BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M2 Forum > Pricing / Ordering / European Delivery / PCD > Financing M2

Post Reply
 
Thread Tools Search this Thread
      02-04-2016, 06:48 AM   #1
PackPride85
Lieutenant Colonel
United_States
1120
Rep
1,643
Posts

Drives: M2
Join Date: Sep 2014
Location: NC

iTrader: (0)

Financing M2

So I'm about to get my order put in for a May ED trip for the M2 with an out of state dealer. Last new car I bought locally and financed in house so I just brought a down payment check and was on my way.

For the M2, Penfed is down to 2% while BMWFS is near 3%. How does it work if I finance with a 3rd party like penfed? As in, does penfed send me the money, I deposit in my bank, then I wire the full amount to the dealer?

Just trying to get an idea from people who have done this before.
Appreciate 1
      02-04-2016, 08:03 AM   #2
pruettfan
Brigadier General
1622
Rep
3,402
Posts

Drives: 2017 M2, LBB, DCT, Exec
Join Date: Jul 2009
Location: Chandler, AZ

iTrader: (0)

Financing through any credit union or bank is pretty much the same but they each have little differences, some send you a blank check you fill in some will fedex the check to the dealer. I would just call Penfed and ask them. Ordering the car makes it a little different because any lender will want you to take delivery within 30 days of the approval so you just need to keep that in mind
Appreciate 0
      02-04-2016, 08:19 AM   #3
BEM-S4
Major General
BEM-S4's Avatar
United_States
4515
Rep
8,942
Posts

Drives: Dinan M235, Dinan Sport Wagon
Join Date: Oct 2012
Location: Philadelphia

iTrader: (5)

Quote:
Originally Posted by pruettfan
Financing through any credit union or bank is pretty much the same but they each have little differences, some send you a blank check you fill in some will fedex the check to the dealer. I would just call Penfed and ask them. Ordering the car makes it a little different because any lender will want you to take delivery within 30 days of the approval so you just need to keep that in mind
With BMWFS you get whatever is better, deal at order or deal at delivery. Your #s can get better but not worse. Be sure to check with the third party and see what their deal is.
__________________
2022 Macan S
2016 F31 328i xDrive Sport Wagon
2006 E46 330ci ZHP Convertible
Appreciate 0
      02-04-2016, 08:57 AM   #4
Wr3ks
Enlisted Member
32
Rep
49
Posts

Drives: 2013 WRX
Join Date: Jan 2016
Location: EBF, NH

iTrader: (0)

Past experience.

8 or so years ago, I walked in to buy a car during the weekend and because the banks aren't usually open they gave me a certain percentage of APR a good deal at the time. Agreed upon a price with the contingency of waiting for financing approval. Late Monday night they call me and say they have to rework the deal because the financing is different. I'm immediately not happy as they are being not forthcoming about what the changes are.

So Tuesday morning I go to my local credit union with all the information of the car I purchased two days prior. I get a better deal and call the dealership and have them send all the information to the credit union. 30 minutes later I walked out with a check for the agreed upon purchase price of the car from the initial purchase. Walked in with the money at the dealer Tuesday afternoon, had them send all the appropriate paper work to my credit union and walked out.

TLDR: Agreed upon purchase price and contingent financing from dealer, didn't like what they were trying to pull two days later. Contacted local credit union, got better deal. Returned to dealer with check in hand, walked out, not financing with the dealer.

