[LateBrake8]

Originally Posted by ///M TOWN

OK, maybe I read it wrong. Maybe he can clarify.

BMW financial services does have some good rates right now, but they do not apply to M cars…

Yeah just referring to the markup. If a dealer in CA gets me approved for 5.9% on 72 months, they're legally allowed to mark it up a maximum 2% to 7.9% and keep the difference for themselves.

[///M TOWN]

Originally Posted by LateBrake8

Yeah just referring to the markup. If a dealer in CA gets me approved for 5.9% on 72 months, they're legally allowed to mark it up a maximum 2% to 7.9% and keep the difference for themselves.

Yeah, I’m sure they are. Thanks for explaining that. Bless their little hearts.

I would not allow that they can get a rebate on the back end, regardless, even without their markup.

I would definitely get preapproved through BMW financial services directly and then take it to the general manager. If you have a problem I don’t play around. I call it all business no bullshit.

I hope that helps you. I don’t like finance departments. They call it “the box” 📦 for a reason.

[evdoho]

Originally Posted by JABCAT

That's not telling the entire cost/profit for the dealer. There's incentives, dealer holdback, etc. Dealers generally don't pay the FWP (Factory Wholesale Price). Sales people like to tell you they do & they can't go below that, but it's not true.

Here's an order my wife did for her previous Grand Cherokee. You can see the FWP vs MSRP as well as the dealer holdback (HB), Friends & Family Pricing (FFP), Employee Pricing (EP), and our agreed upon sales price ($2,708 below wholesale price). The dealership obviously made money on our purchase. The margins, holdbacks, dealer incentives vary from model to model, but they're making money on every vehicle sold even at discounts.

There may be some truth in this breakdown, but it is certainly not an apples to apples comparison between different manufacturers.

If it makes anyone feel better, I’m an employee and I’m getting a ~5% discount on my M2 and buy-rate (5.29%), and yes I have to pay the doc fee. I will not get paid a commission for buying my own car either.

There is no employee incentives, special rates, loyalty, or anything like that on the M2 from the manufacturer.

As a fairly tenured employee at my store, if there was still profit to remove from my deal I’m pretty certain it would be removed.

[rons e92]

Originally Posted by evdoho

There may be some truth in this breakdown, but it is certainly not an apples to apples comparison between different manufacturers.

If it makes anyone feel better, I’m an employee and I’m getting a ~5% discount on my M2 and buy-rate (5.29%), and yes I have to pay the doc fee. I will not get paid a commission for buying my own car either.

There is no employee incentives, special rates, loyalty, or anything like that on the M2 from the manufacturer.

As a fairly tenured employee at my store, if there was still profit to remove from my deal I’m pretty certain it would be removed.

Thank you for the addition insight. I had a feeling that was the case.

[LAGWAGN]

Appreciate this thread for getting my @ss in gear. Just refinanced from BMW NA's 6.3% to USAA's 4.6%. Both 60mo terms w/ 800+ credit.

[ednir98]

Originally Posted by LAGWAGN

Appreciate this thread for getting my @ss in gear. Just refinanced from BMW NA's 6.3% to USAA's 4.6%. Both 60mo terms w/ 800+ credit.

I need to tack on my 1% markup for giving you the idea. You know, for profit.

[two_three_two]

Originally Posted by ednir98

I need to tack on my 1% markup for giving you the idea. You know, for profit.

as soon as i see shit in the mid 4s that a civvie like me can access, i am gonna be all over it. good move.

[LAGWAGN]

Originally Posted by ednir98

I need to tack on my 1% markup for giving you the idea. You know, for profit.

Settle for a high-five? ����

*Technically that's a high-ten, so I'd take the deal while it's on the table. I'm losing digits on this one!

[IanH]

Originally Posted by two_three_two

as soon as i see shit in the mid 4s that a civvie like me can access, i am gonna be all over it. good move.

DCU been moving down with the FED basically in step, so I would expect mid 4's to be sometime early 2025

[two_three_two]

Originally Posted by IanH

DCU been moving down with the FED basically in step, so I would expect mid 4's to be sometime early 2025

all depends on the cadence our friend Jerome decides to take - i can see him holding steady in november and giving us another 25 bps in december. but "strong" employment numbers are the only thing propping up the stool at this point so i guess we will see...

