Thank you BMW finance!!!

[positiveions]

Originally Posted by will@longbeachbmw

You left me hanging and never responded to my PM.

What's the deal?

Will

Dude, I have babies to deliver man. My schedule is hectic. That is what I get for being a student nurse. I had a blood-smelling scrub.

[will@longbeachbmw]

Originally Posted by eatrach73

Dude, I have babies to deliver man. My schedule is hectic. That is what I get for being a student nurse. I had a blood-smelling scrub.

groossssssss

[T Bone]

Originally Posted by Technic

I think that your own statement contradicts everything else that you wrote before and after it...

The Select Finance is other way of doing the same business. Or you pay upfront or you pay at the end, it is the same thing. The issue then becomes paying the least possible. The real deal here is the 0.9% (in the Sedan) combined with the possibility of as close to invoice/even below pricing as possible. This deal attract people that like to save money, plain simple.

Without those two incentives, Select finance is not a good deal at all.

Just not trying to insult the OP

[mkoesel]

Originally Posted by eatrach73

if E =MC2. People are coming out with all these formulas. I say it is bad deal.

Explain why a 0.9% loan is a bad deal. I am all ears.

It's only a bad deal if you can't really afford the car. But that applies to any deal on any car.

[Ali.K_BMW]

.9 makes your monthly payment dramatically low. if it were 7.9, you montly payments are higher due to the interest.

[Technic]

FYI: this BMW Select Finance deal -combining either the 0.9% or the 1.9% with a Baloon payment at the end- is only available in states that do not have lease programs already in effect. That's according to two dealers (Maryland and Florida) that I was ready to buy their cars from; I'm still waiting for a third dealer in North Carolina to call me with the same bad news. BMW Finance is clueless about these terms and conditions, so I have to go straight to the dealers for this information.

These two dealers shot me down because this deal cannot be honored in those states.

In -freaking- credible.

EDIT: it turns out that this dealer information could be an error: another Florida dealer call me saying that they can do the 1.9% (JB/Bamboo Coupe with PP/TP/Sirius/HD/USB ) with the Select right here in the state.

Waiting for the numbers to get where I want them to get the sucker!

[mkoesel]

^^^^

Technic, just buy from another dealer, and have them trade for the car you want.

[Technic]

Originally Posted by mkoesel

^^^^

Technic, just buy from another dealer, and have them trade for the car you want.

Unfortunately I will have to physically go to Texas (Balloon payments are allowed) to see if this deal even can be possible.

[mkoesel]

Originally Posted by Technic

Unfortunately I will have to physically go to Texas (Balloon payments are allowed) to see if this deal even can be possible.

Hmm, wow. So you mean, even just residing in Florida might make you ineligible, even if you buy the car from an out of state dealership? If so, that would suck big time.

[Technic]

Originally Posted by mkoesel

Hmm, wow. So you mean, even just residing in Florida might make you ineligible, even if you buy the car from an out of state dealership? If so, that would suck big time.

Around 12 years ago I was stationed/living in Oklahoma and I bought a 1996 Z3 thru the Select with Balloon program in Wichita, Texas and registered that car in OK without any issues. I hope that this have not changed at all...

I found a dealer website that I can search for M3 located more than 200 miles from my city and it shows 162 M3s out there, and I found two Sedans each in California and in Texas that got me interested at their price and equipment and because they allow the Balloon payment deal. I would really like a Coupe, but there is none at the price that I'm looking for in Red or any Black with Navigation simply anywhere.

I think that both dealers and BMWNA really misunderstood the economic conditions that we are going thru by importing so many M3s almost/fully loaded. It is ridiculous; I have found so many so many Melbourne Red Coupes at $70,000 that it looks like a bad joke...

[Technic]

I also have to say... thanks BMW Finance!! After three days, tens of dealers from California, Texas, Georgia, NC, SC and Florida, I got a E90 Sedan MR/BB, PP/TP/USB/Sirius/Premium Audio for $500 over invoice. And ironically, within 90 minutes from my house.

The difficulty in getting a good deal in any Florida dealer was simply absurd... they still think that they will be able to sell all those M3 sitting around at MSRP some day. One dealer in Miami has 57 M3 just sitting around, at least 90% of them at $67,000+ and only after 4 phone calls they started talking about $1000 over invoice and $1100 in fees. Did not like any of them because of their color and equipment combos...

Premium Audio is simply a piece of crap, by the way, but there was no other MR/BB at that price in any dealer in Florida (I found one in California, though). Without it my payment could have been almost $25 less a month

[ColoCane]

Originally Posted by Technic

... if you take this balloon payment as a reverse downpayment you will get to the same monthly payment.

Except there's no interest on a downpayment and there's interest on the balloon.

It's only a good deal if you could afford it as a traditional loan. Payments will be less with the balloon, but the difference is what you'll need to cover the balloon.

[ColoCane]

Originally Posted by mkoesel

:In other words, the total cost of this loan can be the exact same as a traditional 0.9% loan if you are smart about it.