Good luck, everyone's experiences are different there are details I've missed but the major points are there.
Appreciate 1
      02-04-2016, 09:07 AM   #5
hyperzulu
Colonel
hyperzulu's Avatar
United_States
701
Rep
2,337
Posts

Drives: 2015 M235i
Join Date: Mar 2014
Location: Los Angeles

iTrader: (0)

Quote:
Originally Posted by pruettfan
Financing through any credit union or bank is pretty much the same but they each have little differences, some send you a blank check you fill in some will fedex the check to the dealer. I would just call Penfed and ask them. Ordering the car makes it a little different because any lender will want you to take delivery within 30 days of the approval so you just need to keep that in mind
I believe some people have done ED through penfed successfully. They understand the car will not be available for months but requires payment prior to Munich pickup. Not all lenders understand the concept and some will not play ball but I think penfed is an exception.
__________________
Appreciate 0
      02-04-2016, 09:14 AM   #6
miiipilot
Lieutenant Colonel
miiipilot's Avatar
United_States
519
Rep
1,501
Posts

Drives: 2024 M2 Brooklyn Grey 6mt
Join Date: Jun 2010
Location: Cleveland, OH

iTrader: (0)

Can anyone join PedFed? 2% is cheap. I thought 2.92 is good
__________________
miiipilot
'24 M2 Brooklyn Grey, 6mt, Bi-Color, Black M-Color seats,
'16 MG M2, DCT, Exec. Took Delivery 4/30/16 (Sold)
Appreciate 0
      02-04-2016, 09:29 AM   #7
hyperzulu
Colonel
hyperzulu's Avatar
United_States
701
Rep
2,337
Posts

Drives: 2015 M235i
Join Date: Mar 2014
Location: Los Angeles

iTrader: (0)

Quote:
Originally Posted by miiipilot View Post
Can anyone join PedFed? 2% is cheap. I thought 2.92 is good
Check out their website. You can be eligible in many ways, but as a last resort you can join one of two associations for $15 and become eligible that way.
Appreciate 0
      02-04-2016, 10:59 AM   #8
PackPride85
Lieutenant Colonel
United_States
1120
Rep
1,643
Posts

Drives: M2
Join Date: Sep 2014
Location: NC

iTrader: (0)

Quote:
Originally Posted by hyperzulu View Post
Check out their website. You can be eligible in many ways, but as a last resort you can join one of two associations for $15 and become eligible that way.
Yeah I just paid the $15. Capital One is also offering 2%. I'll probably call both to get more info as I've read they are both ED friendly. Thought I saw that Penfed would defer first payment up to 60 days.
Appreciate 0
      02-04-2016, 12:12 PM   #9
BEM-S4
Major General
BEM-S4's Avatar
United_States
4515
Rep
8,942
Posts

Drives: Dinan M235, Dinan Sport Wagon
Join Date: Oct 2012
Location: Philadelphia

iTrader: (5)

I did the same - more so in case I want a Benz this time next year those discounts looked pretty significant.
__________________
2022 Macan S
2016 F31 328i xDrive Sport Wagon
2006 E46 330ci ZHP Convertible
Appreciate 1
      02-04-2016, 12:42 PM   #10
AlexCirci
First Lieutenant
AlexCirci's Avatar
497
Rep
358
Posts

Drives: LBB M2
Join Date: Nov 2013
Location: NC

iTrader: (0)

Any recommendations on financing in general? I am not doing a ED, but this will be my first time buying brand new.. would a credit union be best to start at? Any input is appreciated!
Appreciate 0
      02-04-2016, 12:49 PM   #11
Wr3ks
Enlisted Member
32
Rep
49
Posts

Drives: 2013 WRX
Join Date: Jan 2016
Location: EBF, NH

iTrader: (0)

Quote:
Originally Posted by AlexCirc View Post
Any recommendations on financing in general? I am not doing a ED, but this will be my first time buying brand new.. would a credit union be best to start at? Any input is appreciated!
I've been browsing recently. I also am not doing ED. It depends a lot on you circumstances.

Are you going to put down a good chunk of money or finance the whole thing?

Penfed like others have said seems to have decent rates right now. their highest iirc is 2.74% for 72 mos. BMW current offering is 2.92% for 72mos my local credit union is 2.99% for 72 mos. Also depends on your credit too.

