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      12-20-2009, 01:27 AM   #17
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enigma01's Avatar

Drives: M3 e93/e92, Z4 M Coupe
Join Date: Dec 2007
Location: San Diego

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Originally Posted by Technic View Post
I just got 2.5% for 72 months for a VW CC two weeks ago so this 5.9% from BMW is not inflation-related at all, this is just BMW going back to basics: making a lot of money with less demand.

By the way, I also got my M3 at 0.9% for 60 months last year...
Good for you for getting such a favorable rate, but I am not sure what your point is. The interest rate from a financial institution has nothing to do with the projected inflation? I never said 5.9% is due to the inflation, but how do you figure it has nothing to do with the projected economical conditions?

Originally Posted by jwnpgh View Post
Anyway, the reason to have a long loan with little down is in the event you lose the car and the insurance company only pays a blue book value or the loan only. You will be out any down payment if the numbers come out not in your favor.
Are you serious? You should stop your friend from giving your more financial advises.

An insurance company will pay out a fair (typically near blue book) value for your car in case of a total loss. That amount doesn't change the fact that you still owe the loan amount to the lien holder(s), unless you took out a gap insurance. Remember your car is only a collateral, not the end of your loan obligation.