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      04-08-2011, 08:50 AM   #1
jaymk5
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Question Finance question - BMW NA - Help Pls

I am going to finance my x3 35i and the default rate BMW NA offers (as published in website) for x3 35i is 4.9%, but in DCU they pre-approved me for 2.9%, so wondering if anyone hear was able to get better rates with BMW NA than the one mentioned in website, my SM says he will be able to get me the 2.9% with BMA NA itself, which means it will be lot less work for me, but notsure if this is possible or with in the powers of SM to decide.

My problem is I am planning to take delivery on 4/14 and no later than that. So if BMA finance and my SM comes back on 14th and says nope sorry, then will they allow me to take delivery on 4/14 with my trade in and let me pay in a week(for me to get my check from DCU) or so. If anyone has been in this situation please help me with your experience.

I appreciate your time taken to respond to my questions. Thanks. Jay.
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      04-08-2011, 08:59 AM   #2
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I am planning to get pre-approved from my bank and then go in with that (2.9) compared to 4.9 that BMW is giving me. Not sure how that works, but I hope it's easy and stress free.
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      04-08-2011, 09:05 AM   #3
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I had the exact same situation - EXACT. I had a pre-approved 2.9% loan with my Credit Union but BMW asked if was interested in getting the loan thru them. I said if they can beat it (or match) then I'd do it. Turns out they're locked in to the 4.9 and the most they can do is another point for being a "dedicated" customer.

They then let you fill out all the paperwork and basically that 30" form you sign says that if you'll be getting them the money within the next 3 days. Typically they're not sticklers and tend to give a little bit of a grace period - as long as you explain the situation. (With everything electronic nowadays it's real easy to handle things from home and get it all done instantly.) All dealerships do this on a regular basis.

Bottom Line...Unless there's something fishy going on that they sense from you, you'll be driving home with a smile on your face. You can always bring in the paperwork showing you're pre-approved. (The only problem with that is they'll then try to sell the car for that amount because they know that's how much you've got.)
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      04-08-2011, 09:42 AM   #4
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If 4.9% is what they're offering for top tier, that's pretty much the best you can get. Is there a good reason to not go through your bank?
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      04-08-2011, 09:55 AM   #5
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Quote:
Originally Posted by MA78 View Post
If 4.9% is what they're offering for top tier, that's pretty much the best you can get. Is there a good reason to not go through your bank?
It's the DCU (Digital Federal Credit Union) where I got this pre-approval. Few reasons that I can think of:
a) Have to open membership with them and its not straight forward, we have to be part of either a charity they work with or work in the list of companies they have or belong to few social groups or make a small donation to one of the charities (which should not be a problem, but every thing happens through mail) etc...also they do not open membership online, we have to fill in the form sign and send it mail which is old school and takes time.
b) They ask for direct deposit, which means I have to change my current bank setup.
c) They do not have any branches within 100 miles, so I have to wait for the membership to be open my mail services and then wait for them to mail me the check, basically delay in getting the check in hand.

Which means lot of paperwork and waiting for mails, If I go through BMW finance I do not need to do all of the above mentioned and every thing can happen electronically and can be dealt with in few hours on the deliveryday.
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      04-08-2011, 09:56 AM   #6
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If I can get the same rate with BMW finance without having to deal with above stuff, then I am thinking why not go for it.
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      04-08-2011, 09:58 AM   #7
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BMW NA offered me 4.9% as well and my local dealer came back with 3.9% from a local bank - it's the best I've found here in SoCal. If you can get 2.9% from your local bank - go for that deal.
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      04-08-2011, 10:06 AM   #8
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Sounds like you have 2 options:
1) Go the easy route and pay the extra funds to BMW
B) Take the time, fill out paperwork, (feel good about donating to charity), save money!
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      04-08-2011, 10:14 AM   #9
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I was able to get 2.9% from BofA. I have really good credit, and I did put 30k down though.
My last loan was with BMWFS for my 328. I got my car when they were running the 0.9% promo. Oh the good 'ol days.
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      04-08-2011, 10:51 AM   #10
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Any chance BMW's going to drop their rate down from 4.9 to 1.9 like most all of their other vehicles have right now? I was hoping after the first quarter that they may come down on the 4.9.
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      04-08-2011, 10:55 AM   #11
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don't trust the dealer/SM, if they say they can get you 2.9%, they might BUT not through BMW NA, if they are offering 4.9% that is the best you can get. Now the dealer might always have banks they "work with" to get you a matched rate or close and thats probably what the SM will do, because then they get a little kickback, if you go with your own bank they don't.

