BMW Finance wants 10% down, and will not budge. Is this normal?

trendy26 · 07-16-2010, 05:46 PM

Ok, so have everything ready to go on my order, and now BMW puts another halt in the process. They want 10% down on a 60 month Select Loan. Now of course, I have covered all of the basics:

760 credit score across all three bureaus
low debt to income ratio
6 figure income

What gives? It's not an issue, as the 10% equates to only $6,500 down, but still. I really only wanted to do $3K down due to my own personal preference of not wanting to put down a good amount on a car, due to the chance of it being gone, in the case that something happens.

Is this pretty standard of BMW Finance to request the 10% as the minimum down?

Any insight will be greatly appreciated.

Thanks

CORTDD · 07-16-2010, 06:07 PM

You're putting less than 10% down on a loan? I would think you would want to put much more than 10% down on a loan. Otherwise aren't you going to be way upside down on the vehicle? I think whoever advised a low downpayment on a loan is mistaken. A lease is another story, but we're talking loan right?

1cleanm6 · 07-16-2010, 06:27 PM

dude whats the biggie its 3500 more....

just do it

Leonardo629 · 07-16-2010, 08:37 PM

If it's your first luxury vehicle purchase/lease..yeah....I think it's quite normal....

It won't happen again once you establish a good relationship with BMWFS

JulieDriving · 07-16-2010, 09:11 PM

For a loan, should put as much down as you can.

For a lease, you're right, the more you put down, the more you'll lose if the car gets totaled early on. (However, you can still put down and save some money by putting down the maximum amount of security deposits. You'd get that money back if the car was totaled.)

nleeumd · 07-16-2010, 09:16 PM

Not sure of your financial situation; however, if you qualify for the 0.9%/24 months, might as well just finance the whole car and use the extra cash to yield a better return. This is assuming you have the cash to pay for the car outright.

$3,500 isn't too much more

shawshank772 · 07-16-2010, 09:19 PM

Damn, Thats all you guys are putting down?!(Im not judging) For some reason I thought people would put more down on an M3.

mrkbbd · 07-16-2010, 09:57 PM

you shouldn't have to put anything down, especially at 0.9% financing, it doesn't make sense to put a dime down, they should be able to roll everything into the payment

rabman5 · 07-16-2010, 10:50 PM

Quote:

Originally Posted by mrkbbd

at 0.9% financing, it doesn't make sense to put a dime down,

But if you have no history with BMWFS they may want something. BMWFS is more selective now than ever before. Put as little as possible down but don't let this stop you.

trendy26 · 07-17-2010, 09:52 AM

You guys bring up valid point with it not being that much down, but with the interest rate being sooo damn low, the payment is right where I want to be with very little down... Understandable though with me not having a history with BMWFS. May have to just bite the bullet on this one... (Although it's not too big of a bullet!) lol

301Bimmer9 · 07-17-2010, 09:56 AM

You're doing a select loan with 10% down? Your payments will be LOW

MD doesn't offer select but I could have used it in VA. With the current interest rates I would have probably have done it.

m34jlp · 07-17-2010, 11:07 AM

I put zero down on the 0.9% and had no previous dealings with BMW Financial.

Seems odd they want 10% down with your credit score/income...

ChrisK · 07-17-2010, 01:56 PM

Just remember that cars are the worst investment on the planet. Keep you money earning.

positiveions · 07-17-2010, 03:10 PM

is that BMW finance or the finance person at the dealer telling you this? BMW finance can't dictate how much down. WHen people put high downpayment, stealer can make money. It is called "cash on the table".
Best advice, choose another stealer. maybe that will give them a wake up call.

kaykay · 07-17-2010, 04:24 PM

This thread is all about having no previous history with BMW FS.

If you did, this thread wouldn't exist.

They don't know who you are and as good as your credentials might be, to them you're still a first time customer with some risk.

trendy26 · 07-17-2010, 04:24 PM

Yeah, I mean I don't really get it. The dealer told me that BMW wants 10% due to me not buying a car of this price in the past. My current car: '08 Infiniti G37S has the SAME exact payment that the M3 will be. Obviously proved I can handle the payment with ease.... Just prefer to not tie up cash in a car. I offered 5% down, and they're still giving me a hard time....

trendy26 · 07-17-2010, 04:25 PM

Quote:

Originally Posted by kaykay

This thread is all about having no previous history with BMW FS.

If you did, this thread wouldn't exist.

They don't know who you are and as good as your credentials might be, to them you're still a first time customer with some risk.

Very well put!

mrkbbd · 07-17-2010, 09:38 PM

Quote:

Originally Posted by trendy26

Yeah, I mean I don't really get it. The dealer told me that BMW wants 10% due to me not buying a car of this price in the past. My current car: '08 Infiniti G37S has the SAME exact payment that the M3 will be. Obviously proved I can handle the payment with ease.... Just prefer to not tie up cash in a car. I offered 5% down, and they're still giving me a hard time....

