|
|
|
|
Post Reply |
|
Thread Tools | Search this Thread |
03-29-2010, 11:39 AM | #1 |
Lieutenant
290
Rep 515
Posts |
2011 Finance Rates are out. Also facts on BMW Select and balloon financing
Finally! The 2011 rates came out. They are at 5.99%. Not surprised. My SA e-mailed me with a calculation of what my car would come out to.
I am doing the BMW Select program (Or at least I thought I was). On a 60 month loan, the balloon is based on 38% of the US MSRP (regardless of what deal you got). While I was waiting on rates, I took the time and searched credit unions that offer this type (balloon) financing. I found a credit union to join, and I was offered 4.5%. Keep in mind the rate is 4.9, but it gets reduced .25 if you opt for direct deposit OR automatic payment withdrawal. You will also get an additional .25 taken off if you have a credit score over 760. The plan is called Driving Sense and it is offered by credit unions across the country. Do a search, and then find one by you. Here is the calculator they use: https://secure.autofinancialgroup.co...CUID=221275025 Don't get caught up with Trade in Value, Down payment, etc. Just put the amount to be financed under "Negotiated Price". Then plug in the rate. My SA quoted me a payment of $574 with a balloon of $28,129 (60 month). My credit union quoted me a payment of $503 with a balloon of $28,126 (60 month). The Driving Sense program is similar to Select in that your name is on the title with a lien on it. Some facts on balloon financing: Be aware that you will pay more interest in the end since you are still paying down the balloon. Everyone's situation is different. I will put down 20K, but a traditional loan for the first year will still be a little rich for my blood. My financial situation will change after year 1 affording me to increase the payments later on. I should probably just wait the year, but my current lease is up in May. My balloon will be anywhere from 0 - 10K. Plus I drive 8,000 miles per year. I mention this because if you rack on the miles and put little down and make the minimum payments, you will owe more than what the car is worth in the end. So research this program extensively if you go this route. When you do the math, if you increase the payments where there is no balloon at the end, then it will still calculate to the same if it was a traditional loan. |
03-29-2010, 08:45 PM | #6 |
Lieutenant
290
Rep 515
Posts |
I checked. I believe you have to work or have a family member working for the govt.
Plus I'm not sure if they offer the balloon financing. It was very difficult to find. Only Driving Sense had it. You would then contact them and ask for credit unions in your area. The one I joined got me in because I lived in the county they served. |
Appreciate
0
|
03-29-2010, 09:08 PM | #7 |
El_Padrino
1
Rep 14
Posts |
Penfed, only requires you to be 1) in the Military or 2) a "friend" of the military, which I am. I have a Penfed account already setup for when I decide to pull the trigger. You should look into this route.
|
Appreciate
0
|
03-29-2010, 10:01 PM | #10 |
Lieutenant
290
Rep 515
Posts |
Just checked the PenFed site and read some threads.
They do offer a balloon loan slightly higher than their standard loan (3.9%) at 4.24% called a Payment Saver Option. That is .25 better than what I got. You can make a one time $20 civilian donation to military family association or something, and you're in. Definitely looking into this. Thanks guys. |
Appreciate
0
|
03-30-2010, 02:34 PM | #11 |
Lieutenant Colonel
148
Rep 1,885
Posts |
Good find. Good thread. Subscribed.
__________________
'11 E92 M3 ZCP SG 6MT Tech Sound USB Heat Cloth Aluminium Sunshade
http://www.m3post.com/forums/showthread.php?t=422151 |
Appreciate
0
|
03-30-2010, 08:55 PM | #12 |
Lieutenant Colonel
148
Rep 1,885
Posts |
what is the point of this baloon payment financing? it still comes to same money of the sale price, more or less. isn't it easier to lease new, or finance cpo with hefty down payment?
__________________
'11 E92 M3 ZCP SG 6MT Tech Sound USB Heat Cloth Aluminium Sunshade
http://www.m3post.com/forums/showthread.php?t=422151 |
Appreciate
0
|
03-30-2010, 09:03 PM | #13 | |
Lieutenant
290
Rep 515
Posts |
Quote:
In addition, I wanted a new car. I know I'll probably take the depreciation hit in the first couple of years, but I wanted the competition package and to experience Euro delivery. |
|
Appreciate
0
|
03-31-2010, 04:23 PM | #14 |
Lieutenant Colonel
148
Rep 1,885
Posts |
Yeah, I hear ya... I've been leasing as well, but this time going to buy cpo... only problem, there are not too many cpo M3's to choose from...
__________________
'11 E92 M3 ZCP SG 6MT Tech Sound USB Heat Cloth Aluminium Sunshade
http://www.m3post.com/forums/showthread.php?t=422151 |
Appreciate
0
|
03-31-2010, 10:08 PM | #15 |
Private
4
Rep 59
Posts |
I am planning on using penfed. I did the donation route a year or two back, and have been waiting to need a good loan rate. Now it will pay off. My 2011 is on the ship, so I should be going through the process soon, and will try to report back my results.
|
Appreciate
0
|
04-02-2010, 05:43 AM | #16 |
Colonel
289
Rep 2,496
Posts |
if you can put 20k down you should be able to do traditional financing and get a lower rate. that doesnt make much sense to do a balloon.
__________________
|
Appreciate
0
|
04-02-2010, 05:35 PM | #17 | |
Lieutenant
290
Rep 515
Posts |
Quote:
I have a couple of trips to go on this year, and I would rather save the few bucks for that. I can always wait the year, but my lease is up in May. You only live once, and to me it's worth the extra few bucks in interest. |
|
Appreciate
0
|
04-02-2010, 06:12 PM | #19 |
Captain
421
Rep 965
Posts |
I called up Penfed, and they didnt calculate the balloon payment correctly.. I know this because they quoted $450/month on a $66K car with a selling price of $61K. $0 money down. What is the correct way to calculate this? Their website does not use the correct MSRP for the car i have configured.
|
Appreciate
0
|
04-02-2010, 06:50 PM | #21 | |
Lieutenant
290
Rep 515
Posts |
Quote:
Here's the link: https://www.penfed.org/productsAndRa...Calculator.asp |
|
Appreciate
0
|
04-02-2010, 06:56 PM | #22 |
Lieutenant
290
Rep 515
Posts |
Here is what I came up with from the Pendfed auto save calculator found here:
https://www.penfed.org/productsAndRa...Calculator.asp I just plugged in my loan amount of $48,000. Here is what I got: MSRP: $74,525 Loan Amount: $48,000 Auto Payment Saver Rate: 4.24% APR Conventional Auto Rate: 3.99% APR These payment estimates are based on the MSRP of the vehicle selected. If you'd like to recalculate these payments on your expected purchase price and for the same vehicle, enter the amount below. Term Payment Saver 24 Month $215.60 Balloon Due: $47,065.60 36 Month $407.09 Balloon Due: $39,307.09 48 Month $454.03 Balloon Due: $33,604.03 60 Month $469.81 Balloon Due: $28,444.81 |
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|