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      11-10-2010, 02:43 PM   #1
tukluc
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European Delivery + Current BMW FS Rates

I had my financing paperwork for the 1.9% 60mo. financing deal (last month from BMW FS) approved earlier this month. According to the dealer, I have 90 days to make the purchase for the rate to be effective. Secondly, I am going to go the European Delivery route and based on the 90-day limitation, the latest I can get the car would be 1/31/2011. Unfortunately I am not that interested in going to Europe in the middle of winter but I dont want to pass up the financing option.

All that being said, I now see that BMW FS is offering 2.9% with $1500 Holiday Credit for 60mo. (offer expires on 1/3/2011). If I were to go this route by resubmitting my application to BMW FS at the end of this December, is it safe to assume that I can then pick the car up in end of March (Dec 31, 2010 + 90 days = March 31, 2010). This would obviously be better based on strictly the weather conditions. Would I still get the $1500 credit?

Now to further complicate this...

I am also thinking of doing the Select Financing but only if the rate is the same as the current finance deals (2.9% for 60.mos with $1500 rebate). However, my dealer is telling me that the Select Financing rate is not the same as the current finance deals (~6% vs. 2.9% noted above).

Help.
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      11-10-2010, 04:40 PM   #2
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Originally Posted by tukluc View Post
I had my financing paperwork for the 1.9% 60mo. financing deal (last month from BMW FS) approved earlier this month. According to the dealer, I have 90 days to make the purchase for the rate to be effective. Secondly, I am going to go the European Delivery route and based on the 90-day limitation, the latest I can get the car would be 1/31/2011. Unfortunately I am not that interested in going to Europe in the middle of winter but I dont want to pass up the financing option.

All that being said, I now see that BMW FS is offering 2.9% with $1500 Holiday Credit for 60mo. (offer expires on 1/3/2011). If I were to go this route by resubmitting my application to BMW FS at the end of this December, is it safe to assume that I can then pick the car up in end of March (Dec 31, 2010 + 90 days = March 31, 2010). This would obviously be better based on strictly the weather conditions. Would I still get the $1500 credit?

Now to further complicate this...

I am also thinking of doing the Select Financing but only if the rate is the same as the current finance deals (2.9% for 60.mos with $1500 rebate). However, my dealer is telling me that the Select Financing rate is not the same as the current finance deals (~6% vs. 2.9% noted above).

Help.
Unless you plan on getting rid of the car earlier in the term, it makes more sense to go with the 1.9% and not get the $1500 credit. I had done the math in another thread; it's about a $1900 difference in interest over the 5 years. It would depend on the amount financed and the size of your balloon.

And yes, BMW Select finance rate = normal finance rate.
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      11-10-2010, 04:47 PM   #3
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I agree about the 1.9% being better than the 2.9% + $1500 Credit....the only reason I would consider going to the higher rate would be the added 90 days after being approved. If I get approval at the end of December, then I get the car as late as the end of March (+90 day lockin period for applicable rate) and still be satisfied with an overall good rate.

I'm not to keen on getting the Euro Delivery in January so March would be preferrable.

I'm completely confused regarding the Select Rate....I have read numerous times that it is the same as the current finance rates (2.9% for 60mo.) and not the "higher" normal rates (6.9%). Can anyone clarify?
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      11-10-2010, 04:53 PM   #4
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Originally Posted by tukluc View Post
I agree about the 1.9% being better than the 2.9% + $1500 Credit....the only reason I would consider going to the higher rate would be the added 90 days after being approved. If I get approval at the end of December, then I get the car as late as the end of March (+90 day lockin period for applicable rate) and still be satisfied with an overall good rate.

I'm not to keen on getting the Euro Delivery in January so March would be preferrable.

I'm completely confused regarding the Select Rate....I have read numerous times that it is the same as the current finance rates (2.9% for 60mo.) and not the "higher" normal rates (6.9%). Can anyone clarify?
Well, the difference is only a couple hundred of dollars, so if you'd rather just wait til Spring time, it's probably worth the difference in enjoying your vacation more.

I just got my car 2 weeks ago, and did the Select at 1.9%. Plenty of others have as well, across the country. For years and years, the Select rate has always been the same as the Traditional rate. It does not make sense that they would change this suddenly. The entire point of Select is to bring the benefits of ownership with payments similar to a lease. If the interest were that much higher, it would raise the payments so much compared to the traditional loan that there wouldn't even be a point in the product.

