[clemsonkev]

My dealer is pulling ahead one month for me on this 435i GC lease. (they are covering the final payment so I can get my M2 at the PCD in a couple of weeks)

But I just learned that this means I will have to use BMW Financial instead of my credit union for the M2. Ugh.

3.24% for 60 months really the best BMW can do right now? What is everyone else getting?

[Tuscan]

Wouldn't you save much more than one lease payment through out 5 years if you use your credit union rates?

[philinit]

Originally Posted by clemsonkev

My dealer is pulling ahead one month for me on this 435i GC lease. (they are covering the final payment so I can get my M2 at the PCD in a couple of weeks)

But I just learned that this means I will have to use BMW Financial instead of my credit union for the M2. Ugh.

3.24% for 60 months really the best BMW can do right now? What is everyone else getting?

I actually got hit with that rate as well. When I first made my deposit mid February, I was under the assumption that I was locked into the 2.91% rate but they changed it on me and said that at the time of pick up they were unable to offer it to me

Could of lived with the 2.91% rate but I can get much lower rate with teachers or penfed, so I will ride this out for a few months and just refinance next year.

[clemsonkev]

Originally Posted by Tuscan

Wouldn't you save much more than one lease payment through out 5 years if you use your credit union rates?

Yes. My SA said I could refi elsewhere after 6 months though. Hmmmm

[Tuscan]

You will probably not get the new car financing rates from your CU after 6 months though.

[atxsk8r]

Originally Posted by clemsonkev

Yes. My SA said I could refi elsewhere after 6 months though. Hmmmm

6 months?? Is this stated in some contract? You should be able to refinance whenever you want to.

When i picked up my car, BMW financed my car with a credit union and the next day, i found a better rate online with another credit union and refinanced.

[achenator]

Originally Posted by clemsonkev

Yes. My SA said I could refi elsewhere after 6 months though. Hmmmm

They are telling you this only because if you refi sooner than that they lose some or all of their cut of the financing.

[OSee]

Unless stated in your contract you should be able to refinance after you leave the dealership.

But since they are always doing these lease buy backs I’m sure there’s fine print somewhere that states you can’t pay for the car in full prior to 6 months.

[clemsonkev]

Can the dealer do better with BMWFS than the 3.24 advertised?

[clemsonkev]

So I BOUGHT THE CAR TODAY. At first the Finance Mgr had 4.25% on the pre-filled out forms. I pretty much laughed at him & showed him BMWFS was advertising (3.24) and what my local credit union was advertising. He then stuttered a bit and said something like "well, I do see you have an 800 credit score so we can probably capture that 3.24 for 72 months"...... yA THInk?!?! He did.

I did get them to pay off my final month lease payment on the 435i GC and remove the 350.00 disposition fee. The SA still says that means I have to stick with BMWFS for 6 months, but i DO NOT see that in any of the docs. SO I WILL BE REFINANCING WITH MY CREDIT UNION.... THEY ARE OFFERING 1.99% for 75 months!

Am I missing anything?

[Wwilliams102]

75 months on a car sounds like an awfully long time to have payments.

[hoyasaxa]

Originally Posted by achenator

They are telling you this only because if you refi sooner than that they lose some or all of their cut of the financing.

Wouldn't doing that come back on your CA though? That relationship and repeat business might be more than 6 mos at the higher rate?

[blackholescion]

Originally Posted by Wwilliams102

75 months on a car sounds like an awfully long time to have payments.

at 2%, it's probably worth it and investing the difference.

Originally Posted by hoyasaxa

Wouldn't doing that come back on your CA though? That relationship and repeat business might be more than 6 mos at the higher rate?

Nope, only the finance guy at the dealer. Who has already earned his money through a bank kickback that bmwfs is working with.

Honestly though, OP, you should have pushed harder on the 2% that your CU is offering but I think you got lucky that there's nothing in the paperwork that says you have to stick with them for 6 months. They could have done better via their relationship with a bank especially if your credit score is 800 like you say it is. When I bought mine, the dealer beat my bank offer, which was less than bmwfs already. Refinancing is probably going to cost you some money though I still think you'll come ahead since that 1% adds up to 2k on a 50k loan over 72 months.

[clemsonkev]

The finance mgr was actually going to get me a better rate than BMWFS... but it was the SALES MGR that insisted that by paying off my lease one month early I am required to use BMWFS.

WHATEVER... I'll just refinance at 1.99 as soon as I get confirmation that the 435i lease is paid in full.

[clemsonkev]

... and yes, 1.99 for 75 months is a long time BUT it's like free money as investing is gaining me 6-9% these days. (Typical mutual fund returns)

[clemsonkev]

Lease paid!!! Confirmed. That was fast. BMWFS: "This account is no longer active. Please visit My BMW to view details of your account."

Time to visit the Credit Union.

[HPIA4v2]

if you can refi at CU, most CU will give you new car rate for MY2016 and newer so no worry there.

But 3.24% seems to be unmarked up rate from BMWFS now.

[boostm3]

Originally Posted by achenator

They are telling you this only because if you refi sooner than that they lose some or all of their cut of the financing.

Exactly.. back in 2010 when I was buying my '11 135i, I got $2k extra off by agreeing to their .99% financing, which was a no brainer.. But I had to keep the loan open for 6 mos... Total BS... a few wks after taking delivery, I paid it off, and thats all she wrote.. They try and intimidate you into keeping the loan alive, but there is absolutely nothing forcing you to do so.