[rk95]

Originally Posted by NJbaitshop

My car is finally at the dealership. I asked my CA if BMW Financing could get me the 5.29% rate that others have gotten. They came back matching the BoA approval of 5.54%. Happy they at least gave in a little.

While it would be nice to get that 5.29%, I'm at the point where I don't care enough or want to haggle anymore for the extra .25. Especially since BMW Financing originally came in at 6.29%.

So, I'm happy. I'm sure rates will continue to drop & I can always refi down the line. I'm also only financing a small amount.

Anyway, just wanted to update this group.

That’s a great rate. I just got 5.29% through my local credit union

[JMcLellan]

Originally Posted by Polo08816

Those interest rates sounds pretty high to be honest. Why not just pay cash?

Lol. You know the answer to this...

[Ointment0440]

Originally Posted by Polo08816

Those interest rates sounds pretty high to be honest. Why not just pay cash?

Because cash is getting me 5% or higher in my savings account right now and I don't mind paying small fraction of a percent to finance and hold onto my cash.

[MineralGreyMetallic]

Originally Posted by Polo08816

Those interest rates sounds pretty high to be honest. Why not just pay cash?

Liquid assets can generally generate money at a higher rate than you'd pay in auto loan interest rates.

They're also helpful in emergencies.

There are even some high yield savings accounts offering 5%+ at the moment.

Liquid assets are your most valuable. Why tie them up if you don't need to?

[miiipilot]

Originally Posted by MineralGreyMetallic

Congratulations, and thanks for the info.

I was planning the same strategy. I'm going to bring the BoA approval to the dealership and give them the opportunity to match or beat it.

I hope your dealership will even allow you to bring outside financing

My dealer wouldn't allow it (Westlake BMW Ohio) bc, "we aren't making enough money."

They also wouldn't honor BMW's special financing at 5.29%. It was either fuck or walk at 6.29%

[MineralGreyMetallic]

Originally Posted by miiipilot

I hope your dealership will even allow you to bring outside financing

My dealer wouldn't allow it (Westlake BMW Ohio) bc, "we aren't making enough money."

They also wouldn't honor BMW's special financing at 5.29%. It was either fuck or walk at 6.29%

Well, that sounds like a nightmare. Were you buying off the lot, or did you order?

[Tslbmw]

My F&I guy was really cool about the process. About a week before my G87 arrived, I filled out the credit app and opened up the discussion. He told me there wasn't anything else out there better than 6.29% (60 mths) that he could get, but I was welcome to bring in outside financing or advise which bank was offering a better rate. I found a few online in the 5-5.5% range (mainly credit unions), but ultimately didn't want the hassle. So, I went with BMWFS...FYI - I'm in VA w an 850 score.

[MineralGreyMetallic]

Originally Posted by Tslbmw

My F&I guy was really cool about the process. About a week before my G87 arrived, I filled out the credit app and opened up the discussion. He told me there wasn't anything else out there better than 6.29% (60 mths) that he could get, but I was welcome to bring in outside financing or advise which bank was offering a better rate. I found a few online in the 5-5.5% range (mainly credit unions), but ultimately didn't want the hassle. So, I went with BMWFS...FYI - I'm in VA w an 850 score.

From my back of the napkin calculations, the difference between 5.54% and 6.29% is $840 over 60 months or $14/month if you finance $40k.

So yeah, not really worth walking away from the deal over that.

[miiipilot]

[QUOTE=MineralGreyMetallic;30801944]Well, that sounds like a nightmare. Were you buying off the lot, or did you order?

Ordered

1st name on the wait list( with 1st allocation which they screwed me and gave to forum member FinalV8 instead. He received his in Aug. I received my car end of Oct) dealership said mine had delays due to my options. Mine was nothing special. FinalV8 received his car 2 months before me even though he changed his build from TR to BSM.
Dep down mid Feb 22

The whole process was a nightmare

[Tslbmw]

Originally Posted by MineralGreyMetallic

From my back of the napkin calculations, the difference between 5.54% and 6.29% is $840 over 60 months or $14/month if you finance $40k.