The rates are obviously lower if your financing for less of a term. The lower the APR the less you pay them for holding the lean on the vehicle. I'd love to find less but we'll see.
Appreciate 0
      02-04-2016, 01:18 PM   #12
chmura
Colonel
chmura's Avatar
1557
Rep
2,504
Posts

Drives: 2019 M2 Competition
Join Date: Aug 2009
Location: Orange County, California

iTrader: (1)

Financing a new car is one of the easiest things to do if you have good credit.

I usually finance with my Credit Union as they have a really low APR right now, 1.5% for 60 months.

When I financed my previous e90 M3 through them I did European Delivery. I told them it will take two months for me to receive my car back to the US after dropping it off in Europe. Manager got involved and said okay your first payment will be delayed for 2 months but you will still inquire interest on your loan during that time frame. I said okay sounds fair since the check will be already be deposited by BMW. I still made a payment ahead of time when payment was not even due for two months.
__________________
2019 M2 Competition- October 2, 2018 ED
2011 BMW M3 Sedan Alpine White
Picked up via ED 9/27/2011 & Redelivered 11/23/2011 **SOLD**
Appreciate 0
      02-05-2016, 10:33 PM   #13
M3 Adjuster
Banned
Albania
7905
Rep
11,785
Posts

Drives: 1M, X1 M Sport, E46 325ic
Join Date: Mar 2008
Location: Dallas, Tx

iTrader: (0)

Quote:
Originally Posted by AlexCirc
Any recommendations on financing in general? I am not doing a ED, but this will be my first time buying brand new.. would a credit union be best to start at? Any input is appreciated!

Credit unions typically give better rates than banks. They also tend to be a little more lenient as they get to know you as a customer. My CU Has the same rates for new and used vehicles. I just got 1.99 for 72 months for a used car and they also will do 84 months for loans over 30k.
With Bimonthly payments and/or paying 26 times a year you really keep the interest charges low
Appreciate 2
      02-06-2016, 08:43 PM   #14
pruettfan
Brigadier General
1622
Rep
3,402
Posts

Drives: 2017 M2, LBB, DCT, Exec
Join Date: Jul 2009
Location: Chandler, AZ

iTrader: (0)

I am a strong believer in credit unions. My preferred is Navy Federal because I do all of my banking their now but there are a lot of great credit unions for car financing like Digital Federal and Pen Fed. USAA isn't a credit union but also has great deals. Short of a promotional finance deal from a captive financing unit you can't beat credit union financing. BMW won't likely any promotional rates for the M2 anytime soon.
Appreciate 2
      02-08-2016, 07:38 AM   #15
Wr3ks
Enlisted Member
32
Rep
49
Posts

Drives: 2013 WRX
Join Date: Jan 2016
Location: EBF, NH

iTrader: (0)

Quote:
Originally Posted by M3 Adjuster View Post
Credit unions typically give better rates than banks. They also tend to be a little more lenient as they get to know you as a customer. My CU Has the same rates for new and used vehicles. I just got 1.99 for 72 months for a used car and they also will do 84 months for loans over 30k.
With Bimonthly payments and/or paying 26 times a year you really keep the interest charges low
I tend to stay away from longer loans but seeing as I'll be looking into financing an m2 for roughly $30k or even an M3 for roughly $40k I might look into this Bimonthly payments you mention.

I'd imagine the monthly payment works out to be the same as a single payment a month loan but by paying twice a month that lowers the interest rate?
Appreciate 0
      02-08-2016, 12:25 PM   #16
M3 Adjuster
Banned
Albania
7905
Rep
11,785
Posts

Drives: 1M, X1 M Sport, E46 325ic
Join Date: Mar 2008
Location: Dallas, Tx

iTrader: (0)

Quote:
Originally Posted by Wr3ks
Quote:
Originally Posted by M3 Adjuster View Post
Credit unions typically give better rates than banks. They also tend to be a little more lenient as they get to know you as a customer. My CU Has the same rates for new and used vehicles. I just got 1.99 for 72 months for a used car and they also will do 84 months for loans over 30k.
With Bimonthly payments and/or paying 26 times a year you really keep the interest charges low
I tend to stay away from longer loans but seeing as I'll be looking into financing an m2 for roughly $30k or even an M3 for roughly $40k I might look into this Bimonthly payments you mention.