Again, you pay even more interest with a Select loan than a Traditional loan, over the same term, with the interest rate being equal. This is due to the payoff curve as you continue to pay interest on the entire balloon, even at month #59.
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      11-10-2010, 06:00 PM   #5
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That is exactly my thinking!

I tend to keep my cars for a LONG time so there is no doubt I will do likewise with this car. And you are correct in that Select costs more due to the interest on the Balloon payment but I like the option of having a low monthly payment should a need arise to have liquidity. I'd rather keep the cash in my pocket now even though I pay more later.

Now if only I can find some concrete evidence that Select = Special Rate (in my case the 1.9% or 2.9% for 60 mo.).
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      11-10-2010, 06:30 PM   #6
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That is exactly my thinking!

I tend to keep my cars for a LONG time so there is no doubt I will do likewise with this car. And you are correct in that Select costs more due to the interest on the Balloon payment but I like the option of having a low monthly payment should a need arise to have liquidity. I'd rather keep the cash in my pocket now even though I pay more later.

Now if only I can find some concrete evidence that Select = Special Rate (in my case the 1.9% or 2.9% for 60 mo.).
Same here. I love having the low payment, but I simply make much more than 1.9% with my own investments, so why pay it early? I'll probably overpay it slightly each month to fend off being upside down, but other than that have no intentions of paying more than I need to.
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      11-10-2010, 09:19 PM   #7
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*Update*

I convinced my CA to resubmit my credit application to BMW FS at the end of December so that I can lock in the 2.9% with applicable Holiday Credit financing deal. The numbers between this deal+credit and the original 1.9% are so minute that I consider it a wash.

More importantly though, this will give me a new 90-day window from which to schedule the ED. Now preliminarily at end of March

Hopefully BMW FS sends me an explanation of the Select Rate that is counter to what the CA is telling me.
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      11-10-2010, 10:50 PM   #8
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Originally Posted by tukluc View Post
*Update*

I convinced my CA to resubmit my credit application to BMW FS at the end of December so that I can lock in the 2.9% with applicable Holiday Credit financing deal. The numbers between this deal+credit and the original 1.9% are so minute that I consider it a wash.

More importantly though, this will give me a new 90-day window from which to schedule the ED. Now preliminarily at end of March

Hopefully BMW FS sends me an explanation of the Select Rate that is counter to what the CA is telling me.
This is exactly what I want to do! I plan on competing the paperwork and locking in my rate plus the holiday credit right on or right before 1/3/11. This way I can take delivery in early April and enjoy most likely better weather than doing it this winter. Is the 90 days from lock in until you complete the paperwork or is until you take delivery at Welt??
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      11-10-2010, 11:18 PM   #9
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Quote:
Originally Posted by navarrojiii View Post
Quote:
Originally Posted by tukluc View Post
*Update*

I convinced my CA to resubmit my credit application to BMW FS at the end of December so that I can lock in the 2.9% with applicable Holiday Credit financing deal. The numbers between this deal credit and the original 1.9% are so minute that I consider it a wash.

More importantly though, this will give me a new 90-day window from which to schedule the ED. Now preliminarily at end of March

Hopefully BMW FS sends me an explanation of the Select Rate that is counter to what the CA is telling me.
This is exactly what I want to do! I plan on competing the paperwork and locking in my rate plus the holiday credit right on or right before 1/3/11. This way I can take delivery in early April and enjoy most likely better weather than doing it this winter. Is the 90 days from lock in until you complete the paperwork or is until you take delivery at Welt??
You don't have to wait until the end of December or early January for that matter. If you get an approval today you are automatically awarded a program lock with BMW FS through the end of the current program, 1/3/11. You are also given an additional sixty day period for the approval, 1/3/11 plus 60 days. You can plan a mid-March ED with a program lock today. Email or call me if you have additional questions.

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David
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      11-11-2010, 12:27 AM   #10
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60 days David?

I thought the lock was good for 90 days? Actually 90 days from the date of approval?

Can you confirm the Select Rate Finance % = Current Special Finance %

Thank you!
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      12-03-2010, 02:21 PM   #11
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Since I am on the west coast, it appears that the lock is good for 90 days here.

Anyone have any clarification on "Select Rate Finance % = Current Special Finance %"

BMWFS is of no help unless I actually own a car. I have asked several of their representatives and they all say the same thing....it depends on the dealer. This of course makes zero sense to me because once I walk out of the dealer with the car, what does the dealer care about how I am paying for the car?

I can't believe that I can't get an answer to such a simple question *shrug*
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