Regardless of what you paid on the car that's a hell of a finance deal in any market, given the current rates that was a no brainer to finance the vehicle. I've always been jealous of other brands that offer 0% interest rates for any extended length of time. Frees up your cash to invest as you wish and time to pay off the vehicle as slow or fast as you want.
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Originally Posted by Banks1419
We just purchased a stock 2018 X5 Xdrive 35i in Dark Graphite Metallic and black dakota leather interior including:
- Driving assistance package
- Parking assistance package
- Premium package
- Heated steering wheel
- Wireless charging
Suggested retail: $66,635
Price paid: $56,135 before taxes and tags, about 16% off list.
I wanted to pay cash but they "said" this included incentives that came with financing including $3000 financial services incentive, $1000 loyalty and $500 USAA (which I asked for). At first, the financing was at a 4.9% rate, and I had planned to pay it off ASAP to avoid as much finance charge as possible.
When I pushed them for more, they came back with a 1% financing rate for 5 years. Since I can get >3% on a bank CD risk free, they are essentially giving me 2% for 5 years.
When talking to the finance guy, I got talked into an extended warrantee (which I now plan on cancelling) but they then further lowered the finance rate to 0.01% which is about $16 total finance charges over 5 year, so essentially free money for 5 years (of course I have to buy the car). The arbitrage return here is over $4,000 (pre-tax) over the five years.
Seems like the price reduction and financing advantage together make this a decent deal. Would appreciate any views even though we've already made the purchase - and really like the new X5. Thanks
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