I'd imagine the monthly payment works out to be the same as a single payment a month loan but by paying twice a month that lowers the interest rate?
Correct the amount of interest is reduced.
Appreciate 0
      02-08-2016, 06:58 PM   #17
TunedM2C
Brigadier General
TunedM2C's Avatar
No_Country
826
Rep
4,190
Posts

Drives: 2016 LBB M2
Join Date: Jan 2008
Location: Earth

iTrader: (2)

I've used PenFed for my last five cars and have always had a great experience. The car comes in, you agree on price, go home later that day to let PenFed know the financing amount and they overnight a check for next day delivery. Such an easy experience.

However, since this is a new model they'll need to update their database which may take time as it did when I financed my 1M. They had no idea what a 1M was back then so I had to take them to ///M skool.
Appreciate 1
      02-09-2016, 02:59 AM   #18
eugegall
Second Lieutenant
eugegall's Avatar
United Kingdom
178
Rep
281
Posts

Drives: M4 CS
Join Date: Sep 2009
Location: Surrey, UK

iTrader: (0)

Think yourselves lucky. i won't get it for anything cheaper than BMW FS at 6.2%.

We're completely ripped off in the UK. For everything.
Appreciate 2
      02-10-2016, 12:59 PM   #19
Mik3ymomo
Lieutenant
Mik3ymomo's Avatar
205
Rep
472
Posts

Drives: 540i XDrive
Join Date: Sep 2013
Location: Mount Laurel, NJ

iTrader: (0)

Quote:
Originally Posted by eugegall View Post
Think yourselves lucky. i won't get it for anything cheaper than BMW FS at 6.2%.

We're completely ripped off in the UK. For everything.
Don't worry, we won't be far behind you guys as our people believe the politicians when they say they can give them everything they want....
Appreciate 1
      02-10-2016, 02:12 PM   #20
///Jason
Private First Class
///Jason's Avatar
United Kingdom
112
Rep
147
Posts

Drives: E89 Z4 20i S-Drive M-Sport
Join Date: Dec 2015
Location: Norfolk, UK

iTrader: (0)

Quote:
Originally Posted by eugegall
Think yourselves lucky. i won't get it for anything cheaper than BMW FS at 6.2%.

We're completely ripped off in the UK. For everything.
Are you planning on using BMW FS or shopping around?
Appreciate 0
      02-10-2016, 02:27 PM   #21
eugegall
Second Lieutenant
eugegall's Avatar
United Kingdom
178
Rep
281
Posts

Drives: M4 CS
Join Date: Sep 2009
Location: Surrey, UK

iTrader: (0)

Quote:
Originally Posted by ///Jason View Post
Are you planning on using BMW FS or shopping around?
I'll probably just use BMW FS. I was propped yesterday and passed no problem so for ease... Although I did have a general look before and couldn't find anything much cheaper.
Appreciate 0
      02-10-2016, 03:19 PM   #22
auf Deutsch
Colonel
auf Deutsch's Avatar
United_States
1913
Rep
2,210
Posts

Drives: '17 jackrabbit on crystal meth
Join Date: Dec 2013
Location: Philly burbs

iTrader: (0)

Garage List
2017 BMW M2  [0.00]
I'm an avid lessee but if the M2 holds its value relatively well, I could see financing it.

I wish there was some sort of indication how its value is going to hold up.
__________________
2017 BSM M2|6MT|Exec|black kidneys and gills|full alcantara wheel|CF spoiler|Dinan Stage 4|Dinan COI|Dinan free flow exhaust with resonator delete|Fabspeed sport cat DP|BMS clutch stop|465 bhp|4.75/5 stars

retired: 2014 435xi|MPPK|335 bhp|3/5 stars
Appreciate 1
No Boost4019.00
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



All times are GMT -5. The time now is 11:38 AM.




m2
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
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