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View Full Version : How to pay for a Bimmer......


duke330ci
09-12-2002, 05:19 PM
So, I'm really close to approaching some dealerships to purchase a '03 330Ci. I'm going to try the Rizzo Method and need to get all my ducks in a row before talking to dealers.

One of the ducks is setting up financing for the purchase. At what point should I obtain a loan approval? Should I have an approved loan in hand when I talk to a dealer about securing a production slot? Or do I place the order first and then secure financing? Also, which do you think is better - fixed APR or variable APR?

Right now, I'm thinking of doing things in this order...please let me know if another process has worked better for getting the best APR on a loan. (It's very likely that I have it all mixed up.) One concern I have with this sequence, is that I will not know for sure if I will qualify for the loan before putting down a deposit. I expect to qualify but cannot be positive. I'm not worried about losing the deposit b/c the dealer told me that in NC they would have to return it even if I canceled. I would rather not have to cancel on them and tie up a production slot because financing fell through. :bawling:

1. find dealership with production slot available for Feb delivery and negotiate price.

2. pay $500 deposit to reserve production slot

3. within a month before expected delivery, apply and secure lowest loan rate from eloan, bankrate, lendingtree, etc.

4. see if dealer will be able to beat my lowest loan APR

5. make first monthly payment when bimmer is delivered in Feb.

I look fwd to seeing what ya'll think. Thanks for the input. duke330Ci

in_d_haus
09-12-2002, 05:21 PM
Looks like a solid plan Duke. :thumbup:

The HACK
09-12-2002, 05:25 PM
Looks good, looks like you've got your ducks all lined up, whatever that means.

You should also explore CREDIT UNIONS, if you belong to any, as a source for funding. Credit Union rates usually fall between bank rates and factory financing, but since BMW isn't offering the aggressive rates that GM, Ford, or Chrysler is offering, your best bet for the lowest rate financing may be through your local credit union.

The only draw back of a C.U. is that they usually have very stringent requirements for joining...But charter membership usually just involves a $25 fee and a checking account.

Look into it. A lot of people qualify for Credit Union financing but never explore it.

Melissa
09-12-2002, 05:38 PM
for a loan is Peoplefirst.com.

We got my bimmer as well as a beemer bike with great interest rates, better than our credit union.

Fill out app online, in most cases you will hear from them in an hour or so. They are west coast, so you may have to wait a little longer.

We even got an approval on a Sat, they overnighted the check to us for Monday delivery at no charge.

:thumbup:

operknockity
09-12-2002, 06:27 PM
Originally posted by The HACK
You should also explore CREDIT UNIONS,
Credit Unions:thumbup: .

I had a preapproval from one of my credit unions for an auto loan at a much better rate than BMW was offering. If they didn't match it then I'd have gotten my financing from the C/U. BMW came to within 0.1% of the C/U loan, which was worth it to me to avoid the added inconvience of having to get the invoice from the dealer, truck to the C/U, and back to the dealer with the check.

rwebbe
09-12-2002, 07:22 PM
I first gave my sales person a thousand dollar check after he wrote up the order for delivery at Tech Center. Than one month prior to taking delivery at the Center I gave him the big check which paid for the car, Title and Tag. I then later went to see the title clerk at the dealer and explained to her I was purchasing my own vanity tag (save the Bears) and would need a dual registration certificate to cover my 528 trade I was driving tilll I left for Greenville carrying the new tag in my luggage. She wrote me out one and I put it in my wallet. This covered the transition of both cars. I made many visits to my dealer during all of this and finally left my 528 trade in at my salesman's home Friday night with no receipt, went home and headed for Greenville at 7:00 AM on Delta from Melbourne, FL. The very nice guy at he Center who indoctrinated me on stuff the new car had inckuding Nav, installed my new tag with smoky bear on it and I was free to go. The nice American thing about this whole affair a good lot of this was done on my trusting my dealer with my money and my old car with noithing but a handshake. My neighbor, a retired R & D guy from Cadillac said I was nuts. My saleman and dealer "The Imported Car Store" must be something like "Cutter" and Jon. It is a pleasure to do business with them. I must add, Easter was coming up after I got my new car, and I mentioned to my salesmean that it would be my first Easter alone without my recently departed wife. He said, come and have Easter dinner with my family. Frank is a young guy with nice wife and kids and for him to do something like this brought tears to my eyes. I ended up staying with friends in Columbia so all ended well. I wish all of you could experience the, " Bimmer family experience".

