[ElCapitanMX]

Hi y'all,

Car ia fully built and hopefully on its way to the port.

I applied to financing through the dealership and they said 4.99 rate.

Looking at the website, it says 3.99.

I asked the dealership what's going on and they said they're allowed to have a 1 point premium for handling all the paperwork, etc. (Bs if you ask me but it's probably part of their profit)

Is this common? It sounds that I need to shop around.

[Rdurty2]

Sounds like complete BS

[MillieMiglia]

Originally Posted by ElCapitanMX

Hi y'all,

Car ia fully built and hopefully on its way to the port.

I applied to financing through the dealership and they said 4.99 rate.

Looking at the website, it says 3.99.

I asked the dealership what's going on and they said they're allowed to have a 1 point premium for handling all the paperwork, etc. (Bs if you ask me but it's probably part of their profit)

Is this common? It sounds that I need to shop around.

Some dealers markup the rate by up to 1 point. I got around this by applying directly on the BMW USA website. The dealer honored the rate I got at BMW.

[ElCapitanMX]

Originally Posted by MillieMiglia

Some dealers markup the rate by up to 1 point. I got around this by applying directly on the BMW USA website. The dealer honored the rate I got at BMW.

That's probably the issue.
I thought that the financing with the dealership was already the bmw financial and what I'm seeing in the website. But it seems it's not.

Uughhh, now I need to go through another credit inquiry and negotiate with the dealership.

[OriginalFake]

Originally Posted by ElCapitanMX

That's probably the issue.
I thought that the financing with the dealership was already the bmw financial and what I'm seeing in the website. But it seems it's not.

Uughhh, now I need to go through another credit inquiry and negotiate with the dealership.

Nope. They are allowed to offer you a higher rate, unfortunately. Good luck.

[BlueLEDz]

Originally Posted by ElCapitanMX

Hi y'all,

Car ia fully built and hopefully on its way to the port.

I applied to financing through the dealership and they said 4.99 rate.

Looking at the website, it says 3.99.

I asked the dealership what's going on and they said they're allowed to have a 1 point premium for handling all the paperwork, etc. (Bs if you ask me but it's probably part of their profit)

Is this common? It sounds that I need to shop around.

Interesting.
Can you share the link? When I look up financing on BMWs website it wants to redirect to the dealer.

The credit union I was planning on going with has a 4.5 rate.

[MillieMiglia]

Originally Posted by BlueLEDz

Interesting.
Can you share the link? When I look up financing on BMWs website it wants to redirect to the dealer.

The credit union I was planning on going with has a 4.5 rate.

https://creditapp.bmwusa.com/(S(mnw4...ppkzwc))/Apply

[BlueLEDz]

Thanks for the link.

[MPR]

Find a better rate elsewhere and let them try to beat it.

I showed up on delivery day with a check in hand from PNC and they offered to beat it so I said sure, why not. They beat it by a quarter of a point (4.25 @ 72). Not much, but I figured why not.

[LukyLu]

Traded in my 2020 and got 1.99% 5 year finance in January 2022

[M240SLC]

Originally Posted by LukyLu

Traded in my 2020 and got 1.99% 5 year finance in January 2022

I wish I would've had that in October. I got 2.49% @ 72mo from Lexus in Feb 2022, as well. But a lot has changed since then.

[donm527]

Speaking of BMW Financial, I wanted to share a letter from BMW Financial and take any thoughts...

Quick backstory... Around Thanksgiving I walk into my BMW dealership and put down $1500 for a M240i order and basically in wait mode. When I made the order and put down the deposit I asked if they were going to do a hard credit check and said I do NOT want a hard check done this early in the process. The advisor and whoever he confirmed to at the dealer assured me no hard credit check. Well by the end of weekend I get notification that they did a hard check on me. I was peeved. But by end of weekend let it pass. It knocked a few points off my score but it's gone back up. (823 TransUnion)

Today December 27 I get a letter from BMW Financial and thought just a greeting letter or something while I am waiting.... The letter says, "We regret we are unable to approve your application." WTF?!!

Now I say WTF?!! cause get this and any thoughts would be appreciated...