Agreed, if there is no pre-payment penalty. If so, invest as was said earlier. Can be done, but must be disciplined.

[mdrobc13]

Originally Posted by icemang17

This looks like a good deal to me........my payment is nearly double that!!!

Total Payout after 60 months including Interest Charges: $65077 ( $1084/month)

34% Balloon payment due at end of financing:

Balloon Payment: $65077 X 34% = $22126

Hmm but it looks like your total cost will be 65k + 22k for the car in the end which totals $87k and you plan on keeping it? If you have the ballon payment like you said...why not put it down on the car now and pay it off in 5 yrs at the same rate with BMW or your bank. (I hear they're offering as low as .9 - 1.9% APR on M3 coupes too just to move folks OUT of leases and ballon payments such at this deal). Also if you put down 10%-20% most banks will cut your rate significantly or at least my credit union did.

So while you can earn 4% on your $23k remember that's only if you're disciplned and leave the $$$ there and don't touch it for 60 months....alot can change in that time personally and financially so why not invest that $$ in your car now...it WILL lower your monthly payment just the same if I understand your deal correctly and then in 60 months the car is yours straight and clear and you won't have to worry about a looming ballon payoff!

Good luck tho...and enjoy your car. Pics posted please when it arrives.

[IS350]

Originally Posted by Kobaiyashi

I don't disagree with anything you are saying. But if I was initially planning on putting 10k down and just making the regular 0.9 payments of about 1100 every month for the five years, its better just to do the balloon loan and put my down payment along with the $300/month "savings" in an ING account that earns ~3%, right? I'll just pretend like that money isn't there (e.g. won't ever touch it) and rely on that to pay off the balloon in 5 years.

If I'm missing something, please let me know. (just as an FYI, and despite the statistics, I'm keeping this car till it dies or I win the lotto... I would never buy a new car and suffer the depreciation otherwise.)

Thanks for your help!

Been debating about finally upgrading to the M3 and have looked at the numbers closely too. Remember that the balloon means that you're paying .9 percent on the ENTIRE amount of the selling price of the car for the first 3 years. Then you pay .9 percent again, if you chose to refinance the remainder when the first balloon is up. So technically it's 1.8 percent on whatever the final balloon payment amount is. And .9 percent for the rest. Still great rates, but know exactly where you're at if you pull the trigger.

Meanwhile has anyone heard if BMW might extend the .9% past month's end? Of course they wouldn't announce it, but with this market, I don't see how they couldn't consider it?

[Zero1]

The rates are extended to Nov. 3rd according to BMWFS

[mkoesel]

Originally Posted by Zero1

The rates are extended to Nov. 3rd according to BMWFS

lol, 3 days? I would be shocked if they are not subsequently extended for another month. You never know though.

[FStop7]

At 0.9 doing Select is pretty much free money. BMW holds a chunk of your debt until the end of the term, yet you pay almost nothing for them to do so.

[nlpamg]

Ok, I have a question about this.

So say I go for the 60 month with the balloon at the end. If I want to trade the car after 2 years, can I do it? What are the drawbacks?

Thanks.

[jaay11]

Its your car....the balloon is just a way to defer part of the cost until the end so your monthly payments are low. Its your car so you can sell.....but I'm not sure how "upside down" you'll be after just two years.

[Technic]

Originally Posted by nlpamg

Ok, I have a question about this.

So say I go for the 60 month with the balloon at the end. If I want to trade the car after 2 years, can I do it? What are the drawbacks?

Thanks.

Yes, you can do whatever you want with your car regardless of balloon payment, straight finance or lease, assuming that you will be ready to take the hit whatever it may be.

If that's what you already are planning to do -or at least is a strong consideration- then you should lease. The latest lease rates were the equivalent of 0.6%, but I do not know if they were extended with the 0.9% finance rate as well up to Dec 31st...

[nlpamg]

Originally Posted by Technic

Yes, you can do whatever you want with your car regardless of balloon payment, straight finance or lease, assuming that you will be ready to take the hit whatever it may be.

If that's what you already are planning to do -or at least is a strong consideration- then you should lease. The latest lease rates were the equivalent of 0.6%, but I do not know if they were extended with the 0.9% finance rate as well up to Dec 31st...

Well, honestly, it sounds like this avenue is less money out of pocket than a lease and it could lend into owning the car rather than having to get a new one.

Also, my issue with leasing is that there's less flexibility in that the buyout/residual is never close to what the car is actually worth and that to get rid of it, you'd have to cover the payments or take a giant hit. I'm thinking that at the end of 5 years or 3 years with the balloon method, the hit I take isn't so bad, and that I have more freedom to trade it earlier than I would have on a lease.

For example, with my current lease, I wanted to trade it in 6 months ago, but I would have paid more to do that than what it would have cost to continue the lease. With this, I think that it might put me in a better position to trade the car in before the end of the term.

Please correct me if I'm wrong. Thanks.