[MineralGreyMetallic]

When you refinance, can you refinance the value for the timeframe of the remaining months on the original loan or do you start again at 60?

[IanH]

Originally Posted by MineralGreyMetallic

When you refinance, can you refinance the value for the timeframe of the remaining months on the original loan or do you start again at 60?

Most places let you pick your term, some even let you specify the exact number of months.

[TallGibbs]

Originally Posted by JABCAT

Correct. I just showed them the rate for which BMW said I qualified.

I'll also mention, 2 different BMW dealerships tried to claim the recent college grad rebate was only valid for a bachelors degree. They didn't want to give me the rebate for my PhD or my wife for her masters. But after asking them to show me where those degrees were excluded, we both received the rebates. My wife also received a $500 owner loyalty rebate because we had another BMW at the time she purchased her X3MC (which was used but still qualified for the rebates.)

I also recently got the college grad discount for my pending Masters degree (within 6 months of graduation you can earn the discount).

[two_three_two]

Originally Posted by MineralGreyMetallic

When you refinance, can you refinance the value for the timeframe of the remaining months on the original loan or do you start again at 60?

you are basically taking out a new loan, the proceeds of which pay off the old loan. you and your lender can decide on what the new terms are- which is, of course, a highly personal decision. my goal would be to keep similar payments on a shorter term. YMMV naturally.

[DrewNewM2]

You could also skip refinancing and pay extra EARLY on in the loan to effectively cut your interest sometimes in half. I like to get 72 month loans and then pay them off early depending on the loan amount and finances. Sometimes paid off in 24 months

My current loan is 5.29 from Navy Federal and they have since dropped below 5. Easy process…For service members and their families. I’m not a service member but my dad was in Navy during Vietnam.

[JABCAT]

Originally Posted by DrewNewM2

You could also skip refinancing and pay extra EARLY on in the loan to effectively cut your interest sometimes in half. I like to get 72 month loans and then pay them off early depending on the loan amount and finances. Sometimes paid off in 24 months

My current loan is 5.29 from Navy Federal and they have since dropped below 5. Easy process…For service members and their families. I’m not a service member but my dad was in Navy during Vietnam.

You can also split your monthly payment into 2-4 equal payments, either once a week or once every two weeks to cut down on interest. I pay mine weekly and add an additional $50 to each weekly payment equating to $200 extra/month. Helps to pay it off much sooner.

[kraken]

Just did it thru BMW NA and got 5.29% for 60 months. Top Tier credit.

[IanH]

Originally Posted by JABCAT

You can also split your monthly payment into 2-4 equal payments, either once a week or once every two weeks to cut down on interest. I pay mine weekly and add an additional $50 to each weekly payment equating to $200 extra/month. Helps to pay it off much sooner.

Good advice to pay extra payments, doing weekly payments on a 5 year loan only saves like $50-75

[JABCAT]

Originally Posted by IanH

Good advice to pay extra payments, doing weekly payments on a 5 year loan only saves like $50-75

It saves a bit more than that, but yes adding extra to the payments is always a good idea.

[sg13]

Originally Posted by MineralGreyMetallic

We followed interest rates pretty closely for a while in this thread https://g87.bimmerpost.com/forums/sh....php?t=2098474

Looks like they haven't really budged in the last year.

I also thought before buying my M2 that the BMW rate sucked and tried to find something lower elsewhere. I could not, and my credit is great.

BoA is saying 5.59% for New Auto Loan right now, but I never hear of anyone qualifying for the magical rate listed on their site.

Let us know what you find!

5.59% is their regular rate but they do 5% APR total for platinum rewards clients. I just got 5% last week for my new Alfa Quad for 60 months. Wanted to buy cash but got excellent rate esp these days. So yes easily doable.

[JABCAT]

Fyi - I just refinanced my wife's '22 X3MC with Capital One for 4.84% for 58 months (her remaining term with BoA). Was originally at 6.99% which was the lowest available rate when we purchased.

Going to check on my M2 which is 5.99 (I think).