So yeah, not really worth walking away from the deal over that.

You nailed it...we're not talking home mortgage rates here.

[Polo08816]

Originally Posted by MineralGreyMetallic

Liquid assets can generally generate money at a higher rate than you'd pay in auto loan interest rates.

They're also helpful in emergencies.

There are even some high yield savings accounts offering 5%+ at the moment.

Liquid assets are your most valuable. Why tie them up if you don't need to?

The small % difference between a high yield savings account and a 5%+ auto loan is so small relative to income that it's negligible.

Also, I would argue that it would not be prudent to use cash that you would need in an emergency to buy an M2.

Your cash reserves / assets / investments should already be sizable enough to the point where the purchase of an M2 doesn't really affect you and doesn't impact your long term finances.

[RockCrusher]

Originally Posted by MineralGreyMetallic

Liquid assets can generally generate money at a higher rate than you'd pay in auto loan interest rates.

They're also helpful in emergencies.

There are even some high yield savings accounts offering 5%+ at the moment.

Liquid assets are your most valuable. Why tie them up if you don't need to?

A CD is not that liquid of an asset. And there is a cost to having to tap the money before the CD matures, unless you have a no penalty CD.

Also while CDs are paying 5% (I've got one paying 5.1% (5.22% APY)) it is for just 10 months.

(Just got a flyer in the mail from a credit union that opened a new branch near me. It is offering a CD paying 7.10% (APY) but for just 10 months and with a maximum of $25,000. And to qualify one must open a checking account and with a verifiable direct deposit. There is no minimum amount specified to open the checking account but I suspect the CU will want thousands of dollars in the checking account with a pretty high minimum balance to avoid any fee.)

If I had just the $69,000 (approx.) my M2 cost in a CD earning 5.1% that's $3519/year, or $234/month before taxes. $234 is hardly a car payment and this is before taxes are taken out... And this is for just 10 months.

A new car loan runs for longer than 10 months. And the new car loan interest is locked in. CD interest rates while up now will likely be down when my 10 month CD matures. (Although I have to disclose the previous CD I had was for 4% for 10 months and when it matured (last Dec. 21) that same day I moved the money into a new CD paying 5.1%. So CD rates may not be down in 10 months.)

By paying cash for the car I in a sense pay myself the interest I would have paid the bank for the car loan. And this interest I earn, so to speak, is not taxable.

[JMcLellan]

Originally Posted by Polo08816

The small % difference between a high yield savings account and a 5%+ auto loan is so small relative to income that it's negligible.

Also, I would argue that it would not be prudent to use cash that you would need in an emergency to buy an M2.

Your cash reserves / assets / investments should already be sizable enough to the point where the purchase of an M2 doesn't really affect you and doesn't impact your long term finances.

This in bold is where it's at. That is the exact point I had to make with my wife as she thought taking on a new payment and using some cash for a sizable down payment would get in the way of other financial goals. Once we both aligned that it wouldn't she was actually engaged in the process of what went into the car's build.

[sammyj]

Originally Posted by Polo08816

Those interest rates sounds pretty high to be honest. Why not just pay cash?

Being poor is expensive.

[two_three_two]

Originally Posted by JMcLellan

This in bold is where it's at. That is the exact point I had to make with my wife as she thought taking on a new payment and using some cash for a sizable down payment would get in the way of other financial goals. Once we both aligned that it wouldn't she was actually engaged in the process of what went into the car's build.

yeah, this. if a car purchase is gonna affect your financial goals then just walk away lol. in a similar vein, if the $100 in interest payment a month at 6% vs 3 or 4% is gonna keep you up at night, save until you can pay cash or find a new hobby (or career). you should be at a point in your life where you are frankly plugging the numbers into excel once and just picking whatever makes sense for your annual and long term budgeting.