The letter says my credit score is (as of 11/22/22): 893 (of 900)

"Key factors that adverserely affected your credit score:"

- Lack of recent auto loan information
- Proportion of loan balances to loan amounts is too high

First one...
I've had my new 2011 Explorer for 11 years as my daily I used for my daily through my daughters kid years. Paid off early.
Have my 2001 Corvette Z06 I bought new in 2000 (pre-ordered; first batches) and paid off within 5 years as my weekend fun car. That's bad??

Second.
Besides my mortgage which is around $140k left and monthly payments around $800 that I've had for looong time, I have a about a dozen credit card with total credit limit of $80K?? But on average I charge about $1k on my cards and I pay $1K on my cards. I haven't left a balance and paid needed interest in years.

With 893 credit score that is not good enough for credit??

Geez . I was already pissed they lied and ran a hard check when they promised they wouldn't. This kinda pisses me off and if I hear some posts of price increase for new cars after the new year even if ordered before that, I'm gonna go elsewhere.

[MPR]

Did they know (and assuming you are) putting more down than $1,500?

[donm527]

Originally Posted by MPR

Did they know (and assuming you are) putting more down than $1,500?

I told the advisor when I was making the order that I planned to not make my monthly payments more than $500 a month and the rest is cash. So somewhere around $24-25K is all I care about financing. Personally I planned to pay it off within a few years like I did with my other two cars mentioned.

Whether that is conveyed to whoever when they run my credit who knows. But you'd think they'd discuss limit and such after approving. Like... OK he has a 780 credit score and will approve for x amount. But 893/900?

[MPR]

I don't know. Maybe they are looking less at credit score and more at available credit. I don't work in the banking/loan industry but maybe banks are getting burned by people over-extending themselves.

Regardless, your credit score means you'll be responsible so it doesn't make sense either way.

Maybe it's a mistake, I'd have them rerun your app or tell them to kick rocks and get a loan from another bank. PNC gave me a competitive rate, but BMW offered to beat it on delivery day so I went with it.

[donm527]

I had no thought of using BMW Financial initially but the last part you mentioned, I thought maybe I could use them to counter with a competitive rate at delivery.

These aren't Jan 22 rates that are available so every point counts lol. And there are mentions of possibly trying to stick 23 price increase even if you ordered before end of year and reducing rates could be a negotiating option if they try to stick the increase. If they tack a 1000-1500 increase they can keep it.

I like the M240i. But I don't have to "have it" like I felt with my 01 Z06. And they've pissed me off with these little irritants... if you are gonna run my credit after promising not too, then with a 893 score and no debt you better not give me a letter of refusal lol.

Originally Posted by MPR

I don't know. Maybe they are looking less at credit score and more at available credit. I don't work in the banking/loan industry but maybe banks are getting burned by people over-extending themselves.

Regardless, your credit score means you'll be responsible so it doesn't make sense either way.

Maybe it's a mistake, I'd have them rerun your app or tell them to kick rocks and get a loan from another bank. PNC gave me a competitive rate, but BMW offered to beat it on delivery day so I went with it.

[ElCapitanMX]

@donm527 I hear you.

Now that my car is close to delivery it's becoming real. But also I don't have too much experience with buying new in the US.

I do have 800+ credit score, I'm not happy they're charging me an extra point compared to what bmw financial advertise. I called bmw financial today and pretty much they told me that even if I apply directly, I need to go through dealership and they can charge the extra point and there's nothing I can do.

I do agree with you, I don't have to have it even though I really want it.

I'm evaluating my options, the best rate I can have is not that different from what the dealership told me which kinda makes me think that it is a take it or leave it situation.

I don't know if I can simply walk away considering that I put a deposit and it looks like the prices went up about 1k from when I ordered.

I think my strategy will be to have them honor the price they gave me and unfortunately suck the 4.99 interest.

Even the credit unions around are quoting 5 or above.

But yeah, it sucks that they denied your application.

[donm527]

Issue cleared up. I think...

I work practically a few blocks from the BMW I ordered so I stopped by during lunch to see if they could give me more detail as to why I was denied.

Spoke to Sales Manager and along with advisor they saw my letter and were as dumbfounded as me that 893 wasn't enough.

