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      02-04-2016, 08:48 AM   #1
PackPride85
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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.
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      02-04-2016, 10:03 AM   #2
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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
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      02-04-2016, 10:19 AM   #3
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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.
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      02-04-2016, 10:57 AM   #4
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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.
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      02-04-2016, 11:07 AM   #5
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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.
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      02-04-2016, 11:14 AM   #6
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Can anyone join PedFed? 2% is cheap. I thought 2.92 is good
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      02-04-2016, 11:29 AM   #7
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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.
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      02-04-2016, 12:59 PM   #8
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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.
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      02-04-2016, 02:12 PM   #9
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I did the same - more so in case I want a Benz this time next year those discounts looked pretty significant.
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      02-04-2016, 02:42 PM   #10
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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!
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      02-04-2016, 02:49 PM   #11
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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.
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      02-04-2016, 03:18 PM   #12
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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.
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      02-06-2016, 12:33 AM   #13
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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
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      02-06-2016, 10:43 PM   #14
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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.
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      02-08-2016, 09:38 AM   #15
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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?
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      02-08-2016, 02:25 PM   #16
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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.
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      02-08-2016, 08:58 PM   #17
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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.
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      02-09-2016, 04:59 AM   #18
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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.
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      02-10-2016, 02:59 PM   #19
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Quote:
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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....
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      02-10-2016, 04:12 PM   #20
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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?
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      02-10-2016, 04:27 PM   #21
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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.
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      02-10-2016, 05:19 PM   #22
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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.
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