Time to switch dealers, there are so many in FLA anyways...and specifically tell them why

IbanezGod · 07-17-2010, 10:15 PM

Damn 3G down? I put 50% down lol

trendy26 · 07-18-2010, 03:33 AM

Quote:

Originally Posted by PicassoM

Damn 3G down? I put 50% down lol

LOL.... Goin to Vegas a couple times this year. As you can imagine, need to conserve as much cash as I can.... No telling how much is gonna be blown out there!

On a more serious note, just prefer to borrow more $$$$ at 1.9%, cuz I could earn more than that by investing my money.... At the end of the day, just confused as to why BMW is so strict, and if this was a norm for them to ask....

M3101 · 07-18-2010, 09:58 PM

The last 2 vehicles I bought I put Zero down..Why tie up money in a depreciating commodity?? Your payments are higher but you still have the cash in the bank!!

positiveions · 07-18-2010, 11:35 PM

Quote:

Originally Posted by kaykay

This thread is all about having no previous history with BMW FS.

If you did, this thread wouldn't exist.

They don't know who you are and as good as your credentials might be, to them you're still a first time customer with some risk.

Well, his credit dictates who he is. Everyone is a risk. Today you are on top of the world, the next thing you are struggling.
When I used to sell cars, i've had a client with good FICO scores but couldn't get a loan because they owed a lot. THen again, I've had a client who had 495 FICO, got him financed at 5.9%. It is the history of car loans and how well that person handled it.
IMO OP, you ought to try a different dealer. LIke I always say, if it doesn't feel good, then walk away. Listen to your gut feeling.

