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      04-19-2017, 01:18 PM   #1
wankelman24
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BMW Select Financing/ Quick ??

On a new 2017 X5, does anyone know what rate BMW is using currently with someone that has excellent credit? I was looking at 48 months.

Thanks for your help!!

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      04-19-2017, 01:39 PM   #2
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Quote:
Originally Posted by wankelman24 View Post
On a new 2017 X5, does anyone know what rate BMW is using currently with someone that has excellent credit? I was looking at 48 months.

Thanks for your help!!

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BMW rates are not good now, 3.15%. I bought a car last week and did finance thru my CU.
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      04-19-2017, 02:16 PM   #3
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BMWFS cost of funds must be pretty high now given the anticipated fed rate increases, and the fact they have to sell these loans to gain funding to make new loans. Banks and credit unions often has cheaper and diversified source of funding and can offer much better rates.

However, BMWFS can be super competitive if they're incentivized to sell cars and willing to take a loss (or thin margins) on interest income...but we all know those days are long gone...for now.

I wonder what BMWFS average cost of funding is these days....they must use some type of warehouse credit line from a large bank where they pledge these loans as collateral.

There could be other reasons BMWFS has increased rates as well, could be loan quality issues or what their loan investors are looking for in terms of yield vs comparable instruments.
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      04-19-2017, 03:11 PM   #4
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We just got 1.9% on our 2014 X5 from the dealership. They first drew up the paperwork at 2.9% but my wife (ex sale's person for 30 years) talked them into hunting for a better rate. Our credit rating was outstanding (864).
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      04-19-2017, 03:19 PM   #5
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I purchased my 17 X5 back in September and got a 0.9% up to 72 months from BMWFS.
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      04-19-2017, 05:10 PM   #6
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Quote:
Originally Posted by Florida-X5 View Post
We just got 1.9% on our 2014 X5 from the dealership. They first drew up the paperwork at 2.9% but my wife (ex sale's person for 30 years) talked them into hunting for a better rate. Our credit rating was outstanding (864).
so who was your creditor? BMWFS?
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      04-19-2017, 05:21 PM   #7
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so who was your creditor? BMWFS?
Yes, BMWFS
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      04-19-2017, 05:22 PM   #8
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Yes, BMWFS
wow, that is just so...shady. It's no wonder CFPB is getting on direct/indirect auto financing companies on discriminatory lending practices. Bet they saw a female and thought they could charge more.
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      04-20-2017, 07:08 AM   #9
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Quote:
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wow, that is just so...shady. It's no wonder CFPB is getting on direct/indirect auto financing companies on discriminatory lending practices. Bet they saw a female and thought they could charge more.
No ... when we were talking with Sales mgr we asked about financing rates and they said depends on credit, etc but worst case 2.9%. On the sheet that had the final numbers they had 2.9% so when that was given to the finance guy he just ran with it. I blame the sales mgr for not clarifying "best rate available" to the finance guy. In our case, for the amount we were borrowing and time frame, came out to less than $4 a month difference. More of a moral win for my wife than anything else.
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      04-20-2017, 08:43 AM   #10
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Who cares what they're offering unless there's 0% or 0.9% special offer (but you would be able to easily see that on any BMW dealer website). 2.9% could very well be BMWFS' best offer but it doesn't mean that other banks can't do better.

Tell them the rate you want and force them to get it for you. Neither you nor the dealer are obligated to use BMWFS and the dealer is free to get quotes from multiple banks. Worst case, they can buy the rate down in order to get you what you want. The only condition is that you do have to make sure that the rate you're requesting is realistic.

Looks like the going rate on loans right now is somewhere around the mid to high 2's. As usual, best bet would be a credit union but if you can tell the dealer what rate you can get from a CU, he/she should be able to find a bank to match it.
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      04-20-2017, 12:00 PM   #11
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I recently qualified for 0%, 72 months, zero down.
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      04-20-2017, 01:00 PM   #12
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I recently qualified for 0%, 72 months, zero down.
did you still get 10% of so off MSRP to boot?
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      04-20-2017, 02:23 PM   #13
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Quote:
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did you still get 10% of so off MSRP to boot?
You shouldn't necessarily let financing offers impact the price that you negotiate with the dealer. Financing offers are funded by BMW HQ and don't cost the dealer anything. Regardless of what they tell you, national offers from BMW HQ should not impact their bottom line.

Same deal with the national specials (for example, $2,000 cash back, etc.) that are run by BMW HQ. That money is all gravy to the dealers...you should negotiate what you think to be a fair price and then apply the national offer on top.
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      04-20-2017, 02:28 PM   #14
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Quote:
Originally Posted by double_j View Post
You shouldn't necessarily let financing offers impact the price that you negotiate with the dealer. Financing offers are funded by BMW HQ and don't cost the dealer anything. Regardless of what they tell you, national offers from BMW HQ should not impact their bottom line.

Same deal with the national specials (for example, $2,000 cash back, etc.) that are run by BMW HQ. That money is all gravy to the dealers...you should negotiate what you think to be a fair price and then apply the national offer on top.
of course...that's why I asked. But dealers could try to use it as a point to get you to pay a higher list and/or take a lower trade
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