One reason I will never go back to Motor Werks in Barrington, IL is that when I was looking into buying my C63 (they sell BMW, Mercedes, Porsche and others) they had one and they asked to pre-approve me with Mercedes credit, I said sure (stupid me) well Mercedes credit rejected me (long story I won't get into), but he proceeded to send my wife and my credit app to 10 different banks (literally) we got so many letters over the next month of acceptance or denial that she wanted to go puch the guy (we never approved him to do that). We ended up going to Capital one through a different dealer at around 5.5% then a few months later refinanced through our own bank (now PNC) at 3.25%.

To sum up my story, just go to your own bank first, or a couple on your own, get the best rate you can under BMWs 4.9% and don't let the dealer run your credit... now if BMW lowers this to 1.9-2.9% then you can ask them to check with BMW credit only to see if you qualify. I wouldn't count on a % reduction from BMW until at least 2012 models 2nd quarter...
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      04-08-2011, 11:00 AM   #12
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Just pay cash
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      04-08-2011, 11:17 AM   #13
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Quote:
Originally Posted by carlili4190 View Post
Just pay cash
I disagree with this. Most people don't gave sufficient savings to begin with. Better to spread the cost across a few years to free up some of your earnings to invest or save.

That is, unless the cost of the car is less than 1/4 of your savings.
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      04-08-2011, 11:26 AM   #14
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jaymk5,

i'll give it to you straight. if you have solid credit, go get your loan from Pentagon Federal Credit union who offers 2.49% right now. it only takes a few days to process and get your check.

call the dealer and let them know you have your financing of 2.49% and let them know if they can beat it, you'll use their financing (of course confirming the terms are similar, including no early payoff fees, etc.). tell them don't bother with BMW financing because they won't go that much lower than their advertised rate; they need to use another bank who I GUARANTEE can beat that amount if they really want to.

either way, you have one of the best rates out there and your purchase will be made.

good luck
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      04-08-2011, 01:44 PM   #15
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Quote:
Originally Posted by TarHeelFan View Post
Sounds like you have 2 options:
1) Go the easy route and pay the extra funds to BMW
B) Take the time, fill out paperwork, (feel good about donating to charity), save money!
I am thinking to go for option B.
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      04-08-2011, 01:45 PM   #16
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Quote:
Originally Posted by Mako View Post
don't trust the dealer/SM, if they say they can get you 2.9%, they might BUT not through BMW NA, if they are offering 4.9% that is the best you can get. Now the dealer might always have banks they "work with" to get you a matched rate or close and thats probably what the SM will do, because then they get a little kickback, if you go with your own bank they don't.

One reason I will never go back to Motor Werks in Barrington, IL is that when I was looking into buying my C63 (they sell BMW, Mercedes, Porsche and others) they had one and they asked to pre-approve me with Mercedes credit, I said sure (stupid me) well Mercedes credit rejected me (long story I won't get into), but he proceeded to send my wife and my credit app to 10 different banks (literally) we got so many letters over the next month of acceptance or denial that she wanted to go puch the guy (we never approved him to do that). We ended up going to Capital one through a different dealer at around 5.5% then a few months later refinanced through our own bank (now PNC) at 3.25%.