operknockity
09-12-2002, 07:41 PM
Originally posted by rwebbe
a good lot of this was done on my trusting my dealer with my money and my old car with noithing but a handshake.
After negotiating the price for my car, the dealer and I shook hands on the deal and that was that. He didn't ask for a deposit, didn't take one when I offered and didn't screw with me come the delivery date. That's either trust or he wasn't worried about selling the car if I backed out. But from my point of view as a customer, it was a pleasure to do business with him and I would go back to him for future purchases.

rbright
09-13-2002, 08:58 AM
Originally posted by duke330ci
One of the ducks is setting up financing for the purchase. At what point should I obtain a loan approval? Should I have an approved loan in hand when I talk to a dealer about securing a production slot? Or do I place the order first and then secure financing? Also, which do you think is better - fixed APR or variable APR?

duke330Ci

Duke,

When I orderd my 330Ci (the first time I have ever ordered a car and my first Bimmer), I selected a local dealer with the first available production slot (they were all matching the lowest price). I drove a 325, then the 330 drove me, so all that was left to do was sit down with the saleswoman (who was perfect). In 10 minutes, I told her the colors and options I wanted, told her the price I was offered and asked if she would match it. Sure she groaned, went to the sales mgr, came back in 2 minutes and countered with $100 higher. I said, then throw in the floormats, she said no problem, we shook hands and it was a done deal.

She moved very quickly so the mgr could enter all my options on the allocated car, while I sat and chatted with her so I could leave with a production number and date. She then called to set up my delivery appt at the performance center and I signed two sheets of paper and we were done.

She said they had a $1000 deposit, which basically, they write down your credit card #, but never run the charge. When you come back with financing, they just toss out the credit card info. It is basically a trust system, with a little assurance to them (but you could always cancel the card if you really planned to bail out and screw the dealer).

She said that BMW financing is competitive, but I could probably find lower rates out there online or at my bank. She told me to look around for the best rates and come back in about 2 weeks before delivery to finalize the transaction with either theirs or other financing. She did say that I could lock in the BMW rate, and if it dropped, my loan would automatically drop as well,until I sealed the deal.

More on my loan process has been posted on here, I will get the link and let you all rest.

nate
09-13-2002, 09:33 AM
Pay with money, preferably US dollars

The HACK
09-13-2002, 10:02 AM
Originally posted by operknockity

Credit Unions:thumbup: .

I had a preapproval from one of my credit unions for an auto loan at a much better rate than BMW was offering. If they didn't match it then I'd have gotten my financing from the C/U. BMW came to within 0.1% of the C/U loan, which was worth it to me to avoid the added inconvience of having to get the invoice from the dealer, truck to the C/U, and back to the dealer with the check.

:lmao: :lmao: :lmao:

You know, I work at Credit Union Direct Lending...If your credit union was on our system, the loan would have been approved and funded right on the spot at the dealership, right?

Our system is live in California, Nevada, Washington, Oregon, Texas, and the New England area.

The goal of our Marketing Department was to get the words out to credit union members for credit unions on our system...I guess the effort's not working yet. :(

operknockity
09-13-2002, 10:25 AM
Originally posted by The HACK
You know, I work at Credit Union Direct Lending...If your credit union was on our system, the loan would have been approved and funded right on the spot at the dealership, right?
:dunno: :dunno: :dunno: Nope. Didn't know any of that. Would have made my financing easier if BMW didn't match the rate.