BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > M3 (E90 / E92 / E93) > New and Preowned M3 Pricing, Ordering, Tracking / European Delivery / Dealer Reviews
 
Post Reply
 
Thread Tools Search this Thread
      05-03-2010, 08:38 PM   #45
comebackid
First Lieutenant
United_States
15
Rep
317
Posts

 
Drives: 2011 335i M Sport Coupe
Join Date: Nov 2006
Location: Northern New Jersey

iTrader: (0)

Quote:
Originally Posted by PicassoM View Post
I have he same question. Have not been able to find a lender who will finance ED without MSO. I've come to the conclusion that eD you have to pay BMW financing.

Anyone get May financing rates yet? I want to do ED but 6% sucks when compared to BOA ad other lenders
It's 3.9% for May for MY2011.
Appreciate 0
      05-03-2010, 08:41 PM   #46
comebackid
First Lieutenant
United_States
15
Rep
317
Posts

 
Drives: 2011 335i M Sport Coupe
Join Date: Nov 2006
Location: Northern New Jersey

iTrader: (0)

Quote:
Originally Posted by outie View Post
Good to know it's 3.99%. Perfect timing. The only problem is my p/u is 5/7 and I am flying out on 5/5. It's 5/3 today and the dealer has not contacted me for payment!
Are you serious? I heard at least 1 week before your pick up date you need to pay. That's why I went in today. My ED pick up is Monday, May 10. But because of the last second phone call, I have to go in tomorrow to pick up my credit union check and sign with BMWFS. Obviously less than a week tomorrow so I'm sure there is flexibilty, but your are cutting it close...
Appreciate 0
      05-03-2010, 10:21 PM   #47
spartan1685
Enlisted Member
spartan1685's Avatar
0
Rep
47
Posts

 
Drives: 2011 M3 Sedan
Join Date: Apr 2010
Location: Virginia, USA

iTrader: (0)

Just throwing it out there...but make sure you understand the ballon payment and are comfortable enough with the terms / amount owed upon ballon drawdown...ballon style loans work well on houses as most home buyers are betting on the home becoming an appreciating asset thus keeping the loan from being under water...whereas the car is a depreciating asset (e.g. mileage, condition, accidents)...which can force you to owe a ballon on something far less valuable...anyway just my random thoughts..
Appreciate 0
      05-03-2010, 10:52 PM   #48
comebackid
First Lieutenant
United_States
15
Rep
317
Posts

 
Drives: 2011 335i M Sport Coupe
Join Date: Nov 2006
Location: Northern New Jersey

iTrader: (0)

Quote:
Originally Posted by spartan1685 View Post
Just throwing it out there...but make sure you understand the ballon payment and are comfortable enough with the terms / amount owed upon ballon drawdown...ballon style loans work well on houses as most home buyers are betting on the home becoming an appreciating asset thus keeping the loan from being under water...whereas the car is a depreciating asset (e.g. mileage, condition, accidents)...which can force you to owe a ballon on something far less valuable...anyway just my random thoughts..
Thanks for the heads up.

Yes. Fully aware on the concept. In my case, I'll be putting down a little over 20K. In year 2-5 I plan on accelerating my payments by 400+ per month giving me a balloon note of 0-10K. In addition I drive about 8,000 miles per year. So I can skip the balloon altogether and make a few extra bucks if I sell before the end of the term.

I went with balloon cause I wanted a lower payment in Year 1. I don't mind paying down the few extra bucks in interest on the balloon in the first year without compromising my lifestyle. I could have just waited the year, but my current lease is up in May.

I think the rule of thumb is a minimum 8:1 net income to car payment ratio per month.
Appreciate 0
      05-04-2010, 12:02 AM   #49
IbanezGod
Captain
IbanezGod's Avatar
30
Rep
954
Posts

 
Drives: 2011 E90 M3
Join Date: Jul 2009
Location: NJ

iTrader: (0)

Quote:
Originally Posted by comebackid View Post
It's 3.9% for May for MY2011.
this is for standard 4-5 year financing correct?

My dealer told me they wouldn't know till tomorrow and she would give me a call. How did you find out? 2011 finance rates aren't even online yet. They only have 2010.
Appreciate 0
      05-04-2010, 08:32 AM   #50
comebackid
First Lieutenant
United_States
15
Rep
317
Posts

 
Drives: 2011 335i M Sport Coupe
Join Date: Nov 2006
Location: Northern New Jersey

iTrader: (0)

Quote:
Originally Posted by PicassoM View Post
this is for standard 4-5 year financing correct?

My dealer told me they wouldn't know till tomorrow and she would give me a call. How did you find out? 2011 finance rates aren't even online yet. They only have 2010.
Yes. 4-5 year also.

I got the call at the end of the day. Around 5:30. Even the GM sent me an e-mail in the evening.

I don't think they will post 2011 rates online. Just 2010.
Appreciate 0
      05-04-2010, 11:01 AM   #51
1cleanm3
Brigadier General
1cleanm3's Avatar
Armenia
134
Rep
3,606
Posts

 
Drives: ///E92M3*RR Sport*Prius
Join Date: Feb 2008
Location: the 818

iTrader: (7)

Quote:
Originally Posted by comebackid View Post
Yes. 4-5 year also.

I got the call at the end of the day. Around 5:30. Even the GM sent me an e-mail in the evening.