To sum up my story, just go to your own bank first, or a couple on your own, get the best rate you can under BMWs 4.9% and don't let the dealer run your credit... now if BMW lowers this to 1.9-2.9% then you can ask them to check with BMW credit only to see if you qualify. I wouldn't count on a % reduction from BMW until at least 2012 models 2nd quarter...
Good point, I never thought about this, I think I should go with my own option. Thanks.
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      04-08-2011, 01:46 PM   #17
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Quote:
Originally Posted by MA78 View Post
I disagree with this. Most people don't gave sufficient savings to begin with. Better to spread the cost across a few years to free up some of your earnings to invest or save.

That is, unless the cost of the car is less than 1/4 of your savings.
Agreed, not going to pay cash.
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      04-08-2011, 01:52 PM   #18
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Quote:
Originally Posted by MA78 View Post
I was able to get 2.9% from BofA. I have really good credit, and I did put 30k down though.
My last loan was with BMWFS for my 328. I got my car when they were running the 0.9% promo. Oh the good 'ol days.
I am planning to use BoA as well. What did you do? Did you get pre-approved over the web and then take that paper to BMW?
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      04-08-2011, 03:48 PM   #19
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Thumbs up Got the Deal.... :)

Quote:
Originally Posted by lhsa View Post
jaymk5,

i'll give it to you straight. if you have solid credit, go get your loan from Pentagon Federal Credit union who offers 2.49% right now. it only takes a few days to process and get your check.

call the dealer and let them know you have your financing of 2.49% and let them know if they can beat it, you'll use their financing (of course confirming the terms are similar, including no early payoff fees, etc.). tell them don't bother with BMW financing because they won't go that much lower than their advertised rate; they need to use another bank who I GUARANTEE can beat that amount if they really want to.

either way, you have one of the best rates out there and your purchase will be made.

good luck
hey lhsa,

Thanks for the great information, I called up penfed and the guys are really great and super fast, I do have a solid credit score and got pre-approved for the 2.49%

Basically I opened membership by paying 15$ for Voice of America charity and then paid 5$ to open a savings account, they took my VISA and processed the membership and saving account application while I am in phone with them, with in few mins my online account was setup and I was able to see my savings account with $5 balance. Then they filled in loan application for pre-approval and with in next min or so I am pre-approved and then I can see my loan application online, they are going to send my pre-approved check in mail.

Next steps as told by penfed: Take the check to the dealer, finalize the rate, call the penfed to let them know what is my final amount on the day of delivery and then sign the check put the amount (I can put the amount upto my pre-approved $, my check is going to say what I am pre-approved for), endrose and hand it to the dealer and thats it. Now thats what I call it fast.

Good thing is I do not need to change any of my direct deposit details or anything like that, even better thing is, they helped me make a sample $5 transfer from my existing account to my newly opened saving account and the balance reflected immediately. I really like this guys.

Anybody out their with finance questions, please read and benefit by the information on this thread and if you have any more questions, post it here and I will try to answer and Thanks to all of you who took time to answer my question and solve this problem for me.

Its a great day
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      04-08-2011, 06:01 PM   #20
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glad it worked for you! i'm on my 4th car loan through penfed.
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      04-08-2011, 06:32 PM   #21
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one point I forgot to mention is, penfed agent mentioned that the 2.49 promotion is good only until April 31 as of now. So if any one wants to take advantage of this offer, hurry.
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      04-08-2011, 06:36 PM   #22
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Quote:
Originally Posted by flash3 View Post
I am planning to use BoA as well. What did you do? Did you get pre-approved over the web and then take that paper to BMW?
I am not sure how BoA works (MA78 will know the details, since he already has gone through that route), but according to my discussion today with PenFed agent, he mentioned that he can send a letter/email to me stating that I am pre-approved for so and so amount, incase if the check did not reach me on time, I can show this letter to the dealer and take delivery. He mentioned dealers usually honor those letters and if they want to verify they can call the penfed from their desk with the application number to make sure you are approved for the amount you are telling him. I am thinking that should be pretty much same irrespective of which bank you are working with. Hope this helps.
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