[anasryadi]

So when I ordered my M240i the interest rate was 0.9% and right now before I got it delivered it's already 1.9%. The general said that there was no reason to do a credit app unless if it was for lease residuals and I didn't do it. Will I be paying the 1.9%? I'd be upset if I have to pay 1% more because I told him that I wanted to credit app.

[tahoebimmer]

Originally Posted by anasryadi

So when I ordered my M240i the interest rate was 0.9% and right now before I got it delivered it's already 1.9%. The general said that there was no reason to do a credit app unless if it was for lease residuals and I didn't do it. Will I be paying the 1.9%? I'd be upset if I have to pay 1% more because I told him that I wanted to credit app.

The rate charged by BMW Financial is usually marked up by dealers 1% unless you had an agreement in writing that they wouldn't mark it up.

[anasryadi]

Originally Posted by tahoebimmer

The rate charged by BMW Financial is usually marked up by dealers 1% unless you had an agreement in writing that they wouldn't mark it up.

The rip-off dealers mark up by 1% especially in LA and in this market. But I've been buying cars from these guys for a while and they never marked up the rates for me from what bmw is charging. When they do mark it up but 1% they get $1000-1500 from bmw which they will have to pass to you, but if they mark the price up it will go to their pockets.

[steelatx]

I took at a look at bmwusa and looks like they are advertising 1.9% / 60 vs the 0.9% it has been. Previously 1.9% was for 72 mo. It's very odd to see a oem change incentives / finance promos mid month. Not sure if this is a weird tactic to deter orders so that they can catch up on production? Or they just got wise and know they are selling cars like hot cakes and might as well get as much money as possible. Very odd tho.

Not surprisingly oem incentive money was waaaaay down in 2021.

[anasryadi]

Originally Posted by steelatx

I took at a look at bmwusa and looks like they are advertising 1.9% / 60 vs the 0.9% it has been. Previously 1.9% was for 72 mo. It's very odd to see a oem change incentives / finance promos mid month. Not sure if this is a weird tactic to deter orders so that they can catch up on production? Or they just got wise and know they are selling cars like hot cakes and might as well get as much money as possible. Very odd tho.

Not surprisingly oem incentive money was waaaaay down in 2021.

That's very lame! It was 0.9% apr just a few days ago. I emailed the general manager to see if there is anything he can do. Can they lock financing APR like lease rates? With all the high car prices at least I wanted to see the apr with a zero in front of it

[mechman]

There is usually a rate lock of 60days once the credit is run. However, I heard due to the delays with cars being available and all the part delays, BMWFS is allowing a 90day rate lock but I dont have anything official to go by.

Regarding the rate itself, the 0.9% offer special was valid from Dec until Jan 3rd. I had to specifically point my dealer to the BMW website before he committed to lock my credit at 0.9% for 60months.

I am just hoping my car makes it before the lock period expires.

[Retrospaz85]

Most banks do a 90 day rate lock now. That 1% increase is pretty common with bmw, that I've seen.

[tahoebimmer]

Originally Posted by anasryadi

The rip-off dealers mark up by 1% especially in LA and in this market. But I've been buying cars from these guys for a while and they never marked up the rates for me from what bmw is charging. When they do mark it up but 1% they get $1000-1500 from bmw which they will have to pass to you, but if they mark the price up it will go to their pockets.

Yeah, I couldn't figure out how to negotiate a better rate. Any other financing I had access to would have been higher so I had no leverage, but I did try.

If the OP can get that 1.9% rate with no dealership markup I would call that a win. 60 months at 1.9% makes the cost of financing just over $2000.

[SupraCooper]

Originally Posted by anasryadi

The rip-off dealers mark up by 1% especially in LA and in this market. But I've been buying cars from these guys for a while and they never marked up the rates for me from what bmw is charging. When they do mark it up but 1% they get $1000-1500 from bmw which they will have to pass to you, but if they mark the price up it will go to their pockets.

EVERY dealership marks up the rates. There's what's called "buy rate" and customer rate. The money they make between is called finance reserve. Which is profit or they wouldn't stay in business.

Originally Posted by m3mahesh

There is usually a rate lock of 60days once the credit is run. However, I heard due to the delays with cars being available and all the part delays, BMWFS is allowing a 90day rate lock but I dont have anything official to go by.

