to doing something over msrp anyway.

Also with the rates going up the longer you wait the more that dollar will cost.

[DocWeatherington]

Originally Posted by Danman5666

I would honestly wait - this is my plan. Interest rates are going up and car sales are starting to fall.

Car sales will but with that manufacturers will slow production and reduce costs and stockpile parts.

It's not going to be like year's past

[DocWeatherington]

Originally Posted by tico1028

I think this could be a good approach, but question is, how much do prices have to fall (with discounts, etc) to offset increase in rates?

For example, if you pay 3k ADM but can find a 4% interest rate, vs getting 5k off MSRP and paying 7% interest? Not sure how deep a discount will be available even in the downturn (compared to pre pandemic discounts), and not sure how much rates will actually go up (especially for those savvy enough to find the best rates).

Agree

Car makers aren't going to have massive inventory of cars. The world doesn't work that way.

[DocWeatherington]

Originally Posted by NightWriter

Let's compare $90k borrowed for 60 months:

4%: $1657/mo, total payments $99,449
7%: $1782/mo, total payments $106,926

So you'd pay $125/mo additional, or $7,477 total additional over the life of the loan with the higher rate.

Will auto loans reach 7%? Maybe. Will dealers be offering $7k off MSRP if/when they do? Maybe, though that's harder to believe at this point.

Could be as rates are going...fed just announced

[Aalfred]

Well, I waited to get my M3 in 2020 after COVID hit and then in 2021 when the auto parts shortages hit and wasnt able to get any deals nor faster time lines. Come 2022, the wait times got worse. In the meantime, the price of an M3 Comp went up by 8K. I finally got tired of waiting for the right time and didnt want to wait another 9-12 months and I paid 5K over MSRP for an open allocation and my car is at port now. I could have gotten MSRP and waited another 9 months but then the MY24 might be the one im getting and with the way the prices r going up, the MY24 might be increased another 4K and interest rates might be at 8%. So I think if you are waiting for prices to cool and interest rates to go down, u may have to wait 3-4 yrs and not next yr. With Europes energy crises about to explode after this winter, there is no guarantee that prices won't skyrocket next spring.

[wrbauman]

Originally Posted by Shaneartistry

Yes, the $2500 over MSRP was from Cool Springs. I've purchase from both Chatt and Cool Springs within the past year. I haven't talked to Chatt yet about an M3.

Cool Springs ended up giving me a great deal on my X5 a month or two ago — way better deal than Chatt, even though I had purchased from them 9 months prior.

How long did they tell you it would take to get a car from them? I put a deposit down with them 6 months ago and haven't gotten an allocation, really got zero information from them about the sales process either, sales people won't communicate without being bugged for info. I just got on the list in Chattanooga, it seems like they're more professional than Nashville - from what I've seen so far.

[Aalfred]

Originally Posted by wrbauman

How long did they tell you it would take to get a car from them? I put a deposit down with them 6 months ago and haven't gotten an allocation, really got zero information from them about the sales process either, sales people won't communicate without being bugged for info. I just got on the list in Chattanooga, it seems like they're more professional than Nashville - from what I've seen so far.

If you dont want to wait, BMW Grayson has an allocation. Talk to Brian. PM med if you want his cell phone number. They do want 5K for it, but I think to be on their orderbank, its MSRP and their list is short

[Ram_Rx]

Originally Posted by Nado

Same here. Did you go to BMW Nashville in Cool Springs? I originally went there and they were trying to sell for like 15 to 20k over MSRP.

Another local owner here said they call and was told they sell at MSRP. BMW Nashville blows. I wont purchase from them.

If you want a contact in Chattanooga, let me know. I ordered mine from them at MSRP and got an allocation in 29 days.

I would avoid any dealership in Franklin / Brentwood area, that's a high rollers area, all those dealerships have mark ups.

[Nado]

Originally Posted by Ram_Rx

I would avoid any dealership in Franklin / Brentwood area, that's a high rollers area, all those dealerships have mark ups.

Haha. I promise not all businesses down here are. I live here and yes there are many, most still some good retailers. And there are plenty of people who dont make $500k+ per year.

[M4Tejas]

Never pay over MSRP. The market is cooling. Used prices are down at least 5 percent on eBay. All of them. RWD/AWD etc. Not selling. The internet is a hysteria machine.

[Shaneartistry]

Originally Posted by FORTWORTHCOWBOY

Never pay over MSRP. The market is cooling. Used prices are down at least 5 percent on eBay. All of them. RWD/AWD etc. Not selling. The internet is a hysteria machine.

I found a dealership close by that has an open allocation @ MSRP. They also had an unclaimed Jahre edition G80 at MSRP. I told her I'm looking to take delivery around March or April and she said she recommends waiting a month or so to put an order in.

[Shaneartistry]

Originally Posted by Ram_Rx

I would avoid any dealership in Franklin / Brentwood area, that's a high rollers area, all those dealerships have mark ups.

It must depend on the vehicle. BMW of Nashville in Brentwood wanted $2500 over MSRP for a G80 allocation, but gave me a really solid deal on my current X5.

[gohawks23]

Originally Posted by FORTWORTHCOWBOY

NYSE down nearly 30 percent since Brandon came on the scene. Money boys screaming "bloody murder" ............ don't ask. The shit is "hitting the fan".......

Well the orange blob we had in office started path to inflation with dumb tax cuts and pandemic free money to all...ps, I hate all pols as they only care about selves/power.

[Ram_Rx]

Originally Posted by Nado

Haha. I promise not all businesses down here are. I live here and yes there are many, most still some good retailers. And there are plenty of people who don't make $500k+ per year.

I have a place in Arrington & Franklin, as long as I've been there since 2015, there was always a markup on any cars I was interested in. Gotta pay to play in that area haha.

[Nado]

Originally Posted by Ram_Rx

I have a place in Arrington & Franklin, as long as I've been there since 2015, there was always a markup on any cars I was interested in. Gotta pay to play in that area haha.

Oh yeah for cars, most definitely. I just meant in general.

[kwh3]

Most places in Northern California are charging MSRP but waitlists are pretty long

[Psychos1s]

Puchased the 50 Jahre Edition last Friday (Sept 23) at MSRP. I felt lucky I'm in a smaller market and my local BMW dealer doesn't sell above MSRP. The four month delivery from order is a about right.

Ordered - May 4
Delivered - Sept 23

[JTM09]

Just got quoted +$20k adjustment on a 101k car (PA). Lease for only 36 mo (2k total due) for 2400 a month! :

That is $86k to lease a $101k for 3 years.

Please tell me no one is dumb enough to pay this.

[undecided]

Originally Posted by JTM09

Just got quoted +$20k adjustment on a 101k car (PA). Lease for only 36 mo (2k total due) for 2400 a month! :

That is $86k to lease a $101k for 3 years.

Please tell me no one is dumb enough to pay this.

I think this is precisely the crowd the Fed is trying to quell. Some peeps just got way too much PPP money...