The Manager did the work for me and the conclusion was that because I'm ordering the car, because there was no production number or VIN tied to the check that they basically rejected the application as not valid and spits out the letter to the applicant.

We'll that's the explanation I got and he said once the car is built it will be a 5 minute fix to my application based on my score. We'll see.

While I was there I figured I check on my order. Sales Manager said no status change but when he was going through the order and going down the spec with me... somehow the color in system was different than what was entered on system when I ordered.

My order sheet shows Portimao Blue but his system showed Alpine White. So Sales Manager made the change and the rest of the specs look right. Guess we would have caught it when status changed but glad caught it.

I told the Sales Manager that I heard there was a price increase in '23 and that they were going to apply the increase on cars ordered but not built before end of year and he confirmed the price increase.... 3-4% increase? But he told me if that happens on my order that they will honor my price at time of order and just need another call to a manager to adjust it when time comes. hmm... ok.

He also said seems like production has slowed down so be patient.

Originally Posted by MPR

I don't know. Maybe they are looking less at credit score and more at available credit. I don't work in the banking/loan industry but maybe banks are getting burned by people over-extending themselves.

Regardless, your credit score means you'll be responsible so it doesn't make sense either way.

Maybe it's a mistake, I'd have them rerun your app or tell them to kick rocks and get a loan from another bank. PNC gave me a competitive rate, but BMW offered to beat it on delivery day so I went with it.

[donm527]

Good luck with your purchase. I think I got my situation cleared up as explained above. They said a 5 minute fix the credit app once the car is built... and any price '23 price increase will be fixed... once the car is built. So we'll see. Hope after all that they don't try to tack on an extra point on me like in your case.

If you can find a bank with similar rate I would get approval from them and then at time of delivery tell them try to use as leverage and say you are going with other bank unless they can better it. I think they'd try to have you use BMW financing.

Originally Posted by ElCapitanMX

@donm527 I hear you.

Now that my car is close to delivery it's becoming real. But also I don't have too much experience with buying new in the US.

I do have 800+ credit score, I'm not happy they're charging me an extra point compared to what bmw financial advertise. I called bmw financial today and pretty much they told me that even if I apply directly, I need to go through dealership and they can charge the extra point and there's nothing I can do.

I do agree with you, I don't have to have it even though I really want it.

I'm evaluating my options, the best rate I can have is not that different from what the dealership told me which kinda makes me think that it is a take it or leave it situation.

I don't know if I can simply walk away considering that I put a deposit and it looks like the prices went up about 1k from when I ordered.

I think my strategy will be to have them honor the price they gave me and unfortunately suck the 4.99 interest.

Even the credit unions around are quoting 5 or above.

But yeah, it sucks that they denied your application.

[MPR]

Try applying at PNC, they have this check service/system that I used where they FedEx you a check to hand to the dealership that's good up to X thousand dollars at X rate. If that's even a smidge better than BMW Financial, you can use it as bargaining power. It seems like they like to keep financing in house.

I came to the dealership on delivery day prepared to hand them my certified down payment check and a financing check, and we already settled on the cars price so they couldn't pull any BS.

[emcee1011]

At least for my region, BMW removed their APR rates on their website months ago. Probably right about when the interest rates blew up. I'm surprised you still see APR %'s on the website. I only see the generic 'See dealer' message now.

Back then, I had the same experience with a dealer trying to add an extra 1% for no reason. Credit unions offered better rates so once I threatened to go to a CU they reverted back to the advertised rate. For NY, the 4.99% would be the best I could get at this point. Definitely sounds like a 'take it or leave it' situation and the rates probably won't go down for a bit.

[PNTDG42]

Originally Posted by donm527

Well by the end of weekend I get notification that they did a hard check on me. I was peeved. But by end of weekend let it pass. It knocked a few points off my score but it's gone back up. (823 TransUnion)

One thing I find interesting about that, is that I bought a X3M back in May of this year. Financed with BMW Financial. In my Experian login, I can see no signs of them having ever run a credit inquiry on me. I have no inquiries at all showing on my report from 2022. I can see the loan and balance in there, but no inquiry. Does it not show an inquiry if it results in contract? Or did they not even run my credit?