Regarding the rate itself, the 0.9% offer special was valid from Dec until Jan 3rd. I had to specifically point my dealer to the BMW website before he committed to lock my credit at 0.9% for 60months.

I am just hoping my car makes it before the lock period expires.

That's correct bmw fs will keep a submitted approval for 90 days. Even if not, 1.9% or 2.9% is still a great rate. Be prepared for rates to go up.. the way you get a dealership to give you buy rate is to be up front with them that you know what the advertised rate is and that's what it takes to earn you're business. That way your ca can be up front with his center sales Mgr and you have a better chance of them giving it to you. If they won't do it, then shop around a dealer that will, get it in writing, and present that to your local dealer that another dealer will, but you wanna keep you business local.. your welcome

[fanofbmwe46]

They have to get regional / corporate approval to go back and get you the better rate. It takes some fighting but I was able to do it once without a written rate lock / credit app already approved.

[Lightngsvt]

Approvals are only 90 days? I applied at the end of September, expecting my car in November, so I'll have to submit a 2nd app whenever my car arrives?

[shaman420]

Originally Posted by Lightngsvt

Approvals are only 90 days? I applied at the end of September, expecting my car in November, so I'll have to submit a 2nd app whenever my car arrives?

their site says 60 days, that's a long time to wait. why did they say November?

[Lightngsvt]

Originally Posted by shaman420

their site says 60 days, that's a long time to wait. why did they say November?

The car is their HEA spec, they ordered it in September and it was supposed to arrive prior to 11/20 for the official release date. I put a deposit on it in late September. It arrived at Port Brunswick on 11/9, plenty of time, in theory, to get to MI by the 20th. It's a long story, and I'm sure those who've been here a while are tired of me complaining about it.

[shaman420]

Originally Posted by Lightngsvt

The car is their HEA spec, they ordered it in September and it was supposed to arrive prior to 11/20 for the official release date. I put a deposit on it in late September. It arrived at Port Brunswick on 11/9, plenty of time, in theory, to get to MI by the 20th. It's a long story, and I'm sure those who've been here a while are tired of me complaining about it.

ah okay haha i see well the wait is already killing me cant imagine how you feel. I was given 1.9% but applied on the 3rd when it was supposedly .9%

[Lightngsvt]

Originally Posted by shaman420

ah okay haha i see well the wait is already killing me can't imagine how you feel. I was given 1.9% but applied on the 3rd when it was supposedly .9%

Hopefully, they still honor your rate. If I'd have known this would happen I'd have just put in a custom order since this one is missing the HK system.

[shaman420]

Originally Posted by Lightngsvt

Hopefully, they still honor your rate. If I'd have known this would happen I'd have just put in a custom order since this one is missing the HK system.

Yeah we shall see what they say when we get there. maybe you can cancel and get one you want sooner lol who knows.

[Ruebarb]

I just placed an order yesterday, I had to fight to get them to put the 1.9% in the P&S. If it was not in the P&S, it was clear, they were not going to honor it, kept giving me the line the intersted rates haven't changed since 2021 and weren't going to change, which is alot of BS. Interest rates are expected to rise in 2022.

[yanks1]

Guess I'm lucky, I sold my paid off 2018 230i for ~ $31k back in June.. So no loan for me this time. But 1.9% is not bad for Auto Loan...

[SupraCooper]

Originally Posted by Lightngsvt

Approvals are only 90 days? I applied at the end of September, expecting my car in November, so I'll have to submit a 2nd app whenever my car arrives?

Yes 90 days. It's changed since the 60 days Bc of the obvious reasons. There is a difference between when you applied and when a center sales Mgr or f&i Mgr submits your deal. A credit stays in a DMS for about 30 days. So if they wait awhile and then submit it to bmw FS, and the underwriter approves it, that's when your 90 day approval starts

[Lightngsvt]

Originally Posted by SupraCooper

Yes 90 days. It's changed since the 60 days Bc of the obvious reasons. There is a difference between when you applied and when a center sales Mgr or f&i Mgr submits your deal. A credit stays in a DMS for about 30 days. So if they wait awhile and then submit it to bmw FS, and the underwriter approves it, that's when your 90 day approval starts

Back at the end of September, they told me they submitted the credit app and had the lease approval. I guess my concern is if having to run another app will add an additional hard pull on my credit report? I know its not much, but inquiries do affect credit score. I'm not worried about approval.