I don't think they will post 2011 rates online. Just 2010.
can u please post the email?
__________________
HRE + CHALLENGE + KW V3 + GINTANI + ARKYM + YOKOHAMA AD08
Appreciate 0
      05-04-2010, 11:08 AM   #52
1cleanm3
Brigadier General
1cleanm3's Avatar
Armenia
134
Rep
3,606
Posts

 
Drives: ///E92M3*RR Sport*Prius
Join Date: Feb 2008
Location: the 818

iTrader: (7)

just called again and still nothing....

im funna raise the flag
__________________
HRE + CHALLENGE + KW V3 + GINTANI + ARKYM + YOKOHAMA AD08
Appreciate 0
      10-31-2010, 02:20 PM   #53
jonbiggs
Registered
0
Rep
1
Posts

 
Drives: 2011 M5
Join Date: Oct 2010
Location: San Diego

iTrader: (0)

Quote:
Originally Posted by dimabimmer View Post
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?
Quote:
Originally Posted by buschy View Post
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.
Three words.... Time Value Money. followed by a long winded explanation....

I'll take a balloon over putting up the money upfront any day for a few different reasons...

1.) It's my money and I feel way better in general if it's in my possession for as long as possibly possible.

2.) Currency depreciation. This happens; no way around it. So in the 3-5 years your balloon payment is due, the almighty dollah dollah bill may depreciate by as much as 20% (or more, who knows really these days) so effectively, the $20k you pay in 5 years will be worth much less to you at that point than it means to you today. You will also be making more money in 5 years. The banks and finance companies justify this by charging you interest year over year to offset for depreciation and yield some green for themselves. This brings me to my last point...

3.) Invest that large down payment into a compounding interest bearing account. Even though you are essentially investing with borrowed money, you're getting the money very cheap @ 4.25%. If you can yield anything higher than that PLUS reap the benefits of the magic of compounding, the rough numbers might look something like this.

Cost:
$20k down payment deferred to balloon payment in 5 years.
4.25% interest - $850/yr in interest; $4250 total (if they compound yearly, it will be more in the ballpark of $4626 in total interest paid)

Earnings:
Put that $20k into a mutual fund yielding 8.5% and compounding yearly (you may be able to find better rates with more frequent compounding, but we'll play it conservative)
Start with $20k principal -> earn $10073.14 in interest -> end with $30,0173!!!

So you made $5k by doing it this way, and that's not counting the money you save on payments or depreciation.

Or am I missing something?
Appreciate 0
      10-31-2010, 03:59 PM   #54
trendy26
First Lieutenant
11
Rep
364
Posts

 
Drives: 2013 E92 M3
Join Date: Nov 2008
Location: Florida

iTrader: (0)

Quote:
Originally Posted by jonbiggs View Post
Three words.... Time Value Money. followed by a long winded explanation....

I'll take a balloon over putting up the money upfront any day for a few different reasons...

1.) It's my money and I feel way better in general if it's in my possession for as long as possibly possible.

2.) Currency depreciation. This happens; no way around it. So in the 3-5 years your balloon payment is due, the almighty dollah dollah bill may depreciate by as much as 20% (or more, who knows really these days) so effectively, the $20k you pay in 5 years will be worth much less to you at that point than it means to you today. You will also be making more money in 5 years. The banks and finance companies justify this by charging you interest year over year to offset for depreciation and yield some green for themselves. This brings me to my last point...

3.) Invest that large down payment into a compounding interest bearing account. Even though you are essentially investing with borrowed money, you're getting the money very cheap @ 4.25%. If you can yield anything higher than that PLUS reap the benefits of the magic of compounding, the rough numbers might look something like this.

Cost:
$20k down payment deferred to balloon payment in 5 years.
4.25% interest - $850/yr in interest; $4250 total (if they compound yearly, it will be more in the ballpark of $4626 in total interest paid)

Earnings:
Put that $20k into a mutual fund yielding 8.5% and compounding yearly (you may be able to find better rates with more frequent compounding, but we'll play it conservative)
Start with $20k principal -> earn $10073.14 in interest -> end with $30,0173!!!

So you made $5k by doing it this way, and that's not counting the money you save on payments or depreciation.

Or am I missing something?
I absolutely love your thought process. Very great and informative post!
Appreciate 0
      10-31-2010, 07:12 PM   #55
cavasoti
New Member
0
Rep
25
Posts

 
Drives: Future M3
Join Date: Oct 2010
Location: NJ

iTrader: (0)

on the penfed website they quoted $74655 60 months loan at 946 and BMWFS had me on a Select for 869.
what is the advantage of the penfed?! im lost
Appreciate 0
      10-31-2010, 10:52 PM   #56
EVO_S4
Colonel
EVO_S4's Avatar
45
Rep
2,200
Posts

 
Drives: 2012 Golf R
Join Date: Apr 2005
Location: TN

iTrader: (28)

Garage List
2009 BMW  [4.12]
Quote:
Originally Posted by cavasoti View Post
on the penfed website they quoted $74655 60 months loan at 946 and BMWFS had me on a Select for 869.
what is the advantage of the penfed?! im lost
You will have a balance left on the BMW select terms
__________________
2013 Lexus RX350 F-Sport
2015 Subaru WRX STI
Appreciate 0
      11-01-2010, 08:26 AM   #57
trendy26
First Lieutenant
11
Rep
364
Posts

 
Drives: 2013 E92 M3
Join Date: Nov 2008
Location: Florida

iTrader: (0)

How much $ down on that deal?
Appreciate 0
      11-01-2010, 11:15 AM   #58
cavasoti
New Member
0
Rep
25
Posts

 
Drives: Future M3
Join Date: Oct 2010
Location: NJ

iTrader: (0)

Quote:
Originally Posted by trendy26 View Post
How much $ down on that deal?
i dont know what deal ur talking about, but if it is the one I got, $3200 out the door with fees and first payment..
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 03:09 PM.




m3post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST