Got financing set up for E90 M3

[antjemac]

I was pleasantly surprised to get BMWNA financing set at 5.9% for 72mo plus the $1500 holiday cash. That was .7 better than my local bank would do. Its not great but much better than what I was qouted 2 mos ago something like 7.5 for 72mo. Anyway im locked in unless it goes lower and i'm set for mid feb. delivery. Doing the Performance delivery in Greenville SC just down the mountain from here in Asheville NC. So excited!

[CORTDD]

Whooa nelly!!!

You are financing a car for 72 months? At nearly 6% interest? Plus, your 2010 vehicle is set for February delivery?

You must really want this car because financially, this seems like a bad move. Hopefully you are putting a substantial amount down on this car (i.e. more than $10k). Otherwise, you are going to be upside down in it from the get go. You could be in the position of bringing money to the table just to sell the car later.

The rumor is that March 2010 starts production of 2011 model year M3's. So in a hurry your new 2010 car is going to be considered "a year old." These 2011's will be slightly updated meaning that your 2010 car is "the old model."

Finally, if you must buy now, there are some credit unions out there that may be able to finance for a better rate--do you have any military/government connections for PenFed? I hope you at least got the car at invoice or less than $1k over. Run, don't walk away from the deal if you are paying anything close to MSRP. While it is an awesome car, it is just a car.

[alms21]

Congrats on the new purchase. 72 months at 5.9% is a pretty damn good deal.

CORTDD - how about letting the OP do as he chooses. I doubt he posted this to get financial advise from somebody on a car forum. On top of that, how in the hell do you know how long he plans on keeping the car to be upside down at some point in time?

For someone that has but 15 posts, you won't make many friends here with comments like you just made above.

[ersin]

Actually, I thought CORTDD had some good advice. I didn't read it as putting down the OP. I wouldn't go to 72 months on a car loan either but to each his own. The OP can certainly do as he chooses and I don't know all of his circumstances, but he might want to shop around for a better finance deal. I would hate to see someone get screwed by the bank (even though it happens all the time).

Cheers.

[autospiel]

Antjemac, when in mid-February are you taking Performance Center delivery? My delivery date there is February 11 (E90 w/ DCT in Mondstein)

[antjemac]

Here is a little more info on my deal and I do appreciate the comments. I purchased the car at $800 over invoice with $10000 down including holiday cash so I don't believe i'll be that badly upside down. I decided to go 72mo because my goal was to have payment under $1000, it ended up being like $915 which I though was reasonable. I do plan on keeping the car for at least 6 or7 yrs, but then again I have said that before. We will see how much I like the car, this is my first M car. Here lately I have read about the MY2011 and this has caused me some concern but not because of reduced resale value but more because of any change and or improvement that may happen. From what I have gathered it does not look like there will be anything significant changed on the E90. Another important fact is that I need a car by mid Feb. and I just dont see the value of waiting to basically April or May for MY2011 March build. Thanks again for your opinions. Do not know exact delivery date at Performance Center hopefully before Feb 20 (birthday)

[osteome]

I would also echo the caution on financing for 72 months, but it's not my money.

Enjoy the ride!

[antjemac]

I changed my mind and decided to go 60mo with 4.9% through BMW, I also believe 72mo is too long for a car loan.

[Alchem]

Originally Posted by antjemac

I changed my mind and decided to go 60mo with 4.9% through BMW, I also believe 72mo is too long for a car loan.

Good! But I still think you should wait for the 2011 especially since ur gonna keep the car for 6-7 years. I dont think waiting till May/June is gonna kill you.

[NoM3ForMe]

Originally Posted by Alchem

Good! But I still think you should wait for the 2011 especially since ur gonna keep the car for 6-7 years. I dont think waiting till May/June is gonna kill you.

He said he needed a car by mid-February...

And to the OP, good move on changing to 60 mos; you would have been upside-down after the first year at 72. And that is one HELL of a Bday gift!!!

[antjemac]

I really would like to have the car by Feb. I have waited long enough for this car. I do suppose if the changes were that significant on the 2011 E90 M3 I could probably wait a little longer. However from what is known at this point with the changes, it does seem to me to justify the additional 3-4 month wait. Plus I have wanted a "M" car since college and I can't think of a better B-day present.

[Technic]

Originally Posted by antjemac

I changed my mind and decided to go 60mo with 4.9% through BMW, I also believe 72mo is too long for a car loan.

IMO, 72 months is not the problem it is 72 months at 5.9%...

[FStop7]

72 months at 6% wow

makes me glad i got 60 at 0.9%

[enigma01]

Originally Posted by Technic

IMO, 72 months is not the problem it is 72 months at 5.9%...

I have a complete opposite view. With the amount of currency being printed to fund all the spending bills, we'll most likely have high inflationary years, and 5.9% will seem like a good deal.

I don't think financing a car over 72 months is a good idea, especially for young guys who should be putting money smartly into solid investment vehicles. Many things can happen in 6 years and you probably don't want to be stuck with a good deal of income committed to a depreciating asset.

[Technic]

Originally Posted by enigma01

I have a complete opposite view. With the amount of currency being printed to fund all the spending bills, we'll most likely have high inflationary years, and 5.9% will seem like a good deal.

I don't think financing a car over 72 months is a good idea, especially for young guys who should be putting money smartly into solid investment vehicles. Many things can happen in 6 years and you probably don't want to be stuck with a good deal of income committed to a depreciating asset.

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...

[jwnpgh]

All the advice sounds good.

Another angle I was told by a friend in banking and loan management. She said there is a reason to put less down and stretch out a loan for as long as possible.

Also keep in mind there is no great economic reason to buy any new car, but spending less on interest is always a good idea.

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.

Also a long loan gives a person room in the event of financial difficulty. If you can afford a shorter loan payment, then locking in a longer loan and paying it back faster, at the shorter loan payment, is a choice that gives you some room in some situations.

Just more advice and perspective ,hope it helps.

john

[enigma01]

Originally Posted by Technic

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

A
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.

[tma1c]

Come on peeps. 5.9% for 72 months is HORRIBLE! Not in today's economy. 60mo with 4.9% isnt bad but i think you can negotiate to a lower rate. Nobody NEEDS a M3 so I would wait for a lower rate. Telling the OP that is a good deal is just plain lying.

[Technic]

Originally Posted by enigma01

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?

I'm not sure what's you point of inflation in this thread is, neither.

My point is that BMW 5.9% for 72 months is nothing to brag about, much less to even say that it is a "good" rate and that it is not based on any inflation. It is most probably due to the 44,000 units production cut for the USA this year becoming a permanent cut from now on due to low sales, so BMW it is just adjusting their profit margin accordingly wherever they can, like increases lease and finance rates, .4% MSRP increase this January, and a possible 5% additional increase in MSRP next March.

[firewired]

penfed has 3.99%

[brusso]

b of a is 3.99 or 4.2 for 72 mo.

[rich2saint]

I got 3.75 for 60 mnths through BoA, 0 down... Would have loved to get the .9% - that was really an awesome offer for '09. Alas, timing-wise, I got lumped in to '10 production for Euro delivery... Oh well, reasonable amount of blood to spill on the alter...