07-16-2010, 05:46 PM	#1
trendy26 Captain 424 Rep 965 Posts Drives: 2017 F82 M4 Join Date: Nov 2008 Location: Florida iTrader: (0)	BMW Finance wants 10% down, and will not budge. Is this normal? Ok, so have everything ready to go on my order, and now BMW puts another halt in the process. They want 10% down on a 60 month Select Loan. Now of course, I have covered all of the basics: 760 credit score across all three bureaus low debt to income ratio 6 figure income What gives? It's not an issue, as the 10% equates to only $6,500 down, but still. I really only wanted to do $3K down due to my own personal preference of not wanting to put down a good amount on a car, due to the chance of it being gone, in the case that something happens. Is this pretty standard of BMW Finance to request the 10% as the minimum down? Any insight will be greatly appreciated. Thanks
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07-16-2010, 06:07 PM	#2
CORTDD Private 11 Rep 81 Posts Drives: E46 M3 Join Date: Nov 2009 Location: Planet earth, top part. iTrader: (0)	You're putting less than 10% down on a loan? I would think you would want to put much more than 10% down on a loan. Otherwise aren't you going to be way upside down on the vehicle? I think whoever advised a low downpayment on a loan is mistaken. A lease is another story, but we're talking loan right?
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07-16-2010, 06:27 PM	#3
1cleanm6 Brigadier General 441 Rep 3,668 Posts Drives: M5 comp/Range/i3S Join Date: Feb 2008 Location: Earth iTrader: (7)	dude whats the biggie its 3500 more.... just do it
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07-16-2010, 08:37 PM	#4
Leonardo629 Lieutenant Colonel 168 Rep 1,792 Posts Drives: 2013 M3 Coupe Join Date: Sep 2006 Location: Taiwan iTrader: (10)	If it's your first luxury vehicle purchase/lease..yeah....I think it's quite normal.... It won't happen again once you establish a good relationship with BMWFS
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07-16-2010, 09:11 PM	#5
JulieDriving Female driving enthusiast :P 76 Rep 2,308 Posts Drives: Bimmer Join Date: Nov 2009 Location: Ontario, Canada iTrader: (0) Garage List 2013 BMW M3 Coupe [10.00]	For a loan, should put as much down as you can. For a lease, you're right, the more you put down, the more you'll lose if the car gets totaled early on. (However, you can still put down and save some money by putting down the maximum amount of security deposits. You'd get that money back if the car was totaled.) __________________ 2013 M3 coupe (Azurite Black, Black, Piano Black) + miata nut (2 miatas) + Mk6 GTI 5-door hatch (our mini-SUV )
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07-16-2010, 09:16 PM	#6
nleeumd Private 24 Rep 94 Posts Drives: e92 m3, e46m3 Join Date: Oct 2009 Location: Arlington, VA iTrader: (1)	Not sure of your financial situation; however, if you qualify for the 0.9%/24 months, might as well just finance the whole car and use the extra cash to yield a better return. This is assuming you have the cash to pay for the car outright. $3,500 isn't too much more
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07-16-2010, 09:19 PM	#7
shawshank772 Major 119 Rep 1,159 Posts Drives: 08 135i and 16 M3 Join Date: Aug 2007 Location: Chicago iTrader: (1)	Damn, Thats all you guys are putting down?!(Im not judging) For some reason I thought people would put more down on an M3.
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07-16-2010, 09:57 PM	#8
mrkbbd Lieutenant 10 Rep 483 Posts Drives: e92 M3 DCT Join Date: Oct 2009 Location: VA/FL iTrader: (0) Garage List 2008 Mercedes E63AMG [0.00] 2009 M3 [0.00]	you shouldn't have to put anything down, especially at 0.9% financing, it doesn't make sense to put a dime down, they should be able to roll everything into the payment __________________ 2006 e53 X5 4.8is (sold) 2009 e92 M3 2008 E63 AMG
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07-17-2010, 09:52 AM	#10
trendy26 Captain 424 Rep 965 Posts Drives: 2017 F82 M4 Join Date: Nov 2008 Location: Florida iTrader: (0)	You guys bring up valid point with it not being that much down, but with the interest rate being sooo damn low, the payment is right where I want to be with very little down... Understandable though with me not having a history with BMWFS. May have to just bite the bullet on this one... (Although it's not too big of a bullet!) lol
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07-17-2010, 09:56 AM	#11
301Bimmer9 It's Playtime 5 Rep 188 Posts Drives: 2011 E92 M3 Join Date: May 2010 Location: MOCO, MD iTrader: (0)	You're doing a select loan with 10% down? Your payments will be LOW MD doesn't offer select but I could have used it in VA. With the current interest rates I would have probably have done it. __________________ 2011 E92 M3 AW/Fox Red ZCP
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07-17-2010, 11:07 AM	#12
m34jlp Wheel Whore 156 Rep 937 Posts Drives: 2015 AY F82 M4 Join Date: Nov 2008 Location: Miami, Fl iTrader: (0)	I put zero down on the 0.9% and had no previous dealings with BMW Financial. Seems odd they want 10% down with your credit score/income...
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07-17-2010, 01:56 PM	#13
ChrisK Major General 4449 Rep 7,594 Posts Drives: '19 M2C Join Date: Jun 2007 Location: Chicagoland iTrader: (7) Garage List 2019 BMW M2C [7.00] 2015 Porsche Macan S [0.00]	Just remember that cars are the worst investment on the planet. Keep you money earning. __________________ www.ReTuneTheDeTune.com 2019 M2 Competition (Sunset Orange)
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07-17-2010, 03:10 PM	#14
positiveions Lieutenant General 961 Rep 11,722 Posts Drives: 19 Tacoma, 16 Golf wagon Join Date: Sep 2007 Location: Upland, CA iTrader: (2) Garage List 2019 Toyota Tacoma [0.00] 2016 VW Golf Sports ... [0.00] 1998 BMW M3 [0.00] 1990 BMW 325is [0.00]	is that BMW finance or the finance person at the dealer telling you this? BMW finance can't dictate how much down. WHen people put high downpayment, stealer can make money. It is called "cash on the table". Best advice, choose another stealer. maybe that will give them a wake up call.
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07-17-2010, 04:24 PM	#15
kaykay Lieutenant Colonel 90 Rep 1,769 Posts Drives: 2011 E92 M3 ZCP Join Date: Apr 2010 Location: SoCal iTrader: (0) Garage List 2011 E93 328i Conve ... [9.50] 2011 E92 M3 ZCP [8.66] 2008 550i Sport [10.00]	This thread is all about having no previous history with BMW FS. If you did, this thread wouldn't exist. They don't know who you are and as good as your credentials might be, to them you're still a first time customer with some risk. __________________ '12 CLS550 Palladium Silver - loaded '11 E92 M3 ZCP - SG/B-EXT/CF, M-DCT, loaded '11 E93 328i, BSM over Saddle Brown, sport, loaded '08 550i M-Sport, Carbon Black (Gone but not forgotten), '06 W211 E55 AMG (Gone, miss this animal),'01 E39 540i Sport
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07-17-2010, 10:15 PM	#19
IbanezGod 997TT, X5M 95 Rep 975 Posts Drives: 997TT, X5M Join Date: Jul 2009 Location: Philly iTrader: (0)	Damn 3G down? I put 50% down lol __________________ 2007 Porsche 911 Turbo, Previously: 1998 M Roadster, 2011 M3, 2005 M3
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07-18-2010, 09:58 PM	#21
M3101 Private 0 Rep 56 Posts Drives: Depends on what day... Join Date: Jul 2008 Location: TX iTrader: (0)	The last 2 vehicles I bought I put Zero down..Why tie up money in a depreciating commodity?? Your payments are higher but you still have the cash in the bank!!
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