Quote:
Originally Posted by mikesarvis
So you are saying you cannot pay off the loan early like on the next month?
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This is _precisely_ what I did. In Massachusetts, and I believe most other states, a pre-payment penalty is illegal.
I got a $1000 bonus -- up front, off the price of the car -- for financing with BMW FS.
I'd have paid it off the day after I closed I could've. But you can't because BMW Bank (the entity that actually holds the note) didn't book the loan until two weeks after the deal closed. Then, another week for BMW to process a lien release and get me the title to the car with a release on it as well.
Total interest cost: about $45.
Then, I had to pay $25 for a duplicate title. Net rebate: $935.
Bottom line, a dealer telling you that you have some "minimum commitment" to a loan is just trying to increase profit. Don't buy it.