[JMcLellan]

Originally Posted by two_three_two

yeah, this. if a car purchase is gonna affect your financial goals then just walk away lol. in a similar vein, if the $100 in interest payment a month at 6% vs 3 or 4% is gonna keep you up at night, save until you can pay cash or find a new hobby (or career). you should be at a point in your life where you are frankly plugging the numbers into excel once and just picking whatever makes sense for your annual and long term budgeting.

There is the sensible financial side of things, but there is also the go-live-your-life side of it too. Two of my dad's buddies waited until they were in their 70's to buy sports cars they had wanted for 20 to 30 years but kept finding other reasons not to do it. One guy had his car for about 3 years and then died of Covid. The other guy bought his last year at age 76 and told me he only expects to keep it for 2 to 3 years as he can't see himself being able to reasonably get in and out of it for that much longer due to his knees. That ain't going to be me.

[sammyj]

Originally Posted by JMcLellan

There is the sensible financial side of things, but there is also the go-live-your-life side of it too. Two of my dad's buddies waited until they were in their 70's to buy sports cars they had wanted for 20 to 30 years but kept finding other reasons not to do it. One guy had his car for about 3 years and then died of Covid. The other guy bought his last year at age 76 and told me he only expects to keep it for 2 to 3 years as he can't see himself being able to reasonably get in and out of it for that much longer due to his knees. That ain't going to be me.

I agree with this. I threw my name on the waitlist fully expecting a multi year wait and my number got pulled much quicker than expected (a half year before we expect to transition back to a multi income household). I was able to swing a relatively large down payment, and while this car is a slight stretch at the moment, it’s far from ruining me financially. I’ve intentionally kept my monthlies low, and fully intend to send bonus payments towards principal.

I felt the same way about my E92 purchase years ago. It was a bit of a stretch at the time, but I had so much fun with it, don’t regret it for a moment. I’m a big believer in being responsible, but also splurging on occasion.

Everything in moderation, including moderation .

[two_three_two]

Originally Posted by sammyj

I agree with this. I threw my name on the waitlist fully expecting a multi year wait and my number got pulled much quicker than expected (a half year before we expect to transition back to a multi income household). I was able to swing a relatively large down payment, and while this car is a slight stretch at the moment, it’s far from ruining me financially. I’ve intentionally kept my monthlies low, and fully intend to send bonus payments towards principal.

I felt the same way about my E92 purchase years ago. It was a bit of a stretch at the time, but I had so much fun with it, don’t regret it for a moment. I’m a big believer in being responsible, but also splurging on occasion.

Everything in moderation, including moderation .

ZOMG!!!!! That's going to cost you $671.62 more in interest payments over a 60 mo finance term

[keonigt]

I got 6.7% interest from bmw for my 2024 m2. Definitely looking to refinance but I’m not sure when. I wanted to apply for a refinance with navy fed but they told me that I had a great rate and it’s rare to see them approve a lower interest rate. Not sure if I believe them though.

[DrewNewM2]

A $70k depreciating asset, especially a BMW which will be worth half of its original MSRP in 5 years is a poor financial decision regardless of whether you’re financing @6% or buying cash. You’ll never get your original cash back or the lost gains you could have had by investing that $70k instead. Doesn’t matter if you can afford to buy 10 of them cash or have to work an extra job to make payments. So at the end of the day, an extra 1% interest rate or an extra year of payments probably won’t make much of a difference.

We buy them because we want them and they provide enjoyment during the short time we are on this earth.

[Carefree]

If you want this (or any other) car, pay the going percentage. Interest rates for auto, home, home equity loans will not significantly change this year. All of course IMO.

[Bearded-Driver]

i went with BMW at 6.79 for 72 months so i could get the 90 days no payment. I did do a very large downpayment in the hopes of trying to pay the M2 off before my lease is up on my apartment. would like to try to buy a house Q4 and yea i know i did it backwards... leave me alone